Outside of individual's holding crude oil stocks, damage to the economy from the fall in oil has been pretty minimal so far. Indeed, the price cut in home heating oil and gasoline has probably outweighed the damage from lower oil prices, so far. Unfortunately, this situation may not last.
Copper prices were range-bound during May, despite a number of potentially bullish developments. First, there was a tragic mining accident in Indonesia. Then the traditional nemesis of Chilean production, labor unrest, reared its head.
Chinese housewives or “aunties” have purchased 300 tons of the yellow metal in the past three weeks amounting in nearly $16 billion. The impact of the run on physical gold in China may have a significant effect on import statistics.