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Will Energy ETFs Surprise This Earnings Season?

Posted on 27 April 2016 by VRS  |  Email |Print

Energy continues to be the biggest drag on the overall earnings picture since the past several quarters and this quarter is not going to be an exception. This is especially true as earnings for 11.9% of the S&P 500 energy companies that have reported so far are down 60.9% on revenue decline of 30.3%, as per the Zacks Earnings Trend.
In addition, total earnings for the sector are expected to be down 110.4% from the same period last year on 29.7% lower revenues. Notably, sluggish earnings report from the world’s largest oilfield services provider -Schlumberger - last week disappointed investors as the company not only missed our top- and bottom-line estimates but also posted year-over-year declines on both metrics……………………………………….Full Article: Source

Russia Energy Minister Unsure OPEC Will Agree to Freeze Oil Output

Posted on 21 April 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak told news agencies Wednesday that he wasn’t sure oil-producing countries would be able to reach a deal to freeze production, but that the need to do so might decrease in the coming months.
“I wouldn’t say now that we are sure they will be able to agree among themselves, because there are very diverse positions,” Mr. Novak said. He cautioned against dubbing the inconclusive meeting with the Organization of the Petroleum Exporting Countries in Doha last week a failure, but said Saudi Arabia had been “unauthorized” to change its position at the last minute………………………………………..Full Article: Source

Green bandwagon is back on the road

Posted on 14 April 2016 by VRS  |  Email |Print

The ancient Chinese philosopher Laozi once said a journey of a thousand miles begins with a single step. Which is true enough, but it helps if the step is in the right direction. Backers of a renewable energy boom were forced into a U-turn as recently as 2009, when state subsidies were slashed, the credit crisis ended access to easy finance, and cut-throat competition arrived from China.
Energy ventures fell in value by two thirds. Several went bust. Established energy companies reduced their involvement. Europe’s carbon trading market suffered. But a view is rapidly developing that clean energy is set to enjoy a renaissance, with the United Nations providing impetus from an agenda for sustainable development, approved by its general assembly in October, followed by a political deal on action to combat climate change in Paris………………………………………..Full Article: Source

Australia announces A$1 billion clean energy fund, in break with past

Posted on 23 March 2016 by VRS  |  Email |Print

Australian Prime Minister Malcolm Turnbull on Wednesday said the country would establish a A$1 billion (535.7 million pounds) clean-energy innovation fund, in a major departure from his predecessor’s much maligned approach to combating climate change.
Conservative former Prime Minister Tony Abbott was criticised by environmental groups for lagging behind other advanced economies when he announced cuts to Australia’s greenhouse gas emissions last year………………………………………..Full Article: Source

Plan B: Is Saudi Arabia Shifting From Oil to Renewable Energy?

Posted on 21 March 2016 by VRS  |  Email |Print

Saudi Arabia is considering options to shift from fossil fuels both as the main source of income and main energy source. Riyadh is focusing on renewable energy sources such as solar power in preparation for a post-oil global economy, Oil Minister Ali al-Nami said at a conference in Berlin.
However, the minister estimated that the world will rely on fossil fuel for at least another 50 years. “There is no way in the next 50 years” that the world will abandon extracting the fuels, al-Naimi said, adding that “by the way, they are not that bad.”……………………………………….Full Article: Source

As oil prices bottom out, investors are increasingly bullish on energy sector

Posted on 16 March 2016 by VRS  |  Email |Print

It was one of the darkest periods of the oil market slump. The global economy was showing fresh signs of slowing, and crude prices were collapsing so steeply that virtually every well in America was unprofitable.
But when Diamondback Energy went out to raise $226 million worth of new stock that week in the middle of January, the oil and gas company found more buyers than it could accommodate. It had to nearly double the amount of shares it sold, to 4 million………………………………………..Full Article: Source

Uranium Market Poised to Take-Off?

Posted on 11 March 2016 by VRS  |  Email |Print

The uranium market has been in a five-year bear market that shows no signs of bouncing back. But, one junior uranium player says the commodity is set for a strong move up. Kitco News caught up with Amir Adnani, CEO and president of Corpus Christi, Texas-based Uranium Energy.
Spot prices of uranium, used to make fuel for nuclear power production, have been depressed since the 2011 Fukushima disaster in Japan, which led to the shutdown of the country’s reactors and generated stockpiles globally. Uranium currently trades around $32.15 a pound………………………………………..Full Article: Source

China aims to boost renewable energy with ‘green certificates’

Posted on 04 March 2016 by VRS  |  Email |Print

China plans to set up a market for renewable energy certificates to try to increase the use of cleaner energy as the world’s largest greenhouse gas producer tries to reduce its reliance on coal.
Power suppliers will be able to trade “green certificates” that represent the proportion of non-hydro renewable energy that they generate, the country’s National Energy Administration said on Thursday in a statement on its website………………………………………..Full Article: Source

Natural Gas Price Increase Inevitable in 2016

Posted on 22 February 2016 by VRS  |  Email |Print

Every week, the EIA proclaims a new record for natural gas production. But their own forecasts show that the U.S. will be short on supply by October of this year. A price increase is inevitable beginning later in 2016.
Popular Myth vs Reality: The popular myth is that gas production will continue to increase and that prices will remain low for years. In the myth, price has no effect on production. The reality is that price matters and production is down 1.2 bcfd1 since September 2015……………………………………….Full Article: Source

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

Posted on 04 February 2016 by VRS  |  Email |Print

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.)
Even by standards set by previous swings in the relatively small, volatile mining and gas sector, this one’s a humdinger. Mining and petroleum is one of the smallest categories of business investment, especially after that brutal four-quarter stretch lopped off half its size, but it has still caused some of the biggest swings in the distribution of business investment in the modern era………………………………………..Full Article: Source

Investors concerned about commodities, energy: Moody’s

Posted on 02 February 2016 by VRS  |  Email |Print

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.
The finding on the most exposed sectors to downside risks in 2016 — the result of polling the region’s largest investors, intermediaries and debt issuers based in Singapore and Hong Kong — was consistent with Moody’s view that rated Asian corporates with commodity exposure remain in a precarious position………………………………………..Full Article: Source

Oil and gas deals to ‘ramp up’ in 2016, says report

Posted on 07 January 2016 by VRS  |  Email |Print

A wave of oil and gas deals is set to reshape the energy industry this year, following a collapse in crude prices to their lowest level in eleven years, according to consultants Wood Mackenzie. After the slowest period for deals in more than a decade in 2015, Wood Mac is forecasting a “ramp up” in mergers and acquisitions during 2016 regardless of what happens to oil prices.
The consultancy’s report, published on Wednesday, said that if the price of internationally traded Brent stayed at or near current lows of less than $35 a barrel, oil and gas companies would be forced to sell assets and merge businesses “to free up capital, to cut costs and to survive amid growing financial pressures”………………………………………..Full Article: Source

Global oil and gas prices to remain weak in 2016

Posted on 06 January 2016 by VRS  |  Email |Print

Global oil and gas prices will remain weak in 2016 on continued oversupply resulting in at least 20-25 percent reduction in investment in oil and gas exploration and production, Moody’s Investors Service said on Tuesday.
“The oil and gas sector will see a rise in distressed exchanges and defaults amid the continued low commodity prices that we expect in 2016,” Moody’s said in its report “Oil and Natural Gas Industry - Global: Persistent Weak Prices in 2016 Rein in Capital Spending, Heighten Financing Risk”………………………………………..Full Article: Source

China sees energy consumption rising in 2016

Posted on 30 December 2015 by VRS  |  Email |Print

China expects its energy consumption to grow in 2016, the official Xinhua news agency of the world’s largest energy consumer said on Tuesday. China’s apparent demand for crude oil will reach 550 million tonnes (11 million barrels per day) and apparent demand for natural gas will hit 205 billion cubic metres, Nur Bekri, head of the National Energy Administration (NEA), said, according to Xinhua.
Electricity consumption will rise to 5.7 trillion kilowatt-hours and coal consumption will be 3.96 billion tonnes. Non-fossil fuels will also make up 13.2 per cent of primary energy needs in 2016, up from 12 per cent this year, while coal will fall to less than 62.6 per cent from 64.4 per cent, he said………………………………………..Full Article: Source

Uranium set to gain

Posted on 29 December 2015 by VRS  |  Email |Print

Uranium prices are expected to outperform other commodities in 2016 and beyond as a global climate change deal and growing demand from Asia bolster the prospects of the nuclear industry.
The metal that powers nuclear reactors has been gradually recovering from a sharp decline in the wake of Japan’s Fukushima disaster in 2011, and has gained this year as several other commodities slumped due to oversupply and concerns about Chinese economic growth and US monetary tightening………………………………………..Full Article: Source

What 2016 Holds for The Oil & Gas Industry

Posted on 17 December 2015 by VRS  |  Email |Print

Trying to predict the future trends of oil prices is hard and the results are disappointing most of the time, especially when we ignore the facts and figures and rely on hope and wishful thinking.
A year ago following OPEC’s decision not to cut oil production and keep the oil market oversupplied, many of oil industry experts, analysts and CEOs were expecting oil prices to recover in a short time. Hence, the oil and gas industry’s reaction to the current downturn was not as fast as it should have been and the consequences in many cases were catastrophic………………………………………..Full Article: Source

Oil and gas sector in for “more pain”, says BofAML executive

Posted on 02 December 2015 by VRS  |  Email |Print

The oil and gas industry is in for a “lot more pain” in 2016, according to Julian Mylchreest, Global Head of Energy at Bank of America Merrill Lynch. Speaking at Fitch Ratings’ London Energy Seminar on Tuesday, Mylchreest said, “The industry is by no means out of the woods yet with oilfield services companies appearing to be the most stretched. I see more financial pain for oil and gas companies over the first two quarters of 2016, but expect improvement thereafter.”
Mylchreest opined it was one thing getting to $40 per barrel, but maintaining liquidity at lower oil prices was the challenge. “It’s being met by operating and capital expenditure cuts, with gaps bridged by asset sales.”……………………………………….Full Article: Source

Qatar energy minister says too early to predict OPEC outcome

Posted on 11 November 2015 by VRS  |  Email |Print

It is too early to forecast the outcome of oil producer group OPEC’s Dec. 4 policy meeting, Qatari energy minister Mohammad bin Saleh al-Sada said. “It is a little too early to predict what would be the outcome of the next meeting but we are watching the situation closely,” Sada, who is also acting president of OPEC, told a news conference.
He said current oil prices were failing to encourage investors. “A fair price (would) take into consideration the sustainability of growth coupled with incentives to the investors and that is not a figure hard and strong, but it is a dynamic.”……………………………………….Full Article: Source

This Oil Bust Will Change The Energy Industry Forever

Posted on 04 November 2015 by VRS  |  Email |Print

As an investor in start-up companies, I am always working to test my assumptions and update my understanding of where the energy sector is now, and the direction it is moving in towards the future. Some key questions for this dynamic year: Is the current oil crisis the marking of a step change towards a cleaner energy industry or merely history repeating itself?
While today’s oil price at $45-50 per barrel is probably too low to be considered the new normal, what should we expect moving forward? One thing is for sure: change is coming. Although demand for oil and gas will continue for decades to come, it will gradually diminish as renewable energy sources rise………………………………………..Full Article: Source

The Earth is not running out of oil and gas, BP says

Posted on 03 November 2015 by VRS  |  Email |Print

Global reserves could almost double by 2050 despite booming consumption, oil major says. The world is no longer at risk of running out of oil or gas, with existing technology capable of unlocking so much that global reserves would almost double by 2050 despite booming consumption, BP has said.
When taking into account all accessible forms of energy, including nuclear, wind and solar, there are enough resources to meet 20 times what the world will need over that period, David Eyton, BP Group head of technology said. “Energy resources are plentiful. Concerns over running out of oil and gas have disappeared,” Mr Eyton said at the launch of BP’s inaugural Technology Outlook………………………………………..Full Article: Source

As oil industry bleeds jobs, Asia’s green energy drive offers bright spot

Posted on 26 October 2015 by VRS  |  Email |Print

Renewables are powering a rare bright spot in the energy industry, with record job hiring in solar, wind and hydro partly offsetting the biggest round of job losses in the oil and gas sector in almost two decades. The boom in new green jobs is being led by Asia where governments in countries such as China and India are embarking on massive programmes to use more renewable energy.
The fresh opportunities come as the oil sector is suffering its worst downturn since the late 1990s, encouraging engineering students to rethink their options and even mid-career switches for some who have spent more than a decade in the oil sector………………………………………..Full Article: Source

China’s push for cleaner energy could push petcoke higher

Posted on 22 September 2015 by VRS  |  Email |Print

Chinese president Xi Jinping signed into law a raft of detailed measures designed to reduce the air pollution that is choking his country on Aug. 29. The new rules cover emissions from automobiles to fireworks and the cremation of human bodies.
In the reams of measures are new regulations on the amount of sulfur that petroleum coke, widely known as petcoke, an essential ingredient used in the production of aluminium, can contain. This could cause fresh headaches for a global aluminium sector already reeling from prices that had fallen to $1,607 per metric ton on Sept. 10 from $2,300 per metric ton in July 2013, according to data from the London Metal Exchange………………………………………..Full Article: Source

Is A Coal Price Recovery Near?

Posted on 17 September 2015 by VRS  |  Email |Print

Lower prices have had a mixed effect on commodities production. Metals like gold and iron ore have seen output stay stubbornly high — with Platts reporting this week that iron ore exports from key producers Australia and Brazil are running near record levels, despite a plunge in prices.
Other metals like copper and platinum are starting to show production slowdowns. But news this week suggests that one commodity appears to be responding fastest to lower prices. Thermal coal. On Monday, the world’s top coal-exporting nation, Indonesia, said that its production is in major decline. Having already fallen by double-digit percentages this year………………………………………..Full Article: Source

Russia: Global Shale Output Decline Will Stabilize Oil Market

Posted on 11 September 2015 by VRS  |  Email |Print

Russia’s energy minister expects that cuts in global shale oil production, which has been hard hit by lower oil prices, will help stabilize the fragile oil market. Alexander Novak also reaffirmed that Russia, one of the world’s top oil producers, would not cut its own production as it would lead only to a short-term recovery with risks of subsequent slumps in prices.
The Organization of the Petroleum Exporting Countries, which accounts for around a third of global oil output, changed its policy in 2014 to defend market share and discourage competing supply sources, rather than cut its own output in the face of lower prices………………………………………..Full Article: Source

4 Reasons Why Low Oil Prices Mean It’s Time To Shift To Renewable Energy

Posted on 03 September 2015 by VRS  |  Email |Print

With oil prices at six-year lows, now is a tempting time for consumers to buy a bigger car, fill it up with cheaper gas and hit the road. The smarter move is to use this moment to accelerate the shift to renewable energy.
While increased U.S. oil production has delivered short-term economic benefits, our ongoing dependence on oil is still creating serious risks to business investment, national security and the environment. Given the inherent unpredictability of the oil market specifically (and fossil fuel markets more generally), it’s fair to ask whether we should continue to invest in fossil fuels, or whether other options — including fuel efficiency and renewables — deserve greater attention………………………………………..Full Article: Source

Is Natural Gas the New Gold?

Posted on 28 August 2015 by VRS  |  Email |Print

When the market is shaky, seek safety in … natural gas. Wait – what? Citigroup Inc. is touting natural gas – a commodity so notorious for volatility that its most renown bet is called the “widow maker” – as a possible haven for investors weary of the market’s wild swings.
A sluggish global economy, a staggering China and plummeting oil prices have sent commodity, currency and stock markets spiraling this summer. But they mean very little for U.S. gas futures, which have been stable for more than two months and even briefly entered a bull market in the late spring………………………………………..Full Article: Source

Natural Gas Rises as Commodities Rebound From Global Selloff

Posted on 26 August 2015 by VRS  |  Email |Print

Natural gas futures gained for the first time in three days, rebounding from an 11-week low Monday amid a global rout in commodities, as hotter weather may spur demand from power plants. Temperatures in New York may reach 89 degrees Fahrenheit (32 degrees Celsius) on Aug. 29, 8 above normal, according to AccuWeather Inc.
The heat may put a dent in a gas glut while traders claw back some of yesterday’s across-the-board losses stemming from a currency devaluation in China, according to Bob Yawger, director of the futures division for Mizuho Securities USA Inc………………………………………..Full Article: Source

OPEC Is Toast as US Wins the Energy War

Posted on 20 August 2015 by VRS  |  Email |Print

When OPEC decided last November to keep the spigots open despite lower oil prices, many of us predicted doom for U.S. shale producers. The Saudis, we thought, would use low prices to bankrupt those upstart Americans.
Some upstarts did go bankrupt, but others surprised us with their adaptability. OPEC is still falling apart as energy exporters fend for themselves. Even the strongest members look increasingly vulnerable to low oil prices………………………………………..Full Article: Source

U.S. gas prices fall alongside crude oil -Lundberg survey

Posted on 10 August 2015 by VRS  |  Email |Print

The average price of a gallon of gasoline in the United States fell 11 cents in the past two weeks, pulled down by the ongoing slump in crude oil prices, according to the Lundberg survey released on Sunday. Regular grade gasoline fell to an average price of $2.71 per gallon, according to the biweekly survey dated Aug. 7, down 11 cents from the previous survey on July 24.
Gasoline is down 81 cents a gallon from the same year-ago period, according to the survey. “This is a continuation of dynamics that have been building in the past several weeks, as both U.S. and global benchmarks are down steeply again,” said survey publisher Trilby Lundberg in Camarillo, California………………………………………..Full Article: Source

End of Commodities Supercycle? (Energy Subset)

Posted on 28 July 2015 by VRS  |  Email |Print

About a decade ago, Goldman Sachs’ Arjun Murti suggested an oil “superspike” might send prices to $105 a barrel. There were two primary reactions to this analysis, first, that Goldman was just marketing its commodity indices, and second, that he/they were crazy. The former view probably continues to be held by some, the latter, not so much.
Murti’s later prediction that oil might hit $200 didn’t prove out, but the $105/barrel prognostication certainly held up. What many overlooked at the time of the initial $105/barrel prediction was that it reflected an estimate of how prices might respond to an oil supply disruption. As such, it was much more reasonable than the predictions of peak oilers like Matthew Simmons or T. Boone Pickens, who thought prices were on a permanent upwards trend because of geological scarcity………………………………………..Full Article: Source

Commodities in a meltdown, but coal, uranium offer some hope

Posted on 27 July 2015 by VRS  |  Email |Print

From super-cycle to commodity meltdown was the way one group of analysts titled a report last week. “Sentiment toward commodities as an asset class has rarely, if ever, been more negative,” added Capital Economics.
Copper has hit a six-year low and closed on Friday at a dispiriting $US5238 a tonne, down 6 per cent on the week and with Goldman Sachs forecasting the red metal reaching $US4500/tonne by the end of 2016. Nickel took another hit, ending at $US11,255/tonne while lead shed more value to close at $US1716/tonne………………………………………..Full Article: Source

In Commodities Meltdown, Gas Is a Fleeting Bright Spot

Posted on 24 July 2015 by VRS  |  Email |Print

In the meltdown that is the commodities market, natural gas has emerged as a bright spot, barely touched by the turmoil that’s contributed to a global slump. Oil has tumbled 19 percent over the past three months on the Bloomberg Commodity Index, and gold is down 8.6 percent, helping send the gauge to a 13-year low this week. And U.S. natural gas? Up 5.5 percent. That’s because shipments are limited for now to North America, where hot weather has boosted demand for the power-plant fuel.
That all changes when exports, starting as soon as this year, take the gas market global. The fuel has been eating away at coal’s market share at U.S. power plants. Liquefied natural gas exports stand to erode domestic supplies, giving coal a reprieve in the U.S. but thrusting the competition between the two fuels onto an international stage………………………………………..Full Article: Source

Credit Suisse Says It May Finally Be Time to Buy Oil and Gas Stocks

Posted on 23 July 2015 by VRS  |  Email |Print

Even as energy prices fall again,one firm says it might be time to finally buy oil and gas stocks. Stocks of U.S. oil and gas companies have been so battered as commodity prices have fallen that it looks like there is finally an “attractive entry point,” Credit Suisse analysts said in a research note.
The suggestion to buy these stocks came with a caveat though: “We acknowledge we are early.” One key index tracking oil exploration and production stocks — the SIG Oil Exploration & Production Index — fell another 2% Wednesday. The index is down 18% in 2015………………………………………..Full Article: Source

$1 trillion solar, wind finance to outstrip oil and gas industry

Posted on 21 July 2015 by VRS  |  Email |Print

Listed finance vehicles for large-scale wind and solar projects are likely to rapidly overtake the oil and gas industry in the US, but may bypass Australia altogether if the Abbott government continues to send the wrong signals to investors. Deutsche Bank last week released a report which said the renewable energy finance vehicles – known as “YieldCos” – were likely to rapidly outgrow their oil and gas industry equivalents, and become and order of magnitude bigger than their fossil fuel rivals.
YieldCos – listed vehicles that offer a high rate of return for investment in large-scale solar farms and wind farms, in much the same way as real estate investment trusts and the oil and gas industry’s mutual limited partnerships – currently account for less than one per cent of renewable energy financing………………………………………..Full Article: Source

Oil glut: Greece, Iran, China drive down energy prices

Posted on 13 July 2015 by VRS  |  Email |Print

Fear and fundamentals are driving down oil prices. The fear arises from the unknown risks of the Greek and Iranian negotiations, and the panic in China’s stockmarkets. These fears have acted as triggers, bringing much greater clarity to the fundamentals of an oversupplied oil market.
Oil has lately become a very volatile commodity. Early this year, it fell below $US50 a barrel. By mid-May, it had rebounded to $US67 a barrel, which was thought to be a “new normal” on which plans could be based. But in the last few weeks, prices fell almost 20 per cent — though they’ve bounced back a little in the past few days………………………………………..Full Article: Source

$8 Trillion Alternative Energy Boom Is A Win For Copper

Posted on 29 June 2015 by VRS  |  Email |Print

Here’s a bit of energizing news: In 2014, for the first time in four decades, the global economy grew along with energy demand without an increase in global carbon emissions. That’s according to energy policy group REN21’s just-released Renewables 2015 Global Status Report, which attributes this stabilization to “increased penetration of renewable energy and to improvements in energy efficiency.”
What this means is that as the world’s population continues to grow, and as more people in developing and emerging countries gain access to electricity, the role alternative energy sources such as wind, solar and geothermal play should skyrocket. Between now and 2040, a massive $8 trillion will be spent globally on renewables, about two thirds of all energy spending, according to Bloomberg New Energy Finance. Solar power alone is expected to draw $3.7 trillion………………………………………..Full Article: Source

EIA raises WTI crude-oil price view, output estimate for 2015

Posted on 10 June 2015 by VRS  |  Email |Print

The U.S. Energy Information Administration raised its 2015 forecasts for West Texas Intermediate crude prices and U.S. oil production, in a monthly report issued Tuesday. The government agency said it expects WTI prices to average $55.35 a barrel this year, up from a previous forecast of $54.32.
The EIA, however, said it expects WTI crude to average $62.04 a barrel in 2016, down from the prior view of $65.57. Brent crude is forecast at $60.53 this year, down from a previous forecast of $60.79. The EIA said it expects U.S. crude-oil output of 9.43 million barrels a day this year, up from a prior estimate of 9.19 million barrels………………………………………..Full Article: Source

Should governments intervene in energy markets?

Posted on 05 June 2015 by VRS  |  Email |Print

Climate change and public sector debt are two of the biggest issues for modern governments and they come together in the vexed question of how far the state should intervene in energy markets. According to the International Monetary Fund, energy subsidies accounted for 8% of total global government spending in 2011 ($1.9tn, or £1.2tn), due mainly to the political appeal of keeping energy prices down.
In the UK, energy remains a contentious issue. Despite sharp falls in wholesale prices for coal and gas over the past year, household bills are as high as ever – prompting regulator Ofgem to refer the retail energy market to the Competition and Markets Authority………………………………………..Full Article: Source

Energy & Commodities Market Study

Posted on 03 June 2015 by VRS  |  Email |Print

The perfect storm in energy and commodities is the result of a confluence of events; any of which, in a “normal” market, would require time for the markets to absorb and return to equilibrium, according to a new report from SunGard.
These events are: weakening energy and commodities demand due to slow global economic growth, overinvestment in, and a return of previously constrained, production capacity leading to an extended period of excess supply, a strong dollar policy reducing the value of dollar denominated commodities and increasing regulatory intervention in commodities markets that impacts broad segments of the commodities value chain………………………………………..Full Article: Source

China energy exchange targets market gap

Posted on 03 June 2015 by VRS  |  Email |Print

China may have become the world’s largest importer of crude oil in April, but there is one thing it still lacks: its own oil market. That could change this year if the Shanghai International Energy Exchange Ltd., also known as INE, launches a long-planned oil-futures contract in Shanghai’s free-trade zone.
Yang Maijun, the chairman of the Shanghai Futures Exchange, one of the partners in INE, said earlier this year that trading in the new oil contract could begin in 2015. The establishment of an oil-futures market in China could prove another milestone in what analysts at Macquarie Group Ltd. recently called a “seismic shift in futures-trading firepower from West to East” in commodities markets………………………………………..Full Article: Source

China Energy Exchange Targets a Market Gap

Posted on 02 June 2015 by VRS  |  Email |Print

China may have become the world’s largest importer of crude oil in April, but there is one thing it still lacks: its own oil market. That could change this year if the Shanghai International Energy Exchange Ltd., also known as INE, launches a long-planned oil-futures contract in Shanghai’s free-trade zone.
Yang Maijun, the chairman of the Shanghai Futures Exchange, one of the partners in INE, said earlier this year that trading in the new oil contract could begin in 2015. The establishment of an oil-futures market in China could prove another milestone in what analysts at Macquarie Group Ltd. recently called a “seismic shift in futures-trading firepower from West to East” in commodities markets………………………………..Full Article: Source

Energy ETF investors are betting oil’s rally is already over

Posted on 29 May 2015 by VRS  |  Email |Print

Investors are cautiously pulling money out of energy producers for the first time in eight months, taking short-term gains after oil rebounded from a six-year low. More than $1.55 billion has been withdrawn this month from exchange-traded funds concentrated on energy stocks such as Exxon Mobil Corp. and Chevron Corp. It’s on pace for the first monthly setback for the group since investors began pouring into the sector in October with an eye toward profiting from an eventual recovery in prices.
“The thesis that oil is too cheap and it has to go higher maybe is not as compelling a case with oil at $60 as it was when it was at $42,”said Ryan Issakainen, a strategist at First Trust Advisors LP in Wheaton, Illinois…………………………………Full Article: Source

Energy ETF Investors Grow Wary of Oil Outlook

Posted on 29 May 2015 by VRS  |  Email |Print

Exchange traded fund investors are exiting energy sector bets for the first time in eight months after oil prices rebounded off a six-year low. Investors have yanked over $1.55 billion from energy stocks exchange traded funds, setting up the first monthly outflows from the sector since October, reports Jim Polson for Bloomberg.
Month-to-date, the Energy Select Sector SPDR experienced $628.6 million in net outflows, Vanguard Energy ETF lost $9.5 million and iShares U.S. Energy ETF saw $533.2 million in outflows, according to ETF.com…………………………………Full Article: Source

Merrill Lynch bullish on energy sector as oil price steadies

Posted on 22 May 2015 by VRS  |  Email |Print

Bank of America Merrill Lynch has become more optimistic on the energy sector, on both a small and large cap basis, as oil prices appear to have stabilized in the wake of a sharp drop that sent stock prices spiraling lower in recent months.
In a note to clients on Thursday, small cap strategist Steve DeSanctis said the firm had boosted its rating on small cap energy to “overweight” from “underweight,” a move matched by Merrill’s large cap strategy team, which upgraded energy shares further up the market-cap scale to “overweight.”……………………………………….Full Article: Source

Will Strong China Oil Demand Boost Energy Prices?

Posted on 05 May 2015 by VRS  |  Email |Print

Chinese implied oil demand rose 7.7% in the first quarter of 2015, posing upside potential to estimates for this year’s prices. The slowing economy in China likely means the remaining quarters of this year won’t mirror the start of the year. But Barclays analysts Chi Zhang, Miswin Mahesh, Michael Cohen and Warren Russell write:
“Chinese implied oil demand in the first quarter (adjusted for inventories) was up 7.7% year over year, the strongest quarterly growth since fourth quarter of 2012. The momentum has accelerated relative to the 2.4% y/y growth averaged over 2014, helped by rising consumer demand and a weak oil price. Further, the momentum diverges from the trend in underlying economic data during the first quarter period, affecting industrial demand for oil. Real GDP grew by 7.0% y/y, down from 7.4% in the fourth quarter and versus full-year 2014………………………………………..Full Article: Source

Uranium outlook positive but perhaps not outstanding unless…

Posted on 24 April 2015 by VRS  |  Email |Print

Uranium has been one of the best performing commodities over the past year, but only because it was rising from such a low level. So now what lies ahead? While the uranium price may well have been one of the best performing over the past nine months or so, it should be remembered that this is as a recovery from an all-time low price in real terms – but then such times may well prove to have provided the best opportunity to get back into the commodity.
Thus the uranium round table panel event at the London 121 Mining Investment conference was well attended as investment professionals sought to get a handle on the latest prospects for the nuclear metal. It is worth recalling that the price reached an all-time high at a time when lack of investment in new projects, together with run down user inventories, created a huge supply/demand imbalance price spike in 2007 to reach around $135/lb – albeit briefly as is the nature of price bubbles of this type…………………………………..Full Article: Source

How To Reenergize The Hard-Hit Oil And Gas Industry

Posted on 02 April 2015 by VRS  |  Email |Print

Here’s a piece of legislation the Republican Congress should pass pronto: end the decades old, misbegotten ban on the export of crude oil, as well as the stifling bureaucratic restrictions on the export of natural gas. Astounding advances in technology and new discoveries of oil and natural gas reserves have skyrocketed U.S. energy production.
America is drilling and refining more oil than it has in decades. Gas is so abundant that electric utilities can’t build or retrofit plants fast enough to absorb it all. These barriers were put in place to help American businesses and consumers by keeping the stuff at home rather than letting foreigners get their hands on it………………………………………..Full Article: Source

Iran nuclear crisis: Six key points

Posted on 31 March 2015 by VRS  |  Email |Print

Over a decade of negotiations over Iran’s nuclear programme come to a head on Tuesday, the deadline for a deal. Here are some of the key points to understanding what the nuclear crisis is all about.
What happens next could have major consequences for the international community and Iran. A long-running dispute over Iran’s nuclear programme has heightened tensions between Tehran and the West, but a deal on Tuesday could bring down diplomatic barriers. Failure, though, could see the crisis turn much worse………………………………………..Full Article: Source

Iran nuclear deal to see $20 oil if Tehran floods crude market

Posted on 30 March 2015 by VRS  |  Email |Print

Ending economic sanctions against Tehran could be a game changer for the oil markets. Flights to Tehran from Dubai have been crammed in recent months with Western executives flooding into the Iranian capital ahead of a potential lifting of economic sanctions.
Potentially one of the Middle East’s biggest economies, Iran has been frozen out by the West over its refusal to give up its aspirations to become a nuclear power. But a binding deal that would bring the Islamic state in from the cold appears tantalisingly close as negotiators thrash out terms in talks being held in Lausanne, Switzerland, over the weekend………………………………………..Full Article: Source

How will energy trading respond to climate change targets?

Posted on 30 March 2015 by VRS  |  Email |Print

As other countries follow Switzerland’s lead in setting targets for greenhouse gas cuts, questions arise as to how industry will respond. swissinfo.ch looks at what these moves globally may mean for the energy trading sector.
Switzerland became the first country last month to announce how it would contribute to a global climate treaty that the United Nations hopes to clinch next December in Paris. It set targets of 50% reductions in carbon dioxide and other warming gases from 1990 levels by 2030, with 30% coming from within the country and 20% achieved by market trading or offsets………………………………………..Full Article: Source

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