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VRS - who has written 44436 posts on Opalesque Commodities Briefing.


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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.

Gold is 2016’s most beloved asset

Posted on 03 February 2016

Gold bugs are among the only smiling investors these days. Prices have jumped 6% this year to $1,127 an ounce. That makes gold the best performing commodity and one of the only major assets to post a sizable gain in 2016.

There’s a Rush for Gold ETFs

Posted on 03 February 2016

You can learn a lot about an investor from whether they invest in gold, and how they do it. As people pile into gold exchange-traded funds at the fastest rate in more than a year, it’s clear that the precious metal’s appeal as the ultimate safe haven now extends well beyond the universe of dollar-doubters and doomsayers otherwise known as ”gold bugs.”

ETFs in Focus with Continued Emerging Market Asset Outflow

Posted on 03 February 2016

Emerging markets have been struggling for quite some time now. China’s economic problems are at the heart of the emerging markets’ woes. This along with weak emerging market currencies, a strong U.S. dollar and falling oil prices have resulted in a massive sell-off in emerging market stocks for quite some time now.

Commodities-Linked Currencies Fall Versus Dollar, Yen

Posted on 03 February 2016

Investors sold commodities-linked currencies and bought the Japanese yen and the dollar as lower oil and stock prices led to a reduced appetite for risk. The yen and the dollar gained ground against currencies from Australia, New Zealand, Canada, Brazil, Russia and South Africa. U.S. government bonds, another haven market, posted a strong price gain as well.

Investors wise to keep eye on Chinese currency moves

Posted on 03 February 2016

Investing used to seem a lot easier. One could simply select a handful of high quality local businesses that had attractive future prospects and appeared undervalued. Today, in a far more interconnected or “globalised” world, investors need to consider the consequences of many more factors on their portfolios.

Currency traders struggle to turn volatility into profit

Posted on 03 February 2016

Currency traders are getting whiplash from the pile-up of policy surprises that have come their way in the past six months. And because the big events have been unexpected, they’re struggling to translate rising volatility into bigger profits.

Korean trading firm seeks to buy CERs through UN platform

Posted on 03 February 2016

A Korean carbon credit company has filed an expression of interest with the UNFCCC to buy at least 100,000 CERs from projects in South Korea that are eligible in the domestic ETS, UN data showed.

The Carbon Brief interview: Matthew Bell

Posted on 03 February 2016

Matthew Bell has been the chief executive of the Committee on Climate Change since September 2014. Before heading the government’s statutory climate adviser, Bell was a director at consultants Frontier Economics, including spells seconded to the prime minister’s strategy unit and advising the House of Commons Environmental Audit Committee.

Investors concerned about commodities, energy: Moody’s

Posted on 02 February 2016

Major investors listed the credit quality of the commodities and energy sectors as their biggest worry this year, as oil oversupply combines with reduced demand from China to drive energy prices sharply lower, said ratings agency Moody’s Investors Service in a report.

Australia’s commodity price index is at a decade low

Posted on 02 February 2016

Prices for Australia’s key commodity exports continued to tumble in January. The latest commodity price index from the Reserve Bank of Australia fell by 2.9% in special drawing rights terms (SDR), largely in response to weakness in iron ore and oil prices.

Yuan Devaluation Will Lower Commodity Prices

Posted on 02 February 2016

A depreciation of 1 per cent in the Chinese yuan leads to a decline of 0.6 per cent in commodity prices, according to Bank of America. This relationship with the currency is the strongest for commodities such as copper and platinum, of which China is the world’s dominant consumer, the US bank’s strategists wrote in a report dated January 25.

The Science (Or Art) Of Forecasting Oil Prices

Posted on 02 February 2016

The past few years have greatly encouraged those who consider oil price forecasters to be little more than astrologers (on a good day), but there are some basic lessons that tend to be overlooked amidst all the noise and confusion.

Saudi Arabia ready to manage oil market but all must cooperate

Posted on 02 February 2016

Saudi Arabia is ready to manage the oil market under the condition that “everybody must cooperate”, from OPEC members to other oil producers outside the exporting group, the Saudi-owned al-Hayat newspaper cited an OPEC source as saying.

Iran’s return to oil market overestimated

Posted on 02 February 2016

Iran’s return to the global oil market, as well as its consequences for the global prices is overestimated, Cyril Widdershoven, Middle East geopolitical specialist and energy analyst believes. They [Iran] have around 30 million barrels at sea, which is based on 500,000 barrels per day an extra volume in market for around 60 days.

The US bet big on American oil and now the whole global economy is paying the price

Posted on 02 February 2016

Oil has wrong-footed our leading experts—again. At the beginning of 2014, the world was marveling in surprise as the US returned as a petroleum superpower, a role it had relinquished in the early 1970s. It was pumping so much oil and gas that experts foresaw a new American industrial renaissance, with trillions of dollars in investment and millions of new jobs.

Oil Prices Drop as Chances Fade for Output Cuts

Posted on 02 February 2016

Oil prices gave back a big chunk of last week’s gains, with traders losing hope that the world’s big producers will cut their output and that Asia’s economies can help drive demand. The market had shot to a three-week high late last week on speculation of increasing economic stimulus, and cooperation on output cuts between Russia and OPEC.

Cramer: Keep an eye on oil prices

Posted on 02 February 2016

Oil prices are pushing stocks lower as investors looked to move on from a dismal January, CNBC’s Jim Cramer said Monday. “The inventory numbers are still too large. I don’t see any real demand at the $34-$35 level,” Cramer said on “Squawk on the Street.”

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