CEO Morning Brief

Commodities Are a ‘win-win’ With US$100 Oil in Sight, Carlyle’s Currie Says

Publish date: Wed, 24 Apr 2024, 09:39 AM
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TheEdge CEO Morning Brief

(April 23): Commodities look like a “win-win” for investors as climbing prices reflect vigorous economic growth, according to veteran analyst Jeff Currie.

Even if high prices provoke central banks to maintain interest rates, it’s positive for the sector as it shows strength in underlying demand, he said in an interview with Bloomberg Television on Tuesday. Currie, who for decades was the face of commodities research at Goldman Sachs Group Inc, is now chief strategy officer of energy pathways at The Carlyle Group.

“We’re talking about rates being higher for longer because growth is so good,” Currie said. “We’re seeing a re-acceleration of growth across the board.”

As a result, the chances of oil prices rising above US$100 a barrel are “extraordinarily high,” Currie added. Brent futures were trading near US$88 a barrel on Tuesday as traders weighed the changing risk of Middle East conflict to supplies.

Gulf-based Opec producers Saudi Arabia and the United Arab Emirates now have more power over crude markets than ever because they hold the last remaining spare production capacity in the market, Currie said.

Source: TheEdge - 24 Apr 2024

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