Barclays flags 'black swan threats' to commodities

Singapore

WATCH out for the unexpected in commodities in 2017. Barclays Plc said raw materials markets from energy to metals face the high likelihood of disruptions, giving a laundry list of possible threats including a default by Venezuela, riots in Chile and a trade war with China.

"The new politics of populism and protectionist trade policies have the potential to disrupt global supply and demand assumptions for various commodities," analysts said in a Jan 5 report. Commodities advanced in 2016 to post the first annual gain since 2010 as energy markets rebounded and investors reacted to unexpected political events including Donald Trump's election win in the US and Britain's vote to quit the European Union.