Sun, Aug 28, 2016
A A A
Welcome vaishu
RSS

Author Archives | VRS

VRS - who has written 47424 posts on Opalesque Commodities Briefing.


Contact the author

Global Economy Unruffled by Brexit but Threats Loom

Posted on 26 August 2016

Safe havens such as gold and the yen have given up most of their post-Brexit gains, while equity markets have rallied - but are there other threats around the corner? Sentiment in financial markets has soured since April, especially after the Brexit referendum. Most analysts have revised down their growth expectations for 2016 and 2017 and cut their inflation forecasts.

Look Past OPEC Freeze Hype to Really Understand Oil’s Advance

Posted on 26 August 2016

For all the feverish speculation of OPEC action that’s roiling oil markets, the real reason for crude’s recent recovery probably lies elsewhere. Oil futures have rallied more than 10 percent since the Organization of Petroleum Exporting Countries said it would hold informal talks in Algeria in late September, fueling expectations it could revive a pact on freezing production.

China’s Decline in Oil Production Echoes Globally

Posted on 26 August 2016

China’s struggling oil sector has entered a challenging new phase: long-term decline of its domestic production. Oil production in China likely peaked last year at around 4.3 million barrels a day, according to new data and interviews with industry executives.

Iran oil minister to attend Algeria Opec meeting

Posted on 26 August 2016

Iran’s oil minister Bijan Zanganeh will attend a meeting of Opec ministers in Algeria in September, the country’s state news agency Shana said on Thursday. The gathering towards the end of next month will be held on the sidelines of an International Energy Forum industry conference.

Iran more willing for Opec action to boost oil price

Posted on 26 August 2016

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in Opec and the oil industry said. Opec’s third-largest producer has been boosting output after the lifting of Western sanctions in January.

Here’s why olive oil prices are likely to remain stubbornly high

Posted on 26 August 2016

Olive oil prices may have softened this year after a stellar 2015, but one analyst isn’t expecting a sudden plunge with a series of factors helping to prop up the market. Loraine Hudson, a market analyst at research firm Mintec, told CNBC Thursday that “tight stocks in the EU” will keep a floor under the commodity that’s widely used in cooking.

Where To For Gold? Down - But Not Out - For Now

Posted on 26 August 2016

Gold has done very well this year. It was up almost 30% year-to-date in early July, which certainly beats most other investments nowadays! But since then it’s stagnated, and earlier this week took a sudden dive. Where will it go from here?

Investors’ mad dash for gold

Posted on 26 August 2016

South Africa’s three biggest listed gold companies paid down debt and started to pump cash in the first half of the year, while gold prices and local currencies were favourable. With fatter purses, they may develop an appetite for acquisitions.

Gold to hit $1,600, then $1,800: Scotia

Posted on 26 August 2016

Gold is having a comparatively torpid summer. The price has hovered around the $1,300 level since late June. This is quite a comedown from the best first-half performance since the 1980s. Still, gold is up about 30% for the year. And there’s no shortage of analysis suggesting that it has more to give.

Gold Believers From Soros to UBS Lose Faith in Mining-Share Gain

Posted on 26 August 2016

The red-hot market for gold-mining companies has made the shares too expensive for some investors, even though they remain bullish on the outlook for bullion. Earlier this year, fund managers including George Soros had gobbled up shares of producers such as Barrick Gold Corp. and Newmont Mining Corp. in a bet that the surprise rally in the price of the metal would spark a surge in profit.

Nickel hits six-week low as Philippines concerns ebb

Posted on 26 August 2016

Nickel slumped to the lowest in over six weeks on Thursday after worries eased that an environmental crackdown on mines in the Philippines would create shortages of metal. Nickel had surged 32 percent from the beginning of June until it hit a one-year peak in early August as authorities in the Philippines launched a campaign to close mining operations that failed to meet environmental regulations.

Copper Prices Fall to a 2-Month Low, Demand Still Stagnant

Posted on 26 August 2016

Copper prices fell to their lowest level in two months on the London Metal Exchange Wednesday. Copper started the year bullish, but ever since prices have struggled near $5,000 per metric ton as investors seem unwilling to chase prices higher.

Sold on Softs: These Commodities ETFs Could Move Higher

Posted on 26 August 2016

Energy commodities and precious metals garner most of the press within the broader commodities asset class, but investors can find some notable, tactical opportunities with agriculture commodities or “softs.” The PowerShares DB Agriculture Fund offers broad-based exposure to agriculture commodities, including cattle, coffee, corn, soybeans and wheat.

Commodities Power This Emerging Markets ETF

Posted on 26 August 2016

In a year when many emerging equity markets are soaring, Latin America is a standout at the regional level and a big reason why is rebounding commodities prices.

Hedge Funds Are Shrinking, Not Dying

Posted on 26 August 2016

Ouch! Actually, that didn’t hurt so much. News that hedge funds suffered redemptions of $25.2 billion last month may translate into some individual shops closing, but for the industry as a whole, it’s a drop in the ocean.

A weak yuan is a bigger threat to the global economy than Brexit

Posted on 26 August 2016

Investors are ignoring a steadily weakening Chinese yuan. But they might be making a dangerous mistake, according to a top strategist at State Street Global Advisors. The managers of the world’s second-largest economy have taken advantage of the frenzied media coverage of Brexit, and other news events like the Rio Olympics and the U.S. election to slowly guide their currency, the yuan, lower against both the dollar and a trade-weighted basket of currencies without triggering a global financial panic.

A weak yuan is a bigger threat to the global economy than Brexit

Posted on 26 August 2016

Investors are ignoring a steadily weakening Chinese yuan. But they might be making a dangerous mistake, according to a top strategist at State Street Global Advisors. The managers of the world’s second-largest economy have taken advantage of the frenzied media coverage of Brexit, and other news events like the Rio Olympics and the U.S. election to slowly guide their currency, the yuan, lower against both the dollar and a trade-weighted basket of currencies without triggering a global financial panic.

Trump Vows to Label China a Currency Manipulator

Posted on 26 August 2016

In a speech in Tampa, Fla., Wednesday afternoon, Republican Presidential NomineeDonald Trump outlined a seven-point plan to bring millions of jobs to the U.S. that involved labeling China a currency manipulator.

Government urged to tear up surplus carbon credits, not use them to meet target

Posted on 26 August 2016

The Government has been urged to “tear up” its surplus carbon credits instead of using them to meet climate targets. The nearly 86 million surplus credits were described as “laundered” by the Parliamentary Commissioner for the Environment in a recent report.

Could the G-20 Become Coherent on Climate?

Posted on 26 August 2016

The G-20—a forum of 20 of the world’s largest economies—has a record of ambivalence on the topic of climate change. One case in point is the disconnect between the group’s efforts to address climate risks and its efforts to reduce the shortfall in global infrastructure investment.

World economy still sputtering, trade figures show

Posted on 25 August 2016

The amount of goods traded globally fell sharply in the second quarter after a flat performance in the first few months of 2016, highlighting a major challenge for leaders around the world grappling with soft growth.

Commodities Rout Is Far From Finished As Glencore’s Profits Sink 66%

Posted on 25 August 2016

Commodities colossus Glencore dipped to one-month lows in Wednesday business after latest half-year numbers highlighted the ongoing malaise whacking raw materials markets. Glencore was last dealing 5% lower after announcing that net income slumped by two-thirds between January and June, to $300m, a result that narrowly missed broker estimates.

Don’t set too high a hope of $60 for oil

Posted on 25 August 2016

The pendulum in the oil market has clearly swung in favour of the producers. Opec members have never pumped so much crude — ditto for Russia — but prices zoomed to a two-month high crossing $50 again.

Russia Sees Oil At US$50 Till Late 2017

Posted on 25 August 2016

The Russian Economy Ministry said in a statement it expected crude oil prices to remain stable at their current range of US$45-50 over the next two years, with a sustainable improvement beginning in late 2017.

Who Is More Credible – The Fed or OPEC?

Posted on 25 August 2016

Almost on cue oil prices quickly reversed course and traded higher on Tuesday when news broke that “Iran is sending positive signals that it may support group action to lift the oil market,” according to MarketWatch.

Oil could take another dive, just in time for new round of OPEC rumors

Posted on 25 August 2016

The next trough in oil prices could come just as OPEC members gather in Algeria next month — and that could make for an interesting, and more unpredictable outcome. While most analysts say OPEC members are all talk, and no action, some say there is an outside chance members could feel pressured enough to act if crude prices are in free fall.

Saudi Arabia Holds China Market Share Lead on Record Oil Output

Posted on 25 August 2016

Saudi Arabia kept its spot as China’s biggest oil supplier for the first seven months this year after pumping record output in July, even as Russia threatens to overtake the kingdom in their contest for sales to the world’s largest energy consumer.

Iraq has not yet reached its full oil market share: PM Abadi

Posted on 25 August 2016

Iraqi Prime Minister Haider al-Abadi on Tuesday said Iraq had not yet reached its full oil market share, suggesting that the country would prefer not to restrain its crude output as part of any possible OPEC agreement to lift prices.

Why gold prices soared over 20% in 2016 so far

Posted on 25 August 2016

Gold has witnessed a spectacular first half this year with a mammoth gain of almost 25 per cent. Global economic concerns, political and economic uncertainty caused by Brexit and loose monetary policy stance of major central banks are some of the factors which have helped pushed gold price to the highest level since 2014.

Gold price drop triggers mining stocks bloodbath

Posted on 25 August 2016

Gold struggled on Wednesday losing more than 1% to exchange hands for $1,327 in late afternoon trade in New York. Gold is coming off two-year highs hit early this month and year to date the metal is still up more than 25% or nearly $270 an ounce.

UBS: ‘Any Downside Should Ultimately Be Limited’ In Gold

Posted on 25 August 2016

UBS looks for any potential damage from Federal Reserve hawkishness to be limited. “The focus this week will be Fed Chair Yellen’s speech at Jackson Hole, where investors will look for guidance on Fed policy,” UBS says in an early-week research note.

Gold Pressured By Bearish Outside Markets

Posted on 25 August 2016

Gold and silver prices are modestly lower in subdued early U.S. trading Wednesday. The outside markets are in a bearish posture for the precious metals on this day, as crude oil prices are lower and the U.S. dollar index is higher.

The biggest buyers of gold aren’t buying like they used to

Posted on 25 August 2016

The world’s central banks are still net buyers of gold, but they may be slowing down those purchases. Central banks bought an estimated 166 tonnes of gold and sold 22 tonnes in the first half of 2016, making a net purchase of 144 tonnes, according to Macquarie analysts.

Should you buy gold or gold miners?

Posted on 25 August 2016

Gold has been all the rage in 2016. Amid rising inflation and growing global economic uncertainty, the price of the precious metal has risen over 25% since the start of the year. This rally would suggest that gold’s multi-year bear market has finally come to an end, and according to many analysts, the price of gold has yet to peak.

Is The Silver Price Destined To Sit Around $19?

Posted on 25 August 2016

The first half of the year was an incredible time for silver as the precious metal saw massive gains. However, more recently, we’ve seen declines. Now, the price of the precious metal seems to be sticking around the $19 per ounce mark.

All hail iron ore, the top performing commodity so far in 2016

Posted on 25 August 2016

Iron ore is the top performing commodity so far in 2016. Yes, that’s not a misprint. It’s a statistic few would have thought possible, let alone plausible, given the raft of negative headwinds that saw prices plunge by close to 80% from the highs seen in 2011.

Here’s why copper is sitting out a big rally by industrial metals

Posted on 25 August 2016

The performance of industrial metals, particularly copper, is often touted as a guide to the outlook for the global economy, but nowadays, that view is a bit clouded.

Precious metal funds dominate after gold price surge

Posted on 25 August 2016

A gold price surge has pushed precious metal funds to the top of this year’s performance charts, reports the Financial Times. Having fallen by 40 per cent from a 2011 peak of $1,920 an ounce in the closing months of 2015, gold has risen by 25 per cent so far this year to above $1,330 an ounce, defying predictions it would tumble to below $1,000.

Hi Ho Silver: Investors Love These ETFs

Posted on 25 August 2016

Though they have recently retreated a bit, the iShares Silver Trust and ETFS Physical Silver Shares remain two of this year’s best-performing commodities exchange traded products and investors seem to be acknowledging as much.

The Best (And Worst) Part of Trading Gold ETFs

Posted on 25 August 2016

Investors love the premise, but it may be more volatility than most of them can handle. Talk about extremes! The Direxion Daily Jr. Gold Miners Bull 3X ETF and Direxion Daily Gold Miners Bull 3X ETF are down 15% and 14% today, respectively, while the Direxion Daily Gold Miners Bear 3X ETF is up a whopping 14%.

Investing In Agriculture: Hard Profits From Soft Commodities

Posted on 25 August 2016

Agricultural commodities have more diverse price behavior than metals or energy. One sub-sector is a must avoid because trading has broken down. One agricultural commodity has outperformed gold so far in 2016. Of the three major areas of commodities, two of them - energy and metals - get disproportionate attention from the financial media.

Solving the yen puzzle

Posted on 25 August 2016

The Japanese yen has been a star performer in 2016, and after a 20 percent move in less than eight months, everyone is wondering where this currency goes next. It’s a question being asked far beyond foreign exchange desks.

How wise are currency pegs?

Posted on 25 August 2016

Some currencies linked to the dollar came under attack in early 2016 from traders speculating that it’s becoming too expensive to continue defending them. Currency markets have been roiled since China cut the value of the yuan for the first time in two decades; the country burned through more than $500 billion of its reserves in 2015.

U.S. and China Prepare for Climate Negotiation

Posted on 25 August 2016

White House senior adviser Brian Deese is in Beijing this week laying the groundwork for President Obama’s visit to China next month. Deese’s agenda includes meetings with Executive Vice Premier Zhang Gaoli and Xie Zhenhua, special representative for climate change, according to the White House.

Corruption costs global economy $2.6tn yearly – Kerry

Posted on 25 August 2016

US Secretary of State, John Kerry, has said corruption is the root of many development challenges, adding that it costs the global economy an estimated $2.6trn yearly. He stressed that Nigeria needed to tackle bribery, fraud, and other forms of corruption which he said were “dangerous” and undermined efforts to ensure a peaceful world.

Commodities down in July

Posted on 24 August 2016

Scotiabank’s Commodity Price Index posted its first monthly loss in July since February. The index was down 1% from June as metals strength (+4.6% month over month) was overwhelmed by weakness in the Oil & Gas (-4.7%) and Agriculture (-5.2%) segments.

Oil prices will stall below $50 a barrel for another year, says Goldman Sachs

Posted on 24 August 2016

Oil prices continued to fall on Tuesday and may struggle to climb back over $50 a barrel for another year, Goldman Sachs has warned. The price of Brent crude has tumbled more than 3pc so far this week to $48.58, reversing a rapid $10 ascent from around $41.60 a barrel in early August to highs of almost $52 a barrel last week.

Iraq may base 2017 draft budget on $35/barrel oil price

Posted on 24 August 2016

Iraq may base its public budget for 2017 on an oil price of $35 per barrel, about the same level as this year, Prime Minister Haider al-Abadi told a news conference on Tuesday in Baghdad. Iraq, which depends on oil sales for 95 percent of its public spending, lowered this year its crude price assumption to about $32 a barrel from an initial forecast of $45 a barrel.

Not even OPEC can save the struggling oil market now, Goldman Sachs warns

Posted on 24 August 2016

OPEC production freeze or not, the oil market is not going to recover anytime soon, as troubled oil-producing nations prepare to ramp up production and pave the way for hundred of thousands of barrels to be released into an already oversupplied market, Goldman Sachs warned.

Iran signals more willingness for OPEC action to boost oil price

Posted on 24 August 2016

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in OPEC and the oil industry said, potentially aiding efforts to revive a global deal on freezing production levels at talks next month.

banner
banner
August 2016
S M T W T F S
« Jul    
 123456
78910111213
14151617181920
21222324252627
28293031