Raw materials are the engine of the world. Oil, natural gas, gold, coal and iron can be considered as the most important. Its presence supports all aspects of the modern global economy, from the cars that we lead to the food we buy and the electricity we get just by clicking a button, Focusanalytics explained.
Oil stands out as the most commercialized product in the world, as it promotes transport, heating and electricity generation, in addition to serving as raw material for innumerable industrial and consumer products.
The main producers in the world are Russia, Saudi Arabia and the United States, each of which contributes approximately between 10 and 15 percent of the world offer.
But the rise of electric vehicles and renewable energies raises long -term challenges for oil demand, but in the short term, world consumption will remain strong, especially in the sectors of aviation and petrochemicals.
The prognosis of Focus analysts in the case of Brent, reference in Europe, by 2025 is around $ 75 per barrel, largely due to the increase in supply.
For its part, natural gas is a crucial energy source for heating generation and industrial processes, and its use is increasing as a cleaner coal alternative. Iran, Russia and the United States are, by far, the largest producers, and the latter, along with Qatar, is also the main exporter of liquefied natural gas.
The gas market is increasingly conditioned by geopolitical factors, such as the Russian war in Ukraine; The conflict has led the European Union to stop importing Russian gas by gas pipelines and importing gas, particularly from the United States.
The demand for natural gas should continue to grow in the future as developing economies be industrialized and more and more resort to this fuel as a cleaner alternative to oil or coal. However, the competence of renewable energies and the improvements in energy efficiency will continue to limit the bullish demand potential.
The industry needs them
Gold is a financial asset and a highly valued industrial product for its rarity, durability and conductivity. It is used in jewelry, electronic products and as a refuge of value in the reserves of the central banks and in the investment portfolios. The largest gold producing countries are Australia, China and Russia, while China and India dominate world demand due to their huge jewelry markets.
Gold prices have increased since the Covid-19 pandemic due to the growing world uncertainty and as coverage against high inflation, approaching 3 thousand dollars per Troy ounce. While the prognosis for the price of gold is of a slight setback, it will remain at the highest levels ever registered.
Coal remains a dominant energy source, particularly in the generation of electricity and steel manufacturing, despite the growing environmental concerns. China, India and Indonesia are the main producers, and China is also the largest consumer, representing more than half of the world demand for coal. India is emerging as another key market.
In particular, the rise of China’s solar and wind sectors, along with slower economic growth, will limit their appetite for coal. This is reflected in a softest coal prices forecast in 2025 compared to 2024, and prices will continue to fall in the following years.