Posts tagged 'supply'

Houston, we have a commodity abundance issue

From S&P Indices weekly commodities note by Mike McGlone on Friday:

The S&P GSCI declined 12.98% in May reversing earlier in-the-year gains for a year-to-date (YTD) decline of 8.33%.  May 2012 marked the worst monthly decline since the 13.19% loss in May 2010Increasing global economic slowdown fears and growing supplies of many commodities took their toll on the commodities market in May, along with declining equities and the increasing value of the U.S. dollar as measured by the month-to-date (MTD) decline of 6.01% in the S&P 500 and 5.46% increase in the U.S. dollar index. Energy, previously the stalwart sector, was the biggest drag on S&P GSCI returns on the month, as measured by the MTD decline of 15.30% in the S&P GSCI Energy index. Read more

Oil stat shock

The following story from the Guardian has caused quite a stir in the oil market on Tuesday morning:

The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.  The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves. Read more