Supply And Demand, Price Discovery, And Commodities Markets: Reviewing Recent Events

NinjaTrader
2 min readFeb 8, 2024

Basic economics tells us that understanding the supply and demand equation is paramount to price discovery for any market, and commodities are no different. While crude oil and copper have different supply factors, they are somewhat similar on the demand side as the health of the economy dictates the need for these vital resources.

In addition to the weekly reports from the U.S. Energy Information Administration (EIA), another source to monitor is the U.S. Manufacturing Purchasing Managers Index (PMI). This measure of the manufacturing sector of the economy has switched to expansion mode, which might mean that demand could be increasing for energy and metals markets. This comes at a time when the technical readings on the daily charts could also inform whether market participants believe that a recovery is underway.

Co-Founder of Path Trading Partners and Futures Edge Podcast Bob Iaccino joined us on this week’s episode of “See the Futures” to review recent events in the energy markets and some of the factors that might shape traders’ opinions on these global markets.

Additional topics discussed in this free livestream:

  • Why oil companies’ rising profits can help keep oil prices lower
  • Oil output in the U.S.
  • Where growth in oil demand will arise in the near future
  • What the copper market might imply about China’s economic recovery
  • Chart analysis of WTI Crude Oil, copper, and U.S. Manufacturing PMI

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This article was originally published on NinjaTrader.com: https://ninjatrader.com/futures/blogs/supply-and-demand-price-discovery-and-commodities-markets-reviewing-recent-events/

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