Commodity markets have been under pressure in recent time amid a weak economic backdrop. Despite this, there are signs of tightness.

Inventories have always been a good guide to demand; and after a shaky start to the year, are showing signs of tightness across most markets. 

There has been a clear drawdown across commodity exchanges and the broader supply chain. However, the trends are more discrete across the energy market. Industrial metals are now at multi-decade low levels which could trigger price rallies amid supply shocks.