Commodities Will Continue to Rally in 2017

While oil and base metals are expected to continue their rally in 2017, analysts and investment managers hold a more mixed view on the gold price 

Karen Kwok 13 December, 2016 | 11:18AM

This article is part of Morningstar's Guide to Alternative Investing; providing everything you need to know about property, commodities, infrastructure and other diversifying assets. 

The commodities rally looks set to continue into 2017, according to analysts and investment managers. The Organization of Petroleum Exporting Countries’ (OPEC) deal to cut oil production by 1.2 million barrels per day in its December meeting paved the way for a demand and supply rebalancing in the oil market which should result in moderate gains in the oil price.

This is the beginning of the oil price stabilising, Rowena Geraghty, EMEA sovereign analyst for Standish Mellon Asset Management, a fixed income investment boutique of BNY Mellon Investment, told Morningstar in London this week. She added that the OPEC deal would play a key role in US shale oil producers contribution to the market.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Energy and Resources Income72.50 GBX-0.68

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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