You are here

Oil markets may be in for pain felt by miners

Iron ore producers who predict a swift exit by higher cost suppliers as their commodity enters a bear market are caught out as output curbs prove slower than expected

US crude output surged to 9.19 million barrels a day in the week to Jan 9, the fastest pace in weekly records dating back to 1983, amid a global supply surplus estimated at two million barrels a day.


OIL producers reluctant to curb output even as prices tumble to five-and-a-half year lows do not need to guess what the future holds. They can ask a miner.

In coal to iron ore markets, suppliers have raised volumes even as prices slumped, boosting global gluts and