This is bad news for energy producers, and clearly complicates the task of planning and investment. Oil and natural gas now account for the majority of Canada’s commodity production. 3  4  Some commodities are also subject to frequent supply disruptions that accentuate price volatility.
BIS Review 63/2010  Another important feature worth noting is that the long-run demand and supply elasticities for most commodities are typically much higher. If commodity prices remain high, consumers find ways to economize on their use, or find substitute products. New supplies also gradually come online. All of these factors work to push prices lower.