HSBC: Commodity Markets Are in a ‘Super Squeeze’

Global commodity markets are experiencing a “super squeeze,” as noted by HSBC’s chief economist Paul Bloxham. This situation, characterized by higher prices due to supply constraints rather than a surge in demand, is poised to intensify due to geopolitical and climate risks. This super squeeze is driven by factors such as political uncertainties, climate change impacts, and insufficient investment in green energy transition.