Energy prices to buck the downbeat trend

We expect most commodity prices to struggle this year against a backdrop of a stronger dollar and deteriorating investor risk appetite. Energy-related commodities will be the exception. We expect prices to tick up later in the year owing to greater seasonal demand and supply constraints. In 2024, the outlook should be brighter. We expect many prices to pick up as the US Fed’s rate-cutting cycle gets into full swing, global economic growth normalises, the US dollar depreciates and risk appetite improves. Again though, we suspect energy prices will buck this trend, and prices should fall as the supply picture improves.