Buyer's Brief – Olive Oil Markets Set To Rise?
With COVID-19 not the only factor at play in the Olive Oil sector, Nick Peksa of Cost Insights examines the industry’s prospects. This article first appeared in ESM Issue 4 2020.
Earlier this year, crude oil prices went negative for the first time in history. It was quite a surprise when the markets dramatically crashed; of course, this was followed by one of the biggest rallies the industry has ever seen.
The continuous period of reduced demand due to COVID-19 has resulted in US oil inventories rising to a record 538.1 million barrels.
Negatively priced raw materials are not a frequent occurrence. Those that do dip into minus figures have normally been dependant on demand from other industries. Whilst we won’t see negative prices for olive oil, we certainly have seen something of a price crash in slow motion over the past three years.
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