What affects the supply of oil? How important is the weather in determining grain prices? Why has the price of copper skyrocketed?

This unique book analyses the economics of key commodity groups, including energy, agriculture and metals. It examines the supply/demand fundamentals of several major and minor commodities, physical characteristics, production and consumption patterns, trade flows and pricing mechanisms. It also explains the main tools used to hedge price risk, such as futures, options and swaps.

This second edition has been fully revised and restructured, and contains four new chapters, including oil refining, electricity and price risk management for energy, metals and agricultural commodities

This book is an indispensable reference text for students, academics and those working in the commodity business.

chapter 1|27 pages

Fundamental energy economics

chapter 2|73 pages

Crude oil

chapter 3|23 pages

Refined oil products

chapter 4|29 pages

Natural gas

chapter 5|21 pages


chapter 6|19 pages


chapter 7|40 pages

Energy derivative markets

chapter 8|16 pages

Fundamental mineral economics

chapter 9|33 pages

Iron ore and steel

chapter 10|15 pages


chapter 11|13 pages


chapter 12|37 pages

Metal derivative markets

chapter 13|16 pages

Fundamental agricultural economics

chapter 14|57 pages


chapter 15|48 pages

Soft commodities

chapter 16|34 pages

Agricultural derivative markets