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MetalCrawler is becoming a broken record of falling commodity and oil price news, as both fell deeply again this morning. Even top miner BHP Billiton is giving up any shred of optimism for iron ore and coal prices in its latest report.
Stock Plummet Continues
The Dow Jones industrial average sank more than 500 points this morning.
Energy companies were pummeled as the price of crude oil sank 7%, threatening more damage to an industry that has already been stricken with bankruptcies, layoffs and other cutbacks.
The price of US crude fell below $27 a barrel amid a global glut in oil supplies that seems to be getting worse. That’s the lowest price since May 2003 and a far cry from the $100 a barrel it fetched in the summer of 2014.
BHP and the Bear
BHP Billiton said on Wednesday that it sees no recovery in iron ore or coal prices in the next few years. BHP is still holding out hope for a rebound in copper and oil as it fights slumping earnings set to hit its long-protected dividend.
The top global miner reinforced the bleak outlook for most commodities in the near term, with markets slammed by oversupply as the economy slows in China, the world’s biggest metals consumer.