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Commodity Corner: Trading Oil, Gold and Corn
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Saxo Bank's Head of Commodity Strategy Ole Hansen brings us his weekly round up of the headlines from the commodity markets. This week he starts with the implications for the price of oil following the deal with Iran over its nuclear programme.
The price could be driven back down to USD 45 per barrel once Iranian oil is allowed into the open market. However, it wouldn't stay at those levels for long, in Ole's opinion, given that US shale oil producers would be forced to pause production leading to a drop in US supply.
Earlier this week Ole posted a #SaxoStrats trade shorting corn; going against the grain after the crop rose around 25% in a month. Ole brings us up to date with that trade.
Gold, and Ole sees potential for a short-term trade but notes that as the US Dollar strengthens, the commodity has been dropping by an almost identical percentage.