The Prospector News

Commodity Prices Lose Ground Again in January: Scotiabank

You have opened a direct link to the current edition PDF

Open PDF Close
Industry Analysts

Share this news article

Commodity Prices Lose Ground Again in January: Scotiabank






Scotiabank’s Commodity Price Index lost ground again in January, declining 5.1% month-over-month (m/m), pushed down by financial market volatility and heightened concern over the outlook for China and global growth. The All Items Index has now dropped 26% below the April 2009 bottom during the last recession and is lower than a decade ago.



The Oil & Gas Index once more led commodity prices lower in January (-15.9% m/m & -38.1% yr/yr). As prices approach the bottom of the world cost curve, Saudi Arabia and Russia have agreed to a tentative oil output freeze.



“Today’s battle for oil market share — not only between Saudi Arabia and the U.S. shale producers, but also between Saudi Arabia and Iran/Iraq — has prevented a rebalancing of excessive world supplies despite generally favourable demand prospects,” said Patricia Mohr, Vice President of Economics and Commodity Market Specialist at Scotiabank. “The tentative agreement between Saudi Arabia & Russia (at the urging of Venezuela & Qatar) is a step in the right direction towards steadying world oil prices, though actual production cuts are probably needed.”



Other highlights from the report include:


  1. An outline of the pre-conditions for a lasting rebound in oil prices.
  2. A number of base metals (zinc and copper) were ‘over-sold’ in January, with actual supply & demand conditions better than feared. LME zinc prices have snapped back in February, with traders realizing that zinc is in a ‘deficit’ position (both for refined metal and concentrates). As supplies tighten, zinc prices are likely to shoot up to US$1.25 per pound by 2017.
  3. Gold has regained its lustre, climbing to a 12-month high of US$1,241 per ounce on February 11, amid equity market & currency volatility and negative interest rates adopted by some central banks. The World Gold Council reports that global output dropped in 2015:Q4, with further declines expected in 2016-17.



    Read the full Scotiabank Commodity Price Index online at:,,3112,00.html.


    About Scotiabank



    Scotiabank is Canada’s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 23 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of $856 billion (as at October 31, 2015).

Posted February 22, 2016

Share this news article


Mickey Fulp - Mercenary Alert: Is Zinc Still a Four-Letter Word?

Read the Report Here Mercenary Alert: Is Zinc Still a Four-Letter Word? ... READ MORE

June 15, 2017

Top 10 Financings of May 2017

May saw 125 financings close in the Canadian financial markets for C$366.5 million including 64 fina... READ MORE

June 15, 2017

ORENINC INDEX jumps as gold gets political again

ORENINC INDEX – Monday, June 12, 2017 North America’s leading junior mining finance data provide... READ MORE

June 13, 2017

The Week of June 5th to June 11th, 2017 "A Brief Look Back Into Tomorrow"

The new North American trading week began on Monday June 5th with... READ MORE

June 12, 2017

The Week of May 29th to June 4th, 2017 "A Brief Look Back Into Tomorrow"

The new North American trading week began on Monday, May 29th wit... READ MORE

June 6, 2017

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions