Citi’s 2021 Commodities Outlook: Futures in Focus

The video discusses the role of China in the commodities market, emphasizing its strategic stockpiling and the shift towards decarbonization. It explores the impact of vaccine news on commodity prices, particularly copper and oil, and examines the future of aviation fuel demand, highlighting efficiency gains and sustainable fuel. The video concludes with insights into oil market dynamics, including production trends and the influence of OPEC decisions.

What is the main reason for China's increased buying in the commodities market?

• To strategically stockpile and support decarbonization

• To dominate the global market

• To increase export revenues

• To support local industries

How has the vaccine news affected the commodity market?

• It led to a decrease in oil prices

• It caused an initial exuberance in the market

• It had no impact on the market

• It stabilized the copper market

What is the expected trend for copper prices by the end of the year?

• They will decrease significantly

• They will fluctuate unpredictably

• They will remain stable

• They will rise to the $8000 level

What is one reason for the expected decline in jet fuel demand?

• Introduction of more efficient jet engines

• Increased business travel

• Decrease in airline ticket prices

• Higher oil prices

What is one factor contributing to the bullish outlook on diesel compared to jet fuel?

• Increased demand for air travel

• Retirement of inefficient jet engines

• Higher production costs for diesel

• Government subsidies for jet fuel

Which type of crude is seeing a slowdown in availability?

• Dubai crude

• Heavy sour crude

• Brent crude

• Light sweet crude

What is a significant factor affecting the flattening of the oil market curve?

• Hedging activities during oil price increases

• Increased demand for heavy crude

• Introduction of new oil drilling technologies

• Decrease in global oil production