19.02.2016 - Commodities' well-travelled road to nowhere. Cutting output: Russell
Live and don't learn. That should be the motto of commodity producers whoattempt to push prices higher by trying a variety of methods torestrict supply. While the call by major producers including Saudi Arabia andRussia to freeze crude oil output at current levels is theheadline of the week, it's merely the latest in a long line ofattempts to arrest sliding commodity prices. In recent years various governments, producer bodies andeven companies have tried to influence commodity markets intheir favour, mostly with only very limited success. Thailand tried to push Asian rice prices higher in 2011 byrestricting supply in the mistaken belief that this would allowthe government to pay for a generous subsidy scheme for farmers...............................................Full Article: Source
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