The main themes that may drive commodity prices in 2013 are China's demand, quantitative easing, and the Eurozone financial crisis. If China develops like Japan and Korea did, its economy may start to transition to a slower economic clip in the next five years. Still, the volume of commodities needed versus today's output of metals, such as copper, build a case that supports high prices; China's copper consumption could double if China's growth trajectory mirrors that of Japan's or Korea's while supply grows by 3.5% annually.As for oil demand, China's increased needs could offset declines in U.S. and Europe. And while demands by other emerging markets including Africa, Latin Americas, and the Middle East are expected to rise, the overall demand elsewhere may only be slightly above the expected increase in non-OPEC oil supplies."
S&P Dow Jones Indices Recaps 2012 Financial Market Performance; Identifies Headwinds That Could Impact Returns In 2013
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