Brexit Makes Bitter Impact on Cocoa, Commodities

The video discusses the impact of the Brexit referendum on various commodities, focusing on oil, gold, and cocoa. Cocoa is highlighted as the most affected due to its pricing in sterling, leading to complex arbitrage between London and New York markets. The oil market is analyzed, considering potential price drops if Brexit occurs, despite improving supply-demand fundamentals. The International Energy Agency reports better-than-expected demand growth, particularly in the US and India, contributing to market balance.

Which commodity is most affected by the Brexit referendum due to its pricing in sterling pounds?

• Oil

• Gold

• Silver

• Cocoa

What is the main challenge for cocoa traders during the Brexit period?

• Supply chain disruptions

• Fluctuating oil prices

• Arbitrage between London and New York contracts

• Gold price volatility

How might Brexit impact the sterling pound according to the discussion?

• It will increase slightly

• It is likely to decrease

• It will remain stable

• It will strengthen significantly

What is the potential downside for oil prices if Brexit leads to a risk-off trade?

• Oil prices could increase by $5

• Oil prices could decrease by $5

• Oil prices could remain unchanged

• Oil prices could decrease by $10

According to the International Energy Agency, how is the oil demand performing compared to expectations?

• Demand is growing faster than expected

• Demand is lower than expected

• Demand is declining

• Demand is as expected