| It's been an annus horribilis for the oil and iron ore industries, and 2015 is unlikely to be much better as producers engage in epic games of chicken. Quite simply, a recent ramp up in output across both sectors means there's more oil and iron ore being produced than needed but no one wants to be the one to cut back.
Iron ore prices have slumped 46 per cent in the past year while oil prices have dropped 30 per cent since July as both industries grapple with an oversupplied market. In the case of iron ore, global giants Rio Tinto and BHP Billiton have embarked on a controversial strategy to increase production even as prices continue to dive...............................................Full Article: Source
|