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VRS - who has written 38089 posts on Opalesque Commodities Briefing.


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Oil Slide Prompts Iran’s Oil Minister to Visit U.A.E.

Posted on 17 November 2014

Iranian oil minister Bijan Namdar Zanganeh is preparing to visit the U.A.E. this week, underscoring the deepening concern among OPEC members over the slump in oil prices.

Is OPEC Doing what it is saying?

Posted on 17 November 2014

OPEC will have its incoming 166th meeting on November 27th of this month. This is a considerably important meeting for oil prices, global economic growth and all motorists in the world. OPEC has said that it will not cut its production and will let oil price decline, which has actually plunged by more than 25% this year. Will OPEC cut its production in order stabilize oil prices? Saying it in another way, are the Saudis bluffing about being comfortable with current oil production and are not happy with the [...]

Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM

Posted on 17 November 2014

“Finally!” in English, “Por fin!” in Spanish and “About bloody time!!” in Australian. The belated rally in gold and silver finally got underway when it was least expected. The contrarian wins again!

Are You Preparing For $10,000 Gold?

Posted on 17 November 2014

If someone told you back in the year 2001, when gold was below $300, that within 10 years it would approach $2000, would you have thought them to be crazy? What if someone now tells you that gold can go from the $1000 region to $10,000 within the next 10-15 years? Sounds just as crazy, right? Well, since many of you already think I am crazy, then I guess this will just be par for the course.

Could Gold Reach $800?

Posted on 17 November 2014

They say beauty is in the eyes of the beholder. And what could be more beautiful than bullions of pure gold? Gold has always held a special allure for jewelry lovers. But it has also been a key investment commodity. Gold has been regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge.

Gold, silver look vulnerable despite ETF outflows slowing

Posted on 17 November 2014

Unlike in 2013, physically-backed gold ETP holdings have faced much less outflow pressure this year. Against 850 tonnes redeemed last year, some 130 tonnes have flowed out so far this year. Notwithstanding the recent bounce in price, the risk of redemption stays.

How can Isis afford its own currency?

Posted on 17 November 2014

Age: Not-quite-newly-minted. Appearance: Golden. Silvery. Coppery. You make it sound as if Isis is about to set up its own currency. That’s because it is. I’m very clever like that. I meld my thoughts to words and words to thought, et voilà!

Currency trading: Fixed penalty

Posted on 17 November 2014

Once again, a handful of the world’s largest banks have agreed to pay vast amounts of money to settle an investigation, this time concerning the manipulation of benchmarks used in the trading of currencies. American, British and Swiss regulators clubbed together to squeeze six banks for $4.3 billion between them. Yet more fines may be in the pipeline.

Key gets G20 trade boost and climate change wakeup call

Posted on 17 November 2014

John Key will walk away from his first and probably last ever appearance at a G20 pretty satisfied, although perhaps more wary about the challenges he now faces with climate change. The meeting came at the end of a long week of bilateral meetings at APEC and in Auckland and the Prime Minister seemed to be able to shrug off any tiredness and fit in another busy round of meetings here in Brisbane.

Building a lower-carbon, higher-energy future

Posted on 17 November 2014

Cutting greenhouse gas emissions while keeping the lights on for a growing global population is a huge but critical challenge. We have to believe it is a challenge we can meet. At this year’s United Nations Climate Summit in New York, delegates gathered to “catalyze climate action” and “raise political ambition.”

ANZ Cuts Commodity Price Forecasts on Slowing Chinese Growth

Posted on 14 November 2014

Australia & New Zealand Banking Group Ltd. trimmed its price projections for commodities including oil, iron ore and nickel next year on slowing growth in China and rising inventories.

Rise of protectionism in China a threat to commodities imports

Posted on 14 November 2014

As China lobbies world leaders to back its free trade plan at an Asia-Pacific summit this week, businesses are complaining about Beijing’s use of non-tariff barriers from customs clearance to quality restrictions to curb raw material imports.

GE’S Rice Says Commodities Slump Puts Premium on Products

Posted on 14 November 2014

General Electric Co. (GE), which provides everything from oil drilling systems to vehicles for underground mining, said it expects to benefit from lower commodities prices as producers chase cost cuts to offset declining revenue.

OPEC Cuts Seen More Remote by Goldman Sachs as Oil Extends Slump

Posted on 14 November 2014

Slumping oil prices over the past week reflect a growing consensus among traders and investors that OPEC will maintain output when its 12 members meet later this month, Goldman Sachs Group Inc. said. Brent crude, used to price more than half the world’s oil, dropped below $80 a barrel in London for the first time in four years.

Giving in? OPEC finally admits reduced oil demand in 2015

Posted on 14 November 2014

Global demand for oil from Opec next year will be far below its current output level because of the US shale boom, the group said on Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.

OPEC Saga Continues

Posted on 14 November 2014

Brent crude fell briefly below $80 a barrel on Wednesday but seems to have made a decisive break below that threshold on Thursday, trading at around $79.8 a barrel by mid-morning. That’s despite news yesterday that the Organization of the Petroleum Exporting Countries has seemingly suggested it has begun to cut output.

U.S. Oil Prices Drop Below $75 a Barrel

Posted on 14 November 2014

U.S. oil prices fell below $75 a barrel Thursday as U.S. production soared to its highest in decades. U.S. oil production rose above 9 million barrels a day in the week ended Nov. 7, the U.S. Energy Information Administration said Thursday. On a monthly basis, average production last exceeded 9 million barrels a day in 1986.

Andurand Seeing Rational Iran Bets on Oil Price Dropping

Posted on 14 November 2014

Pierre Andurand, the oil trader who predicted the top of the market in 2008 and the plunge last month, expects prices to drop about $15 over the next six months. Andurand, whose hedge fund gained 5.4 percent last month and 20 percent in 2013, sees Brent crude declining to $65 to $70 a barrel, according to a letter sent to investors on Nov. 11.

IEA: Crises cloud world energy outlook

Posted on 14 November 2014

Global security is headed for an uncertain future if world leaders fail to transform energy supplies, industry expert group IEA warns in new report. The International Energy Agency called on world leaders to take decisive action to stem future energy demand in its latest World Energy Outlook report released on Wednesday.

India regains position as world’s top gold consumer

Posted on 14 November 2014

India regained its position as the world’s top gold consumer overtaking China in the third quarter as demand for jewellery surged almost 60 per cent, according to new data from the World Gold Council.

Global Demand for Gold Declines as China’s Appetite Wanes

Posted on 14 November 2014

China’s demand for gold plunged in the third quarter, the latest setback for a market already suffering from waning investor appetite. The 37% slide in China acted as a drag on global demand, which fell 2% from the year-earlier period, industry group World Gold Council said in report released Thursday.

Don’t rush to invest in gold

Posted on 14 November 2014

With gold prices having fallen about 20% in the past year, many investors wonder whether it is a good time to by gold or further fall is expected. The answer to both is ‘yes’. Gold prices are likely to be under pressure for some more time.

Gold: The One Commodity Buffett and Bernanke Just Don’t Understand

Posted on 14 November 2014

The Royal Mint gets it. Because I see such deep value in gold today, I was exploring various national mints last week, looking to buy some bullion — maybe some Austrian Philharmonics, some Canadian Maple Leafs or a few Britannia’s from the U.K.

Geopolitical pressure and physical demand buoy gold prices

Posted on 14 November 2014

The gold price remained range-trading, consolidating its recent gains amid a lack of directional cues due to a quiet data calendar. Elsewhere, news that Russian tanks and military vehicles are pouring into Ukraine may aid safe haven support in the near term, as well as sporadic physical buying providing buoy to prices.

Standard Chartered CEO Commits to Commodities Financing

Posted on 14 November 2014

Standard Chartered Plc (STAN) Chief Executive Officer Peter Sands said financing commodity trade will remain an essential part of its business even after falling prices worldwide helped curb a decade of profit growth.

Unique ETFs to spice up your portfolio

Posted on 14 November 2014

Are your investments boring? Do ETFs that track major indexes put you to sleep? Have regular old commodity holdings made you question your purpose in life? Maybe it’s time to spice up your portfolio. We went looking for the most unique ETFs we could find—investments you’d find hitchhiking on the side of the road at 2 a.m. wearing a Viking helmet and a tutu.

4 Large Cap ETFs Leading the Current Market Rally

Posted on 14 November 2014

The U.S. stock market extended its multi-year record rally this week. The S&P 500 enjoyed the consecutive fifth day of gains, the longest rally since June, and hit an all-time high for the 40th time this year, compared to 45 times in 2013. On the other hand, the Dow Jones industrial average climbed for the sixth session in a row.

The U.S. Dollar’s Crucial Role in the Commodity Cycle

Posted on 14 November 2014

The U.S. dollar is falling and it’ll ultimately crash and go down to near zero. Not true… that’s what the gold bugs keep harping on but it’s not true. This misinformation is very representative of what’s going on in the global economy and it’s almost as bad as the liberal economists and analysts who believe we should just print as much money as necessary to keep the economy growing.

Latam currencies drop with commodities prices

Posted on 14 November 2014

Latin American currencies mostly weakened on Thursday due to falling commodities prices, with Brazil’s real pressured further by uncertainty over future economic policy. The MSCI Latin American stock index fell for the third session in four.

EU agriculture ministers call for fresh funding to cope with Russian embargo

Posted on 14 November 2014

Agriculture ministers from 21 EU member states called for extra funds to deal with the Russian embargo during the Agriculture Council on Monday (11 November). Farmers have criticised the use of the emergency funds from the CAP.

Emissions reduction: Tony Abbott says Australia is acting, not talking

Posted on 14 November 2014

‘I’m focusing not on what might happen in 16 years’ time,’ says PM as pressure mounts to match targets set by China and US. Tony Abbott insists he is not focusing on “hypothetical” long-term emissions reduction targets in the “far distant future”, as pressure mounts on Australia to respond to Wednesday’s surprise announcement by the United States and China.

Investors flee from commodities as markets slide

Posted on 13 November 2014

After a torrid couple of months, investors are voting with their feet and fleeing raw materials. The latest figures show that almost $9bn was withdrawn from commodity investments in September and October following steep declines in key sectors such as crude oil, agriculture and gold. The figures are likely to add to widespread investor disaffection with commodities, which again have promised much and delivered little in 2014. They will also fuel the debate about the best way to invest in commodities.

Saudi oil minister says falling oil price is ‘purely business’

Posted on 13 November 2014

Don’t be fooled by falling crude prices says Saudi Arabia’s oil minister, it’s all part of the plan. Saudi Arabia’s oil minister Ali Naimi has finally broken his silence on falling oil prices declaring it’s “purely business” and that recent declines are not a scheme engineered by the kingdom to either bankrupt Russia, or shut down the US shale industry.

EIA Slashes Oil-Price Forecasts for 2015

Posted on 13 November 2014

Government forecasters sharply lowered their projections for oil prices this year and next, reflecting higher global supply expectations. The U.S. Energy Information Administration, in its monthly short-term energy outlook released Wednesday, called for benchmark U.S. crude-oil prices to average $95 a barrel this year and $77.75 a barrel next year, below its previous forecasts of $97.72 a barrel this year and $94.58 a barrel next year.

Do something about gas prices? Why?

Posted on 13 November 2014

Oil prices are plunging. Gasoline is now cheaper than milk. Why doesn’t Washington do something already? Since peaking in June, the price of oil has tumbled by 25 percent. Texas light sweet crude futures have fallen to around $77.40 a barrel, a three-year low, while Brent oil, the global benchmark, sank on Monday to its lowest price in four years.

Here’s What A Sustained $20 Drop In Oil Prices Does To The World’s Major Economies

Posted on 13 November 2014

Oil prices have been tumbling in recent weeks. The price of brent crude fell below $80 per barrel today for the first time in since September 2010. That’s down from around $115 earlier this summer.

Low oil prices to bite into 2015 US shale growth: IEA

Posted on 13 November 2014

Falling oil prices may cut investment in U.S. shale oil by 10 percent next year, the International Energy Agency (IEA) said on Wednesday, slowing growth in a sector that has turned the U.S. into a major global producer.

OPEC sees lower 2015 demand for its oil, Saudi output still high

Posted on 13 November 2014

Global demand for oil from OPEC next year will be far below its current output level because of the U.S. shale boom, the group said on Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.

Analysts sceptical Opec will halt fall in oil prices

Posted on 13 November 2014

Oil prices will continue to fall even if Opec countries agree to cut production later this month, according to one of the market’s most influential analysts. Gary Ross, chief executive of Pira Energy Group, said there was an “imbalance” between supply and demand that would force prices down next year regardless of any output cuts that could be announced by the oil exporters’ group at its meeting in Vienna on November 27.

Here’s why gold could be headed to $800

Posted on 13 November 2014

Over the last several years, gold has been simultaneously regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge. Gold’s beauty, it seemed, was in the eye of the holder. But in the absence of a full-scale geopolitical crisis, economic collapse, or other “black swan” event, there is no good reason to hold gold — at least here in the U.S.

Investor Exit Shakes Off Gold Boredom as Volatility Rises

Posted on 13 November 2014

The rout that sent gold prices to a four-year low is also shaking boredom out of the market, with a rebound in volatility that’s giving some investors more reason to sell.

Gold Price Seen Flat in 12 Months by LBMA Conference

Posted on 13 November 2014

Gold Prices held around $1167 per ounce in London on Wednesday, trading near the upper-end of the last week’s 4% range as Western stock markets slipped after regulators imposed heavy fines on 5 global banks for manipulating currency-market benchmarks.

Swiss regulator flags attempt to manipulate bullion benchmarks

Posted on 13 November 2014

Switzerland’s financial watchdog said on Wednesday it had found a “clear attempt” to manipulate precious metals price benchmarks during a cross-market investigation into trading at UBS bank.

Base metals resilient amid commodity rout, may hold fast

Posted on 13 November 2014

The industrial metals complex on the London Metal Exchange, led by aluminium, is bucking a sell-off in commodities this year and could outperform in coming months as investors bet on developing shortages. The industrial metals component of the S&P Goldman Sachs Commodity index is up 1 percent so far in 2014.

Nickel: A lot of question marks there

Posted on 13 November 2014

The failure to find a buyer for its Australian nickel business has left BHP Billiton Ltd. with unwanted smelters and pits after the collapse of a price boom. The metal reached a two-year high on May 13, a day before the world’s biggest miner outlined a plan to sell all or part of the unit. Since then, the price has declined 27 percent.

Copper prices fall amid global uncertainty

Posted on 13 November 2014

Copper prices were slightly lower after shuffling between gains and losses for much of the day, as investors weighed uncertainty about the pace of growth in China and Europe against expectations of a tighter market for the industrial metal.

Global ETFs/ ETPs Added $35B in October

Posted on 13 November 2014

ETFGI’s research finds October’s global net new asset (NNA) inflows of US$35.8 Bn, while large, are not a record month. The largest month for NNA inflows was September 2012 with US$45.8 Bn. Year-to-date ETFs and ETPs globally have gathered a record US$233.0 Bn in NNA through the end of October 2014, surpassing the previous high of US$205.2 Bn set in the first 10 months of 2013.

Energy ETPs attract bumper inflows in October after oil price tumbles

Posted on 13 November 2014

Energy exchange traded products (ETPs) attracted a bumper $840.7 million in net inflows in October, according to data from asset manager BlackRock, after a plunge in the oil price triggered interest from bargain hunters.

How to game the $5.3 trillion currency market

Posted on 13 November 2014

Gaming the global financial system is easy when you get some help from your friends. British and U.S. regulators revealed Wednesday that chummy currency traders at a handful of major banks used private online chatrooms to coordinate their buying and selling to shift currency prices in their favor.

The ruble tumbles with the oil price

Posted on 13 November 2014

The Russian currency has lost a great deal of value, and the central bank in Moscow can no longer afford to prop it up. Russia’s dependency on commodity energy exports has become more apparent than ever.

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