A comparison between the CRB-Index, the S&P 500 and the Eurostoxx 600 shows that since May 2020 the CRB even outperformed the stock markets. However, due to the extraordinary drop in WTI crude on 20 April (to USD minus 40/bbl), the total performance of the CRB-index has only turned neutral compared to Jan 2020 (versus Eurostoxx +2.1% (which is +9.4% in USD) and +21.4% for the S&P500).
The Energy market is an important driver for the CRB index. Not only because it is the largest component of the index (WTI = 23%), but also due to the market circumstances and excessive price swings.
We expect oil prices to ease during the coming months e.g. due to profit taking on the back of spare production capacity. This too has translated into a negative outlook for the CRB-index.Monthly-Commodity-Insights-Feb_2021.pdf (892 KB)