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Why are commodity prices rising?

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I thought we were in a crisis!
Just today I read that the commodity prices are rising for instance the prices on oil, copper and nickel have gone up. This makes me wonder, because logicly the prices on especially oil ought to fall. I mean we are in the middel of a financial crisis and the last thing that ought to happen it rising oil prices.

The price on oil influences most commodity prices
We know for sure that most prices go up when the oil becomes more expensive. Stuff such as grocceries; fruit, soap, bread and meat become more expensive to carry around the wold, which makes to prices go up.

The downside of optimism
The main reason that theese pricis have gone up is the there lately has been some optimism aboute the financial situation. Not as many people as expected have lost their job and so on. This news has made the IEA change their expectations to the use of oil in 2009, which then again has made the prices on oil rise.

Is there a way out?
One would think that positive news on the development in the financial situation would be an advantages, but somehow this does not neccessarily seem to be the case. What a shame!!!

Written by admin

juni 11th, 2009 at 2:26 pm

Posted in economics

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