Economics
A Tale of Two Gluts: Oil and Ore Cross $50 on Opposite Paths
- Overproduction in iron ore is not likely to go away: Saxo Bank
- Crude surplus is dissipating, International Energy Agency says
Global Disruptions Trim Oil Glut
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Crude oil and iron ore are two of the world’s most important industrial commodities, where supply and demand are tied to the fate of the global economy. Yet, they’re doing very different things right now.
Oil traded above $50 a barrel for the first time this year while iron, moving in the opposite direction, fell below $50 a ton on Thursday. It’s a slightly artificial comparison -- there’s little physical equivalence between a barrel of oil and a ton of ore -- but their differing paths tell us something about how the aftermath of the global commodities crash is playing out in different industries.