Exactly What Is In Store for Us?

It is no secret that China is driving several commodity markets, not just oil. Focusing on oil, 2004 can only be described as a banner year, but how long can this last? The market was weakening rapidly as December drew to a close reflecting the announced cutbacks in AG exports combined with buyers holding back in anticipation of lower oil prices and shipping rates. The explanation offered by OPEC is to put a floor under crude prices, but the floor looks more like something that belongs in the attic rather than the cellar. Anyway, average annual rates were way up, and so was the number of AG VLCC spot fixtures. Download here