SOURCE: Scotiabank


June 30, 2014 07:00 ET

Commodity Prices Edge Up in May: Scotiabank

TORONTO, ON--(Marketwired - June 30, 2014) - Scotiabank's Commodity Price Index steadied in May, up 0.5% month over month (m/m), but remained 3.3% below a year ago.

"After losing ground for two consecutive months, the Oil & Gas Index rallied back in May -- +3.5% m/m and +5.3% year over year (yr/yr) -- leading overall commodity prices higher," said Patricia Mohr, Scotiabank's Vice President of Economics and Commodity Market Specialist. "Equity valuations for Canadian oil & gas producers -- as measured by the S&P/TSX Oil & Gas Exploration and Production Index -- have jumped by 23% year to date, contributing substantially to the 10.5% gain in the TSX Composite this year (outpacing the 6.3% increase in the S&P 500)." 

Other highlights in the report include:

  • Iraq's northern oil output is threatened by the Islamic State of Iraq and Syria (ISIS) insurgency, boosting world oil prices; 
  • A looming global supply deficit lifts LME zinc prices;
  • Ottawa conditionally approves the Northern Gateway Pipeline. The U.S. also allows limited overseas 'condensate' exports, a release valve on a potential glut of 'light' oil in the United States in coming years; and
  • Lumber prices rally in late June, as U.S. housing shows signs of life. 

Read the full Scotiabank Commodity Price Index online at:,,3112,00.html.

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