Sat, Feb 6, 2016
A A A
Welcome preal121
RSS

Author Archives | VRS

VRS - who has written 44353 posts on Opalesque Commodities Briefing.


Contact the author

Dollar softening boosts equities, commodities

Posted on 05 February 2016

Global equity markets rose on Thursday as diminished expectations of U.S. interest rate hikes this year pushed the dollar lower, which in turned boosted the prices of many commodities.

Commodities rout rolls through Australia Inc

Posted on 05 February 2016

Two of Australia’s biggest companies are slashing costs further and writing down the value of their resources businesses amid a deepening rout in commodities prices. South32, the diversified mining group spun out of BHP Billiton last year, on Thursday outlined plans to book a US$1.7bn writedown on the value of its manganese, coal and alumina assets stretching from Australia to South Africa and Brazil.

A contrarian view on soft commodities

Posted on 05 February 2016

The agricultural sector has been in negative territory for five years, putting specific food and food input companies at attractive valuations, according to Baring. Oil aside, other commodities such as food inputs have also fallen out of favour. The cumulative one-, three- and five year returns for the agriculture sector have all been double-digit negative.

Royal Dutch Shell boss predicts rebound in oil price

Posted on 05 February 2016

The global oil market will rebalance later this year, paving the way for a recovery in crude prices from their lowest level in more than a decade, according to Royal Dutch Shell’s chief executive.

You won’t see $70 oil until 2018: Morgan Stanley

Posted on 05 February 2016

Morgan Stanley has downgraded its outlook for oil prices, expecting low prices to persist for longer than previously thought as the supply and demand imbalance looks set to continue for at least another two years.

Russia and the Saudis: A 10-billion barrel game of oil bluff

Posted on 05 February 2016

As oil prices continue to cause market uncertainty, and with low fuel prices wreaking havoc on some countries’ economies, notably Russia’s, the world’s top oil producer has been at the forefront of trying to figure out whether or not a production cut should be implemented in order to support and stabilize prices.

Saudi Arabia Cuts Prices

Posted on 05 February 2016

Saudi Arabia on Thursday cut prices for its best-quality crude oil destined for customers in Europe and Asia amid uncertainty about whether the Organization of the Petroleum Exporting Countries will meet to discuss action to raise oil prices.

Secret Opec talks that raised oil price - will it happen again?

Posted on 05 February 2016

After a year of secret diplomacy and hushed-up talks around the world, Opec’s Saudi Arabia and rival Venezuela were persuaded to cut a deal by non-Opec Mexico that eased the acrimony and led to a much-needed rise in oil prices.

Six OPEC states ready for emergency meeting with non-OPEC members

Posted on 05 February 2016

Representatives of 6 member-states of the Organization of the Petroleum Exporting Countries (OPEC) are ready to participate in an emergency meeting on coordinated reduction of oil production with non-OPEC members, Venezuela’s Oil Minister Eulogio del Pino said during his visit to Tehran on Thursday.

The Trade: Gold prices surging to start 2016

Posted on 05 February 2016

Amid the market volatility in 2016, gold futures prices are already up nearly 8 percent this year. After posting three consecutive years of losses and falling to the lowest level in six years back in November, gold prices are once again on the rise as investors seek shelter from the global volatility in the commodity known for its safe haven appeal.

Australian producers welcome back A$1600 an ounce gold price

Posted on 05 February 2016

The price of an ounce of gold climbed again overnight in New York, adding 1.3% to US$1,156.20 an ounce. A falling U.S. Dollar did take the shine off a touch based in the local money, but the FX rate of AUD / USD 0.7196 has Aussie Dollar Gold back over A$1600 an ounce.

London gold market wrestles over future

Posted on 05 February 2016

There aren’t many places in the UK where you can walk in off the street and buy gold as a retail customer. A new store in London’s St James’s Street a stone’s throw from the Ritz wants shoppers.

Gold: No Silver Lining

Posted on 05 February 2016

Gold is continuing its impressive 2016 rally into early February. The recent surge may be coming to the end of the line, at least for the short term. Gold has not only reached overbought levels, but it is also missing an important silver lining of support behind its advance.

Keeping an eye on bullion supply and demand

Posted on 05 February 2016

A lot is riding on the demand side of the equation when it comes to metals’ price performance this year. Demand is the bigger wildcard with signals thus far being mixed in gold and silver bullion markets. The outlook for supply is more certain, and it isn’t pretty.

Positive Vibes for Gold ETFs

Posted on 05 February 2016

The SPDR Gold Shares, the largest bullion-backed exchange traded fund in the world, is off to a solid start to 2016 and while GLD and rival gold ETFs have a long way to go to snap out of what has become a lengthy bear market, momentum is building for gold.

Equity ETF Outflows Hit $16Bn in January

Posted on 05 February 2016

Exchange-traded funds backed by equities saw outflows of $16 billion in January, while fixed income backed ETFs benefited. According to latest “U.S ETF Flash Flows” report from State Street Global Advisors (SSGA), the drop in equity ETF holdings was due to the confluence of concerns around oil, China, and the potential threat of a global recession. As a result, ETF investors sought out other asset classes such as U.S. Treasuries and gold in January.

Who’s Winning the Global Currency War? Not the ECB

Posted on 05 February 2016

The euro is now at its highest level in over a year, and this has to be more bad news for Mario Draghi. The European Central Bank’s own calculation of the single currency’s effective exchange rate against a trade-weighted basket of 38 other currencies stood at 119.9056 on Thursday. That means that the real-world value of the euro has risen faster than the more commonly tracked exchange rate against the dollar.

Saudi currency devaluation would carry major political risk

Posted on 05 February 2016

A devaluation of Saudi Arabia’s currency could cause such political instability that Riyadh has little choice but to stick to its promise to use vast foreign exchange reserves to defend the riyal’s 30-year-old peg to the U.S. dollar.

Kenya stock market to launch carbon trading platform

Posted on 05 February 2016

Kenya’s stock market will launch an emissions trading platform that it hopes will help local companies sell their carbon credits to foreign buyers, local media reported. The Nairobi Securities Exchange (NSE) said it wants to help publically-listed Kenyan firms such as the country’s largest utility KenGen, Mumias Sugar, East Africa Portland Cement and grid operator Kenya Power, to sell their CERs, Business Daily Africa (BDAfrica) reported on Tuesday.

Hicks on Biz: Understanding carbon credits

Posted on 05 February 2016

Finally, through a company created to save the planet AND make money, I actually understand what “carbon credits” are all about. Airdrie-based Carbon Credit Solutions (CCS) Inc. partners up with folks (mostly farmers) who can create Alberta government-approved carbon credits. It assists in “making” these carbon credits, then buys and sells them, hopefully for a profit.

Commodity Bull Cycle Seen Rising From Ashes as Oil Bottoming

Posted on 04 February 2016

Europe’s largest publicly traded asset manager is calling the bottom for oil and sees a rebound in prices as one of the spurs that may start a new bull cycle in commodities. Schroders Plc says the oil price could rally almost two-thirds to as high as $50 a barrel in a few months as a slump to a 12-year low means producers will have to cut output.

Africa – No respite from a ‘commodities winter’

Posted on 04 February 2016

Each February, the Investing in African Mining Indaba in Cape Town gives an opportunity for many to escape the northern hemisphere winter. Unfortunately, the attendees this year will not be able to escape the harsh reality of the global “commodities winter”.

Here’s What Oil and Gas’s Ugly 2015 Did to Business Investment

Posted on 04 February 2016

In the final quarter of 2014, business investment related to oil, gas and other mining hit an all-time high. One year later, that’s dropped by more than half. It’s the second-biggest yearlong drop in inflation-adjusted investment seen by any of the major categories in more than 50 years. (Which is how long we’ve had comparable data.)

Could current oil prices be the new normal?

Posted on 04 February 2016

True to form, no sooner have sanctions been lifted then Tehran has moved to decisively ramp up energy production, the lifeblood of its struggling economy.

One sign that oil is losing its hold over markets

Posted on 04 February 2016

Is crude oil becoming old news? A particular currency seems to be suggesting so, says one strategist. On Tuesday, Boris Schlossberg of BK Asset Management noted that the correlation between the Canadian dollar and crude oil has been weakening, a sign that oil’s influence over markets may be coming to an end.

S&P turns negative on 20 oil and gas companies

Posted on 04 February 2016

Standard and Poor’s said Tuesday it had cut or was considering cutting the investment-grade credit ratings at 20 oil and gas giants, including Chevron Corp. and Exxon Mobil Corp. The ratings actions, which spanned integrated and independent producers, are an acknowledgement that $30 oil could shake the creditworthiness of even the largest oil and gas companies.

Could Russia and OPEC really strike a deal on oil?

Posted on 04 February 2016

Rumors of a Russia-OPEC deal on curbing production has offered oil prices some much needed relief, with prices surging again on Wednesday on further hints of a meeting.

Gold Resilient as This Year’s Best Commodity

Posted on 04 February 2016

Gold climbed to a three-month high, helping propel Newmont Mining Corp. to its biggest gain in seven years, as mining shares rallied amid diminishing expectations for more U.S. rate increases.

Why gold price will rise further ?

Posted on 04 February 2016

Gold’s rally this year has been driven mainly by what may be termed Western factors, namely buying on the back of worries over the state of the global economy and the subsequent desire for safe haven assets.

Chinese Seen Buying More Gold as Investors Seek Haven Assets

Posted on 04 February 2016

China’s gold demand will keep expanding as investors seek safe assets and jewelry buying increases, the China Gold Association said. Consumption in the country that vies with India as the world’s biggest user climbed 3.7 percent to 985.9 metric tons in 2015 from a year earlier, according to group data released on Wednesday.

Why 2016 Will Be The Year Of ETFs

Posted on 04 February 2016

The commodity shock, which has sent oil prices down to their lowest level in over 10 years, had a resounding negative impact on Canada’s economy, currency and equity markets in 2015, resulting in one of the most challenging years for investors since the financial crisis. But amidst the turmoil, exchange traded funds (ETFs) in Canada finished the year off strong, crossing $90 million in assets under management (AUM), and finishing the year with all-time net inflows.

UBS launches 8 currency-hedged smart beta ETFs

Posted on 04 February 2016

UBS Asset Management has launched eight GBP-hedged smart beta ETFs as it sees currency playing a bigger part in returns. The launches will give investors access to factor-based exposures in the US and Europe, but with results hedged back to the pound. UBS says.

EC wants to crack down on virtual currency exchanges

Posted on 04 February 2016

The European Commission (EC) has announced its desire to crack down on the anonymous crypto-currencies. In a recent “action plan for strengthening the fight against terrorist financing”, the EC state its desire to staunch the flow of illicit funds into the hands of terrorists.

Betting against China’s currency

Posted on 04 February 2016

There are increasing signs of an economic slowdown in China, with pundits wondering whether this may prompt the government to let the national currency drop even further. Big hedge funds are already placing bets on this.

Guangdong becomes China’s first carbon market to green-light OTC forward trading

Posted on 04 February 2016

The Guangdong emissions exchange on Wednesday became the first in China to release rules for forward trading in carbon, though all deals must be negotiated over the counter (OTC) as screen-based forward trading is banned in the country’s regional pilot schemes.

Australia’s emissions are climbing again, but it already has the policies to turn the tide

Posted on 04 February 2016

The resumed growth of Australia’s greenhouse gas emissions after almost a decade of consistent decline shows the scale of the challenge ahead if Australia is to meet its climate commitments.

Emerging Stocks Drop With Commodities as Growth Concern Lingers

Posted on 03 February 2016

Emerging-market stocks fell the most in a week as oil deepened its decline and concern mounted that the contagion from China’s economic slowdown is spreading. A gauge of developing-nation exchange rates dropped for a second day, led by the Russian ruble.

Why January’s Commodity Performance Is Promising

Posted on 03 February 2016

Considering commodities were on pace to set the worst January since 1975 at one point, down 14.3% by January 20, the final monthly loss of just 5.2% is impressive. The S&P GSCI Total Return rebounded 10.6%, with nine of the twenty-four commodities posting gains for the month.

Is the commodities sector all doom and gloom? (Video)

Posted on 03 February 2016

During 2001 and 2011 the commodity’s market was booming, mainly driven by exuberance about Chinese consumption levels. The result was a steady flow of investment money, much of which found its way into developing projects.

New Zealand Commodity Prices Fall For Third Month

Posted on 03 February 2016

New Zealand’s commodity prices decreased for the third consecutive month in January, the results of a survey by ANZ showed Tuesday. The ANZ commodity price index dropped 2.3 percent month-over-month in January, which was worse than the 1.8 percent fall in December. The survey showed that prices were stable-to-better for nine of the 17 commodities monitored in January, with eight declining.

Commodities Crash Washes Up In Korea

Posted on 03 February 2016

Two of Korea’s biggest companies, Samsung and Posco, are feeling the pain of the commodities-price crash which has devastated the mining and oil industries. Samsung, a broadly diversified industrial business, has been hit by a loss associated with building an iron ore mine in Australia.

Oil price crash: Markets slump as Opec resists Russian calls for emergency meeting

Posted on 03 February 2016

Moscow’s foreign minister says Russia is ready to talk as country’s oil production reaches post-Cold War era high. Divisions between the world’s major oil producers were laid bare on Tuesday as markets dismissed the prospect of an emergency Opec meeting to cut production levels.

No trust between OPEC, other oil producers

Posted on 03 February 2016

OPEC won’t be able to agree with other oil suppliers on decreasing oil prices, as there is no trust between the sides, and each of the parties will play by its own rules, believes Svyatoslav Pavlyuk, a Ukrainian expert on energy efficiency.

No decision yet on OPEC, non-OPEC meeting, some in OPEC skeptical

Posted on 03 February 2016

OPEC has not yet scheduled any talks with Russia and other non-OPEC countries aimed at supporting oil prices, two OPEC delegates said on Tuesday after Russian officials talked up potential cooperation with the exporter group.

Russia is now China’s biggest oil partner — and it’s a huge problem for Saudi Arabia

Posted on 03 February 2016

Saudi Arabia has long trumped Russia in the Chinese oil market. The Saudi share of Chinese crude imports at the beginning of the decade was about 20%, while Russia’s was below 7%, according to data cited by RBC Capital Markets.

Oil could double despite OPEC supply flood

Posted on 03 February 2016

Plunging oil prices — down more than 30% in the past year — have been the primary contributing factor to the S&P 500’s worst start of the year since 2009, with January clocking in a 5.1% decline. And with crude plunging below $30 again Tuesday, investors are still looking for clues as to when we’ll see a bottom.

Gold to average $1,103 this year — LBMA

Posted on 03 February 2016

Gold is unlikely to hold its gains this year, with a survey of 31 analysts predicting an average price of $1,103 a troy ounce, according to the London Bullion Market Association. That’s $57 below the average price in 2015 and just 1.1 per cent higher than the price in the first half of this year, commodities correspondent Henry Sanderson reports.

Gold at three-month high as global economy concerns persist

Posted on 03 February 2016

Gold touched a new three-month high on Tuesday as concerns about the global economy and a further drop in the oil price pushed investors towards safe-haven assets. Weak Chinese manufacturing data on Monday underscored the challenges for the world economy and increased volatility in oil and other assets is supporting gold.

Gold Is Off to a Strong Start in 2016

Posted on 03 February 2016

The price of gold has jumped 6% this year, making it the best-performing commodity of 2016. At $1,127 an ounce, that’s well below its 2011 high of nearly $1,900 an ounce, but still better than its six-year low of $1,051.60 an ounce just a few months ago. Gold exchange-traded funds also are on the rise too, growing at their fastest rate in over a year.

Gold is Winning Believers in 2016

Posted on 03 February 2016

It’s been a lonely few years for gold bulls. Extraordinary monetary stimulus from the Federal Reserve — a pairing of ultra-low interest rates and quantitative easing (bond buying) — was supposed to drive rampant inflation, which in turn was supposed to drive investors to the relative safety of gold.

banner
February 2016
S M T W T F S
« Jan    
 123456
78910111213
14151617181920
21222324252627
2829