The IRF Podcast’s David Osman is joined by Kathleen Kelley of Queen Anne’ Gate Capital to discuss ‘The Outlook for Commodity Prices in 2021’.
Kathleen Kelley brings with her over 25 years of experience in global macro research with frequent television appearances on CNBC and Bloomberg. The podcast touches on the case for commodities to take a leading role in the global economic recovery from COVID-19 due to the reluctance of investors to fill their portfolios with stocks and bonds. Kathleen’s career has given her close connections to OPEC decision-makers and a unique perspective on the oil market as a result. Kathleen explains that Saudi Arabia’s decision to take one million barrels of oil as a ‘gift’ has placed a backstop on non-compliant OPEC members and as a result, producers such as in the US have seen a price increase. Kathleen expects to see oil prices to continue to rise in 2021 and 2022 due to a limited number of providers able to continue production within the next two years. Away from oil, Kathleen has seen as mismatch between supply and demand in base metals but sees this as a problem that has been fixed due to China- the centre of demand’s second lockdown and their stimulus tailing off. In the realm of commodities as a whole, Kathleen sees the total number of assets under management heightening during the COVID recovery. Whilst index funds and ETF’s are the most popular choice at the moment, Kathleen sees more specialisation in investors’ choices in the commodities market going forward.