16 November 2016

2016- n° 298

In October 2016, oil price increased sharply Prices of oil and raw material imports - October 2016

In October 2016, the price in euros of crude oil increased sharply (+9.6% after +0.1%) to stand at 45.1€ on average per barrel. The price of Brent crude is higher than a year before (+5.37%). The prices in euros of the other imported commodities bounced back (+1.8%), after two months of decline (−1.2% in September and −2.0% in August): the prices of industrial raw materials picked up (+3.0% after −1.3%) and those of raw food materials almost stabilised(−0.1% after −1.0%).

In October, the price in euros of crude oil from the North Sea (Brent) increased sharply (+9.6% after +0.1%), following the OPEP announcement about a potential agreement to reduce production. Expressed in dollars, the price rise was slightly less marked (+7.7% after +0.1%) because the euro depreciated a little during the month.

The prices in euros of industrial raw materials bounced back in October (+3.0% after −1.3%). Minerals prices recovered (+3.0% after −1.3%). The price of iron ore picked up (+4.2% after −6.3%); the prices of non-ferrous metals also went up (+3.4% after +0.0%). In contrast, the prices of precious metals declined for the third month in a row (−4.7% after −0.8%). The prices of agricultural raw materials also bounced back (+3.0% after −1.2%), particulary for sawn softwood (+3.4% after −3.8%) and natural rubber (+9.1% after 2.3%).

Expressed in euros, the prices of raw food materials remained practically stable (−0.1%), after three months of decline (−1.0% in September). Cereal prices recovered (+1.8% after −3.8%), as the corn price rose sharply (+8.1% after +1.8%). Tropical foodstuff prices bounced back (+0.7% after −0.3%): arabica and robusta prices kept increasing, wich offset a further decline in cacao price. The price of sugar increased strongly again (+9.2% after +6.6%), buoyed by weak harvests in Bresil. The decline in beef meat price eased (−1.0% after −6.3%), as the milk world price has recovered. In contrast, the prices of oil seeds and vegetable oils slid (−2.6% after −0.1%), because the soybean meal price decreased for the fourth month in a row.