Primary Commodities Report for October 27th - 31st

By: Gabriella Acevedo, The Quinnipiac University Global Economics Research Team

Commodities Index

Source: Yahoo Finance and own calculations. Rates are in United States dollars per one (1) unit of goods. Brent Crude Oil is measured in barrels. Natural Gas is measured in MMBtu (Million British Thermal Units), Gold is per troy ounce, and for Nickel the price reflects price per share of (NIKL) ETF. They are all indexed to be at 100 at the start of the period.

During the week of October 27^th to October 31^st  Natural Gas (Green) is the biggest mover. Natural gas remained steady during the week until the 29^th when it began to rise and continued to rise, ending the week at 24.8% above the baseline. Nickle (Red) remained stable during the week with a slight decline to end the week at ~ 3.2% below the baseline. Brent Oil (Black) and Gold (Yellow) followed a similar pattern this week with Brent Oil finishing the week at ~ 1.3% below the baseline and Gold (Yellow) at ~3.3% below the baseline.

Commodities Historical Trends

Source: Yahoo Finance and own calculations. Rates are in United States dollars per one (1) unit of goods. Brent Crude Oil is measured in barrels. Natural Gas is measured in MMBtu (Million British Thermal Units), Gold is per troy ounce, and for Nickel the price reflects price per share of (NIKL) ETF. The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.

Natural Gas (Green) continues to gradually rise for the month of October and broke the upper bound to end the month with a price of $4.15/MMBtu. Nickle (Red) remains below the upper bound and has continued to fall, ending the month with a price of $14.28/share. Brent Oil (Black) experienced a minor drop during the week but rose to a price of $64.75/barrel to finish the month. Gold (Yellow) fell slightly below the upper bound finishing the month at a price of $4034.50/troy oz.

Additional Reading

Oil prices dip as investors brace for OPEC+ output hike

The Yahoo Finance article states oil prices have begun to decline, as many prepare for OPEC+ to begin putting an output of 137,000 barrels a day for the upcoming month. Investors have raised concerns about a possible decline in demand and oversupply.