| What is the biggest obstacle to a commodities rally? Saudi Arabia’s oil policy? China’s lower growth forecast? Try Wall Street. The big problem facing oil, natural gas, iron ore, coal and the like is that years of high prices prompted drillers and diggers to boost supply just in time for demand growth to cool off.
But drillers and diggers don’t like to stop what they do best just because prices have dropped. Better to let the other guy do that to rebalance the market. Keeping going, though, requires access to capital—and that is where Wall Street is the great enabler...............................................Full Article: Source
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