April 2015 Market Commentary | IFA Colchester

Oil prices have been the main beneficiary in April, with Brent Crude spot rising 10% to a 2015 peak. This has been driven by expectations of reduced supply, which in turn is on the back of two main causes. Firstly, the predicted shakeout of US shale producers from low oil price levels following the lack of intervention from OPEC is beginning to take shape; BP, Shell and Exxon have all announced reduced profits for the year and as a result are reducing capital expenditure. Secondly, the ongoing conflict in Yemen is creating nervousness relating to the commodity’s transportation, with the region on key routes for the movement of oil from Gulf producers. However, the oil price may soon meet a ceiling with an additional half a million barrels per day set to come on stream from Iran, which could counteract supply shortage fears.

Emerging Markets prospered after a few months of flat performance, with the trend primarily driven by the BRIC nation