Commodities Market

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Odd Lots: Why the Price of Oil and Beef Makes No Sense (Podcast)

Whether it’s the price of a barrel of Brent crude or a pound of beef, it’s clear prices are skyrocketing for all kinds of goods and commodities. Price shocks and shortages are, if anything, the way consumers understand the economy right now — at the grocery store or at the gas pump. Certainly, current (and future) shocks can be explained by the closure of the Strait of Hormuz. But the environment is weirder than just across the board price increases: The price of corn has barely moved, for insta

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Goldman Sachs Says Europe Faces Summer Jet Fuel Squeeze

Michele Della Vigna, head of EMEA natural resources research at Goldman Sachs, discusses the ongoing closure of the Strait of Hormuz and its impact on jet fuel supplies. “The problem is if the strait does not reopen, and we don’t have that confidence, then we need to get into what we call demand rationing pricing,” Della Vigna explains during an interview on Bloomberg Television. “Effectively, prices making sure that demand comes down enough to rebalance the market, which would be a 15% reduction in flights in Europe.” (Source: Bloomberg)

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