Commodity surge may last 10 years

Investec Global Energy managers cite increasing capital expenditure as driving force

Increasing Capex budgets will drive the commodity bull run for at least another five to 10 years, according to Investec's Global Energy fund managers. Mark Lacey and Jonathan Waghorn warn short-term demand data will be weaker as global concerns creep in and airlines cut fleets but believe Bric economies will keep demand up longer term. "The volume of Chinese car sales is up 18% in the first four months of 2008 and the Brazilian sales up 38% as a result of a recent credit boom in the country," they said. "Demand for vehicles is fuelling non-OECD growth." Lacey added that the recent s...