Energy price volatility is the new normal for market

As water shortages, greater competition for resources and climate change tighten commodity markets, the old pricing certainties no longer apply

The world is undergoing a period of intensified resource stress because of soaring demand from emerging economies and tightening commodity markets, according to a new report by Chatham House, a London-based think tank. Chatham House's Resources Futures report , which examines the supply and demand outlook for 19 key resources including crops, water and fossil fuels, says the world must get used to energy-price volatility. Climate change, water scarcity and a shift in historical trading patterns, driven by new demand from developing nations, will also continue to bolster prices, the study says. Annual price volatility is now higher than at any time in the past 100 years (though for energy pri