Cheaper oil compounding protracted commodities slump
Oil price drop comes at same time as China slowdown and copper surplus
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
New York
LOWER fuel prices are compounding the longest commodity slump in a generation.
Because energy accounts for as much as half the cost to produce food and metals, all sorts of commodities will keep dropping, according to Societe Generale SA (SocGen) and Citigroup Inc. With inventories ample and slowing economies eroding demand, cheaper oil lowers the price floor for mining companies and farmers to remain profitable. Corn may drop another 3 per cent, cotton 6.5 per cent and gold as much as 5 per cent, SocGen estimates.
Share with us your feedback on BT's products and services
TRENDING NOW
Singaporeans can now buy record amount of yen per Singdollar
Beijing’s calculated silence on the Iran war
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
StarHub hands Ensign InfoSecurity control back to Temasek in S$115 million deal, books S$200 million gain
