Oil prices will grow less than initially expected in 2017 as climate and economic issues continue. Global oil demand is expected to be one point two million barrels per day next year, down from the one point four million barrels per day in 2016 according to an August update from the International Energy Agency. Despite soft pricing, oil supply has increased recently, with both OPED and non-OPEC countries increasing output.
The World Bank downgraded its 2016 global growth forecast in June citing concerns over emerging markets and developing economies that have struggled to adapt to lower oil prices for their oil and key commodity exports. Stockpiles are elevated per earlier large investments, notably iron ore in Australia, copper in Peru, and aluminium in China.
In early September, Hanjin Shipping Co, the World’s largest shipping container operator, filed for bankruptcy and announced it would expand court protection to 43 jurisdictions including Canada, Germany, the US and the UK. The filing prompted spikes in spot shipping rates as shipping companies cited scarce capacity on trans-Pacific routes.
China’s economic slowdown is impacting demand for commodities which in turn is affecting dry bulk seaborne transportation demand.
During 2015, the global fishery and aquaculture sector sustained growth in overall production and consumption, yet trade of fish and fishery products declined due to economic contractions in key markets, exchange rates and lower fish prices.
These energy sources are attracting more attention following the US and China’s formal commitment to COP21, the Paris Agreement. The agreement is considered a turning point in the use of alternative energy to cut global emissions and minimise climate change worldwide.