Perhaps at the margin, weak Japanese GDP - as it heads for a quintuple-dip recession - could be today's catalyst but both crude and copper prices are re-tumbling this morning, pressing cycle lows. The USDollar is drifting higher and dos not appear a major driver today. However, broadly speaking malinvestment-driven overcapacity and the collapse of fake credit-fueled demand continue to provide the backdrop for commodity carnage...
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"One overall big fundamental thing is the market is still heavily oversupplied, with OPEC still flooding the market,” Andy Sommer, an analyst at Axpo Trading AG in Dietikon, Switzerland, said by phone.
“If the Chinese economy is really so weak, and weakens further and takes with it other Asian economies, then the demand recovery forecast in the third quarter is adrift,” said Axpo’s Sommer.
The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing the nation’s OPEC representative Mehdi Asali.
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