After a positive start to the week on the back of China’s strong Q1 GDP data, commodity prices subsequently eased back on expectations of higher interest rates and worries about demand in advanced economies. OPEC+ members may have been left wondering if everyone had forgotten that they were cutting production as oil prices fell by more than $5 per barrel. Agricultural prices moved to the beat of their own drum, several rose this week despite a slightly stronger US dollar and the lower oil price.
Next week the focus will be firmly on economic activity in developed economies. The release of Q1 GDP data for the US on Thursday, and the EU on Friday, should show that both avoided negative growth. This should support most energy and agricultural prices but with little data coming out of China, industrial metals prices may have a fairly quiet week.
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