Are We Being Too Pessimistic About Commodities?

It is not new news that the commodity prices have been under pressure for the last year and a half. Back in July 2014, crude-oil prices were above $100. Today, it barely is above $40. Heating oil was above $3, and now it is under $1.4. Natural gas was above $4.5, but is under $2.4 today. A similar story is repeated in other commodities across the spectrum. If you track the commodities, you will see that seven out of 10 analysts don’t see a rebound happening any time soon. Reserve Bank of Australia recently released a statement on Nov. 17, 2015, saying the scope for a rebound is limited. Multiple banks have said they see copper prices are likely to fall further. There clearly is a lack of demand, and a supply glut is staring at us for the near future.