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Commodities slump has not created a buyer’s market for mines

Posted on 21 April 2016 by VRS  |  Email |Print

Wanted: One mine, just started or close to production, preferably gold, must be in secure country with high-quality ore body and low costs. Also, must be cheap.
The above shopping list was the most common response from investors when quizzed about what they are looking for in the commodity sphere during last week’s Mining Investment Asia conference in Singapore. The near impossibility of satisfying the requirements probably explains why there aren’t that many mining deals actually being done, despite the low prices for many commodities………………………………………..Full Article: Source

Why the oil market didn’t need the Doha freeze after all

Posted on 21 April 2016 by VRS  |  Email |Print

When markets opened Monday morning, the price of oil dropped like a rock, as the market absorbed the news that the much anticipated oil production freeze meeting in Doha, Qatar didn’t amount to much. But oil soon recovered and traded Tuesday above $42 US a barrel.
Why? Is it because of a strike by oil workers in Kuwait? Or pipeline sabotage in Nigeria? Partly. But energy analysts say it’s also because the global oil market didn’t really need the Doha agreement. It’s already in the midst of re-balancing itself………………………………………..Full Article: Source

Oil market rebounds to 2016 highs as US data offers bullish surprise

Posted on 21 April 2016 by VRS  |  Email |Print

The oil market staged a dramatic rebound in late trade to return to 2016 highs after unexpectedly low US supply data trumped market concerns over the abrupt end to strike action in Kuwait.
The anticipated increase in Kuwaiti supply following the sooner than expected end to a three-day oil worker strike late on Tuesday pushed the benchmark Brent crude price down more than 2.5pc to lows of $43 a barrel by Wednesday morning. But a surprising weekly US oil stock report triggered a late 4.5pc surge to just over $45 by 18:00 BST………………………………………..Full Article: Source

Russia Energy Minister Unsure OPEC Will Agree to Freeze Oil Output

Posted on 21 April 2016 by VRS  |  Email |Print

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

Iraq Says OPEC, Others to Meet on Oil Freeze, Perhaps in May

Posted on 21 April 2016 by VRS  |  Email |Print

Major OPEC and other crude producers will meet in Russia, possibly next month, in a new push to agree on an output freeze to shore up oil prices, Iraq’s Deputy Oil Minister Fayyad Al-Nima said.
Iraq sees oil prices rising slowly despite the failure of OPEC and other producers including Russia to reach an agreement on an output freeze in Doha on April 17, Al-Nima, who assumed the duties of oil minister after Adel Abdul Mahdi suspended his participation in the cabinet last month, said in a phone interview on Wednesday. There is still no agreement on an oil meeting in May, Russian Energy Minister Alexander Novak said after Al-Nima’s comment………………………………………..Full Article: Source

Silver surges to best performing commodity

Posted on 21 April 2016 by VRS  |  Email |Print

Grey metal outpaces gold this year and is also ahead of equities. An explosive two-week rally has made silver one of the best performing commodities this year, fuelled by a surge in interest from hedge funds and Chinese traders after it fell to an uncommonly large discount to gold.
Silver has now outpaced gold in terms of gains as the metal has rallied 14 per cent in 11 days to $17.05 a troy ounce. This year it is up 23 per cent, the best performer in the Bloomberg commodity index, trouncing the 2.3 per cent for the FTSE All-World index of global shares………………………………………..Full Article: Source

Commodities Post Best Rally Since August as Citi Sees Gains

Posted on 20 April 2016 by VRS  |  Email |Print

Supply concerns are resurfacing for commodities from crude oil to soybeans, sparking the biggest rally for raw materials since August. The Bloomberg Commodity Index, a measure of returns for 22 components, jumped percent 2.4 to 82.6543 on Tuesday, the biggest gain since Aug. 27. Oil in New York climbed as much as 4.4 percent, corn reached a six-month high and silver entered a bull market.
After five straight years of losses, commodity markets are rebounding as supply overhangs start to subside. Unfavorable weather is threatening soybean output in South America, while the start of a La Nina pattern this year could bring dry weather to U.S. grain-producing regions………………………………………..Full Article: Source

Oil market in temporary balance as supply disruptions buoy price

Posted on 20 April 2016 by VRS  |  Email |Print

Strike in Kuwait and news of outages in Nigeria and Venezuela bolster crude market. A workers’ strike in Kuwait that has temporarily halved its crude output and a string of global supply disruptions propelled oil prices higher on Tuesday.
Brent, which had sunk to almost $40 a barrel on Monday after talks between some of the biggest producers in Doha collapsed, rose as much as $1.34 to $44.25 on Tuesday. West Texas Intermediate, the US benchmark, rose $1.49 to $41.26 a barrel………………………………………..Full Article: Source

Fumbled talks reveal much about OPEC, oil market

Posted on 20 April 2016 by VRS  |  Email |Print

​It’s difficult to see what purpose the once-mighty OPEC serves following Sunday’s spectacular flop of much-anticipated talks to freeze oil production and drive up prices. This was the first substantial effort in a decade and a half to co-ordinate both OPEC and non-OPEC countries in a freeze that would boost prices, yet it ended in only more confusion across energy markets.
Prices have been battered since late 2014 after OPEC rejected calls to rein in an oversupply of 1.3 million barrels a day — but they began rising sharply in recent weeks on rumours that top producers Saudi Arabia and non-OPEC Russia would push for the freeze………………………………………..Full Article: Source

Shanghai gold fix aims China towards global pricing power

Posted on 20 April 2016 by VRS  |  Email |Print

Yuan-denominated benchmark for the metal is a sign of China’s growing clout in the world. The yuan-denominated gold benchmark debuted in Shanghai yesterday as China took a step forward in vying to be a global price-setter for the precious metal.
The gold fix is also the latest sign that Beijing will continue to expand the role of its currency to match the country’s increasing economic might. The gold benchmark launched by the Shanghai Stock Exchange is based on a 1 kilogram-contract and was set at 256.92 yuan yesterday morning………………………………………..Full Article: Source

Silver’s Surge Means It’s Closing the Gap on Gold

Posted on 20 April 2016 by VRS  |  Email |Print

As gold prices have surged this year, silver has lagged far behind. Now, the metal known as “poor man’s gold” is starting to play catch up. On Tuesday, silver hit its highest level in more than 10 months, and its more than 4% gain helped silver narrow its price gap with gold.
The gold-to-silver ratio fell to its lowest level in four months on Tuesday at 74. In March, the ratio hit its highest level since 2008 at 83, according to FactSet data. That recent divergence in price has sparked some buying in silver, as traders bet that the ratio between gold and silver will revert back to its average level………………………………………..Full Article: Source

China alumina prices supported as SHFE aluminum hits 8-month high

Posted on 20 April 2016 by VRS  |  Email |Print

The Platts ex-works Shanxi alumina spot assessment stood at Yuan 1,980/mt ($306/mt) full cash terms on Tuesday, up Yuan 20 from Monday, up Yuan 30 on the week and Yuan 50 on the month. Alumina prices have been tracking domestic metal prices higher this week, and are expected to continue testing higher in the near term should aluminum prices remain supported, market participants said.
The front-month aluminum contract on the Shanghai Futures Exchange hit an eight-month high on Tuesday to close at Yuan 12,020/mt. The last time the SHFE price was above this level was on August 14, 2015, when the front-month price settled at Yuan 12,030/mt………………………………………..Full Article: Source

Weather May Threaten Commodity Markets

Posted on 20 April 2016 by VRS  |  Email |Print

When it comes to predicting commodity market moves for 2016, farmers and ranchers should look at past economic and weather trends across the globe. Jim Bower of Bower Trading says producers need to look on a more international scale than a local level for prices and risk management this year.
Bower: “The change in commodities is that it has gone very much international in scope. There is an international awareness. You really can’t get your pricing or your trading right unless you have the international backdrop. Now you can overlay it with technical factors which you can do yourself or with an advisor to fine tune your program. Don’t look at just the local or regional — look at the international that is where you get your success.”……………………………………….Full Article: Source

Commodities ‘humiliated’ while stocks head for record run

Posted on 19 April 2016 by VRS  |  Email |Print

Commodities have had a pretty humbling run recently. In fact, Bank of America Merrill Lynch calculates that long-term returns are now running at the weakest pace since… 1933. Time for the tide to turn? Chief investment strategist Michael Hartnett at the bank writes:
The most bullish argument for commodities today is “humiliation”. Similar to stocks in 2009, the rolling return from commodities is currently at a multi-decade low, indeed the lowest since 1933. And commodity producers and Emerging Markets at least offer the potential for lower rates and higher earnings per share over the medium term. The secular upside for commodities is thus greater than downside. We like gold………………………………………..Full Article: Source

Is investing in commodities worth the effort and hand-wringing?

Posted on 19 April 2016 by VRS  |  Email |Print

Commodities offer Canadian investors the chance to add diversity to their portfolios — which usually include a mix of cash, stocks and bonds — because they tend to generate returns on a different basis than the other asset classes.
But there are a lot of reasons why the prices of commodities fluctuate: seasonality, global or regional economic growth, supply and demand, the U.S. currency, the weather and geopolitical conflict, among others. This complex dynamic is tough for investors, especially novice ones, to decode and then properly time. So yes, there is money to be made in commodities, but can mom and dad stomach the ups, downs and unknowns?……………………………………….Full Article: Source

Oil market confidence shaken as Opec talks collapse

Posted on 19 April 2016 by VRS  |  Email |Print

Global oil prices slumped on Monday after rising tensions between the world’s largest crude producers derailed plans to tackle the market’s crippling oversupply by freezing oil production levels.
Brent crude tumbled from almost $45 a barrel late last week to under $41 on Monday after the third high-profile failure of the Organisation of Petroleum Exporting Countries (Opec) to agree on a deal to manage the global glut of oil………………………………………..Full Article: Source

Saudis are going for the kill but the oil market is turning anyway

Posted on 19 April 2016 by VRS  |  Email |Print

The collapse of OPEC talks with Russia over the weekend makes absolutely no difference to the balance of supply and demand in the global oil markets. The putative freeze in crude output was political eyewash.
Hardly any country in the OPEC cartel is capable is producing more oil. Several are failed states, or sliding into political crises. Russia is milking a final burst of production before the depleting pre-Soviet wells of Western Siberia go into slow run-off. Sanctions have stymied its efforts to develop new fields or kick-start shale fracking in the Bazhenov basin………………………………………..Full Article: Source

OPEC’s next move might be an oil production hike

Posted on 19 April 2016 by VRS  |  Email |Print

Several of the world’s largest oil producers failed to reach an agreement to freeze output to help alleviate a glut of global crude supplies, but the Organization of the Petroleum Exporting Countries may soon need to start discussing an increase in output instead.
The logic is a bit hard to grasp, but not that difficult if you look at some of the reasons why producers couldn’t come up with a deal to cap production—and why oil prices didn’t end up taking that big of a hit on Monday………………………………………..Full Article: Source

China Captures Top Growth in Commodity Trading After 2015 Rout

Posted on 19 April 2016 by VRS  |  Email |Print

China’s commodities exchanges got a boost from last year’s rout in raw-material prices as investors piled into bets on everything from steel and soybean meal to iron ore.
Trading in commodities on the Dalian Commodity Exchange and the Shanghai Futures Exchange surged to more than 1 billion contracts last year, according to the World Federation of Exchanges. Trading in Dalian climbed 45 percent last year as the Shanghai transactions rose 25 percent in 2015, the group said in a report released Monday………………………………………..Full Article: Source

Commodities Have Seen Bottom as China Fears Ebb, Citigroup Says

Posted on 18 April 2016 by VRS  |  Email |Print

Commodities have passed the worst of a rout amid brighter prospects for Chinese demand, a weaker dollar and signs of tighter supplies, according to Citigroup Inc. “There is growing evidence that virtually all commodities have stared at a price bottom and are groping for a return to normal,” analysts including Ed Morse said.
Petroleum and natural gas markets are recovering, while industrial metals are advancing as China’s property market picks up, they said. Iron ore’s rally will fade amid oversupply. Recent signs of stabilization in China are “likely a result of improved real estate activity and infrastructure investment on the back of broad-based credit easing,” the analysts wrote………………………………………..Full Article: Source

Oil producers fail to agree output freeze

Posted on 18 April 2016 by VRS  |  Email |Print

The world’s top oil producers failed to reach agreement on capping output in Doha Sunday amid a standoff between Saudi Arabia and Iran and raising fears about how markets will react.
Qatari energy minister Mohammed bin Saleh al-Sada said oil producers concluded after six hours of negotiations that they needed “more time”. “The general conclusion was that we need more time to consult among ourselves in Opec and non-Opec producers,” Mr Sada said………………………………………..Full Article: Source

Oil meeting in Qatar collapses without freeze as Iran absent

Posted on 18 April 2016 by VRS  |  Email |Print

Oil-rich nations gathered in Qatar ended their summit Sunday just hours after it began, saying they need “more time” before agreeing to a production freeze. A meeting of oil-rich countries in Qatar that had been expected to boost crude prices by freezing production fell apart Sunday as Iran stayed home and vowed to increase its output despite threats by Saudi Arabia.
Oil prices, which hit a 12-year low in January by dipping under $30 a barrel, had risen above $40 in recent days, buoyed by the bullish talks surrounding the Doha summit………………………………………..Full Article: Source

OPEC May Take All Necessary Measures to Support Oil Market

Posted on 18 April 2016 by VRS  |  Email |Print

The oil-producing countries after a meeting in the Qatari capital of Doha, will have to observe how the situation will develop and to discuss, if necessary, additional market support measures at the Organization of the Petroleum Exporting Countries (OPEC) meeting in June, Ecuadorian Oil Minister Carlos Pareja said Sunday.
“It is necessary to see what will happen after this meeting, and then, if necessary, at the OPEC meeting to adopt additional measures,” Pareja told reporters. He later specified he was referring to the June OPEC meeting………………………………………..Full Article: Source

Is the latest commodity price rally about to be cut short by a rising $US?

Posted on 15 April 2016 by VRS  |  Email |Print

Commodity markets have begun to feel the heat this week as the greenback has continued to edge higher against currencies such as the yen and the euro even though the US central bank continues to sound a very dovish tone on interest rates.
The US dollar’s rise comes as foreign currency traders are becoming anxious that central banks in Europe and Japan will adopt yet more monetary stimulus – including boosting their bond buying programs and cutting interest rates even deeper into negative territory………………………………………..Full Article: Source

Latin America Is Facing Commodity and Demographic Shocks

Posted on 15 April 2016 by VRS  |  Email |Print

What is far more worrying is that several countries increased fiscal spending in response to the 2009 recession and then failed to reverse the increases as the recession receded. A vast majority of Latin American countries need to trim fiscal spending and undertake fundamental reforms while urging its borrowers not to cut capital investments, according to the Inter-American Development Bank.
The regional economies will remain weak until 2020 unless the countries reform their fiscal policies immediately, the bank said in an annual report released in Bahamas. Weak global growth, a fading demographic boom, lower commodity prices, and deteriorating fiscal positions have hit Latin America hard, plunging countries like Brazil and Venezuela into deep crisis………………………………………..Full Article: Source

Oil-Freeze Deal Would Have Limited Impact on Market, Says IEA

Posted on 15 April 2016 by VRS  |  Email |Print

A prospective deal to freeze oil output at a meeting of producers in Doha on Sunday won’t change oil markets which have already started to rebalance anyway, a top energy watchdog said Thursday.
Russia and Saudi Arabia–the world’s top oil exporters–are set to meet with other oil nations in Doha, Qatar, hoping to reach an agreement to cap their supply level in order to revive oil prices. But in its closely watched oil-market report, the International Energy Agency said “any deal struck will not materially impact the global supply-demand balance” during the first half of 2016………………………………………..Full Article: Source

Damaged OPEC has lost the power to influence a world broken by debt

Posted on 15 April 2016 by VRS  |  Email |Print

OPEC and non-OPEC oil producers meet in Doha this Sunday to decide on what to do about the still depressed oil price. On the agenda is a proposal to freeze production at January or February levels, with a view to possibly cutting it at the following meeting in June.
Time was when such machinations would be front page news. Journalists would hang on the every word of OPEC’s vainglorious overlords, and their pronouncements would be major market moving events, with sometimes profound repercussions for the global economy………………………………………..Full Article: Source

Gold/Silver ratio to continue narrowing: HSBC

Posted on 15 April 2016 by VRS  |  Email |Print

HSBC looks for the gold /silver ratio to narrow further, which would mean silver is outperforming. The ratio measures how many ounces of silver it takes to buy an ounce of gold. Comex May silver rose Tuesday even as June gold eased slightly, and silver has posted a smaller percentage decline so far Wednesday.
“We believe that retail demand for coins and small bars and light institutional buying in the paper markets has boosted silver,” HSBC says in a late-Tuesday research note. “Some near-term players are focusing on the gold-silver ratio, which is back below 1:78. We think the ratio will narrow further as price sensitive buyers, who want to participate in precious metals , turn more to silver.” ……………………………………….Full Article: Source

China’s Appetite for Commodities Shoots Up

Posted on 14 April 2016 by VRS  |  Email |Print

Imports by China overall were down in March year-on-year, but copper, soybeans and oil stood out as winners. China’s better than expected trade data for March drove prices of copper and other industrial metals higher Wednesday, though concerns continued to linger about excess supplies.
The world’s second-largest economy imported 39% more copper in March than in the same month last year, China customs data showed. Imports of soybeans, used for cooking oil and pig feed, shot up 36% in March year over year………………………………………..Full Article: Source

Commodity prices put pressure on Middle East

Posted on 14 April 2016 by VRS  |  Email |Print

Drop in oil and commodity prices expected to lead to more political instability in region. Governments across the Middle East and north Africa can expect to lose $2tn in income over the next five years as the slump in oil and commodity prices sends unemployment soaring and denies them tax receipts.
The drop in oil prices from their peak between 2004 and 2008, coupled with declines in metal and basic food prices, will force many governments to borrow to make up the difference, the International Monetary Fund said in its annual Fiscal Monitor………………………………………..Full Article: Source

Commodities crash flows to downstream prices in Japan

Posted on 14 April 2016 by VRS  |  Email |Print

The plunge in commodities prices is rippling out to finished products, weighing on consumer prices and foiling the Bank of Japan’s efforts to engineer steady inflation. Prices for final goods sank 2.1% on the year in March, the sharpest drop in three years and eight months, preliminary Bank of Japan data released Wednesday shows.
The producer price index declined on the year for a 12th straight month, dipping 3.8% to 99.6, the lowest reading since December 2009. Falling prices for upstream products such as crude oil and steel are making waves downstream. The slide in the final goods index that began in November has gradually picked up speed. Prices are declining not only for imports, but also for items made in Japan………………………………………..Full Article: Source

OPEC cuts 2016 oil demand growth forecast, warns of more

Posted on 14 April 2016 by VRS  |  Email |Print

OPEC on Wednesday cut its forecast for global oil demand growth in 2016 and warned of further reductions citing concern about Latin America and China, pointing to a larger supply surplus this year.
The Organization of the Petroleum Exporting Countries also said top exporter Saudi Arabia kept output steady in March - a sign Riyadh is serious about a plan to be discussed this weekend to freeze output and support prices - while OPEC supply overall rose only slightly………………………………………..Full Article: Source

Chill winds still blow through the oil market

Posted on 14 April 2016 by VRS  |  Email |Print

Spring is coming in the oil market. That was the message from the heads of the world’s largest trading houses at the FT’s commodities conference in Lausanne this week. The overwhelming consensus among these influential figures in the market is that crude is unlikely to return to the prices below $30 per barrel that it reached in January, and the trend is now upwards.
The markets do seem to support that interpretation. After a 4 per cent jump on Tuesday, internationally traded Brent crude is almost 60 per cent above its low point in January………………………………………..Full Article: Source

OPEC Sees Bigger Drop in Non-Cartel Output

Posted on 14 April 2016 by VRS  |  Email |Print

The Wall Street Journal’s Benoit Faucon reported that the Organization of the Petroleum Exporting Countries, a group of some of the world’s biggest producers, forecast on Wednesday that a long-expected contraction in non-OPEC oil supply was shaping up to be steeper than expected.
In March, it forecast non-OPEC output would fall by 700,000 barrels a day this year. It is now estimating that drop will be 730,000 barrels a day. The downgrade was due to lower expectations for oil production from China’s onshore mature fields and further declines in the U.S. and the U.K., where projects have been deferred because of lower oil prices………………………………………..Full Article: Source

How to Sell Gold and Silver Bullion

Posted on 14 April 2016 by VRS  |  Email |Print

People often talk about buying the many different forms of gold and silver bullion. But rarely is the topic of selling bullion addressed. And of course, unless you are holding gold for survival purposes, you’re eventually going convert your physical bullion back into some other form of currency… You’re going to sell.
Here’s the best way to do that. First, let me tell you that I am in a selling mood right now. Even if you were buying gold or silver on Monday morning, you’d be sitting on a 1.5% gain in gold and a 4.5% profit in silver — and that’s not bad for just two days………………………………………..Full Article: Source

World’s top copper producer bemoans spectre of speculators

Posted on 14 April 2016 by VRS  |  Email |Print

Speculators provide ‘sugar’ of liquidity but also create shivers, red metal producer says. The chairman of the world’s biggest copper producer said speculators were haunting the commodities markets, with portfolio flows driving prices rather than fundamentals of supply and demand.
A rise in copper prices over the last decade helped inflate a boom but supply cuts have been slower than needed as prices have slumped, Oscar Landerretche, chairman of Chile’s state-owned copper producer Codelco, told the FT Commodities Global Summit in Lausanne, Switzerland………………………………………..Full Article: Source

You can now be positive on commodities, and that’s a big change: Russell

Posted on 13 April 2016 by VRS  |  Email |Print

It would be easy to dismiss the assertion by BHP Billiton Chief Executive Andrew Mackenzie that commodity prices have bottomed as the wishful thinking of a mining executive keen to see some improvement in profit margins.
While it’s likely that the boss of the world’s biggest mining company is hoping for an end to five years of a declining price trend for many of the commodities his company produces, there is enough price evidence to suggest he may be right. It’s probably a little too early to call for a rebound in commodity prices, and Mackenzie was suitably cautious in his comments published last weekend in The Australian newspaper………………………………………..Full Article: Source

Why the oil price spike is a risk for markets

Posted on 13 April 2016 by VRS  |  Email |Print

Oil spiked on Tuesday as Russia’s Interfax news agency said that Russia and Saudi Arabia had agreed on a production freeze ahead of the upcoming OPEC meeting in Doha, regardless of whether other OPEC members participate or not.
Oil immediately spiked to its highest level since December. More importantly, it moved over the 200-day moving average for the first time since October 2014. In a range-bound market, a breakout to new highs is a big story………………………………………..Full Article: Source

Goldman Sachs warns Opec meeting in Doha will not deliver ‘bullish surprise’ for oil prices

Posted on 13 April 2016 by VRS  |  Email |Print

The meeting of oil producing nations scheduled at the end of the week in Doha was unlikely to result in a “bullish surprise” for oil prices, Goldman Sachs has warned. The investment bank said there was a very low chance that the 17 April meeting could result in a freeze of oil production that is required to lift global prices of the commodity, which has fallen more than 70% since June 2014.
Oil prices would maintain its earlier price forecast of $35 (£24.58, €30.68) per barrel in the second quarter, it added………………………………………..Full Article: Source

Global physical gold markets grind along; eyes on new business: sources

Posted on 13 April 2016 by VRS  |  Email |Print

The global physical gold market continues to grind along, with little optimism resonating with participants — from producers to end-users — with logistic firms and bankers looking for ways to sell, and distribute bullion, sources said this week in Dubai.
At an industry event in the UAE, the mood was distinctly bearish, with few signs of life. That’s not to say business isn’t concluding, but conditions are tough, sources said. One senior source questioned where the product is ending up………………………………………..Full Article: Source

If central banks get out of market, gold will pick up a lot of steam

Posted on 13 April 2016 by VRS  |  Email |Print

The gold prices went down so long that any uptick looks very encouraging. But we really do not know what is going to happen with gold unless we know what the central bank policy is. We know from all the documents that my organisation has collected that central banks are intervening in the gold markets secretly every day.
They say they are intervening secretly every day when they are talking to each other and they do not think anyone outside their circle is listening………………………………………..Full Article: Source

Opec meeting could spell oil price slump, warns Goldman Sachs

Posted on 12 April 2016 by VRS  |  Email |Print

The highly anticipated meeting of the world’s largest oil producing nations in Doha this weekend is unlikely to offer a “bullish surprise” for the embattled oil market, and may cause prices to reverse from recent gains, Goldman Sachs has warned.
Members of the Organization of Petroleum Exporting Countries (Opec) are due to meet with non-Opec producers to thrash out a deal to limit oil production in a bid to ease the oversupply which has crippled prices for almost two years………………………………………..Full Article: Source

Iran and Oil: You Ain’t Seen Nothing Yet

Posted on 11 April 2016 by VRS  |  Email |Print

“Freeze” is a word rarely heard in balmy Doha, but it will be the talk of the town this week. That isn’t because a delegation from frigid Moscow plans an unusual appearance at a meeting of oil exporters being held in Qatar’s capital next Sunday. The star of the show, and quite possibly the spoiler, will be from nearby Iran.
Several large oil producers have pledged to freeze output at current levels if others do the same. But Iran, recently freed from sanctions, is in the process of ramping up output and in no mood to stop………………………………………..Full Article: Source

Kuwait expert sees efforts to stabilize oil market

Posted on 11 April 2016 by VRS  |  Email |Print

Oil producing countries plan to stabilize the crude output, and probably trim it, in case the prices failed to “balance” in the markets, according to a Kuwaiti expert. Affirming that the collectively desired price is in the range of $ 50-60 per barrel, Mohammad Al-Shatti said that a number of these countries, during their upcoming meeting in Doha, Qatar, would first seek to firm the production for months, and in case the balance could not be restored, they would slash it.
Oil prices have already recovered, amid various factors related to the world economy and supply and demand, he said, adding that positive reports by the US Federal Reserve diminished concerns about the American and Chinese economies………………………………………..Full Article: Source

Gold’s Rally Far From Being Over - Capital Economics

Posted on 11 April 2016 by VRS  |  Email |Print

Despite gold’s rally losing some steam, one U.K.-based research firm remains optimistic on the yellow metal’s price this year. “We think that gold’s rally this year is far from being over,” said Simona Gambarini, commodities economist for Capital Economics, in a research note Friday morning.
“We expect building inflationary pressures in the U.S. to keep real interest rates low, boosting the attractiveness of gold as a store of value,” she explained further. Gold prices remain up on the year but have recently lost steam as stronger U.S. employment and manufacturing data have reignited prospects of Federal Reserve rate hikes this year………………………………………..Full Article: Source

Mine closures to give Zinc a break

Posted on 11 April 2016 by VRS  |  Email |Print

Renewed price optimism as tighter supply is expected to decrease stockpiles. Recent fears of a looming shortage in zinc supply have seen the commodity overcome its difficult start to 2016, to emerge as one of the best performing base metals of the first quarter.
After falling almost 30% in 2015, the zinc price succumbed to further selling pressure in mid-January when it hit a six and half year low of $1 444.50/tonne (t) as weak demand and high inventory levels weighed on the market. Since then, the metal price has rallied with the three-month benchmark London Metal Exchange price north of $1 750/t………………………………………..Full Article: Source

Global Demand for Food Is Rising. Can We Meet It?

Posted on 08 April 2016 by VRS  |  Email |Print

Over the last century, the global population has quadrupled. In 1915, there were 1.8 billion people in the world. Today, according to the most recent estimate by the UN, there are 7.3 billion people — and we may reach 9.7 billion by 2050. This growth, along with rising incomes in developing countries (which cause dietary changes such as eating more protein and meat) are driving up global food demand.
Food demand is expected to increase anywhere between 59% to 98% by 2050. This will shape agricultural markets in ways we have not seen before………………………………………..Full Article: Source

Iran says determined to regain oil market share

Posted on 08 April 2016 by VRS  |  Email |Print

Iran’s foreign minister said on Thursday that Tehran was determined to regain its share of the oil market after sanctions imposed on the country were lifted under a deal reached with six major powers, the semi-official Tasnim news agency reported.
“Iran wants to regain its place on the oil market … in cooperation with other oil producing countries,” Mohammad Javad Zarif said after a meeting in Baku with Russian Foreign Minister Sergei Lavrov and Azerbaijan Foreign Minister Elmar Mammadyarov………………………………………..Full Article: Source

Russia, OPEC Said Likely To Freeze Oil Output Without Iran

Posted on 08 April 2016 by VRS  |  Email |Print

Russia and the Organization of Petroleum Exporting Countries can reach an agreement to freeze oil production, even if Iran doesn’t join in, a top OPEC official told Bloomberg News. Kuwaiti OPEC governor Nawal al-Fezaia’s prediction of an output freeze excluding Iran in an interview with Bloomberg helped send oil prices soaring more than 5 percent on world markets on April 6 and 7.
Fezaia said oil-producing countries have no alternative but to reach an agreement to freeze output when they meet on April 17 in Doha, Qatar, because prices are too low………………………………………..Full Article: Source

UBS: Chinese, Other Central-Bank Buying Continues Although Pace Slowing

Posted on 08 April 2016 by VRS  |  Email |Print

Central-bank buying of gold is likely to continue although at a slower pace, with China setting the pace so far this year, said UBS Thursday. News organizations reported overnight that the People’s Bank of China boosted its holdings by 0.5% in March to 57.79 million ounces.
The buying coincided with a $10.3 billion increase in China’s foreign-exchange reserves to $3.21 trillion, more than analysts were expecting, UBS said. China has been consistently reporting gold buying over the last nine months………………………………………..Full Article: Source

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