24 August 2016

2016- n° 214

In July 2016, oil prices declined Prices of oil and raw material imports - July 2016

In July 2016, the crude oil price in euros declined (−5.6% after +3.5%). At €40.8 on average per barrel, the Brent price remained significantly lower than one year ago (−19.7%).

Prices in euros of the other imported commodities rose less strongly than in June (+0.8% after +3.0%), held back by the downturn in raw food material prices (−2.1% after +4.6%). However, prices of industrial raw materials accelerated (+2.9% after +1.8%).

In July, the price of crude oil from the North Sea (Brent) in euros shrunk (−5.6% after +3.5%), while it had increased since February. In dollars, the price fall was more marked (−7.0% after +2.9%) because the euro depreciated slightly during the month.

Prices of raw food materials in euros shrunk (−2.1% after +4.6%). Prices of oil seeds and vegetable oils fall sharply (−6.1% after +5.6%), driven down by plumeting soybean meal price. Prices of cereals also slipped back (−0.9% after +4.2%), due to the corn price collapse (−15.0% after +6.0%) following bumper crops outlooks, notably in the United States. The decline in beef meat price eased (−1.2% after −2.5%). Tropical foodstuff prices grew less

than in June, because of the decrease in cocoa price. After two months of sharp increase, the price of sugar clearly slowed (+3.4% after +16.6% in June and +11.6% in May).

Prices of industrial raw materials in euros increased again in July (+2.9%) more strongly than during the previous month (+1.8%). Prices of minerals kept rising (+3.0% after +2.2%). Indeed, prices of iron ore bounced back (+11.9% after −2.1%), and precious metals prices picked up (+12.1% after +3.2%). However, non-ferrous metals prices are pratically unchanged (+0.1% after +4.0%). Agricultural raw materials prices rose faster than in June (+2.8% after +0.7%), due to a rebound in natural rubber price (+4.2% after −6.5%).