Fitch Issues 2024 Commodity Risk Warning
Fitch Ratings Issues Risk Warning for Commodities in 2024
In a recent statement, international credit rating agency Fitch Ratings has issued a risk warning for commodities in 2024. The agency highlighted geopolitics and politics as the most important risks for commodities in the coming year.
According to the statement, the geopolitical price premium is expected to continue for most commodities, including oil and gas, copper, and gold. However, the decline in economic growth and significant spare oil capacity will limit price increases.
Fitch Ratings also pointed out that the global demand increase in commodities, such as oil, copper, and aluminum, is expected to weaken in 2024. This is primarily due to China’s growth forecast remaining below 5 percent, while global economic growth and the real estate market try to stabilize.
The warning from Fitch Ratings serves as a reminder of the potential challenges that the commodities market may face in the upcoming year. Market participants and investors will need to closely monitor geopolitical developments and economic indicators to navigate the potential risks and opportunities in the commodities sector.
