Oil, metals lead third-quarter commodities rebound

A key performance gauge for the commodities sector logged its first quarterly climb of the year, putting it on track for its second consecutive yearly gain, with energy and metals posting the biggest increases. Some of these sectors should continue their rise in the final quarter.

The S&P GSCI Index SPGSCI, -0.35% which tracks 24 commodities, rose 7.5% for the third quarter, after falling 6.5% in the first half. “There was a clear split between winners and losers this quarter, with economically sensitive energy and metals coming out ahead of agriculture and livestock,” says Jodie Gunzberg, global head of commodities and real assets at S&P Dow Jones Indices.

The energy sector, particularly gasoil, heating oil HOX7, -0.04% gasolineGCX7, -1.21% and crude oil CLX7, +0.19% was the quarter’s standout.

Gasoil, a fuel used in machinery, suffered from hurricane-related disruptions. The S&P GSCI Gasoil Index rose nearly 25% for the quarter. “Inventories didn’t get restocked,” says Gunzberg. The fuel is a top performer “from its strong fundamentals of low supply and high demand,” and prices are “likely to rise as the hurricane disturbed the usual September restocking window. The same supply and transportation issues may support oil and gasoline for some time.”

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