Jeff Currie remains optimistic about commodities this year

Mondo Finance Updated on 2024-01-31

Jeff Currie, who led commodities research at Goldman Sachs for nearly three decades, remains bullish on the sector this year.

The former senior Goldman Sachs analyst said in an interview with Bloomberg TV that raw material demand is at record levels, inventories are low, and spare capacity is basically "depleted". He added that copper has traded sideways** for most of 2023, with the biggest gains. "All of these markets are set up better than last year," Currie said, adding that if the Fed continues to cut rates, "you'll be ready for 2024." It's just a typical 'own commodity'. ”

Last year's ***10%, the worst annual performance since the pandemic in 2020, as booming production in the U.S. and elsewhere outpaced record consumption. Brent*** has had a shaky start to 2024, trading close to $77 per barrel.

Currie, traders are reluctant to take a hawkish view after suffering losses last year, but that should change. He said the "perfect disinflation" and production surge that weighed on the market in 2023 were unlikely to be repeated this year.

Currie said the next step in his career would be related to the energy transition, but it has not yet been finalized. He left the Wall Street giant last August after an extensive career in which he cemented a reputation for being bold and often bullish. He rose to fame by getting the commodity boom promoted by China at the beginning of the 21st century and the soaring oil prices of that decade. Currie then went on to repeat the feat in late 2020 after outlining the causes of another supercycle that could last a decade. (Compiled by Xiao Chen).

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