Welcome to Thoughts in the Market.

I'm Andrew Sheetz, Chief Cross-Asset Strategist for Morgan Stanley.

And I'm Martin Ratz, Morgan Sandy's Global Oil Strategist, and Head of the European Energy

Team.

And today on the podcast, we'll be talking about the outlook for oil and energy as the

world continues to reopen.

It's Thursday, June 3rd at 3pm in London.

Some Martin commodity prices have seen big moves over the last several months.

I think a great place to start is just putting some context around the price changes

and commodities we've seen and how these compare versus history.

What's been happening?

Over the last year or so, we've seen price changes that we've really only seen back

in the 1970s when commodities were also very much in focus.

So we've been historically very strong rally in commodity prices.

I would say a few things have come together to really drive that rally.

First of all, it's simply the reopening trade, the economies are opening up, the world

is getting back to business, and that is stimulating demand more than supply and a lot

of commodity markets have naturally tightened as a result of that.

The second factor that has played a role is this inflationary backdrop.

And in many ways, this goes a bit to ways.

On the one hand, rising commodity prices are a source of inflation, but all the financial

investors also use commodity futures to hedge themselves against future inflation.

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