Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

IMF Forecast & China’s Growth Hurt Prices for Copper & Crude

January 20, 2015 at 11:00 by Vladimir Vyun

Commodities linked to economic growth dropped today after the International Monetary Fund trimmed its forecast for global growth in 2015 and China’s economic growth disappointed. Copper and crude oil were among losers.

The IMF revised its outlook for the world’s economic growth this year to 3.5 percent from the previous estimate of 3.8 percent. The agency said in the report:

The revisions reflect a reassessment of prospects in China, Russia, the euro area, and Japan as well as weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States is the only major economy for which growth projections have been raised.

As for China, the National Bureau of Statistics reported that gross domestic product grew 7.3 percent in the fourth quarter of 2014 from a year ago, a better reading than the predicted 7.2 percent. At the same time, the annual growth in 2014 was at the 7.4 percent level, which was below the government target of 7.5 percent and was the slowest pace of growth since 1990. China is the world’s biggest consumer of copper and the second biggest user of crude oil.

February contract for delivery of WTI crude oil sank 2.79 percent to $47.33 per barrel as of 10:55 GMT on NYMEX today. March Brent crude slipped 0.37 percent to $48.66 per barrel on ICE. March futures for copper declined 0.97 percent to $2.5915 per pound on COMEX.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu