November’s fall was driven by declines in energy and metal prices. Crude oil prices dropped as teetering OPEC+ unity sapped the crude oil market, and tensions between Iran and Israel cooled. That said, cold weather in Europe and the U.S. boosted prices for natural gas. Meanwhile, base metal prices lost ground as recent Chinese stimulus underwhelmed markets, and Donald Trump’s reelection spurred fears of trade disputes and boosted the dollar. This rally in the dollar, paired with expectations of softer Fed monetary policy easing in 2025, also dented prices for precious metals. Lastly, agricultural prices rose due to the USDA’s weaker-than-expected projections for corn supply in 2024/25 plus surging supply concerns for cocoa, coffee and palm oil amid adverse weather in key producers.
Commodities prices decreased 1.3% month on month in November, following October’s 3.3% rise.
This chart displays Brent Crude Oil (US$/bbl) from 2022 to 2024.