Commodities Prices

Commodity prices rose for the fifth successive month in May, although at the softest pace in this streak. In the energy complex the closure of the Hormuz Strait pushed up oil and gasoline prices, while European and U.S. natural gas prices rebounded as demand prospects were boosted by likely stronger air conditioning use due to a hot El Niño summer. Concerns over a strong El Niño weather phenomenon disrupting production in the coming months also aided agricultural prices, which rose to a 15-month high in May. Meanwhile, the base metal complex drew support from higher energy prices, supply disruptions and strong momentum in the AI sector. Finally, precious metals were the only group to post losses in May as inflation concerns prompted markets to scale back expectations for Federal Reserve rate cuts.

Commodities prices increased 1.7% month on month in May, following April’s 3.9% rise.