Surging Scotiabank Commodity Price Index Reveals Risk for Canada’s Oil Patch

Scotiabank’s Commodity Price Index ended 2010 on a very strong note, jumping 5.5 per cent month over month (m/m) in December.

The press release is quoted as saying:

The Metal and Mineral Index also strengthened markedly last month (up 3.1 per cent m/m). LME copper was again a star performer, rising from US$3.84 per pound to US$4.15 in December and a new all-time record high of US$4.44 on January 19. The introduction on December 10 of the first copper ETF (exchange traded fund) in London, with two more to come in 2011- adding another investment layer to copper demand – and stepped-up copper imports into China (after a slow summer) boosted prices. Spot uranium prices also continue to rally, jumping to US$70 per pound in late January amid thin spot market availability. Utilities and investment funds are attempting to arrange supplies in view of the expiry of the HEU agreement in 2013 and China’s recent term contracts, tying up a large portion of world supplies medium-term.

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