![]() Get the latest local updates right to your inbox.Download our app to get local alerts to your device.At the time, Royal LePage said that its analysts believed the second quarter “produced most of the price declines we will see this cycle” and that values would more or less hold over the rest of the year. The more pessimistic report comes after the realtor’s July prediction that prices in the GTA would be up approximately three per cent by the fourth quarter of this year. However, that number is expected to drop to $1.08 million in the final quarter of this year, marking the third consecutive quarter of price declines. “Together these fundamental economic factors have formed a ‘perfect storm’ that is causing significant upward pressures on futures prices across the board.The aggregate home price in the Greater Toronto Area decreased by nearly six per cent from the second to third quarter this year and is expected to drop once again in the coming months.Ī report released today by Royal LePage showed GTA housing prices up 2.1 per cent year-over-year to $1.09 million in the third quarter of 2022. “Simply put, the economic data shows that overall commodity price levels, including agricultural commodity and energy futures prices, are being driven by powerful fundamental economic forces and the laws of supply and demand,” Mr. Harris pointed to a confluence of trends that has contributed to the oil price rally, including a weak dollar, strong energy demand from emerging economies, and political tensions in oil-producing countries. Jeffrey Harris, the chief economist at the Commodity Futures Trading Commission, who was speaking before a Senate committee last month, said he saw no evidence of a speculative bubble in commodities. I don’t see who would buy at these prices unless they need to.” You are an airline, right now, you’re scared. There is a whole bunch of commercial buyers out there who are spooked and are buying. “I don’t know how else to say it, this is not a bubble,” Jan Stuart, global oil economist at UBS, said. ![]() The rise in oil prices aggravates the prospects for a recession.”īut many analysts say that fundamentals, not speculation, are driving prices. “The danger currently comes from the other direction. But he cautioned that an oil market crash was not imminent. “I find commodity index buying eerily reminiscent of a similar craze for portfolio insurance, which led to the stock market crash of 1987,” Mr. But investors are caught in a bullish mood, focusing on the perceived risks to future oil supplies and the growth in oil demand from emerging economies, where fuel prices are subsidized.Įven as uncertainties abound about the fundamentals of the energy market, geopolitical tensions in the Middle East regained center stage after Israel’s transportation minister and a deputy prime minister, Shaul Mofaz, said Friday that an attack on Iran’s nuclear sites looked “unavoidable” if Iran did not abandon its nuclear program. Prices kept rising despite a lack of shortages in the market and strong evidence of lower consumption in industrialized countries. The pronounced volatility in energy markets in recent weeks continued to puzzle traders. The broader Standard and Poor’s 500-stock index fell 3 percent, its biggest drop since February. The Dow Jones industrials lost 394.64 points, or 3 percent, to 12,209.81, with financial stocks showing the biggest declines. But the market has gotten extremely impatient and is not willing to wait.”įriday’s negative news pricked a budding sentiment on Wall Street that the financial system was on the mend, and stocks fell sharply. “It is searching for a price that will build a safety cushion in the system either as inventories or as spare capacity. ![]() “This market is going to shoot itself in the foot,” said Adam Robinson, an energy analyst at Lehman Brothers. The record rise brought a two-day jump of more than $16 a barrel, after Thursday’s 5.5 percent gain. Oil futures surged $10.75, or 8 percent, to $138.54 a barrel on the New York Mercantile Exchange, their biggest jump since contracts began trading in 1983. Oil prices have doubled in the last 12 months, and are up 42 percent since the beginning of the year. The unprecedented surge came as the dollar fell sharply against the euro and a senior Israeli politician once again raised the possibility of an attack against Iran.įriday’s jump capped a second day of strong gains on energy markets, and fed suspicions that commodities might be caught in an investment bubble. The rise in oil prices turned into a stampede on Friday with futures jumping a staggering $11 a barrel to set a record above $138 a barrel.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |