Barclays: Copper and Oil May See 'Steep Declines'

Bloomberg reported that according to Barclays plc (LSE:BARC), commodities like oil and copper may decline steeply due to “recent advances that aren’t fully grounded in improved fundamentals.” The firm predicts that investors may make a rush out of these commodities.
As quoted in the market news:

Copper may slump to the low $4 000s a metric ton, from $4 945 in London last week, while oil could fall back to the low $30s a barrel, analyst Kevin Norrish said in a note. The risk for raw materials is that investors seek to liquidate bets on gains quickly and in unison, with potentially highly negative consequences, Norrish wrote in the note entitled “Buffalo Jump,” a term that describes a cliff where Native Americans herded bison to their death.
“Investors have been attracted to commodities as one of the best performing assets so far in 2016,” he said in the March 28 report. “However, in the absence of any concerted fundamental improvements, those returns are unlikely to be repeated in the second quarter, making commodities vulnerable to a wave of investor liquidation.”

Click here to read the full Bloomberg report.