Base Metals Favored, Oil May Rise to $85, UBS Wealth's Gordon Says

The video discusses the current trends in the commodity market, highlighting the impact of China's trade data on base metals and the influence of global weather conditions on agricultural commodities like grains, soybeans, and cotton. It also examines the unwinding of long positions in soft commodities and the potential for recovery in hard commodities, particularly base metals like copper and nickel. The discussion extends to the oil market, focusing on the implications of the US-China trade tensions and OPEC's potential production adjustments.

What has been a significant factor in the recent downturn of base metals?

• Improved weather conditions globally

• Increased agricultural production

• Weak Chinese activity data

• Strong Chinese trade data

Which region's weather conditions have notably affected cotton production?

• South America

• Australia

• Texas Panhandle

• Midwest USA

What is a reason for the tightening of global corn stocks?

• Reduced planting area

• Improved weather conditions

• Higher global demand

• Increased planting area

What is one reason for the potential support of base metals like copper?

• Decreased housing data

• Lack of new mines

• Rising inventories

• Increased Chinese infrastructure investment

What could be a consequence of a 1.5 million barrel per day increase in oil production?

• Oil prices falling by $2-3

• Oil prices falling by $10

• Oil prices rising by $5

• No change in oil prices

What is the expected maximum increase in oil production by OPEC?

• 500,000 to 600,000 barrels per day

• 2 million barrels per day

• 3 million barrels per day

• 1 million barrels per day

What is the targeted oil price on a 3-month basis according to the discussion?

• $75 per barrel

• $65 per barrel

• $85 per barrel

• $95 per barrel