A global price war in crude oil saw the price per barrel drop below $28 this month, as a supply glut and weak global growth continue to hammer the commodities sector as a whole.
The Bloomberg Commodity index was down close to 25% in 2015, nearly reaching its lowest level since the index was formed in 1991, and roughly 50% lower than its 2011 high. However, could a changing environment in the US help the sector rebound this year? Headwinds from a strong US dollar have been a key concern for investors in recent years, as commodities are priced in US dollars which makes them more expensive for holders of other currencies. However, with the US dollar likely to depreciate this year as its economy enters a new rate cycle, commodities could be the beneficiary. In...
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