OPEC Says High Commodity Prices Era is Over

The commodity market’s “supercycle” of strong growth is waning, OPEC said on Wednesday, with commodity prices currently in transition mode to slower growth rates.
OPEC (the Organization of the Petroleum Exporting Countries) joined a chorus of analysts who have been warning for several months that the era of high prices for commodities is ending.

The group cited a slowdown in emerging economies, in particular China, coupled with decelerating foreign investment in those markets, as an explanation.

“It seems that emerging economies will continue to grow at lower rates than in the past years. China is currently forecast to grow by 7.7 percent this year and next year, considerably lower than its average growth over the past decade,” OPEC said. “This should lead to somewhat lower relative demand changes in the future, and while a decline of commodity prices seems unlikely in general, it also points to slower expected price rises in the future.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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