Commodities and the spillovers from financial markets

While commodity prices have also been caught up in the chaos stemming from the banking sector turmoil, so far the impact hasn’t been too alarming as price falls for most commodities haven’t been overly large. Where those falls have been greatest, such as in oil markets, implied volatility has risen but is still shy of troubling levels, and liquidity doesn’t seem to have dried up.

In view of the wider interest we are also sending this Commodities Overview Update to clients of our Energy and Metals Services.