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Hedge funds have piled into what’s become the biggest bullish wager on the asset class in at least a decade, a collective bet that government stimulus plus near-zero interest rates will fuel demand, generate inflation and further weaken the U.S. dollar as the economy rebounds from the pandemic. The asset class is typically seen as good hedge against inflation. Source: Bloomberg

The electric vehicle (EV) revolution is gaining serious momentum. According to experts’ projections, demand for electric vehicles should rise at a 21.1% Compound Annual Growth Rate (CAGR) until 2026. The extraordinary demand that is forecast for EVs over the next five years has now begun to trigger a massive disruption in the global energy markets. - Yahoo

According to Crescat Capital, the value proposition for buying commodities and selling stocks has never been so pronounced.

The crack spread, the difference between gasoline prices and crude oil, was up 5.13%, according to Robert Yawger, energy futures analyst at Mizuho Securities. That means higher profits for refiners still up and running. Independent refiners, so badly battered by the pandemic, have seen a bump. The biggest gainers include shares of PBF Energy and CVR Energy, both up by about a fifth compared with a week ago. Around 82% of PBF Energy’s total refining capacity is outside the Gulf Coast area. Other refiners with mixed footprints, such as HollyFrontier Corp and Valero also have seen gains. Source: WSJ

There are already signs of emerging tightness on the London Metal Exchange, as spot contracts trade at a premium to futures. That pattern, known as backwardation, was a feature of the market during a record-breaking boom in Chinese demand last year, and suggests that spot demand is once again outpacing supply as exchange inventories run low. Three-month copper traded at $9,141.50 a ton on the LME at 11:02 a.m. in Singapore after hitting $9,187, the highest since 2011. In China, the SHFE contract hit the daily limit. Other metals rose, with LME nickel hitting $20,010 a ton, and tin at the highest since 2011. Source: Bloomberg