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US Worried OPEC Overproduction Could Lead to ‘Regime Change’ in Venezuela

Posted on 10 June 2016 by VRS  |  Email |Print

The decision by the Organization of Petroleum Exporting Countries (OPEC) to drive production while oil prices fell could ultimately lead to an overthrow of the government of cartel member Venezuela, US Congressman Jeff Duncan told Sputnik on Thursday.
“I think ten years from now, we’ll look back at this as a positive effect, possibly on regime change in Venezuela,” Duncan said of OPEC’s increased supply of oil to the global markets………………………………………..Full Article: Source

New Commodity Super Cycle?

Posted on 09 June 2016 by VRS  |  Email |Print

Barring a large selloff, or economic recession, the evidence suggests we are in the early stages of a new bull market for commodities. Over the past few years, nearly every major global commodity in the world has been in a severe bear market. Gold and Silver both topped out in late 2011 and were in a vicious downtrend/bear market until Q4 2015.
Now, in mid-2016, Gold and Silver are two of the strongest performing asset classes of the year. Other commodities are also emerging from violent bear markets such as: Oil, Soybeans, Wheat, Corn, Sugar, Coffee, just to name a few………………………………………..Full Article: Source

Oil market is back in balance: Kemp

Posted on 09 June 2016 by VRS  |  Email |Print

Global oil markets seem to have moved back into balance thanks to strong growth in fuel consumption and a series of large supply disruptions in major crude producing nations. Motorists’ soaring consumption of cheap gasoline in the United States as well as in some large emerging economies, including India and Mexico, will help boost global oil demand by more than 1.4 million barrels per day in 2016.
Consumption had already risen by 1.8 million bpd in 2015 and is predicted to increase by well over 1.0 million bpd again next year, marking the strongest and most sustained increase in demand since before the financial crisis………………………………………..Full Article: Source

Oil Closes Above $50 for Second Day in a Row

Posted on 09 June 2016 by VRS  |  Email |Print

First back-to-back settlements above that mark in nearly a year amid production outages. U.S. oil prices rose to a fresh 10-month high Wednesday as traders stayed focused on production outages that could significantly curb the amount of excess global supply by year’s end.
The benchmark price closed above $50 a barrel for the second session in a row, marking the first back-to-back settlements above that point in nearly a year. Crude oil has nearly doubled in value since hitting decade lows earlier this winter as production disruptions world-wide rein in the oversupply that had spurred two years of falling prices………………………………………..Full Article: Source

World Silver Survey Shows Indian Market Still Growing

Posted on 09 June 2016 by VRS  |  Email |Print

“The World Silver Survey 2016,” an annual report published by The Silver Institute, said Asia’s silver mine output went up last year by 1% to 165.1 million ounces, following a 3% drop in 2014. A major part of the decrease originated from lead and zinc production sources with a lesser drop from primary silver mines. The bulk of the loss could be traced to mines in China and Kazakhstan.
For India, silver production showed a “notable rise” last year, of over two-fifths, or by 3.6 million ounces, to reach a record production total for the country of 12.0 million ounces. Total physical demand in 2015 saw a 3% increase in 2015, driven by higher retail investment, jewelry and silverware fabrication and solar and ethylene oxide catalyst demand………………………………………..Full Article: Source

Commodities making a comeback, but investors remain wary

Posted on 08 June 2016 by VRS  |  Email |Print

After years of disappointing returns, commodities have now entered into a bull market and become the best-performing asset class this year. Prices are expected to stay high in the second half of the year with tightening physical and supply fundamentals across the complex, said analysts.
Yet, many investors remain wary of investing in the asset class and are still underweight on commodities, said a fund manager. The strong performance of commodities, fuelled by higher crude oil and gold prices, has outpaced those of equities and bonds………………………………………..Full Article: Source

Commodities: The bear market is over

Posted on 08 June 2016 by VRS  |  Email |Print

Following five years of devastatingly poor returns in the market, sentiment towards commodities is at rock bottom - but it’s starting to turn following the surge in the prices of a wide variety of products since the beginning of the year.
The biggest price gains, in percentage terms, occur at the beginning of a bull market. And the best (lowest risk) time to buy anything is when the consensus expectation is turning from bearish to bullish, as is happening now in commodities. Now is the time for investors to focus on this unloved asset class………………………………………..Full Article: Source

Meet The Bull Market In Commodities

Posted on 08 June 2016 by VRS  |  Email |Print

Yesterday we talked about the bullish technical breakout shaping up in stocks. Today we want to talk about a very quiet bull market going on that supports the story for stocks. It’s commodities. Within the course of the past four short months, commodities have gone from being the leading threat for global stocks, to being a leading indicator of an emerging bull cycle for stocks.
Oil, of course, was the key culprit earlier in the year. At $26 oil, the world was a scary place. The dominoes were lining up for widespread bankruptcies, starting in the energy complex and spreading to financials, sovereigns, etc………………………………………..Full Article: Source

Oil market is back in balance: Kemp

Posted on 08 June 2016 by VRS  |  Email |Print

Global oil markets seem to have moved back into balance thanks to strong growth in fuel consumption and a series of large supply disruptions in major crude producing nations. Motorists’ soaring consumption of cheap gasoline in the United States as well as in some large emerging economies, including India and Mexico, will help boost global oil demand by more than 1.4 million barrels per day in 2016.
Consumption had already risen by 1.8 million bpd in 2015 and is predicted to increase by well over 1.0 million bpd again next year, marking the strongest and most sustained increase in demand since before the financial crisis………………………………………..Full Article: Source

Another Gold Bull Market to Begin in 2016?

Posted on 08 June 2016 by VRS  |  Email |Print

3 Reasons to Remain Bullish on Gold Prices. Despite all the negativity, gold prices continue to trend higher. Expect more upside ahead in 2016. The yellow precious metal is setting up to reward investors big time.
There are three things you have to keep in mind when looking at the gold market: higher prices could attract more investors, demand already remains solid and could increase, and the supply side remains constrained. When looking at the supply side, gold prices are still not high enough for producers to flood the market………………………………………..Full Article: Source

Commodities enter bull market as oil, soy and zinc Support Rally

Posted on 07 June 2016 by VRS  |  Email |Print

Commodities entered a bull market, ending a five-year rout, as supply constraints drive up prices in everything from soybeans to zinc and help the asset class outperform bonds, currencies and equities so far in 2016.
The Bloomberg Commodity Index, which tracks returns from 22 raw materials, closed up 1.1 per cent at 88.1137 on Monday, 21 per cent above its low on Jan. 20, meeting the common definition of a bull market. The gauge was helped higher by gains across energy, metals and agriculture. The index is still down about 50 per cent from the high reached in 2011………………………………………..Full Article: Source

Can commodities sustain their rally?

Posted on 07 June 2016 by VRS  |  Email |Print

Commodities, along with emerging markets, have been out of favour with investors for some time, but the first half of 2016 has seen a change in fortune for the asset class, with gold and oil seeing prices improve.
Figures from the World Gold Council show the gold price rallied 17 per cent in the first quarter of the year in dollar terms, its best performance in almost three decades, while demand for the precious metal increased 21 per cent year on year, according to the organisation………………………………………..Full Article: Source

This is How Saudi Arabia is Changing OPEC’s Role in Global Oil Market

Posted on 07 June 2016 by VRS  |  Email |Print

Founded back in 1960, the Organization of the Petroleum Exporting Countries (OPEC) now seems to be changing its goals. Its initial goal to regulate oil prices by regulating output does not work anymore. The reason is Saudi Arabia’s policy, which has drawn a lesson from the 1980s oil crisis.
Saudi Oil Minister Khalid al-Falih said that OPEC may change its role in the global crude market and abandon its traditional regulatory mechanism through adjusting output, The New York Times reported. The minister added that the oil exporters should give the market the ability to set fair oil prices while the previous mechanism may never recover………………………………………..Full Article: Source

Oil Near ‘Sweet Spot’ Puts 70-Year-Old U.S. Index in Focus

Posted on 07 June 2016 by VRS  |  Email |Print

The oil market is turning its attention back to the U.S. as more of its rigs return to work following a surge to $50 a barrel, raising concern that a production rebound may stifle crude’s recovery.
“All eyes” are on the U.S. response to higher prices, Morgan Stanley said in a report Monday, adding that the trend in rig numbers will be closely watched in the coming months. Drillers returned nine machines to operation last week, the biggest gain since December and only the second addition this year, according to Baker Hughes Inc., which has been compiling the data since 1944………………………………………..Full Article: Source

A Brexit Could Send The Gold Price Beyond $1,400

Posted on 07 June 2016 by VRS  |  Email |Print

According to a recent poll, the leave campaign has edged ahead with the vote just over two weeks away. Economists predicted that gold could rise to as high as $2,000 if the Grexit had occurred, we feel similar could be likely in the event of a Brexit.
With US rate hikes looking unlikely in June or July we feel nothing can stop gold’s ascent. Additionally, the British pound could have ~20% downside on an exit………………………………………..Full Article: Source

Commodities: Too Fast, Too Furious?

Posted on 06 June 2016 by VRS  |  Email |Print

Stocks may have had a rocky start to 2016, but commodities were practically a four-letter word. How quickly things have changed. In the three months ended May, the S&P GSCI index rose by 18.1%. That marks its best such period since July 2009. The recent period reflected a bounce from the epic washout of the deepest post-war recession, so the recovery is really remarkable.
Energy was the leader of the pack, rising by over 30%. That was its best three-month gain since the summer of 2008 when oil hit its all-time high. It sounds bullish, but is it really? Commodities are outperforming stocks for the first year since – gulp – 2007. That marked the end of a five-year bull market and economic expansion………………………………………..Full Article: Source

How an Interest Rate Hike Could Affect Commodities

Posted on 06 June 2016 by VRS  |  Email |Print

Commodities tend to move lower when real interest rates rise, as supply increases and capital flows into higher yielding assets. For instance, commodity prices soared in the 1970s as real interest rates moved into negative territory. Commodity prices then fell in the 1980s when Paul Volcker raised interest rates to fight inflation and real interest rates reached all-time highs.
There is a very strong inverse relationship between real interest rates and commodity prices over time. In recent years, both nominal and real interest rates have been very low due to central bank monetary easing policies and low inflation expectations. These dynamics helped commodity prices move substantially higher following the 2008 economic crisis………………………………………..Full Article: Source

As U.S. Banks Exit Commodities, an Australian Rival Takes Over

Posted on 06 June 2016 by VRS  |  Email |Print

After the Federal Reserve pledged to crack down on banks engaged in the lucrative business of commodities trading, most big Wall Street firms got out. Macquarie Group Ltd. took the opposite approach. Australia’s largest investment bank has been buying and selling increasing amounts of oil, natural gas and fuel in the U.S., taking advantage of the opening as its competitors backed away.
It now is North America’s third-largest trader of physical gas, trailing only industry giants BP PLC and Royal Dutch Shell PLC, according to industry publications Platts and Natural Gas Intelligence………………………………………..Full Article: Source

OPEC Optimism Masks Iran Risk to Oil Rally From 12-Year Low

Posted on 06 June 2016 by VRS  |  Email |Print

Oil’s recovery from a 12-year low may be too good to last as Iranian output rebounds faster than expected. OPEC last week stuck to its policy of unfettered production, deciding against a new output ceiling as the price rally supported optimism among its members that the oil market is improving.
Bijan Namdar Zanganeh, Iran’s oil minister, said fellow OPEC members didn’t give him any negative signals when they met Thursday in Vienna about his nation’s plan to further raise production. The Persian Gulf nation’s production has surged to the highest since 2011, quicker than the International Energy Agency predicted it could recover to pre-sanctions levels………………………………………..Full Article: Source

Global food prices rose in May; commodity markets look stable for year ahead – UN

Posted on 03 June 2016 by VRS  |  Email |Print

Global food prices rose 2.1 per cent in May, the fourth straight monthly increase, but stayed about seven per cent below 2015 levels, the United Nations Food and Agricultural Organization (FAO) said today, also noting that food commodity markets are on a stable path for the year ahead, with solid production prospects and abundant stocks pointing to broadly stable prices and supplies.
The FAO Food Price Index rose to 155.8 points in May, with prices rising across the index – a trade-weighted index tracking international market prices for the cereals, vegetable oils, dairy, meat and sugar commodity groups – except for vegetable oil prices, which subsided after a strong hike in April………………………………………..Full Article: Source

ABN AMRO sees sharp turnaround in commodities this year

Posted on 03 June 2016 by VRS  |  Email |Print

More support is in store for many commodities during the remainder of the year prompted by a modest improvement in US and Eurozone economic data in the course of 2016 and 2017 , according to ABN AMRO.
The inflationary implication of higher oil prices could also lend support to gold, which tends to rise when oil prices recover. “We believe that silver will outperform gold, and also for gold to continue rallying in 2016 and 2017,” the bank said in its latest report………………………………………..Full Article: Source

Has a commodities bull market taken hold?

Posted on 03 June 2016 by VRS  |  Email |Print

Every asset class has its time in the sun and periods where nobody wants to touch it with a barge pole. In the case of commodities, it is increasingly looking like it has moved from the latter to the former. Taking a selection of commodities linked indices shows a clear upward trajectory has taken hold over the past three months.
Given the notoriously fickle and volatile nature of investing in commodities though, investors should rightly give more careful consideration to jumping on the bandwagon than they may do in the case of other asset classes………………………………………..Full Article: Source

OPEC Skips Output Limit, Finds Unity in Oil Price Optimism

Posted on 03 June 2016 by VRS  |  Email |Print

OPEC will stick to its policy of unfettered production after members rejected a proposal to adopt a new output ceiling, but ministers were united in their optimism that global oil markets are improving.
While crude prices dipped briefly after Thursday’s meeting, there was little of the rancor that punctuated last December’s gathering. The more harmonious atmosphere meant the group was able to appoint a new secretary-general — Nigeria’s Mohammed Barkindo — something it hadn’t been able to agree on since 2012………………………………………..Full Article: Source

Oil production stays level as Opec summit produces no deal

Posted on 03 June 2016 by VRS  |  Email |Print

The failure of the once mighty oil cartel Opec to reach a production-curbing deal was hardly a big surprise. Saudi Arabia wanted to limit output in order to underpin crude on global markets, but for both financial and political reasons there was never the remotest possibility that Iran would agree.
No longer a pariah after the lifting of western sanctions, Iran is keen to ramp up its production. Clearly, it would prefer oil to be changing hands at $60 a barrel rather than $30 a barrel, but $30 a barrel is a lot better than $0 a barrel. Both Saudi Arabia and Iran want to be regional top dog in the Middle East. There is no love lost between Tehran and Riyadh………………………………………..Full Article: Source

Investor Interest in Gold Waning With Fed Rate Increase Looming

Posted on 03 June 2016 by VRS  |  Email |Print

There’s one more indicator signaling investors are beginning to lose interest in gold again. Open interest, a tally of outstanding contracts in futures on the Comex in New York, fell 1.5 percent on Wednesday to the lowest since April 8. In the week ended May 24, money managers cut their net-long positions in gold by 26 percent, the most this year.
In the U.S., where the Federal Reserve has been monitoring signs of economic resilience before deciding on the next increase in borrowing costs, filings for jobless benefits released Thursday fell for a third straight week………………………………………..Full Article: Source

Gold is falling because of the Fed — but not for the reason you think

Posted on 03 June 2016 by VRS  |  Email |Print

Gold investors can stop worrying. Despite recent chatter, interest rate tinkering at the Federal Reserve is not driving the price of gold. That said, it’s easy to understand the confusion…
The price of gold dropped to a three-week low after the Fed released the minutes of its April meeting on May 18, suggesting it may lift interest rates in June………………………………………..Full Article: Source

There’s a ‘controversy’ brewing in gold market: Goldman Sachs

Posted on 03 June 2016 by VRS  |  Email |Print

Gold has been one of the best investments this year, rising 15 percent even as the S&P 500 is only a few percentage points better than flat. But as gold has slipped over the past month due to heightened expectations of a summer rate hike, indicators “show controversy” around gold ETFs, according to Goldman’s options research team.
Looking to the two popular ETFs that track gold miner stocks, GDX and GDXJ, the Goldman Sachs team notes a few mixed signals………………………………………..Full Article: Source

Global silver market deficit forecast up 21% in 2016, at 1,005 mt: Metals Focus

Posted on 03 June 2016 by VRS  |  Email |Print

The global physical silver market is expected to record a 1,005 mt deficit in 2016, up from a deficit of 793 mt in 2015, Metals Focus said in its most recent global silver survey Thursday. The increased deficit is forecast to come primarily from a tightening in supply, rather than increased demand, it said.
Total supply is expected to be 1% lower on the year in 2016, at 32,192 mt, due to a 2% fall in mine production, the survey said. The fall in mine production is significant, according to Metals Focus, as it comes after 10 years of production growth………………………………………..Full Article: Source

Goldman’s ‘Bullish Exception’ Powers Ahead as Zinc Tops $2,000

Posted on 03 June 2016 by VRS  |  Email |Print

Zinc extended its rally to a 10-month high amid expectations for a global shortage of one of this year’s best-performing commodities. Zinc, used for rustproofing steel in everything from auto bodies to suspension bridges, has surged 23 percent in 2016, outperforming other base metals.
Banks from Goldman Sachs Group Inc. to Macquarie Group Ltd. see further gains for prices that have risen for six straight days. Zinc deficits could even send prices to a record in the next two years, ICBC Standard Bank Plc said in March. The metal peaked at $4,580 a metric ton in 2006………………………………………..Full Article: Source

Three funds to cash in on a potential bull market in commodities

Posted on 03 June 2016 by VRS  |  Email |Print

Commodities have come flying back so far in 2016 following a sustained period of hefty price falls. Various reasons have been given for this phenomenon such as a rebalancing in the supply/demand dynamic in the space, signs of an inflationary environment and very low valuations.
Whatever the drivers have been, FE data shows the Bloomberg Commodity index is up 12 per cent so far this year with certain individual commodity prices up significantly more. Of course, some will no doubt think that given the pace of the recent rally the best returns have now been made. ……………………………………….Full Article: Source

Has the bull market for commodities begun?

Posted on 02 June 2016 by VRS  |  Email |Print

The bear market for commodities is over and it is time for investors to focus on this asset class again, according to a commodities analyst. Goeff Blanning, head of commodities at Schroders Asset Management thinks that a new bull market for commodities has begun.
“Following five years of devastatingly poor returns in the market, sentiment towards commodities is at rock bottom, but it’s starting to turn following the surge in the prices of a wide variety of products since the beginning of the year,” he said, adding that the biggest price gains, in percentage terms, occur at the beginning of a bull market………………………………………..Full Article: Source

OPEC swagger fades as oil struggles at $50 ahead of cartel’s summit

Posted on 02 June 2016 by VRS  |  Email |Print

A year and a half after the Organization of the Petroleum Exporting Countries’ decision not to cut production levels despite a global glut of crude, oil prices have finally managed to climb back above $50—they just haven’t been able to stay there.
That is raising questions over OPEC’s power to control the oil market ahead of its regularly scheduled meeting this Thursday in Vienna. West Texas Intermediate and Brent crude have rallied roughly 67% from their lows this year but as of Tuesday, failed so far this year to settle above $50 a barrel………………………………………..Full Article: Source

Gold Bullion Tries $1220, Drop ‘Now Finished’ as China’s Yuan Nears 5-Year Low on Weak PMI

Posted on 02 June 2016 by VRS  |  Email |Print

Gold Bullion retreated twice from a 3-session high of $1220 per ounce on Wednesday, dropping back but holding firmer than world stock markets as new data again showed manufacturing activity contracting in China and slowing in Germany.
The May manufacturing PMI survey from news outlet Caixin and data agency Markit said activity contracted for the 15th month running, contrasting with a pop to unchanged on the government’s official NBS index. “Has gold’s $100 drop [from start-May] been enough?” asks London bullion and futures brokerage Marex Spectron’s David Govett in a note. “Personally I think it has………………………………………..Full Article: Source

Uranium juniors defy bear market pricing

Posted on 02 June 2016 by VRS  |  Email |Print

Uranium is having the worst start to a year in a decade. U3O8 is down more than 20% in 2016 with the UxC broker average price sliding to $27.25 a pound on Monday. Current levels are the cheapest spot uranium has been since 2005.
In contrast the long term price, where most uranium business is conducted, is hovering at around $44 a pound, where it’s been since July 2015………………………………………..Full Article: Source

UAE minister says happy with oil market

Posted on 01 June 2016 by VRS  |  Email |Print

UAE Oil Minister Suhail bin Mohammed al-Mazroui said on Tuesday he was happy with the oil market, noting that prices had been correcting higher. “We are optimistic. We are seeing that the market is correcting upward,” Mazroui told reporters in Vienna.
Oil ministers from the Organization of the Petroleum Exporting Countries meet on Thursday in the Austrian capital. Oil prices rose on Tuesday, heading for the fourth straight monthly gain, with investors betting on higher U.S. fuel demand as peak driving season arrived in the No. 1 oil consumer………………………………………..Full Article: Source

Precious Metals: A Resource Worth Recycling

Posted on 01 June 2016 by VRS  |  Email |Print

Precious metals are among the most valuable of Earth’s resources. As long as humans have been on the planet they’ve coveted these metals. The pleasing appearance, tarnish resistance, and permanence of gold and silver have made them ideal choices throughout recorded history for jewelry, ornamentation of persons and objects, and investment in the form of coins, bars, and exchange-traded items.
Platinum group metals (PGM) did not come on the historical scene until about 1800, but the high melting points, high corrosion resistance, and excellent catalytic properties of platinum, palladium, rhodium, ruthenium, iridium, and osmium make them indispensable for many industrial applications……………………………………….Full Article: Source

Brutal May for metals and miners

Posted on 01 June 2016 by VRS  |  Email |Print

Against expectations and in some instances in defiance of fundamentals, commodities managed to climb a wall of worry over the first four months of 2016 giving mining companies a welcome boost after three years of declines.
Sell in May and go away is one of the oldest adages on the equities market and it was especially true for the mining sector in 2016. While broader US share markets moved sideways and crude oil continued to rally, mining stocks, metals and mineral prices were hammered during the month………………………………………..Full Article: Source

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

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