US: Commodity prices and demand to keep rising

Despite the slowdown in the global economy, commodity prices have continued to strengthen. Oil prices at close to $100 per barrel have dominated headlines of late. This, in part, is a result of demand from India and China, where spending on internal infrastructure is generating massive demand for resources. The general slowing of worldwide growth compared with the ongoing strength of oil and materials prices shows that the market has underestimated this level of demand. From a US domestic perspective, the trend in rising energy prices also extends to natural gas, which has already soare...