What a Biden victory could mean for commodities

A victory for the Democratic party in November’s presidential election has several potential implications for commodity markets. Very broadly, Joe Biden’s pledge to actively promote decarbonisation of the economy should accelerate the move away from coal, boost natural gas demand in the near term and be positive for agriculturals used to make biofuels. In the longer term, it has negative implications for the supply, demand and prices of all fossil fuels and biofuels. Elsewhere, if Biden’s infrastructure spending plans are realised, there would probably be a marked increase in US consumption of industrial metals.