Iran’s Floating Oil Hoard Swells

Summary

Bloomberg Intelligence Senior Commodity Strategist Mike McGlone discusses Iran's floating oil hoard and the broader commodity outlook. He argues crude oil will fall below $57 a barrel, copper is likely the next to decline, and bitcoin is in a severe bear market. Gold is expected to trade sideways for years, while a potential stock market drop could trigger broad commodity deflation.

• Iran's floating oil stockpiles are swelling as it struggles to find buyers during the 60-day sanctions waiver window
• McGlone forecasts crude oil to drop below $57/barrel, driven by global supply increases and technology's deflationary impact
• A pump-and-dump pattern has already hit many commodities; copper and crude oil are seen as next in line
• Bitcoin is in a severe bear market with an excess supply of cryptocurrencies needing to be flushed out; next support at $50,000
• Gold is likely to range-trade for years, similar to the long crude oil consolidation, offering no strong directional trend
• If the US stock market drops in the second half of the year, commodity prices could see severe deflation
• US gasoline prices are predicted to fall to $2/gallon from $3.80 by year-end