TORONTO, ON - June 30, 2014 /CNW/ - Scotiabank's Commodity Price Index steadied in May, up 0.5% month over month (m/m), but remained 3.3% below a year ago.

"After losing ground for two consecutive months, the Oil & Gas Index rallied back in May -- +3.5% m/m and +5.3% year over year (yr/yr) -- leading overall commodity prices higher," said Patricia Mohr, Scotiabank's Vice President of Economics and Commodity Market Specialist. "Equity valuations for Canadian oil & gas producers -- as measured by the S&P/TSX Oil & Gas Exploration and Production Index -- have jumped by 23% year to date, contributing substantially to the 10.5% gain in the TSX Composite this year (outpacing the 6.3% increase in the S&P 500)." 

Other highlights in the report include:

• Iraq's northern oil output is threatened by the Islamic State of Iraq and Syria (ISIS) insurgency, boosting world oil prices; 
• A looming global supply deficit lifts LME zinc prices;
• Ottawa conditionally approves the Northern Gateway Pipeline. The U.S. also allows limited overseas 'condensate' exports, a release valve on a potential glut of 'light' oil in the United States in coming years; and
• Lumber prices rally in late June, as U.S. housing shows signs of life. 

Read the full Scotiabank Commodity Price Index online at: http://www.scotiabank.com/ca/en/0,,3112,00.html.

Scotiabank provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $792 billion (as at April 30, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York (NYSE: BNS) Exchanges. Scotiabank distributes the Bank's media releases using CNW. For more information please visit www.scotiabank.com.

For more information please contact:
Patricia Mohr
Scotiabank Economics
(416) 866-4210
patricia.mohr@scotiabank.com
or
Joe Konecny
Scotiabank Media Communications
(416) 933-1795
joe.konecny@scotiabank.com