14 August 2015

2015- n° 199

In July 2015, oil prices decreased again Prices of oil and raw material imports - July 2015

In July 2015, the price of crude oil in euros declined again (–8.7% after –3.9%), to average 50.8€ per barrel of Brent. The price tumbled by 35.9% compared to its level in July 2014, when it stood at 79.2€. Prices in euros of imported commodities except energy increased slightly (+0.6% after –1.1%), due to an uptick in raw food materials (+3.3%), while prices of industrial raw materials fell (–1.7%).

In July, the price of crude oil from the North Sea (Brent) in dollars dropped sharply (–10.4% after –3.4%), as a result of both a very high output in Saudi Arabia and a still high supply in the United States. In euros, the price of crude Brent dipped less sharply (–8.7% after –3.9%), because the euro still depreciated.

In July, prices of industrial raw materials in euros went down again (–1.7% after –3.8% in June), due to a drop in the prices of minerals. Year-on-year, prices decreased (–1.9%), despite the depreciation of the euro.

Prices of minerals kept falling (–2.8% after –5.9%), as a result of a slowdown in the economic activity in China, a country that consumes nearly half of the world’s industrial metals. Thus, prices of non ferrous metals edged down again in July (–0.9% after –7.1%). In particular, prices of copper kept dipping (–7.0% after –6.5%) due to a lower worldwide demand. Among the precious metals, prices of gold, responsive to movements in exchange rates for the American dollar, kept falling (–2.6% after –2.0%). Finally, prices of iron ore fell back sharply (–15.7% after +2.9%, –34.2% over a year), due to a rise in supply though the demand came down, in particular in China.

Prices of agricultural raw materials barely rose (+1.5% after +3.0%), due to an increase in prices of natural fibres (+0.2% after –1.1%), as a result of a shrinkage of the cotton farmland in the United States. On the other hand, prices of hides tumbled (–19.7%).

In July, prices of raw food materials kept rising (+3.3% after +2.2%), though prices of beef meat edged down (–6.3% after +1.7%). Prices of oil seeds and vegetable oils accelerated (+9.1% after +2.3%), in particular those of olive oil (+7.3% after +0.6%). Prices of palm oil fell back (–3.2% after +0,3%), due to an increase of output in South-East Asia. Prices of cereals recovered (+9.4% after –1.9%), as a result of a decreasing corn supply in the United States. Prices of sugar picked up as well (+3.1% after –8.0%).