Copper hitting a new 52 week low this morning as global commodity demand continues in a well earned secular downturn. Too bad more countries, companies and individuals who reaped big income from the secular boom 2000 to 2011, did not save more for the mean reversion period now upon them…
Crude bulls, stung by the worst July on record, should expect further pain as slumping commodity currencies cut production costs.
Drillers from Russia to Canada, the world’s second- and fourth-biggest oil producers, sell crude in U.S. dollars while paying most operating costs in local currencies. The Canadian dollar dropped to an 11-year low against its U.S. counterpart this month while the Russian ruble trades near a six-month low.
Global oil supply has proven resilient. A 60 percent decline in U.S. dollar prices since June 2014 hasn’t curbed U.S. production, which is near the highest level in four decades. Iraq is producing at a record pace and Russian oil output reached a post-Soviet high this year. The world’s oil glut will last through 2016, the International Energy Agency said in an Aug. 12 report. Here is a direct video link.