Tue, May 31, 2016
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Commodities Briefing - Category | Market Moves more

Is Opec relevant in an oil market of falling prices and overproduction?

Posted on 31 May 2016 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries’ inability to reach consensus amid low point in commodity cycle comes under question before 2 June meeting. As the Organization of Petroleum Exporting Countries (Opec) meets on 2 June, questions are rising about the oil cartel’s continuing relevance.
Many Opec members have suffered as the oil price has collapsed and countries, most notably Saudi Arabia and Iran, have fought to retain market share rather than set prices by adjusting production. Crude-oil prices briefly fell under $30 a barrel for both Brent and West Texas Intermediate earlier this year, but have rebounded, with values touching $50 for Brent Thursday………………………………………..Full Article: Source

Crude oil price at $60 per barrel gains more backers

Posted on 31 May 2016 by VRS  |  Email |Print

The United Arab Emirates’s economy minister joined forecasters looking for $60 crude this year with demand and production moving more in line. “It’s possible for oil prices to reach $60 or more during this summer” as demand increases in the US, UAE Economy Minister Sultan Bin Saeed Al Mansoori said at a conference in Abu Dhabi on Monday. Crude will end the year higher than $60 a barrel, Mario Maratheftis, global chief economist at Standard Chartered, said.
SEB Bank forecast last week that Brent would touch $60 at times in 2016. Oil futures jumped 31 per cent this year, climbing above $50 a barrel last week, as US crude stockpiles declined, trimming a glut. Robust demand in India and other emerging nations led the International Energy Agency in May to reduce its estimate of the global oil surplus for the first half. Brent last traded above $60 in July………………………………………..Full Article: Source

Why India could be the oil market’s next big driver of consumption

Posted on 31 May 2016 by VRS  |  Email |Print

Oil’s rise to US$50 a barrel earlier this month proved to be short-lived, but at least it suggested that oil prices had established a new and higher range. We might not be looking at a return to US$100-a-barrel WTI anytime soon, but prices seem to have stabilized somewhat, remaining north of US$40 for several weeks now.
Who knows how long this will last, of course. Support for higher prices has come at least in part from supply disruptions — in Nigeria and Libya, as well as Alberta, thanks to the Fort McMurray fires. Recent U.S. Energy Information Administration data suggest that stockpiles of crude are coming down………………………………………..Full Article: Source

Global Oil Market May Recover by End of 2017 - Russian Energy Minister

Posted on 30 May 2016 by VRS  |  Email |Print

Global oil market recovery can be expected by the end of 2017, Russian Energy Minister Alexander Novak said Sunday. “It seems to me that by the end of 2017 we will see the end of the respective cycle [of low oil prices] and the recovery of the market,” Novak stated at the Vestifinance forum.
The supply will be below the level of 2015 during the second, third and the fourth quarter of the current year and only by the year-end, it will reach the previous year’s notch, he noted, citing experts’ forecast and assessment………………………………………..Full Article: Source

Oil Pessimists Exit Market as Supplies Seen Closer to Balance

Posted on 30 May 2016 by VRS  |  Email |Print

The oil market doomsayers are beginning to capitulate. Speculators reduced bets on falling prices to the lowest level in 11 months as oil briefly breached $50 a barrel on signs supplies are coming into balance.
Crude climbed 7.4 percent this month in New York amid lower U.S. production and unplanned disruptions in Canada and Nigeria. Prices are up almost 90 percent since February. Money managers’ short position in U.S. benchmark crude reached the least since June, according to data from the Commodity Futures Trading Commission………………………………………..Full Article: Source

Iran soon to regain its oil market share: Rouhani

Posted on 30 May 2016 by VRS  |  Email |Print

Iran will retake its pre-sanction oil market share in the near future, Shana quoted President Hassan Rouhani as saying on Saturday. The president made the remarks in the inauguration ceremony held Saturday morning for the start of new Iranian parliament.
In the event, Rouhani noted that during the past four years Iran lost $180 million of its oil revenues per day because of the sanctions, “If we had those financial resources, which we lost due to the sanctions, we could have had a better employment condition and higher economic growth today”, he added………………………………………..Full Article: Source

Will gold continue to shine in 2016?

Posted on 30 May 2016 by VRS  |  Email |Print

Gold has been one of the best performing assets of 2016 and is up 15% since 1 January. Gold bugs around the world have been calling this the start of a furious bull market in gold and silver. Today I’m looking at the reasons gold has made this move and whether it will continue.
After the Federal Reserve increased US interest rates in December last year, most of us were expecting multiple rate rises this year. However this hasn’t happened and the Fed has been surprisingly dovish, which has weakened the dollar. The US Dollar index tracks the dollar against a basket of currencies and is down nearly 4% this year………………………………………..Full Article: Source

Commodities hit by oil and metal falls amid flat pre-holiday trade

Posted on 30 May 2016 by VRS  |  Email |Print

Commodities producers were knocked by a sudden reversal in metal and oil prices, as the rally in Brent crude that began earlier this year gave way.
The price of a barrel of Brent, an oil benchmark, slid from the seven-month peak of $50 it touched on Thursday, to tumble beneath $49 as the week drew to a close. Coupled with declines in hard commodities, the moves weighed down the minerals- heavy FTSE 100………………………………………..Full Article: Source

The Commodities Market Has A Sweet Tooth

Posted on 27 May 2016 by VRS  |  Email |Print

Despite appearances that the entire commodities sector is continuing on a major downslide, one resource remains steadfast – sugar. Sugar has been one of the best-performing commodities so far this year – largely driven by a global supply shortage, after wallowing in a five-year surplus.
Supply woes are pushing futures prices higher, while demand continues to increase on a global basis. In fact, the International Sugar Organization – along with most analysts – forecast global deficits through 2017………………………………………..Full Article: Source

China looking at opening up commodities futures markets -regulator

Posted on 26 May 2016 by VRS  |  Email |Print

China may open up its commodities futures markets to overseas and financial investors, the country’s securities regulator said, as the world’s top consumer of many raw materials seeks to play a larger role in setting global commodities prices.
China’s commodities exchanges will also maintain a close eye on movements in the futures market, China Securities Regulatory Commission (CSRC) vice-chairman Fang Xinghai told a conference. A surge in prices of China commodities futures this year followed by a rapid slide have sparked fears of a boom-and-bust cycle………………………………………..Full Article: Source

Oil Is the Odd Commodity Out. Is that Bad for Crude?

Posted on 26 May 2016 by VRS  |  Email |Print

Oil is riding high these days, even as other commodities and emerging markets have turned lower. That may mean one of two things is taking place: Either oil prices will fall back into line, or oil will lose its place a key driver of the financial markets.
The price of West Texas Intermediate crude futures is up 0.6% on the day, on pace to settle at a new 2016 high. It’s on the cusp of climbing back over $50 per barrel, a key psychological level at which firms like Pioneer Natural Resources have said that they’ll look to ramp up production………………………………………..Full Article: Source

An Inside Look at the World’s Biggest Paper Gold Market

Posted on 26 May 2016 by VRS  |  Email |Print

Every day, there are a whopping 5,500 tonnes ($212 billion) of gold traded in London, making it the largest wholesale and over-the-counter (OTC) market for gold in the world.
To put that in perspective, more gold is traded in London each day than what is stored at Fort Knox (4,176 tonnes). On a higher volume day, amounts closer to total U.S. gold reserves (8,133.5 tonnes) can change hands. How is this possible? The infographic below tells the story about gold’s foremost trading hub, as well as the paper gold market in London, England……………………………………….Full Article: Source

Miners Follow Precious Metals and Trend Lower

Posted on 26 May 2016 by VRS  |  Email |Print

Precious metal miners gain: Since the beginning of 2016, precious metal mining shares have followed precious metal prices. Miners shed their 2015 losses and realized substantial gains during the gold and silver rally. The correlation between mining stocks and gold remains high.
However, gold has been falling during the past week. The marginal decline in precious metals could also amplify the losses in mining stocks. Miners took a comparative fall relative to gold. Gold’s overall performance in the first quarter was remarkably positive………………………………………..Full Article: Source

Is the commodity bull market back? Citi joins chorus hiking outlook for oil, gold and grains

Posted on 25 May 2016 by VRS  |  Email |Print

Citigroup said commodities have “turned a corner” as it raised its outlook for the prices of gold, oil and grains Tuesday. The brighter outlook comes as oil prices pushed closer to the $50 a barrel mark, with Brent futures trading at US48.55 a barrel — the highest price this year.
“Commodities markets appear to have turned the corner and, led by the petroleum market, are accelerating their price recovery from the lows of the last year, especially since this past January,” said Citi analysts in a note to clients………………………………………..Full Article: Source

3 commodities calls from Goldman’s Currie

Posted on 25 May 2016 by VRS  |  Email |Print

Oil and copper markets breathed a sigh of relief Tuesday, but supply-and-demand concerns may hold these commodities back longer term. U.S. oil settled at new 2016 highs Tuesday, while copper futures popped 0.46 percent. But instead, Jeffrey Currie, global head of commodities research at Goldman Sachs, said he’s eyeing natural gas for the year to come, which traded more than 3 percent lower on the day.
Despite large stockpiles of natural gas right now, supply is coming off and natural gas may actually be a short market if there is demand this winter, Currie said………………………………………..Full Article: Source

Oil Rebound Has Citigroup Seeing Worst Over for Commodities

Posted on 25 May 2016 by VRS  |  Email |Print

The commodities market has turned a corner and prices are unlikely to return to lows seen in the first quarter, according to Citigroup Inc., which boosted forecasts from metals to grains amid an oil-led recovery.
The bottom was likely hit earlier this year when weak fundamentals across all commodities were reinforced by selling after the collapse of China’s equity markets, Citigroup analysts including Ed Morse wrote in a report Tuesday. The bank is now predicting Brent oil will climb to $50 a barrel in the third quarter, earlier than its previous forecast for the fourth quarter, while increasing its year-end gold estimate by $100 an ounce to $1,250………………………………………..Full Article: Source

OPEC’s Ability to Ease An Oil Supply Shock is Now Fading

Posted on 25 May 2016 by VRS  |  Email |Print

OPEC’s ability to ease the pain of an oil-supply shock is slipping. For half a century, the Organization of the Petroleum Exporting Countries has buffered global crude markets, curtailing production to ease oil gluts and boosting output to prevent shortages.
Now, as it heads into a June 2 meeting to discuss how to stabilize world oil markets, the cartel has neither the political consensus to cut output nor the technical capability to significantly raise production. Since last year, OPEC members haven’t been able to agree on supply cuts to stem a glut that drove prices down by more than 50% since 2014. Instead they kept pumping full blast………………………………………..Full Article: Source

Oil market entering a phase of rebalancing claims Goldman Sachs

Posted on 25 May 2016 by VRS  |  Email |Print

Increased oil production from countries with lower costs is going to hold down the price of crude, according to industry experts at Goldman Sachs. Goldman commodity analysts claim the “new oil order” means that output from the likes of Iran and Iraq will soon entirely offset disruption from higher cost producers.
Recently the oil price has been buoyed by production problems in Canada, Nigeria, and Venezuela. The price of crude came close to crossing the $50 per barrel mark at the end of last week but has since fallen back from the psychological barrier………………………………………..Full Article: Source

Industrial metals poised to suffer worst month in 4 years

Posted on 25 May 2016 by VRS  |  Email |Print

Industrial metals are set to suffer their worst monthly performance since 2012, according to S&P Dow Jones Indices. The S&P GSCI Industrial Metals Total Return Index has lost 8.7% month-to-date, as of Monday — on track for its worst month since May 2012, when it lost 9.7%. It’s also having its seventh-worst May performance since 1978, when the index history began.
Jodie Gunzberg, global head of commodities and real assets at S&P Dow Jones Indices, attributed the weak performance in industrial metals, which include copper and lead, to the rising U.S. dollar as well as rising inventories of industrial metals………………………………………..Full Article: Source

Falling Commodity Prices Weigh on Asia Resources Stocks

Posted on 24 May 2016 by VRS  |  Email |Print

Declining commodity prices weighed on Asia’s resource stocks Monday, while the Japanese share market slipped amid a lack of major consensus from the Group of Seven meetings between finance ministers and central bankers.
Energy stocks led losses in much of the region, after crude oil prices fell Friday in the U.S. and continued to slip during Asian trading hours Monday. Tokyo-listed Inpex Corp. finished down 2.2% while Australia’s energy sector was down 2%. Brent crude prices were last down 0.9% at $48.28 a barrel………………………………………..Full Article: Source

The oil market’s biggest problem is still far from solved

Posted on 24 May 2016 by VRS  |  Email |Print

The worst of the crude oil supply glut may not be over. In the last few weeks, sentiment about the oil market has improved. This happened, in part, after supply disruptions hit Nigeria and Canada. Additionally, Goldman Sachs analysts said the imbalance between supply and demand may be correcting faster than they had expected.
But Adam Longson, head of commodity research at Morgan Stanley, is not yet convinced. In a note Monday, he said the physical oil market is barely responding to supply disruptions. Rising oil storage floating in tankers on the world’s oceans and global gasoline stocks were among the concerning signs he pointed out………………………………………..Full Article: Source

What Does The Next OPEC Meeting Have In Store?

Posted on 24 May 2016 by VRS  |  Email |Print

The next OPEC meeting on the 2nd of June will act as little more than a forum for continued altercations between Saudi Arabia and Iran. The 2 June 2016 OPEC meeting will be held amid a backdrop of oil prices near $50 per barrel, a sharp drop in Nigerian production due to sabotage, turmoil in Venezuela, Saudi Arabia operating with a new oil minister, and Iran aggressively pumping close to pre-sanction levels.
OPEC interactions have become a direct altercation between Saudi Arabia and Iran, with the remaining members reduced to mere observers. The new Saudi oil minister, Khalid al-Falih, will be attending his first OPEC meeting, but experts doubt he will have the same clout and skills as the outgoing Saudi oil minister, Ali bin Ibrahim Al-Naimi………………………………………..Full Article: Source

Asia alumina: Buyers dragged down by Chinese output, LME aluminum

Posted on 24 May 2016 by VRS  |  Email |Print

The Platts Australian alumina daily assessment fell 50 cents/mt Monday from last Friday to be assessed at $258.50/mt FOB, netting a $2.50/mt decline in the last week. India’s Nalco awarded a sell tender at $258.50-$258.75/mt FOB Visakhapatnam to Vitol for a 30,000 mt alumina parcel scheduled to load between June 3 and 7, sources close to the trade said. The deadline for bids was May 18 with bids required to be valid until May 20.
In the last two days, consumer and trader sources said they would value at close to parity the price of Indian alumina from Nalco and Australian material. The alumina market has been under pressure from increased Chinese alumina output and a steep plunge in LME aluminum prices in the last three weeks………………………………………..Full Article: Source

Fund Selector: Is the risk worth the reward?

Posted on 24 May 2016 by VRS  |  Email |Print

My interest in commodities was recently piqued after receiving some emails from well-meaning individuals within the fund sales community, pointing out that their commodity funds were, by far, the best performing funds year to date and I should, of course, be assessing these portfolios.
In my view, a healthy dose of skepticism is required for those undertaking fund research, so a little more digging (excuse the pun) was required. While the year-to-date performance of these products is undoubtedly stellar, it does not make up for the horrific performance produced by the asset class over any meaningful medium-term time period. Nonetheless, further assessment of the asset class was merited………………………………………..Full Article: Source

Tom Ward: The ‘dirty little secret’ about $50 oil

Posted on 23 May 2016 by VRS  |  Email |Print

Chesapeake Energy co-founder Tom Ward said Friday that oil prices need to recover to about $75 a barrel in order for most drillers to ramp up production. Crude futures have recently approached $50 a barrel after rebounding more than 80 percent from this year’s lows in the mid-$20 range.
Some worry those prices will incentivize high-cost U.S. oil producers to put more rigs to work, worsening a global supply glut and putting off a sustainable price recovery. U.S. oil production has fallen from a high of nearly 9.7 million barrels per day last year to about 8.8 million barrels per day………………………………………..Full Article: Source

Kuwait wants Iran in oil freeze deal

Posted on 23 May 2016 by VRS  |  Email |Print

Kuwait said on Friday that it is in favor of signing an agreement to freeze oil production at the OPEC summit in early June, but emphasized that such an agreement will be impossible without the participation of Iran.
The announcement was made by Abdulaziz al-Adwani, Kuwait’s ambassador to Russia. Al-Adwani has told the Russian news agency Interfax that Kuwait wants an agreement to freeze oil production to be reached at the upcoming OPEC summit, but that agreement should also include Iran. Such a step would be effective and impact the oil price if Iran also agreed to it, he said……………………………………….Full Article: Source

OPEC Set for Another Meeting With No Deal After Doha Failure

Posted on 23 May 2016 by VRS  |  Email |Print

After failing to reach an accord on oil supply in Doha last month, OPEC is poised to go another meeting with no agreement on how much crude to produce. All but 1 of 27 analysts surveyed by Bloomberg said the Organization of Petroleum Exporting Countries won’t set an output target on June 2, as it sticks with Saudi Arabia’s strategy to squeeze out rivals including U.S. shale drillers by pumping near-record volumes.
An accord on an output cap with non-members such as Russia collapsed in Doha last month when Saudi officials insisted Iran would need to take part………………………………………..Full Article: Source

Global Economy to Slow in 2016 Amid Commodity Price Slump

Posted on 20 May 2016 by VRS  |  Email |Print

The Moody’s Investors Service international credit rating agency has forecast diminishing global growth in 2016, citing the slump in commodity prices and weaker emerging market performance as the main causes of the slowdown. The G20 emerging markets’ growth will amount to 4.2 percent in 2016, down from 4.4 percent last year, while G20 developed countries are expected to grow 1.7 percent, down from last year’s 1.9 percent, the agency said.
“The global recovery has weakened further and the outlook across countries remains uneven and largely weaker than in the previous two decades. Global trade remains subdued, while spillovers from emerging markets shocks to financial markets globally have increased substantially,” Moody’s Associate Managing Director Elena Duggar said………………………………………..Full Article: Source

Commodity Cycles 1970-2016: Characteristics Of A Bull Market

Posted on 20 May 2016 by VRS  |  Email |Print

Commodities as an asset class experienced the 5th year of a severe bear market. But despite the performance of gold and crude, broad commodity markets didn’t attract investors’ favor. The key question investors are demanding to be answered is: which set of factors is needed to initiate a new commodity bull market in which commodity prices are not rising by 10-15% but offer the potential to double.
Commodity markets in 2016 started the year on the wrong foot. Bloomberg Commodity Index, the benchmark for the performance of oil, gas, metals and agriculture, plummeted to a staggering 72 index points on the 29th of January, which was the lowest point witnessed since 1991………………………………………..Full Article: Source

OPEC strategy working as Kuwait sees oil rising to $50

Posted on 20 May 2016 by VRS  |  Email |Print

OPEC’s strategy to defend market share rather than target a price is working as crude gains amid rising demand and declining output from producers including U.S. shale wells, Kuwait’s acting oil minister said.
Oil will end the year at $50/bbl and the market will rebalance in the third or fourth quarter, Anas Al-Saleh said in an interview Wednesday in Kuwait City. Kuwait will stick to OPEC’s strategy of pumping to win customers, he said. Demand is growing and about 3 MMbpd of crude supply have been lost to interruptions or because some producers have been priced out of the market, he said………………………………………..Full Article: Source

Lesser-known metals poised for price increases: zinc, niobium, uranium

Posted on 20 May 2016 by VRS  |  Email |Print

Much like the perennial predictions of an imminent price breakout of gold, zinc, uranium, and niobium have been the subjects of similar predictions that have thus far been uniformly wrong. Despite the fact that each of these three lesser-followed metals have good fundamental reasons to be heading higher, they have clung stubbornly to the status quo. That is, until recently.
The onset of 2016 has inflicted some new realities on the global marketplace, and within this subset of profound but still unheralded shifts, there are opportunities for investors visionary and bold enough to seize them………………………………………..Full Article: Source

Why the Outlook for Emerging Markets Is Improving

Posted on 20 May 2016 by VRS  |  Email |Print

After suffering one of their worst performances in years during 2015, emerging markets are rebounding in 2016. Using the MSCI Emerging Markets index as a benchmark, emerging markets gained nearly 9 percent in the last three months, rising high enough to wipe out a shaky start to the year. Year-to-date, the index is up about 1.58 percent – a huge improvement after last year’s 21.6 percent drop.
Revived commodity markets, particularly stronger crude oil values, are helping emerging markets overall heal, market watchers say. Higher commodity prices are an important factor for emerging countries as many of them produce and export natural resources. Much of 2015’s weakness in emerging markets came on the back of disintegrating commodity prices………………………………………..Full Article: Source

Commodities indebted to the past

Posted on 19 May 2016 by VRS  |  Email |Print

Commodity prices have been on a tear of late. Last year’s dogs, such as oil and iron ore, have soared. With oil approaching $50 a barrel this week, Goldman Sachs has turned more bullish on its prospects, and Chinese speculators have pushed up the price of iron ore by as much as 50 per cent.
This rebound has led to strong gains in related stock market sectors. Energy and mining share indices have risen fastest, after trailing the entire market in 2015. What has lured in the buyers? For one thing, some very depressed valuations made the decision to dive back into commodity stocks a lot easier………………………………………..Full Article: Source

Investor sentiment on commodities turns positive: Lloyds

Posted on 19 May 2016 by VRS  |  Email |Print

Investors have turned positive towards commodities for the first time since November, according to the latest Lloyds Private Banking survey. The monthly Lloyds Bank Private Banking Investor Sentiment index measures net investor sentiment towards an asset class, showing the difference between those with a positive and a negative outlook for the next six months.
Sentiment towards the sector currently stands at 3.24%, an increase of more than 8 percentage points (the biggest rise this month) from -4.8% in April. Emerging markets also saw a change in confidence from a negative -2.42% last month to a positive attitude of 1.97% for May………………………………………..Full Article: Source

It’s Saudi Arabia’s World. Big Oil Just Lives In It

Posted on 19 May 2016 by VRS  |  Email |Print

When Saudi Arabia nationalized its oil industry in 1980, it marked the end of an era dominated by western majors such as Exxon, Chevron and BP. The proposed re-privatization of those same oilfields threatens to upend their world once again. Getting kicked out of the Middle East forced the majors to exploit other tourist traps, such as the North Sea.
Like OPEC, they assumed the value of their reserves of this finite, critical commodity would, more or less, keep rising over time. So a barrel not produced today, even if it cost a lot to find or acquire, is effectively money in the bank. This is why the majors obsess over their reserves replacement ratio, measuring how many new barrels come in to replace the ones they pump out………………………………………..Full Article: Source

Oil market unlikely to rebalance fully by year-end: Total CEO

Posted on 19 May 2016 by VRS  |  Email |Print

Oil demand in 2016 will stay strong, supporting prices, but the market is unlikely to rebalance by the year end, the chief executive of French oil and gas major Total said. Patrick Pouyanne told a French Senate committee that oil demand rose sharply in 2015 to 1.8 million barrels per day (bpd), increasing at about 2 percent in a single year.
“This year, experts see demand at about 1.2 million barrels per day,” Pouyanne said. “Me and my team see it at about 1.4 million barrels per day, which is still strong and means the market is rebalancing, but will not rebalance completely by the end of the year, however, it will somehow support prices,” he added………………………………………..Full Article: Source

Gold price volatility to continue as investor interest rises

Posted on 19 May 2016 by VRS  |  Email |Print

Gold ’s safe-haven allure continues to attract more investors, but one veteran precious metals strategist warns that the higher interest makes the metal subject to price volatility. “Large open interest may add to volatile moves as headlines may influence prices and as many open orders are held back for now,” said George Gero, managing director for RBC Wealth Management.
He also commented on billionaire investor George Soros’ latest Securities Exchange Commission filings, which showed that the hedge fund manager held SPDR Gold Trust shares worth $123 million as of the end of Q1. “Today’s figures were helping gold traders somewhat and more fund managers like Soros are allocating to gold again,” Gero added………………………………………..Full Article: Source

Europe needs independent carbon market regulator - Total’s CEO

Posted on 19 May 2016 by VRS  |  Email |Print

Europe needs an independent carbon market regulator with clear objectives rather than the current mix of state administrators and the European Commission that has complicated the market, the chief executive of Total said on Wednesday.
Patrick Pouyanne told a French Senate commission that the current situation of the European carbon market cannot work in the long term and take carbon prices to a level where they will spur investments in less polluting energies………………………………………..Full Article: Source

The Commodity That No One Knows About But Everybody Wants to Buy

Posted on 18 May 2016 by VRS  |  Email |Print

The world’s mines and steel plants got so devalued during the commodity slump that some were just given away by owners struggling to cut losses or debt. But there’s at least one metal that’s been attracting a lot of attention.
Niobium — named for a Greek goddess who became a symbol of the tragic mourning mother — is used to produce stronger, lighter steel for industrial pipes and aircraft parts. It is mined in only three places on Earth, and the price of every kilogram is seven times higher than copper………………………………………..Full Article: Source

Is Saudi Arabia calling the market’s bluff over oil?

Posted on 18 May 2016 by VRS  |  Email |Print

Oil market watchers have been keeping a close eye on Saudi Arabia ever since it announced last month that it could very well increase oil production if and when it wanted to, but analysts at Energy Aspects explained on Tuesday that the major oil producer could be calling the market’s bluff.
Saudi Arabia threatened to boost its already record-breaking oil output following the failure of a meeting of OPEC and non-OPEC producers in Doha in April to discuss a possible freeze of global oil production at current levels in an effort to support low oil prices………………………………………..Full Article: Source

Algeria signs oil, gas deal as OPEC member seeks to boost sales

Posted on 18 May 2016 by VRS  |  Email |Print

Algeria will supply oil and other energy products to Jordan for the first time under a memorandum of understanding signed on Monday, as the OPEC member seeks to diversify sales after years of stagnating crude production.
Algeria’s state-run Sonatrach Group will start shipping liquefied natural gas and liquefied petroleum gas to Jordan in September, followed by crude oil, Algerian Energy Minister Salah Khebri said in an interview in Amman on Monday. Sonatrach and National Electric Power Co. of Jordan should reach a final agreement in the next few weeks, he said, without specifying shipment volumes. Sonatrach will also explore for oil and gas in Jordan………………………………………..Full Article: Source

Soros and Paulson go head-to-head in the gold market

Posted on 18 May 2016 by VRS  |  Email |Print

From two of the world’s most renowned billionaire investors, George Soros and John Paulson, there can be only one winner. Soros, via his Soros Fund Management portfolio, has piled back into the gold markets, while notorious gold bull Paulson has gone the other way.
Paulson’s New York-based hedge fund, Paulson & Co, cut its investment in the world’s largest gold exchange traded fund (ETF), the SPDR Gold Trust, by 17%. He’s been closely followed ever since he made a staggering US$5bln on the precious metal back in 2010………………………………………..Full Article: Source

China’s biggest bank just bought a vault that holds 2,000 tons of gold in a secret location near London

Posted on 18 May 2016 by VRS  |  Email |Print

ICBC Standard Bank Plc expanded its push into London’s precious metals market by agreeing to buy one of Europe’s largest vaults from Barclays Plc. ICBC Standard, formed last year after Industrial and Commercial Bank of China Ltd. — China’s biggest bank — bought a controlling stake in Standard Bank Plc’s global markets business, expects the purchase of the vaulting business and related contracts to be completed in July.
No financial details were given. About US$5 trillion of transactions are cleared every year in London’s gold market, which Barclays is exiting as it pulls out of precious metals………………………………………..Full Article: Source

Commodities bounce back—sustainable rally or just a false dawn?

Posted on 17 May 2016 by VRS  |  Email |Print

An uptick in prices across a range of commodities in 2016 may have been welcomed by miners and traders, but one CEO has told CNBC that he’s not getting carried away just yet. “They always say ‘a swallow doesn’t make a summer’,” Ben Magara, the CEO of London-listed platinum miner Lonmin said.
“We have seen dollar prices improve from a low in January to where they are now so the trend is quite encouraging … we have seen that rand low price in November and it continues on that upward trend. Indeed, it’s early days a swallow doesn’t make a summer but it’s very helpful.”……………………………………….Full Article: Source

Algeria Signs Oil, Gas Deal as OPEC Member Seeks to Boost Sales

Posted on 17 May 2016 by VRS  |  Email |Print

Algeria will supply oil and other energy products to Jordan for the first time under a memorandum of understanding signed on Monday, as the OPEC member seeks to diversify sales after years of stagnating crude production.
Algeria’s state-run Sonatrach Group will start shipping liquefied natural gas and liquefied petroleum gas to Jordan in September, followed by crude oil, Algerian Energy Minister Salah Khebri said in an interview in Amman. Sonatrach and National Electric Power Co. of Jordan should reach a final agreement in the next few weeks, he said, without specifying shipment volumes. Sonatrach will also explore for oil and gas in Jordan………………………………………..Full Article: Source

It’s too early for the oil market to say farewell to oversupply

Posted on 17 May 2016 by VRS  |  Email |Print

The oil market has started to bid adieu to the global glut of crude supplies—but the goodbyes may be premature. Although some traders and analysts agree that the world’s crude oversupply, which has plagued the market for more than two years, is dwindling or slipping into a deficit, few believe it’s a situation that’s likely to last long.
“Outages in Canada and Nigeria are helping to bring the market into balance, but these outages are more temporary in nature,” said Matt Smith, director of commodity research at ClipperData………………………………………..Full Article: Source

European Oil Demand to Stagnate this Year, Says OPEC

Posted on 17 May 2016 by VRS  |  Email |Print

European oil demand is stagnating after a warm winter in the first quarter coupled with the fading impact of low prices halted the growth seen last year, according to OPEC’s monthly report. Downside risks to demand are also multiplying from the debt pile weighing on several countries, high taxes in the transportation sector, and rising sales of hybrid or electric cars.
European oil demand is expected to grow just 10,000 b/d this year compared to 260,000 b/d last year, the OPEC analysts estimate. Demand fell 120,000 b/d in the big four countries of Germany, France, Italy and the U.K. in March from a year earlier, the report notes………………………………………..Full Article: Source

Funds rushed back into gold as prices surged in Q1 - 13F filings

Posted on 17 May 2016 by VRS  |  Email |Print

Billionaire financier George Soros and other big investors have returned to gold for the first time in years, U.S. Securities and Exchange Commission filings showed on Monday, a move which spurred a rally to 12 month highs.
Institutional and retail buying has propelled prices to fresh one-year highs of $1,303 an ounce this month. In the first quarter, Soros, who once called gold “the ultimate bubble,” returned to gold after three years, with 1.05 million shares in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund (ETF), valued at about $123.5 million………………………………………..Full Article: Source

Paulson cut gold bets again as Soros, others rushed back

Posted on 17 May 2016 by VRS  |  Email |Print

Gold bull John Paulson slashed his bets on bullion while billionaire investor George Soros and other big funds returned to the metal for the first time in years, filings showed on Monday, as prices staged their biggest rally in nearly 30 years.
New York-based hedge fund Paulson & Co, led by John Paulson, one of the world’s most influential gold investors, slashed its investment in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund (ETF), by 17 percent to 4.8 million shares, U.S. Securities and Exchange Commission filings showed on Monday………………………………………..Full Article: Source

ICBC Standard Bank to buy Barclays’ precious metals vault

Posted on 17 May 2016 by VRS  |  Email |Print

China’s ICBC Standard Bank said on Monday that is has agreed to buy Barclays’ London precious metals vaulting business as it moves to expand its capabilities in precious metals clearing and storage services.
The agreement, which is due to close in July, will make ICBC Standard the only Chinese bank to operate a vault in London, a key trading and storage centre for precious metals. The facility, used to store gold, silver, platinum and palladium, is one of the largest in Europe………………………………………..Full Article: Source

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