Eurozone crisis darkens commodities demand

Financial Times
December 7, 2011

Commodities traders used to joke that the debt crisis in Greece ought to have little impact on their markets. After all, the country accounts for a minuscule proportion of global consumption – less than 0.5 per cent of the world’s oil demand, for example.

But the ripple of the eurozone debt crisis beyond Greece, Portugal and Ireland to much larger economies such as Spain, Italy and even France has dramatically altered the equation.

While Greece may be a minnow, Europe as a whole is one of the most important sources of commodities demand, driven by the manufacturing hubs of Germany and Italy.

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