Commodity & Infrastructure Insights

Last week’s FOMC meeting for once gave the market something to ponder. The $120BN of monthly bond buying looks set to taper before the end of the year, and to be down to zero by next summer. Fed buying of mortgage-backed securities has been especially superfluous, as shown by the red-hot housing market.

What a difference a year can make. In 2020, natural gas prices declined to multi-year lows. According to BP's 2021 Statistical Review of World Energy, prices at U.S. Henry Hub averaged $1.99/mmBTU – the lowest since 1995. Asian LNG prices, meanwhile, declined to their lowest level on record ever.

What a difference a year can make. In 2020, natural gas prices declined to multi-year lows. According to BP's 2021 Statistical Review of World Energy, prices at U.S. Henry Hub averaged $1.99/mmBTU – the lowest since 1995. Asian LNG prices, meanwhile, declined to their lowest level on record ever.

For years environmental extremists have campaigned with increasing success for less investment in fossil fuels. The logic has been that as CO2-emitting sources of energy become harder to access and more expensive, the world would increasingly turn to renewables.

For years environmental extremists have campaigned with increasing success for less investment in fossil fuels. The logic has been that as CO2-emitting sources of energy become harder to access and more expensive, the world would increasingly turn to renewables.

Our series on critical mineral commodities is focused on the future. We are looking at long-term supply and demand fundamentals, cutting edge technological uses, and potentially brittle supply chains to serve food for thought for savvy macro investors. Of course, we are also pulling back the curtain, if ever so slightly, on some of our own internal process for considering these issues.

Gold. What’s wrong with it? From spiking inflation, falling real interest rates, and massive money printing, it seems logical that gold, a touted inflation hedge, should be rising. Yet, so far this year, gold has done little.

Nickel and the various compounds derived from it are essential to modern manufacturing practices. Among nickel’s extensive virtues are its high melting point, its natural resistance to corruption, and the ease with which it can be combined with other elements to perform alloys.