Tue, Dec 23, 2014
A A A
Welcome preal121
RSS

Author Archives | VRS

VRS - who has written 38584 posts on Opalesque Commodities Briefing.


Contact the author

Oil prices not going up soon: IEA director

Posted on 19 December 2014

The International Energy Agency does not see oil prices bouncing back to a higher level very soon, the organization’s executive director said. The IEA cut its forecast for oil demand in 2015 to 93.3 million barrels per day last week, shaving 230,000 bpd of growth from an earlier projection.

Oil price fall is temporary, says Saudi minister

Posted on 19 December 2014

Recent falls in the price of oil are likely to be temporary, says the oil minister for Saudi Arabia, Opec’s biggest producing nation. Ali al-Naimi said commodity price fluctuations were to be expected and said he was hopeful for the future.

Naimi: OPEC needs more support for output cutdown

Posted on 19 December 2014

Saudi Arabia’s powerful oil minister said on Thursday that OPEC could not cut output without the support of other big producers and attempts to get them on board had not worked.

Opec: Iran blames falling oil price on ‘political plot’

Posted on 19 December 2014

Brent oil up in London as Iran’s oil minister turns up the pressure on Opec to act on falling prices. Iran’s oil minister has said that a “political conspiracy” is to blame for the dramatic slump in the price of crude in remarks that could signal that the Islamic Republic will try to exert pressure on the Organisation of Petroleum Exporting Countries (Opec) to again consider cutting output.

Oil Price Forecast: 2015-2016

Posted on 19 December 2014

The sharp drop in oil prices in the past few weeks confirms the oil price forecast that I published back in May 2013, when West Texas crude sold for $94.50: “Oil prices are headed down, and I mean down at least $20 a barrel. The key reason is that prices have been high. It’s not a paradox, but a result of the long time lags in oil production.”

U.S. Should Save Nuclear Industry From Fracking Peril: IEA

Posted on 19 December 2014

The United States needs to develop clear policies to support its ailing nuclear industry—which is prone to seeing old reactors close rather than new reactors open largely because of the impact on energy prices of cheap natural gas from fracking, the International Energy Agency said.

Will gold tarnish or shine in 2015?

Posted on 19 December 2014

Resurgence in gold demand from China and India, the world’s biggest consumers, is set to restore some shine to the yellow metal in 2015 after a lackluster year. “Physical gold demand in China and India were held back in 2014 amid high stocks and import controls, respectively,” said Victor Thianpiriya, commodity strategist at ANZ. “Both these shackles have been removed, putting demand on a solid footing as we head into 2015.”

Gold to average $1,145/oz in 2015, platinum the favoured trade

Posted on 19 December 2014

The gold price still has room to drop further given continued strength in the dollar and the possibility that the Federal Reserve will raise interest rates some time in 2015, Natixis said. Platinum is the more favourable trade next year, it said in a research note on Thursday.

Gold still on hold

Posted on 19 December 2014

Gold prices did not show a huge reaction to the FOMC meeting announcement today in which the Fed appeared to sound more dovish–and perhaps a bit confusing as well. The metal is now hovering around the $1,200 area, and it is likely that no significant changes in price action are seen until the new year.

Credit Suisse cuts 2015 gold price, bullish on zinc

Posted on 19 December 2014

“Gold prices we see as stabilized at current levels,” said the Credit Suisse Global Metals & Mining Team, “we now expect a $1,100-$1,300/oz trading range, we reduce our gold price forecast for 2015 to $1,225/oz and our long term price from $1,250/oz from $1,300/oz.”

Uranium picks up on Asia’s renewed appetite for nuclear energy

Posted on 19 December 2014

Since bottoming out at US$28 a pound in May, uranium prices have climbed 35%, becoming the one commodity that seems to be resisting the broad selloff. The surge, analysts agree, is due mostly to China’s increased reliance on nuclear energy and renewable energy sources as it moves away from coal-fired plants. But prices are still far from the point that would allow mining activity to pick up again, they warn.

Iron demand falls to the wayside

Posted on 19 December 2014

Iron ore prices and shipping costs fell to the lowest levels in five years amid signs China’s slowing growth is sapping demand for cargoes just as the world’s largest mining companies press on with raising output and spur a glut.

3 Sectors ETFs That Should Thrive On Low Oil Prices

Posted on 19 December 2014

The crash in oil prices has truly reached shocking levels at this point. Oil prices which were trading above the triple-digit mark only months ago, but have now given up gains to gravitational forces and are now hovering around the five-year low of $65 a barrel.

Oil Crash Hits These European ETFs Hard

Posted on 19 December 2014

Countries with heavy oil exposure have faced extremely rough trading in recent months as steep losses started to pile up in the space. This prime commodity has entered bear territory having slid more than 40% since June and touched the five-year low level. Brent crude prices are presently hovering around the $60/bbl. level.

India: Commodity trading turnover halves to Rs 65-trillion in 2014

Posted on 19 December 2014

Grappling with its biggest ever scam running into Rs 5,600 crore, it appears to be a journey down the hill for the commodity markets with total exchange traded turnover halving to almost Rs 65 lakh crore in 2014.

Russia’s currency crisis poses risks to other emerging markets

Posted on 19 December 2014

The rouble’s volatility has turned deteriorating sentiment into a sharper, broad-based sell-off that is even affecting oil importing countries. In August 1998, Russia announced it would devalue the rouble and default on its domestic debt. The crisis sent shockwaves through the global financial system and led to the collapse of Long-Term Capital Management, a US hedge fund.

13 reasons why the Russian currency crisis is a game changer

Posted on 19 December 2014

Russia has finally lost the economic war on the West, that much is clear. The Russian rouble turned to ‘rubble’ in the last few days as the once great currency went into free fall.

Global linkage of carbon markets remains a challenge

Posted on 19 December 2014

Although plans to link carbon-trading schemes internationally have suffered setbacks over the years, advocates of carbon trading hope the UN climate summit in Paris next year will produce new commitments.

Washington state carbon market plan to raise $1bn a year

Posted on 19 December 2014

Washington has become the latest US region to set out plans for a carbon market to limit emissions. The Carbon Pollution Accountability Act would cover 85% of the state’s emissions and raise around US$1 billion in its first year, if passed.

Supply the key commodity driver as demand takes a back seat: Russell

Posted on 18 December 2014

The big change in many commodity markets this past year was that demand is no longer king, with supply becoming the key driver, a dynamic that’s likely to persist in 2015. While this trend has been identified, it has not been well understood, with much market commentary still focused on the state of demand as the key determinant of commodity prices.

The Best and Worst Performing Commodities of 2014

Posted on 18 December 2014

Commodities took investors on another wild ride for 2014. This year was characterized by yet another bull market for U.S. equities that was accompanied by a surging greenback. The strong dollar put pressure on the entire commodity industry.

Commodity crush fuels managed futures returns

Posted on 18 December 2014

Managed futures continued their recent hot streak in November, recording their best monthly return in four years by capitalizing on plummeting commodity prices. “We’ve seen resources get crushed and different markets pull back and this strategy is taking advantage of that situation,” said Tim Pickering, chief investment officer at Auspice Capital Advisors Ltd. in Calgary.

Oil price shockwave ripples across world markets

Posted on 18 December 2014

The financial turmoil engulfing Russia is a symptom of a wider world markets earthquake that has its epicenter in oil’s collapse and Western disinflation but is now rippling far and wide across investors’ portfolios.

Oil price shockwave ripples across world markets

Posted on 18 December 2014

The financial turmoil engulfing Russia is a symptom of a wider world markets earthquake that has its epicenter in oil’s collapse and Western disinflation but is now rippling far and wide across investors’ portfolios.

Winners And Losers From The Oil Price Plunge

Posted on 18 December 2014

World oil prices have plunged over the last six months with a surge in production and weaker than expected global demand. For several years, global oil prices were fairly stable, sitting at around $110 a barrel. But since June prices have almost halved to around $60 a barrel.

Why Opec is increasingly irrelevant

Posted on 18 December 2014

Ali al-Naimi, Saudi Arabia’s oil minister, expects the oil market ‘to stabilise itself eventually’. When the Saudis, the leaders of Opec, decided at the cartel’s recent meeting in Vienna to maintain their oil production levels, it sent a strong message to the world: the market, not Opec, should decide oil prices. As a result, oil prices dropped, falling below $60 per barrel this week.

Opec’s 2015 oil revenues to slump to $446bn - EIA

Posted on 18 December 2014

The amount Opec countries, excluding Iran, earn from net oil revenues next year is set to tumble to levels not seen for a decade as the dramatic slide in prices shows no signs of relenting.
Forecasts from the US Energy Information Administration - the wealthy nations’ energy watchdog - suggests revenue from oil exports next year will dip to $446bn - down 46 per cent on 2013’s income - as Brent crude is projected to average just $68 a barrel in 2015, compared to $109 a barrel last year…………………………………….Full Article: Source

Gold Declines to Two-Week Low on Outlook for U.S. Interest Rates

Posted on 18 December 2014

Gold prices fell to a two-week low on concern that the Federal Reserve is moving closer to raising U.S. interest rates, reducing the precious metal’s appeal as a store of value.

Saudi Arabia Has its Reason for an Oil Price Drop, Others Need a Plan

Posted on 18 December 2014

Not all producers will be hurt by a few years of lower prices. Let’s not forget that OPEC’s leading member, Saudi Arabia, has long believed that if oil prices are too high they undermine long-term demand for the country’s main export.

Oil Trades Near 5-Year Low as Russia Echoes OPEC Output Policy

Posted on 18 December 2014

Oil traded near a five-year low in New York as Russia reiterated that it will keep crude production steady next year, echoing OPEC’s strategy of refraining from curbing supply to tackle a global surplus. Futures fell as much as 3.1 percent after sliding below $54 a barrel yesterday for the first time since May 2009.

Gold price to see better base in 2015 - ANZ Bank

Posted on 18 December 2014

The gold price is likely to see a stronger potential for recovery in 2015 despite the prospect of rising US rates, a report from ANZ Bank forecasts. The bank forecasts gold price to average $1,238 per ounce next year, about 3.5 percent higher than the current spot gold price at $1,197 per ounce.

Gold Miners ‘Don’t Think Price Will Fall’, Hedging ‘Still Isolated’

Posted on 18 December 2014

Gold Miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices. “There is not yet compelling evidence to indicate an extended rise in the volume of hedging by gold miners,” says Matthew Piggott, senior precious metals analyst at Thomson Reuters GFMS, introducing the consultancy’s Q3 2014 report for French investment bank and bullion market maker Societe Generale on Tuesday.

Silver Prices to Outperform Gold in 2015

Posted on 18 December 2014

I know it’s a bold prediction: silver prices are going to surprise investors and provide them with better returns than gold bullion. I say this because both the fundamental and the technical pictures for silver continue to improve. The supply of silver produced continues to dwindle, while demand for the metal is robust. This is the perfect recipe for higher prices.

PGMs Seen Gaining Upward Momentum By End Of 2015; More Supply Deficits Expected

Posted on 18 December 2014

Platinum group metals might start slowly but eventually should gain upside momentum in 2015, with most analysts expecting rises for the year. Large existing above-ground stockpiles, potential for higher U.S. interest rates and a stronger U.S. dollar are expected to provide obstacles in the early part of 2015. But eventually, further supply/demand deficits are expected to help the market tick higher.

Aluminium sector unveils new global sustainability standard

Posted on 18 December 2014

BMW Group and Nestlé Nespresso are among 28 organisations to have collaborated on a new standard to improve the environmental, social and governance performance of the aluminium industry.

Lead Touches Two-Year Low as Metals Fall Before Fed

Posted on 18 December 2014

Lead prices dropped to a 28-month low on concern that demand will ebb in China, the world’s largest consumer, while some industrial metals fell on concern that the Federal Reserve is moving closer to boosting interest rates.

World Copper Price Continues Fall

Posted on 18 December 2014

International copper price continued fall and aluminum price touched two-month low on December 1 due to weak manufacturing data of China , the world largest metal consumer, and further decline of oil price.

Iron ore hits new low after weakest China imports in 16 years

Posted on 18 December 2014

The iron ore price reached a fresh five-and-half-year low on Wednesday after surprisingly weak imports by top consumer China. The CFR 62% Fe 2% Al benchmark import price at the port of Qingdao tracked by The SteelIndex declined 20c to $69.10 a tonne, the lowest since June 1, 2009.

The 5 Best ETFs to Buy for 2015

Posted on 18 December 2014

With the clock about to roll past 2014 and into the New Year, it’s time for investors to be looking ahead with regards to their portfolios. That can be a daunting task, however, as it’s difficult to predict exactly what will happen over the progression of a year. An easy way to prepare and plan is by using exchange-traded funds (ETFs).

The Best and Worst Precious Metals ETFs

Posted on 18 December 2014

Among all that glitters, the palladium exchange traded fund is outperforming while silver ETFs have been the most tarnished in the precious metals group. The ETFS Physical Palladium Shares has increased 8.9% year-to-date, leading the precious metals pack. The palladium spot prices is currently hovering around $780.8 per ounce.

5 Hot ETF Trends To Avoid In 2015

Posted on 18 December 2014

Though it may be hard to do, we need to shift our attention away from the twisted wreckage within the energy sector for a second. That’s because, as 2014 winds to an end, investors need to make a plan for 2015. And in order to formulate a strategy, we need to reflect on the past year.

Russian currency collapses: rouble trouble

Posted on 18 December 2014

Will Russia’s economic woes finally force Vladimir Putin to stop his adventurism and concentrate on problems at home? Russia’s attempt to defend the rouble by pushing up interest rates has failed miserably, as such reactions often do. After a slight rally following the central bank’s intervention, the currency was on the slide once more because the economy’s problems are far more deep-seated than can be dealt with through monetary policy alone.

Nigeria’s Currency at Record Low

Posted on 18 December 2014

Nigeria’s currency slumped to an all-time low against the U.S. dollar Wednesday, pummeled by the tumbling price of oil, rendering the central bank’s staunch efforts to stem the decline ineffective.

Did anyone notice that Australia now has a carbon trading scheme?

Posted on 18 December 2014

Senator Nick Xenophon has brought back a carbon trading scheme to Australia and nobody seems to have noticed. Quietly tucked behind the headlines from the Palmer United Party and the government was the mention of Senator Xenophon inserting a ‘Safeguard Mechanism’ into the Direct Action legislation.

Commodities Still Getting Trashed

Posted on 17 December 2014

A slowdown in Chinese manufacturing and a sustained effort by OPEC to make shale oil extraction unprofitable have been just two of the factors which have been crushing commodities prices. On December 12, China’s National Bureau of Statistics reported that industrial production increased only 7.2 percent in November, on a year-over-year basis.

Levin seeks crackdown on physical commodities

Posted on 17 December 2014

Sen. Carl Levin has introduced a bill seeking to crack down on trading on inside information in physical commodities, the first such legislation limiting Wall Street banks’ ability to deal in physical markets from crude oil to aluminum.

Fitch: Falling Commodities Prices Hit Australia’s Fiscal Outlook

Posted on 17 December 2014

Australia’s fiscal outlook has weakened due to lack of support for spending cuts in the Senate and a sharp decline in key commodities prices that eroded the country’s terms of trade in 2H14, says Fitch Ratings. Further deterioration in commodities prices or continued objections to spending cuts in the Senate would pose risks to the fiscal outlook.

Brent oil price falls below $60 a barrel

Posted on 17 December 2014

Oil’s fall below $60 a barrel to five and a half year lows gathered pace on Tuesday after data showed Chinese factory activity had weakened. ICE January Brent — the international oil benchmark — dropped $1.45 to $59.61 a barrel in afternoon trading, after falling as low as $58.50 a barrel. This is almost half the level it reached in mid-June.

Ticking time bombs: Where oil’s fall is dangerous

Posted on 17 December 2014

Lower oil prices are good for some countries, and bad for others. But there are a handful of oil-dependent economies where things could get especially ugly. Crude prices were lower Tuesday after OPEC repeated its refusal on Monday to cut oil output despite fears of a looming glut and a UAE official rebuffed calls for an emergency meeting to fix prices.

Oil’s Price Decline Weighs On High Yield Debt

Posted on 17 December 2014

The price of oil has been falling since June but the pace of oil’s price decline has accelerated since about mid-November. You may have noticed cheaper gasoline prices at your local gas station as a result. From this standpoint the falling price of oil is a good thing.

banner
banner
December 2014
S M T W T F S
« Nov    
 123456
78910111213
14151617181920
21222324252627
28293031