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Commodity Markets Are Living On Borrowed Time

Commodity Markets Are Living On Borrowed Time Authored by Helen Thomas via City AM, Governments and industry have softened the impact of energy and commodity supply disruptions by releasing reserves, reducing inventories, and increasing operational flexibility. These measures are temporary, and continued inventory drawdowns are pushing oil and metal markets toward historically tight conditions. Once inventories become critically low, higher prices may become the primary mechanism for balancing supply and demand, leading to weaker economic growth and lower consumption. Commodity markets have spent the past three months performing an extraordinary balancing act. Despite one of...
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