Letter from the US: Oil’s tin problem
The history of tin production and prices offers a preview of the future oil market. If correct, $35/bl could become the new normal for crude for several years without further OPEC+ intervention
Tin producers were cosseted for decades through the International Tin Agreement (ITA) between them and consumers. The ITA was one of the commodity price stabilisation programmes that grew out of the 1944 Bretton Woods pact that established the International Monetary Fund and the World Bank. The agreement included the creation of the International Tin Council to oversee the stabilisation effort. Funds were provided to the council to build buffer stocks that could then be added to or sold off to keep prices stable. The ITA failed spectacularly in 1985 when the ITC did not meet margin calls to cover its positions on the London Metal Exchange as tin prices plummeted by 60%. The oil industr

Also in this section
25 March 2025
Cote d’Ivoire’s ambitions to become a major regional producer have gained renewed momentum, with established players and new entrants striking upstream deals and committing to long-term investment
24 March 2025
Indian E&P company wants to take domestic production to a new horizon, given the amount of unexplored opportunities
21 March 2025
Two recent developments raise the prospect of a revival in northern Iraqi oil and gas fortunes, but familiar obstacles could thwart momentum
20 March 2025
As cash-strapped Western governments commit to substantially raising defence expenditure, a similar dynamic is playing out in Saudi Arabia’s oil and gas sector, as Saudi Aramco maintains it heavy capex push despite reduced revenues