Tue, Jul 26, 2016
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Commodities Briefing - Category | Market Moves more

Brexit heightens uncertainty in global economy, says G20

Posted on 26 July 2016 by VRS  |  Email |Print

UK must remain a close partner of EU after leaving the bloc to reduce economic turmoil, finance chiefs say in communique. Britain’s vote to leave the EU heightens risks for the world economy, and the UK must remain a close partner of the bloc after Brexit to reduce turmoil, finance chiefs from the G20 group of leading countries have said.
The outcome of June’s referendum adds to the uncertainty in the global economy, they said in a communique after a meeting of central bankers and government officials in Chengdu, China………………………………………..Full Article: Source

Commodities have some investors saying no

Posted on 26 July 2016 by VRS  |  Email |Print

Institutional investors are wondering whether investing in commodities is worth the trouble, as the asset class has suffered an annualized return of -6.46% in the 10 years through June 30. Indeed, the Bloomberg Commodity index has been negative each month for the past 12 months. The Bloomberg Commodity Total Return index, which includes the return of the collateral, showed a return of -5.48% over the same 10-year period.
Asset owners traditionally have invested in commodities as an inflation hedge and for diversification. While some are maintaining their allocations to protect against unanticipated inflation, the asset class’ volatility and poor returns have other investors moving out………………………………………..Full Article: Source

Oil Market: American Frackers And Iran Are Ready To Spoil Saudi Arabia’s Grand Plan

Posted on 26 July 2016 by VRS  |  Email |Print

Saudi Arabia has a grand plan: sell shares of state-owned company Aramco to the public to finance its vision 2030, which will make its economy less dependent on oil. The success of Aramco’s IPO, which promises to be the biggest in history, relies heavily on the state of the oil and equity markets, at the time for the “road show”–the marketing of IPO.
The higher the oil prices, the easier is to sell it to the institutional investors at a high price. “The actual IPO timeframe will also be subject to a number of external factors including equity market conditions, oil price outlook, and domestic capital market readiness,” Falih told a German newspaper back in January………………………………………..Full Article: Source

Gold is at a year-long high: will it keep rising?

Posted on 26 July 2016 by VRS  |  Email |Print

What a year it’s been. I don’t think I can remember one with as many twists and turns, both economic and political, since the fall of the Berlin Wall in 1989. I’ve always been a bit of a sceptic when it comes to gold. After all, what’s the point of it? It’s a bright, shiny metal dug up from the ground with some industrial uses, and that’s about it.
OK, that may be a massive understatement but compared to other commodities like iron ore, oil or uranium, gold starts to tarnish a little. The price will fluctuate, sometimes increasing and sometimes falling, but that lump of metal will remain the same………………………………………..Full Article: Source

Zinc resumes rally, copper falls on weak oil, profit taking

Posted on 26 July 2016 by VRS  |  Email |Print

Zinc resumed its rally on Monday powered by falling mine supply, while copper fell as a sharp drop in oil prices overshadowed expectations of looser global central bank policy. G20 finance chiefs vowed at the weekend to use “all policy tools” to lift global growth after a meeting dominated by the impact of Britain’s exit from the European Union.
“They (G20 ministers) want to explore what options - including fiscal policy measures - are available to support growth. Ultimately, this could also give rise to increased demand for metals,” Commerzbank said in a note………………………………………..Full Article: Source

With a few exceptions, the prices of industrial commodities have taken another hit”

Posted on 25 July 2016 by VRS  |  Email |Print

Research firm Capital Economics blamed the US dollar strength for taking the wind out of the sails of mining commodities last week. “With a few exceptions, the prices of industrial commodities have taken another hit … pressured by profit taking and renewed strength in the US dollar,” the firm said in a weekly note.
Separately, the European Central Bank’s decision to keep interest rates on hold last Thursday hurt gold and silver. Though the ECB suggested asset purchases and potentially a rate cut could come at the September meeting………………………………………..Full Article: Source

Commodity futures may see some new reforms

Posted on 25 July 2016 by VRS  |  Email |Print

Hopes have grown of reforms in the 13-year-old commodity futures market with Sebi likely to consider an advisory committee’s recommendation for new products and participants. Until now, trading of commodity futures has willy-nilly been the preserve of retail traders and a few corporates.
1. What can one hope to see? There may be introduction of options on gold, silver, possibly crude, refined soya oil and guar seed. Also, a few more new commodity futures contracts — tea, pig iron, brass, diamond, skimmed milk powder, egg, white butter — could be notified for trading on bourses like MCX, NCDEX and NMCE………………………………………..Full Article: Source

How Much Oil Is in Storage Globally? Take a Guess

Posted on 25 July 2016 by VRS  |  Email |Print

The historic fall in oil prices has created a pileup of inventories, much of it stashed in tanks in the U.S. and other industrialized countries that are committed to disclosing the latest tally, but millions of barrels of oil are flowing to locations outside the scope of industry trackers.
Some countries, such as Russia and China, choose not to report their oil-storage levels. And traders and oil companies that park supertankers have no obligation to make public their supply. This makes for more cryptic and volatile oil markets. How much crude is in these locations, and how quickly it can be resold into the market, can affect oil prices………………………………………..Full Article: Source

Serious Concerns Over Oil Demand Could Trigger Another Market Slump

Posted on 25 July 2016 by VRS  |  Email |Print

Towards the middle of the current trading year, a glut ridden oil market had started showing some signs of rebalancing. Decline in US oil production was being reflected in the data, much to the delight of the Organization of Petroleum Exporting Countries (OPEC).
So when the oil producers’ collective met at its Viennese Headquarters in June, there was some degree of satisfaction that a policy of keeping the taps open was finally hurting US shale. As such OPEC did what it has done since the supply glut came into view in July 2014, i.e. do nothing and offer no indication of its official production quota………………………………………..Full Article: Source

Global oil companies keen to tap opportunities in India

Posted on 25 July 2016 by VRS  |  Email |Print

Despite low crude oil prices, global companies in exploration and production are keen to tap the opportunities in India, the “happening spot” for investments, Dharmendra Pradhan, Minister for State (Independent Charge) for Petroleum and Natural Gas, said.
Investor interest was apparent at a recent road show he had attended in the US ahead of the planned bidding for some of the small discovered fields. At $45-50 a barrel, oil prices are not lucrative for companies in exploration and production but “nobody wants to miss the bus in India,” he said………………………………………..Full Article: Source

Gold could pull back to $1,300 an ounce

Posted on 25 July 2016 by VRS  |  Email |Print

HSBC cautions that gold could pull back to around $1,300 an ounce, but the retreat would be limited. The August futures did fall back as far as $1,310.70 an ounce in overnight screen trading. “Thin summer trading conditions may be as important a reason for gold edging lower than renewed expectations for a (U.S.) rate rise this year,” HSBC added.
“In quiet conditions, the gold market may gravitate to the vicinity of large round numbers, with $1,300/oz the closest and most obvious. That said, there may be limits to further gold declines. The U.S. presidential election is moving into full swing. Geopolitical risks remain, Brexit notwithstanding. This should help cushion declines,” analysts at HSBC added………………………………………..Full Article: Source

Dr. Copper Signals Brave New World Economy View as Funds Jump In

Posted on 25 July 2016 by VRS  |  Email |Print

Even with the recent turmoil, the global economy is looking pretty resilient — at least that’s what metals investors are signaling. Over the course of about four weeks, the U.K. voted to leave the European Union, there was a failed coup in Turkey and Donald Trump bucked the establishment of the Republican Party to become its presidential nominee.
Rather than taking these events as ominous signs, hedge funds are jumping into the growth-dependent world of copper. The funds and other money managers more than tripled wagers on price gains for the metal last week………………………………………..Full Article: Source

Is The Gold and Silver Rally In Trouble?

Posted on 25 July 2016 by VRS  |  Email |Print

On the surface, gold and silver prices themselves didn’t have much of an eye-opening fall last week, but when you peer in at the gold and silver mining ETFs, you can see there was considerable damage done, especially with the leveraged commodity ETFs.
Let’s look at how far prices fell from last Friday’s close to this past Friday’s close: Direxion Daily Junior Gold Miners Bull 3X ETF – down $56.36, Direxion Daily Gold Miners Bull 3X ETF – down $18.65 and VanEck Vectors Gold Miners ETF – down $1.09……………………………………….Full Article: Source

Base metals fall on stronger US dollar

Posted on 25 July 2016 by VRS  |  Email |Print

A stronger US dollar has knocked industrial metals prices while nickel has also been hit as some investors lock in profits from a recent rally. Aluminium bucked the weaker trend and ticked higher as industrial consumers took advantage of recent declines to make purchases.
The US dollar index hit its highest levels since early March after data showing activity in the US manufacturing sector registered a larger-than-expected expansion, boosting expectations of a rate increase by the Federal Reserve………………………………………..Full Article: Source

Russia rules out cooperation with OPEC

Posted on 22 July 2016 by VRS  |  Email |Print

The embarrassing failure of the ‘Doha talks’ in April still weighing over oil politics. Both OPEC and non-OPEC producers met in Doha with the hope that there could be global coordination on oil production but Saudi Arabia’s stance that they will not cut without the participation of Iran came as a big surprise.
Russian energy minister Alexander Novak speaking in an interview this week ruled out any possibility of coordination with the OPEC producers. Mr. Novak said, “We do not discuss the issues of coordination of actions between Russia and OPEC… We can’t agree on production cuts as we don’t have such tools and mechanisms”………………………………………..Full Article: Source

Zinc starts to bubble as investors pile in (again): Andy Home

Posted on 22 July 2016 by VRS  |  Email |Print

Zinc is this year’s investment pick of the base metals traded on the London Metal Exchange (LME). The price of LME zinc for three-months delivery has risen by 42 percent since the start of January to a current $2,235 per tonne.
It is by a wide margin the strongest year-to-date performance among the LME pack and prices are now back at levels last seen in May last year. Also rising at a fast clip, though, is speculative interest on both the London and Shanghai markets………………………………………..Full Article: Source

How to Add Some “Oomph” to Your Commodities Market Gains

Posted on 21 July 2016 by VRS  |  Email |Print

The big, bad commodity bear died in June. That’s when, after five years, commodities officially entered a bull market. Unofficially, though, the good news started months ago. Prices of oil, gold, zinc and many other “hard assets” have trended higher since early in the year.
Just look at this chart and you’ll see what I mean. Commodity prices move in cycles. This pattern is the result of a time lag between supply and demand. Supply needs time to react to changes in demand and vice versa………………………………………..Full Article: Source

This Gold Miner Says Rally Will Go On

Posted on 21 July 2016 by VRS  |  Email |Print

Gold’s rally is set to endure, with the U.S. presidential election seen as the next big catalyst for prices, according to a producer whose shares have almost doubled this year as financial-market turmoil, slowing growth and Britain’s vote for Brexit pumped up bullion.
“The overall trend is up,” Bill Beament, managing director at Northern Star Resources Ltd., said on a conference call on Wednesday after the Australian company reported record cash flow. The U.S. vote will have more of an impact on bullion than the U.K. referendum, according to Beament………………………………………..Full Article: Source

Something Big Happening in the Gold Market this year

Posted on 21 July 2016 by VRS  |  Email |Print

Something BIG happened in the gold market this year and very few investors understand the significance. While precious metal analysts debate whether the huge gold rally since the beginning of the year is sustainable, I am beginning to wonder if certain indicators are no longer reliable.
I’ll get into that in a moment, but wanted to share a few things as it pertains to my views on the precious metals. A few weeks ago I was able to get away on a short vacation with my family. We stayed at a nice Bed & Breakfast and at night I enjoyed listening to several different guests talking about their jobs and past-times………………………………………..Full Article: Source

Brexit currency effect to have big impact on company results: report

Posted on 21 July 2016 by VRS  |  Email |Print

Currency market fluctuations following Britain’s vote to leave the European Union will hurt corporate results in the coming quarters, possibly resulting in a negative impact of as much as $35 billion to $40 billion, according to a report from FIREapps on Wednesday.
FiREapps CEO Wolfgang Koester called Britain’s June 23 decision to exit EU the latest currency crisis, and one that could lead to “significant impacts on the income statements of companies who did not prepare for Brexit.”……………………………………….Full Article: Source

IMF cuts UK and global growth forecasts following Brexit vote - as it happened

Posted on 20 July 2016 by VRS  |  Email |Print

And here’s another view on the IMF’s latest pronouncements, from Capital Economics. The research company’s Michael Pearce said: After spending the run-up to the UK’s EU referendum warning that Brexit would cause “severe regional and global damage”, the IMF all but admitted on Tuesday that it had been bluffing, forecasting that the impact would be largely benign after all.
The IMF downgraded its forecasts for global growth this year and next by just 0.1 percentage point, to 3.1% and 3.4% respectively. The biggest downward revision was of course to the UK, which the Fund now expects to grow by just 1.3% in 2017, almost a percentage point slower than its previous forecast………………………………………..Full Article: Source

China’s Steel and Commodities Problem

Posted on 20 July 2016 by VRS  |  Email |Print

Deliberations this week at the European Commission will illustrate the way that the European Union is looking to engage with China on trade, while the United States prefers a more antagonistic approach.
The European Commission is due Wednesday to discuss the controversial issue of whether or not to grant China “market economy status.” But allegations that China is dumping goods — in particular steel — in Europe and other markets are likely to dominate the talks………………………………………..Full Article: Source

Deltec’s Lele says commodity prices will be decimated

Posted on 20 July 2016 by VRS  |  Email |Print

Commodities are heading into another bear market and will be “decimated” by an environment of tightening United States dollar liquidity, similar to the sell-off at the start of 2016, that will drag emerging markets and high-yield credit down too.
Atul Lele, chief investment officer at Deltec, remains convinced that the US Federal Reserve can raise interest rates once this year and again in 2017. Futures indicate that right now traders are not counting on a Fed hike until 2018 and Mr Lele agrees the market “is not at all prepared” for a return to slower US dollar liquidity growth, which will come as the Fed puts more distance between itself and the era of zero per cent interest rates………………………………………..Full Article: Source

Commodities rally of 2016 leaves mining industry in “far better shape”

Posted on 20 July 2016 by VRS  |  Email |Print

Investec, the financial analyst service across the UK, South Africa and Australia, believes that the mining industry could represent a ‘key sector’ for asset allocation, with particular strength in gold commodities. The company, in a report released today, believes this is a result of strong commodity rallying and sustained cost cutting since the beginning of 2016.
“The turn of the year proved, in hindsight, to be the point of peak pessimism; since then, the mining industry has begun to heal itself and cleanse some of the sins of the past. We moved into cautious buy territory in April this year, by moving our Investec Mining Clock forward to 4 o’clock and have seen buying momentum continue, despite the recent Brexit vote,” said the company in a report………………………………………..Full Article: Source

What does a balanced oil market mean?

Posted on 20 July 2016 by VRS  |  Email |Print

Supply and demand might come back into line this year, but without the kind of price rises the industry hopes for. If one bit of jargon captures the hopes of the oil industry right now, it’s “rebalancing”. The term has become ubiquitous and it means that the glut will have ended. Supply and demand will be in balance. Things can get back to normal.
Elsewhere in our July/August issue, we note the consensus: that the rebalancing is underway. The International Energy Agency (IEA) thinks so. It says faster-than-expected demand growth in the first half of the year and recent supply outages have combined to mean the market will be “balanced” in the second half. Stocks will fall in the third quarter. Demand, says the IEA, will rise by a robust 1.3m barrels a day this year and at the same pace in 2017………………………………………..Full Article: Source

Zinc climbs to highest in more than a year on shortage worries

Posted on 20 July 2016 by VRS  |  Email |Print

Zinc extended its advance to the highest level in more than a year on concerns over a looming supply deficit. The metal used to galvanise steel rose as much as 1.3% to $2 246 a metric ton on the London Metal Exchange, the highest since May last year, and traded at $2 241 by 3:03pm Shanghai time.
It added as much as 2.4% to 17 340 yuan ($2 589) on the Shanghai Futures Exchange. Zinc has rallied 39% this year, outperforming other base metals, amid forecasts for a global shortage after supply cuts and mine closures. Zinc may rise to $2 500 over the next six months as production trails demand, Goldman Sachs Group Inc. said last week………………………………………..Full Article: Source

Bullish Q3 for base metals

Posted on 20 July 2016 by VRS  |  Email |Print

Sucden Financial said Tuesday it expected rising demand from China and global economic uncertainty as key drivers for the continued rally in the base metals complex. “EU uncertainties, UK uncertainties and Japanese yen strength are all contributing to a mixed macro outlook, but sentiment is improving and metals prices are stabilizing having built bases,” Sucden said in a quarterly report.
The base metals complex has suffered large sell-offs in recent years, along with large overcapacity and limited demand. Prolonged periods of low pricing are now beginning to bite into the market, in the form of cuts in mining, production cuts and a heavily destocked market, fueling recent rallies seen across the complex………………………………………..Full Article: Source

Commodities reigniting, but buyer beware

Posted on 19 July 2016 by VRS  |  Email |Print

Global resources fund manager Benoit Gervais is adamant the commodities sector is about to be reignited but advises caution while recovery is nascent. Global Resources Fund, saw performance of the fund rise by 38% during the three months to April. As a result, he can see signs of a recovery in the commodities world but would advise caution for now.
A range of major commodity-linked investment indices have also shown a clear upward trajectory in the past three months, encouraging hopes that what has been long-run bear market has turned a corner………………………………………..Full Article: Source

China steel-linked commodities futures tumble, on expectation gains outpacing physical demand

Posted on 19 July 2016 by VRS  |  Email |Print

Chinese steel-related commodities futures dived on Monday, erasing last week’s rally as investors felt the previous gains outpaced physical demand for steel in China, the world’s top producer.
The October benchmark rebar contract on the Shanghai Futures Exchange and September iron ore contract on the Dalian Commodity Exchange deepened losses in the afternoon trading, hitting downside limit of 6 percent by close. Rebar was at a one-week low of 2,362 yuan ($352.61) a tonne and iron ore ended the day by 431 yuan a tonne………………………………………..Full Article: Source

How the Turkish Coup Attempt Impacted Oil Prices

Posted on 19 July 2016 by VRS  |  Email |Print

Oil prices fell on Monday as traders shrugged off the impact of the attempted coup in Turkey and the market turned its attention to bearish fundamentals, while disruptions to crude exports in Libya lent prices some support.
Brent crude futures fell 36 cents to $47.25 a barrel by 1131 GMT, while U.S. crude futures were 31 cents lower at $45.64 a barrel. “The market is looking past the coup,” CMC Markets’ chief market analyst in Sydney Ric Spooner said………………………………………..Full Article: Source

OPEC’s pyrrhic market share victory: Fuel for Thought

Posted on 19 July 2016 by VRS  |  Email |Print

OPEC’s decision to defend its market share by opting for freewheeling crude oil production appears to be working. It was only a few months ago the International Energy Agency said the market was “drowning in oil” and prices plummeted to less than $30/b. Fast forward to July and the IEA said there had been an “extraordinary transformation” from a major surplus in the first quarter to near-balance in the second.
Non-OPEC production remains on course to fall 900,000 b/d this year before staging a modest recovery in 2017, according to the IEA………………………………………..Full Article: Source

Most commodities up but oil plays yo-yo

Posted on 18 July 2016 by VRS  |  Email |Print

The Bloomberg Commodity Index, which tracks the performance of 20 major commodities split evenly between energy, metals and agriculture, continues to show a gain of more than 10% in the year to date. Some softness, however, has crept in during the past few weeks with some sectors, most notably energy, pausing after rallies in oil and natural gas ran out of steam.
Industrial metals found support from increased expectations that additional stimulus could be provided by central banks and from signs that China’s economy stabilized during the second quarter. Copper led the charge but data showed that the bulk of the rally was largely due to short-covering with traders hesitant about getting aggressively long………………………………………..Full Article: Source

Oil market seesaws as gains capped by glut worries

Posted on 18 July 2016 by VRS  |  Email |Print

The world oil market see-sawed this week as traders tracked growing investor risk appetite, fluctuations in the US dollar and stubborn supply glut worries. “Oil prices are continuing their rollercoaster ride,” Commerzbank analysts wrote in a research note.
Crude futures began on the back foot on Monday, sliding as an increase in US drilling activity and a strong dollar reversed gains from last week’s better-than-forecast US jobs report. A strong greenback makes dollar-priced commodities like oil more expensive for those using other currencies. That tends to weigh on demand and price levels………………………………………..Full Article: Source

Iran wins back 80% of its European oil market

Posted on 18 July 2016 by VRS  |  Email |Print

An NIOC official has announced that Iran has managed to regain 80 per cent of its lost share in the European oil market. Executive Director for International Affairs at National Iranian Oil Company (NIOC) Seyyed Mohsen Ghamsari said Iran has no stored oil on water asserting “a negligible amount of gas condensate exists on water since these materials do not have constant use and shall remain on water until customers demand them.”
The official pointed to oil sales in single-piece shipment maintaining “normally, customers purchase their required oil by inking long-term agreements with providers though they supply about 20 per cent of their demand within the framework of spot contracts in order to move in line with market trends as well as to buy crude oil at lower prices.”……………………………………….Full Article: Source

Saudi always reacts to oil supply and demand, watching market - minister

Posted on 18 July 2016 by VRS  |  Email |Print

Saudi Arabia’s energy minister said on Sunday the kingdom always reacts to oil market supply and demand and it would continue to monitor crude markets for any developments. Khalid al-Falih also said that final agreements with foreign investors taking part in state oil giant Saudi Aramco’s IPO huge ship repair and shipbuilding complex that it is developing at Ras al-Khair would be signed “over the next few weeks and months”.
The complex, on the kingdom’s east coast, is due to be fully operational by 2021. Lamprell, Aramco, National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries signed a potential partnership agreement relating to the yard earlier this year………………………………………..Full Article: Source

Brexit brightens long-term lustre of emerging markets

Posted on 18 July 2016 by VRS  |  Email |Print

Overall, the second quarter was positive for emerging markets, with those in Europe most affected by the United Kingdom’s decision to leave the European Union (EU), while emerging markets in Latin America and Asia fared better.
On June 23, the UK voted to leave the EU, surprising many investors. The uncertainty of the situation and what came next affected all markets after the vote – emerging markets were not exempt, with the MSCI Emerging Markets Index experiencing a post-vote decline. Most markets, however, quickly rebounded………………………………………..Full Article: Source

Wall Street and commodity risk - JPMorgan measure steady in first quarter

Posted on 15 July 2016 by VRS  |  Email |Print

JPMorgan Chase & Co’s commodity market trading risk measure, known as Value-at-Risk (VaR), was steady in the three months through June, the bank said on Thursday, the first Wall Street bank to report earnings. The bank’s VaR indicator was $9 million in the second quarter, unchanged from the prior three months and the same period a year earlier.
The news came as the bank reported a marginally lower second-quarter profit but still beat subdued analyst expectations, helped by loan growth and a tight control on operating expenses………………………………………..Full Article: Source

Oil Market: What’s Saudi Arabia Up To?

Posted on 15 July 2016 by VRS  |  Email |Print

Saudi Arabia wants higher oil prices. Really. At least, that’s what its oil minister has been saying in recent interviews in the US and Europe. But higher oil prices require a higher world demand for oil, a lower supply of oil, or a combination of both.
The trouble is that Saudi Arabia doesn’t control the world demand for oil, which is growing at a slow pace, tracking a weak global economy. And while Saudi Arabia has some control of the supply of oil, it does nothing to make oil prices go higher………………………………………..Full Article: Source

Is Middle East displacing Russia from European oil market?

Posted on 15 July 2016 by VRS  |  Email |Print

A price war between Russia and the oil producers of the Middle East is becoming more intense, the International Energy Agency (IEA) said in its report. The document notes that Iran, Iraq, Saudi Arabia and Kuwait are trying to win Russia’s traditional market.
Recently, Iran began oil supplies to Poland after Saudi Arabia, the report says. Saudi Aramco, in turn, has reduced oil prices for Mediterranean Europe customers with delivery in August, and competitors from the Middle East are expected to follow suit………………………………………..Full Article: Source

Pump It Up: Downward Pressure on Oil Mounts as OPEC Increases Production

Posted on 15 July 2016 by VRS  |  Email |Print

Oil prices dropped by roughly 4 percent on Wednesday as OPEC’s output hit a record high amid the downward pressure exerted by mounting fuel inventories in the US, suggesting another possible wave of bearishness in the commodity markets.
Given the lower-than-expected fuel consumption, which stems from sluggish economic growth throughout the developed economies, the oil glut hasn’t been compensated for by managed production cuts, as crude producers are currently inclined to ship at any cost. According to a report by the US Energy Information Administration (EIA), US oil inventories declined less than previously forecast in the second week of July, despite the traditionally busy driving season………………………………………..Full Article: Source

OPEC’s cheap oil strategy

Posted on 15 July 2016 by VRS  |  Email |Print

Keeping fuel prices low doesn’t benefit OPEC in the short term, but it could lead to long-term benefits for oil-producing countries when the supply of oil is low. If you’re like most car-owners, you’re of two minds when it comes to gasoline.
Obviously, part of you is happy about today’s low fuel costs. However, another part of you–perhaps the pessimistic part–wonders why gas is so cheap these days. Consciously or subconsciously, you’re waiting for the other shoe to drop………………………………………..Full Article: Source

Gold declines as investors await stimulus from policy makers

Posted on 15 July 2016 by VRS  |  Email |Print

Gold dropped as equities rallied ahead of potential stimulus measures from policy makers, while silver in China fell from its highest level in almost three years.
Bullion for immediate delivery lost as much as 0.8 per cent to US$1,331.52 an ounce and traded at US$1,333.04 by 3.37pm in Singapore, according to Bloomberg generic pricing. The metal had added 0.7 per cent on Wednesday, snapping two days of declines. On the Shanghai Futures Exchange, silver futures dropped 0.8 per cent………………………………………..Full Article: Source

Rare earth metals pay the price of previous excess: Andy Home

Posted on 15 July 2016 by VRS  |  Email |Print

For every action there is a reaction and never more so than when it comes to industrial commodity supply chains. Japanese automotive giant Honda and its technology partner Daido Steel have just announced a materials breakthrough in the electric motors used in hybrid vehicles.
Starting with the next generation of “FREED” minivan due to go on sale later this year, Honda will be using a motor that doesn’t need heavy rare earth metals. Specifically, it will be the world’s first hybrid engine, one combining a gasoline and electric motor, to dispense with terbium and dysprosium………………………………………..Full Article: Source

Nickel near eight-month high as metals gain on stimulus speculation

Posted on 15 July 2016 by VRS  |  Email |Print

Nickel resumed a rally and industrial metals advanced on expectations that policymakers will increase efforts to spur economic growth. Mining stocks climbed, led by Anglo American and Rio Tinto Group.
Some economists expect the Bank of England to cut interest rates today and Japanese Prime Minister Shinzo Abe has promised more fiscal stimulus to charge up a stuttering economy. Nickel is near the highest in eight months on potential supply disruptions in the Philippines, the world’s top miner, and falling stockpiles………………………………………..Full Article: Source

China Aims to Be Metals Price Setter, Not Just Largest Consumer

Posted on 15 July 2016 by VRS  |  Email |Print

China, this year, is becoming more than just the world’s largest metals consumer, it’s also taking a larger role in setting metals prices. While oil prices have crept up this summer, another selloff could be caused when refined products in storage finally come to market.
China is Taking a Bigger Role in Setting Metals Prices. The prices of metals from aluminum to zinc have long swayed to the beat of the world’s largest manufacturing nation, Reuters’ Andy Home writes………………………………………..Full Article: Source

The Oil Market Cannot Live by Shale Alone

Posted on 14 July 2016 by VRS  |  Email |Print

During the bull market in oil, it became fashionable to say something like “$100 is the new $20.” These days, it’s more common to hear “something less than $100 is the new $100.”Wood Mackenzie made its own contribution to the conversation with a new study released on Wednesday.
The energy consultancy expects most of the oil projects currently planned over the next decade to be economic at oil prices of $60 a barrel or less. The bulk of those barrels are projected to come from shale deposits in the U.S., where costs have fallen rapidly in recent years………………………………………..Full Article: Source

No balance: oil markets still oversupplied, now growth is stuttering

Posted on 14 July 2016 by VRS  |  Email |Print

Oil industry hopes that markets are about return to balance, ending a global glut that pulled down prices by over 70 percent between 2014 and early 2016, might be abruptly dashed. Despite recent disruptions and output cuts, there is mounting evidence that plentiful supplies and brimming inventories will delay a much-quoted rebalancing of oil markets.
“The market needs to stop worrying about this balance and concentrate on the now,” said Matt Stanley, a fuel broker at Freight Investor Services in Dubai………………………………………..Full Article: Source

Gold still glitters but how high can it go?

Posted on 14 July 2016 by VRS  |  Email |Print

Amid global uncertainty, volatility and bad economic news, key investment trends seem to be heading in the right direction for gold speculators, with demand already near record highs. Gold demand reached 1,290 metric tons during the first quarter of 2016, a 21% increase compared to a year ago, making it the second best quarter on record.
The increase was driven by huge inflows into exchange traded funds, amounting to 394 metric tons, as investors bet on price rises driven by global demand and continued buying by central banks, led by the People’s Bank of China, according to the World Gold Council’s quarterly report………………………………………..Full Article: Source

Iron ore prices in China at 3-month peak

Posted on 14 July 2016 by VRS  |  Email |Print

Rally comes after reduction in capacity across nation’s bloated steel industry. Iron ore prices in China have climbed to their highest level in almost three months, supported by a production clampdown in the country’s steel capital and expectations of further economic stimulus.
The most actively traded iron ore futures contract on the Dalian Commodity Exchange closed up 4 per cent at 457.5Rmb a tonne after producers in Tangshan were ordered to cut output for the rest of the month to help improve air quality………………………………………..Full Article: Source

Brexit May Have Impact on Global Commodity Market Regulations - OPEC

Posted on 13 July 2016 by VRS  |  Email |Print

According to the Organization of the Petroleum Exporting Countries, United Kingdom’s exit from the European Union may have a number of implications for commodity market regulation, given London’s key role in global markets and its contribution to setting EU rules.
The United Kingdom’s exit from the European Union may have a number of implications for commodity market regulation, given London’s key role in global markets and its contribution to setting EU rules, the Organization of the Petroleum Exporting Countries (OPEC) said………………………………………..Full Article: Source

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