Kaput Macro: It is highly unlikely that the Fed's interest rate cuts will depress commodity prices.

Kai-Tou Macro's climate and commodity economist, Hamad Hussain, wrote in a report that the recent rate cut by the Fed does not seem to have a significant impact on commodity prices. He stated that any price boost that may come from the US rate cut could be offset by other factors, and added that the fundamentals of the commodity market generally appear weak. Due to slowing demand growth and increased supply from OPEC+, oil prices may decrease from now until the end of 2026. He said, "Another key factor is to what extent the market has already digested the Fed rate cut, which may limit any additional support for commodity prices, and may even pose resistance."