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Brexit Could Dampen European Oil Demand

Posted on 13 July 2016 by VRS  |  Email |Print

The U.K.’s vote to leave the European Union could dampen Europe’s appetite for oil and pose a risk to global economic growth, according to OPEC. The Organization of Petroleum Exporting Countries’ assessment of oil demand growth in 2017 remained unchanged at 1.2 million barrels a day.
But the Vienna-based group downgraded its forecast of global economic growth in 2017 to 3%, down from 3.1%, and said growth in the eurozone would slow to 1.2% in 2017, down from 1.5% in 2016. Since economic growth and demand for crude are tied together, OPEC fears a spillover effect into oil………………………………………..Full Article: Source

OPEC upbeat on demand growth as oil lingers at 2.5-month lows

Posted on 13 July 2016 by VRS  |  Email |Print

With global oil demand growth forecast to rise in 2017 and non-OPEC supply expected to fall, OPEC said in its latest monthly report on Tuesday that “market conditions will help remove overall excess oil stocks in 2017.”
In its July report, the 14-member oil producing group said that oil demand growth for 2017 is expected at 1.2 million barrels a day (mb/d), around 0.3 mb/d above the last ten years’ average………………………………………..Full Article: Source

Silver Takes the Gold

Posted on 13 July 2016 by VRS  |  Email |Print

Commodities’ performance is quite a reversal from the weakness we’ve seen lately, particularly last year, but we shouldn’t expect another 2004 or 2005, when global trade was humming. Conditions are still not ripe for a real takeoff, with manufacturing activity in China and the eurozone struggling to gain momentum.
But there’s hope. Many of the challenges standing in the way of growth were exposed when Britain voted last month to leave the European Union (EU), which I’ve been writing about for the past few weeks. Most recently, I highlighted some of the winners to emerge from Brexit, among them gold investors, U.S. homeowners and British luxury goods makers………………………………………..Full Article: Source

Nickel advances for third day as Philippine supply threat simmers

Posted on 13 July 2016 by VRS  |  Email |Print

London nickel climbed for a third day on Tuesday on Philippine supply concerns, while copper also rose thanks to a robust U.S. labour report that fanned a Wall Street rally and whetted risk appetite.
Some investors are taking heart from a steady recovery in the United States and prolonged easier policy by central banks around the world that is raising the relative value of hard assets………………………………………..Full Article: Source

All change in the world of industrial metals trading?

Posted on 13 July 2016 by VRS  |  Email |Print

China has loomed large over the world of industrial raw materials for many years. The prices of metals from aluminium to zinc have long swayed to the beat of the world’s largest manufacturing nation. But this is the year that China has emerged from the limelight to take centre-stage in the trading of those metals.
On one day alone, March 10, trading volumes on the Dalian Exchange iron ore contract exceeded one billion tonnes, more than the combined annual output of the world’s biggest three producers, Rio Tinto, BHP Billiton and Brazil’s Vale………………………………………..Full Article: Source

Citigroup Backs Commodities for ‘17 in ‘Especially Bullish’ Call

Posted on 12 July 2016 by VRS  |  Email |Print

Forget Brexit, go for raw materials. Citigroup Inc. says that it’s bullish on commodities including oil in 2017 as the impact of the U.K.’s vote to quit the European Union fades away, global growth chugs along and with markets rebalancing investors plow more cash into funds.
“Citi is especially bullish commodities for 2017,” analysts led by Ed Morse wrote in an note received on Monday, two months after the New York-based bank said that raw materials’ markets had turned the corner. “The oil market is treading water for now, but the oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade.”……………………………………….Full Article: Source

How to Take Advantage of the Coming Commodities Boom

Posted on 12 July 2016 by VRS  |  Email |Print

Hey, I know I’m not Citigroup, but perhaps I could get a little credit for seeing the coming boom in commodities a year before Ed Morse? On Monday, Morse and company released a note on commodities, particularly centering on oil and natural gas: “Citi is especially bullish commodities for 2017″, Morse wrote, noting that oil and gas production were in sharp decline in the U.S. and gathering momentum towards “rebalancing”.
Well, thanks, Ed. The question now, of course, is how to take advantage of this, provided you’ve not yet put together a commodity-responsive portfolio that biases investments towards oil and natural gas stocks………………………………………..Full Article: Source

Iran regains 80% of its pre-sanctions oil market share

Posted on 12 July 2016 by VRS  |  Email |Print

Tehran is exporting about two million barrels of its 3.8 million daily crude output and plans to double that, Mohsen Ghamsari, a senior official at state-run National Iranian Oil Co (NIOC) told Bloomberg.
Ghamsari says the country has regained about 80 percent of the market share it held before the US and EU imposed sanctions on its oil industry in 2012………………………………………..Full Article: Source

Iran Plans to Double Crude Exports to Regain Market Share

Posted on 12 July 2016 by VRS  |  Email |Print

Iran plans to double crude exports so long as the increase in shipments is absorbed by global markets, which it sees as stable for the rest of the year, according to a senior official at state-run National Iranian Oil Co.
The country is exporting about 2 million barrels of its daily output of 3.8 million, said Mohsen Ghamsari, NIOC’s director of international affairs. It has regained about 80 percent of the market share it held before the U.S. and European Union tightened sanctions on its oil industry in 2012, he said. Iran plans to double crude exports………………………………………..Full Article: Source

Emerging Markets: Risk and Growth Opportunities

Posted on 11 July 2016 by VRS  |  Email |Print

What will China’s economic slowdown mean for EM economies and the global financial market as a whole? When the BRIC acronym was first created in 2001 by Jim O’Neill, then chairman of Goldman Sachs Asset Management, it was to highlight the expected growth trajectory of the emerging market (EM) economies it represents – Brazil, Russia, India and China.
More recently, South Africa has also been added to the concept – creating BRICS – and the notion that these non-Western nations represent future powerhouses of economic growth continues to this day………………………………………..Full Article: Source

What’s Pushing Chinese Investors Into Commodities? (Video)

Posted on 11 July 2016 by VRS  |  Email |Print

Trading volumes for commodities cratered after Chinese regulators took steps in April to deflate a bubble. But speculators aren’t done yet. Bloomberg’s Alexander Kwiatkowski reports on “Trending Business.”.………………………………………Full Article: Source

Oil’s rebound is over, so expect a third-quarter slide: Barclays

Posted on 11 July 2016 by VRS  |  Email |Print

A massive global stockpile of oil could mean trouble ahead for the global crude market, according to Barclays. Crude oil prices dropped to a two month low on Thursday, after the Energy Information Administration reported a smaller-than-expected decrease in oil stockpiles. That may be a canary in the coalmine, a top energy market watcher explained.
“For the last 6 quarters there’s been this discrepancy between global supply and global demand,” Michael Cohen, head of energy commodities research at Barclays, said……………………………………….Full Article: Source

Saudi energy minister says oil market is balancing

Posted on 11 July 2016 by VRS  |  Email |Print

Saudi Arabia’s energy minister said on Sunday the oil market was becoming more balanced and prices were stabilizing. Khalid al-Falih said Saudi Arabia, the world’s biggest oil exporter, would always strive to stabilize the oil market, a statement by the energy ministry said on Sunday.
“In doing so, the Kingdom secures the flow of oil supplies as it retains a spare production capacity,” the minister, attending a climate meeting in Berlin, was quoted as saying in the statement………………………………………..Full Article: Source

UBS: Gold Set For Bull Run But…

Posted on 11 July 2016 by VRS  |  Email |Print

The latest gold forecasts from UK-based UBS investment strategist Joni Teves open with the sentences: “We think gold has entered a new phase. Gold has likely entered the early stages of the next bull run.” Teves goes on to forecast an average gold price for the year of $1,280 (up $55 from the previous forecast), which may look rather less than bullish at first sight given the current gold price in the $1,360s, but points out that the average price this year so far has only been $1,222.
Thus the new average price prediction suggests an H2 average of around $1,340 - conservative but perhaps realistic if gold sticks in the $1,350-$1,400 range for the remainder of the year………………………………………..Full Article: Source

Investors pin hopes on Hummingbird striking gold

Posted on 11 July 2016 by VRS  |  Email |Print

“Civilised people don’t buy gold. They invest in productive businesses,” Charlie Munger, Warren Buffett’s partner, said in 2012. Farmland trumps gold nuggets any day, the Sage of Omaha opined.
Tell that to the markets. The gold price keeps hitting new highs following the vote on Brexit. Last week, it rose above $1,375 an ounce, up from $1,050 at the start of the year. Bank of America Merrill Lynch now predicts that economic uncertainty will drive the price above $1,500………………………………………..Full Article: Source

Perils of investing in commodities like gold & oil

Posted on 07 July 2016 by VRS  |  Email |Print

In order to help investors become better at navigating the stock market, Jim Cramer revealed some of the biggest mistakes he has made in over 30 years of investing. “Frankly, there are so many mistakes here that it might take a bit to explain them all,” the “Mad Money” host said.
He learned that when it comes to investing in commodity stocks, investors must know that it doesn’t matter which ones they pick — like going for a better balance sheet or higher growth — if the underlying commodity is hit. If that happens, they will all go lower………………………………………..Full Article: Source

Oil market looks neutral to bearish in near term as focus returns to fundamentals

Posted on 07 July 2016 by VRS  |  Email |Print

The UK’s Brexit vote dominated oil market sentiment for most of June, not because of its direct impact on oil demand and supply but through its impact on the US dollar index and financial markets.
The UK economy plays a very small role in the global oil market, with the UK accounting for about 1 per cent of global oil supply and 1.6 per cent of demand. A stronger dollar, however, makes oil imports more expensive for holders of other currencies and is generally seen as bearish for demand. The US Dollar Index hit a three-month high of 96.7 in the aftermath of the UK’s decision to leave the EU………………………………………..Full Article: Source

UBS: ‘Gold has entered a new phase’

Posted on 07 July 2016 by VRS  |  Email |Print

The price of gold will continue to shoot up in 2016, and has now “entered a new phase” of growth in the post-Brexit world, thanks to a variety of macroeconomic factors. The gold price has increased 24% this year so far.
And the risks to the global economy will make it the go-to investment for the rest of 2016, according to UBS strategist Joni Teves in a note circulated to clients on Tuesday………………………………………..Full Article: Source

This is the start of a gold bull market, says strategist

Posted on 07 July 2016 by VRS  |  Email |Print

Gold is at the dawn of a new bull market as financial risks abound, VanEck gold and precious metals strategist Joe Foster said Wednesday. Foster spoke after gold rose to $1,377.50 an ounce, its highest since March 2014. The yellow metal is up nearly 29 percent in 2016, after three straight years of declines.
In addition to Britain’s vote to leave the European Union, investors are grappling with financial risk as the U.S. Federal Reserve struggles to raise interest rates while central banks overseas ease them, Foster said………………………………………..Full Article: Source

What Is Causing The Surge In The Price Of Silver?

Posted on 07 July 2016 by VRS  |  Email |Print

Have you seen what the price of silver has been doing? On Monday, it exploded past 20 dollars an ounce, and as I write this article it is sitting at $20.48. Earlier today it actually surged above 21 dollars an ounce for a short time before moving back just a bit.
In late March, I told my readers that silver was “ridiculously undervalued” when it was sitting at $15.81 an ounce, and that call has turned out to be quite prescient. The Friday before last, silver started the day at $17.25 an ounce, and it is up more than 18 percent since that time………………………………………..Full Article: Source

Commodities Second Quarter Overview And Outlook For Q3 2016

Posted on 06 July 2016 by VRS  |  Email |Print

The raw material markets had a great second quarter in 2016. The overall commodity sector consisting of 29 of the primary commodities that trade on the U.S. and U.K. exchanges rallied by 10.75% for the three months that ended on June 30 and is 12.67% higher over the first half of this year. The overall winner for the quarter was natural gas, posting a gain of over 49%.
Two commodities not included in the composite, iron ore and lumber, moved up 12.7% and down 2.19%, respectively. If I add these commodities and the Baltic Dry Index, which gained 59.42% into my calculations, the sector rose by 12.94% in Q2 and 15.25% so far in 2016………………………………………..Full Article: Source

The world’s experts believe gold will climb in value

Posted on 06 July 2016 by VRS  |  Email |Print

Gold has been attracting the attention of the masses for a while now, and for good reason. Throughout the first half of the year, the commodity grew in price by around 25%. However, experts like Marc Faber, Peter Schiff, and, even Ron Paul, believe that the value of the commodity is likely to climb, much much higher.
“Global growth has contracted, in other words, growth rates have been reduced and many countires are in recession already. That has nothing at all to do with Brexit… Brexit is actually not an end of globalization. On the contrary, it’s about people that rebel against the arrogant elite in the financial centers,” -said Marc Faber………………………………………..Full Article: Source

Manipulation of the gold market has created rare opportunities

Posted on 06 July 2016 by VRS  |  Email |Print

The banksters, by manipulating the price of gold and artificially creating a bear market, have created what will likely turn out to be one of the greatest opportunities ever seen. I’ve maintained all along this was their goal. To create the most destructive bear market in history, which would then generate the largest bull market the world has ever seen.
Folks, you might as well take advantage of this opportunity. The banksters aren’t the only ones that deserve to get rich. They have destroyed millions of peoples lives as the authorities stood by and watched them run the precious metals markets, and especially the mining sector, down to absurd levels over the last few years………………………………………..Full Article: Source

Why Gold Is Now In A New Bull Market

Posted on 06 July 2016 by VRS  |  Email |Print

Though many believe that the global interest in gold peaked five years ago, a new bull market appears to be on the rise. Most people understand that gold is valued for its impressive aesthetics. Yet gold is also used in a variety of medical and industrial applications. The number of reasons to invest in gold is seemingly endless.
Today’s prices are particularly attractive, prompting many industry insiders to declare that the future of gold will continue to shine bright. Keep reading to find out why gold is entering the beginning phases of a new bull market that could last for years or even decades………………………………………..Full Article: Source

OPEC Crude Production Rises in June Led by Gains in Nigeria

Posted on 05 July 2016 by VRS  |  Email |Print

OPEC’s crude production increased in June as Nigeria raised output following repairs to some infrastructure that had been damaged by militant attacks. Nigeria pumped an average 1.53 million barrels a day last month, a gain of 90,000 a day from May, according to a Bloomberg survey.
The West African country was able to repair some pipelines after agreeing a cease-fire with rebels in the Niger River Delta, Emmanuel Kachikwu, Nigeria’s state minister for petroleum resources, said on June 27. On Sunday however, the Niger Delta Avengers militant group claimed five more attacks on oil installations in the region………………………………………..Full Article: Source

Silver crushes even gold as it powers to 2-year high

Posted on 05 July 2016 by VRS  |  Email |Print

Silver futures aren’t taking it easy during the Independence Day holiday. September silver SIU6, +4.45% is leaping 4.4% to $20.45 an ounce on Monday. The contract even briefly traded as high as $21.23 an ounce, according to FactSet data.
The metal has touched levels last seen in July 2014, as shown in the chart below. August gold is gaining Monday as well, but it’s only up about 1%. Analysts say silver and gold are both benefiting from haven demand as investors worry about the U.K.’s June 23 vote to leave the European Union. And silver isn’t just a safety play in the Brexit unrest………………………………………..Full Article: Source

Rio Tinto says commodities rout far from over

Posted on 04 July 2016 by VRS  |  Email |Print

The new chief executive of Rio Tinto has warned there is no end in sight to the commodities downturn, saying a supply glut will continue to put pressure on prices for the mining company and its rivals.
Jean-Sébastien Jacques, who became chief executive of the Anglo-Australian company this weekend, said in an interview with the Financial Times that supply was still outstripping demand for most major raw materials that Rio mines………………………………………..Full Article: Source

Saudi energy minister says oil market heading toward a balance

Posted on 04 July 2016 by VRS  |  Email |Print

The energy minister of Saudi Arabia, the world’s largest oil exporter, and the secretary general of OPEC agree that the global oil market is heading toward a balance and that prices are starting to settle, according to comments carried by Saudi state news agency SPA.
The statement said Khalid al-Falih and the Organization of the Petroleum Exporting Countries’ newly appointed secretary general, Mohammed Barkindo, had met in the Saudi city of Dhahran to discuss the role of OPEC in maintaining the stability of oil markets………………………………………..Full Article: Source

Focus back on oil fundamentals as Brexit dust settles

Posted on 04 July 2016 by VRS  |  Email |Print

It’s back to square one in the oil markets after last week’s Brexit-induced volatility. Oil prices are expected to focus back on supply dynamics after posting the best quarter since 2009.
“Market participants have realised that a slowing UK economy will have minimal impact on the levels of global demand for oil, and as a result prices are expected to continue the path of least resistance upwards,” Vaqar Zuberi, Portfolio Manager & Senior Analyst within Mirabaud Asset Management’s Hedge Fund team told Gulf News………………………………………..Full Article: Source

Is It Time For OPEC To Dissolve?

Posted on 04 July 2016 by VRS  |  Email |Print

OPEC is no longer functioning as a cohesive group. Is it time for OPEC to finally dissolve? The major oil-producing countries in the world heavily depend on the income from oil. A sharp drop in oil prices has rendered them vulnerable to terrorist attacks and political uprising.
As members of the Organization of the Petroleum Exporting Countries (OPEC), these countries previously wielded power over oil prices and enjoyed the benefits of high oil prices. Unfortunately, the oil cartel is no longer behaving like a cohesive group, and infighting among the member nations is doing more harm than good………………………………………..Full Article: Source

Zinc rockets to one-year high

Posted on 04 July 2016 by VRS  |  Email |Print

Zinc is proving to be an outlier among industrial metals whose 2016 outlook looks dim due to supply overhangs and lagging economic growth. The price for the metal used for rustproofing steel is outperforming copper, aluminum and iron ore as banks and traders anticipate price gains due to a shortage.
On Friday the London Metal Exchange benchmark price hit US$2,104.5 a tonne, but earlier in the day prices reached US$2,116, the highest level since July 15, 2015………………………………………..Full Article: Source

Brexit won’t alter $40-50/bbl oil price range for better or worse

Posted on 01 July 2016 by VRS  |  Email |Print

After the UK became the first European Union member nation to exit the bloc following a referendum on 23 June, oil futures inevitably got caught up in the market melee that ensued. Trailing a wider equities market sell-off, and a weakening of G10 currencies – excepting the yen – oil futures endured short calls for two successive sessions following the vote.
Yet, at end of the kerfuffle and week on from the Brexit vote – both Brent and WTI front month contracts continue to lurk just below the $50 per barrel mark, unable to mount either a sustained climb above it, or slide into a decline substantially below it………………………………………..Full Article: Source

How Brexit could still spook the oil market

Posted on 01 July 2016 by VRS  |  Email |Print

Trading in commodity markets might have resumed relative normality following Brexit turbulence, but one investment bank has detailed the downside risk that the oil price could still face.
“We believe the increase in macro-economic uncertainty (following the Brexit vote) raises downside risks to global GDP (gross domestic product) growth expectations,” a global commodities research team at JPMorgan, led by Scott Speaker, said in a note Wednesday………………………………………..Full Article: Source

Brexit Gold Rally Seen Cutting Indian Imports to 7-Year Low

Posted on 01 July 2016 by VRS  |  Email |Print

The surge in gold prices after Britain’s vote to quit the European Union will deal a further blow to demand in India, the second-largest consumer, and may cut imports to the lowest in seven years, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation.
Purchases from overseas are seen slumping to about 700 metric tons this year, Bamalwa said by phone from Kolkata on Wednesday. That’s a decline of 23 percent from 2015 and the smallest since the country imported 559 tons in 2009, data from the London-based World Gold Council show………………………………………..Full Article: Source

Which Commodities Will Benefit From Brexit?

Posted on 30 June 2016 by VRS  |  Email |Print

Buy gold but be cautious around oil and copper, that’s the main takeaway from Deutsche Bank’s special commodities report entitled “commodities weathering the Brexit storm”.
Most commodity markets remain plagued by oversupply, but the gold market is set to see increased demand over the next 18 months. There are a number of political risk events set to unfold during this period, which are only set to add to the global economic uncertainty that’s been thrown up as a result of Brexit…………………………………………………………………………………Full Article: Source

Gold could be set for a strong breakout

Posted on 30 June 2016 by VRS  |  Email |Print

The British voters’ decision to leave the EU has badly shaken markets– although the dollar remained relatively calm while investors rushed into the safety of gold. Gold prices reached the long-term resistance target projection level of $1,340 before retreating. This is a rally within the context of a longer-term uptrend breakout.
Technically, this breakout is strong and there is a strong probability gold will move above $1,340 and move towards resistance near $1,580. However, there are important changes in the structure of the gold market that make the move above $1,350 and towards $1,580 more hazardous and volatile……………………………………….Full Article: Source

Cautiously optimistic about nickel price

Posted on 30 June 2016 by VRS  |  Email |Print

Base metals have enjoyed a solid 2016 so far with only lead (-3%) in negative territory for the year. While the likes of zinc (+28%) and tin (+16%) have rallied and steelmaking raw materials iron ore (+24%) and coking coal (+12%) have come back strongly, nickel remains stuck in the doldrums.
On the LME nickel jumped back above $9,000 on Wednesday, but hasn’t been in five-digit territory for nearly a year and is worth half of what it was early in 2014 when Indonesia’s ban on ore exports led many to believe the volatile metal is entering a bull market……………………………………….Full Article: Source

China commodities rally on hopes of measures to counter Brexit

Posted on 29 June 2016 by VRS  |  Email |Print

Commodity futures in China from steel to soymeal rallied on Tuesday, as investors bet on countries bringing in measures to counter the shock to markets and economies from Britain’s vote to leave the European Union.
Chinese steel futures jumped for a second day, while the rally spread to other commodities. “I think there is a fresh wave of speculation,” said Yang Zhijiang, an analyst at China Merchant Futures. China’s commodities markets had recently calmed after a roller-coaster ride started in April, when soaring prices and volumes prompted exchanges to curb speculative activity………………………………………..Full Article: Source

Copper touches 2-month peak as dollar eases

Posted on 29 June 2016 by VRS  |  Email |Print

Copper hit its highest level in almost two months on Tuesday as the US dollar weakened and hedge funds and speculators slashed their bets on lower prices. Data from the London Metal Exchange showed money managers had reduced their short position in copper to just over 86,600 lots on Friday, down from 107,600 lots a week before.
The report came in the wake of figures published late on Friday that showed a reduction in the record short copper position on Comex, the US futures exchange………………………………………..Full Article: Source

Big Banks on Oil: Keep Bullish Despite Brexit

Posted on 28 June 2016 by VRS  |  Email |Print

Goldman Sachs Group, Morgan Stanley, and Citigroup joined Deutsche Bank in saying the worst may be nearly over for oil. Brexit has raised risks but ultimately does little to dent the trends of rising demand and falling supply that have been pushing oil on its strongest rally in years, the banks said.
Even if spillover effects from the vote slowed major economies around the world, it would likely reduce oil demand by just 130,000 barrels, or 0.1% of global demand, Goldman analysts said. Deutsche Bank had estimated an even smaller impact, just 100,000 fewer barrels, compared with outages in Nigeria that are taking 400,000 barrels a day off the market………………………………………..Full Article: Source

OPEC’s Pain Is Only Getting Worse As Revenues Continue To Fall

Posted on 28 June 2016 by VRS  |  Email |Print

OPEC lost $349 billion in revenue last year because of low oil prices, cutting revenues almost in half from the year before. A report from the EIA in mid-June estimated 2015 revenues for OPEC countries at $404 billion, down 46 percent from the $753 billion the member countries earned in 2014. Revenues last year fell to their lowest level in eleven years.
Worse still for OPEC is the fact that revenues could fall even further this year, as low oil prices sank to new depths, particularly in the first quarter of 2016. The EIA projects OPEC revenues this year to drop to $341 billion. That will result in per capita oil export revenues in OPEC countries falling from $606 in 2015 to $503 this year………………………………………..Full Article: Source

What Brexit Means For Metal Prices

Posted on 28 June 2016 by VRS  |  Email |Print

One of them is the referendum, especially when it’s done in a period of instability. When people are unhappy, they look for what they think is a short-term solution to their problem, overlooking what’s really best for the country. The Brexit is a perfect example of this.
The British people are unhappy because their economy isn’t doing so well, blaming foreigners that cross its borders as part of the European Union and the regulations imposed on member states by Brussels. Referendums can also distill complex issues into a simplistic choice………………………………………..Full Article: Source

Brexit ‘not a game changer’ for commodities

Posted on 27 June 2016 by VRS  |  Email |Print

Research house Capital Economics expects other drivers to play a bigger part now that the referendum is behind us, while Randgold Resources stands to benefit from Brexit… The drop in prices for industrial commodities like oil and copper - down 5% and 3% respectively this morning - are not expected to last, not according to Capital Economics.
Julian Jessop, Capital Economics head of commodities research, in a note said: “these moves are already starting to unwind. “Once the dust has settled on the shock result, we suspect that the prospects for all these commodities will be determined by other, more specific factors.”……………………………………….Full Article: Source

Oil Bulls Face Specter of Market Turmoil on Brexit Aftershocks

Posted on 27 June 2016 by VRS  |  Email |Print

Oil bulls could end up road kill following the Brexit ballot. Crude tumbled as much as 6.8 percent June 24 after U.K. voters decided to leave the European Union. While some analysts said supply and demand still favor rising prices, Britain’s exit means there’ll be a period of uncertainty over Europe’s future, casting a shadow over the market.
“A vote for Brexit is a vote against globalization, against the free mobility of people and goods,” said Francisco Blanch, head of commodities research at Bank of America Merrill Lynch in New York. “Any reversal in the growth of trade and mobility is bad for the commodities, except gold.”……………………………………….Full Article: Source

‘Brexit’ Unlikely to Have Big Impact on U.K. Oil and Gas Market, Consultant Says

Posted on 27 June 2016 by VRS  |  Email |Print

The U.K. is too large a market for European oil and gas sellers to be marginalized too much by its exit from the European Union, said Simon Flowers, chairman and energy chief analyst at global oil consultancy Wood Mackenzie.
In an interview with The Wall Street Journal, Mr. Flowers said the U.K. could be subject to some tariffs on oil and gas from the EU as part of any new trade deal. However, global markets for both resources are oversupplied and there is enough competition for the U.K. to ensure it still gets a good deal, he added………………………………………..Full Article: Source

Iron ore holds steady amid global volatility

Posted on 27 June 2016 by VRS  |  Email |Print

The iron ore price has edged lower, escaping much of the volatility that shook global financial markets in the wake of British voters’ historic decision to leave the European Union. Iron ore fell 0.6 per cent to $US51.40 a tonne in the most recent session, according to The Steel Index, from $US51.70 the previous day.
The relatively muted move contrasts with sharp swings in other commodities. The day after the vote, oil prices sank around 5 per cent, while safe haven asset gold soared 4.7 per cent in its largest one-day gain since September 2013………………………………………..Full Article: Source

Commodity Markets Entering Period of Stability

Posted on 24 June 2016 by VRS  |  Email |Print

Orica Ltd., the largest supplier of explosives to the mining industry, has begun to observe stability in commodity markets that have been marked by volatility, sinking profits and job cuts after a global boom ended.
“We still see a lot of volatility, but I think that I’ve seen more stability than I’ve seen in some time,” in the past month, Chief Executive Officer Alberto Calderon said. “When I talk to our customers I get the sense they are saying ‘Well let’s get on with it’………………………………………..Full Article: Source

Is there really a commodity revival?

Posted on 24 June 2016 by VRS  |  Email |Print

Following multiple years of calamitous returns the tide appears to be showing some signs of turning for commodities, with some even calling the end of the sector’s prolonged bear market. Last year witnessed the MSCI World Energy index nosedive 18 per cent. But since the start of 2016 to June 10, the measure has jumped by 16 per cent, according to data from FE Analytics.
Of course, all eyes have been on the oil price, which after crashing below $28 a barrel earlier this year topped the $50 mark in late May. But gold too, bolstered by its safe-haven status, has enjoyed a strong year-to-date run with the price of bullion up 21 per cent………………………………………..Full Article: Source

Saudi Arabia Declares Cease-Fire in Oil War

Posted on 24 June 2016 by VRS  |  Email |Print

The new Saudi oil minister, Khalid Al-Falih, says the oil glut is over. That means the kingdom’s war against U.S. shale producers is coming to an end, too. Who won it is a tough question to answer; on balance, it’s probably the Saudis, but they have paid a huge price, and the surviving U.S. frackers have also benefited.
In September 2014, Saudi Aramco, the kingdom’s state oil company, simultaneously increased output and discounts to Asian customers, making it difficult for producers with higher costs to compete. The U.S. shale industry responded with desperate bravado, cutting costs, perfecting technologies and pumping like crazy to avoid defaulting on its debts………………………………………..Full Article: Source

Gold settles lower for fifth day ahead of Brexit result

Posted on 24 June 2016 by VRS  |  Email |Print

Gold futures settled with their fifth-straight session loss Thursday, holding ground at two-week lows, as major global stock markets gained ahead of a historic decision on the U.K.’s membership in the European Union. Gold for August delivery declined $6.90, or 0.5%, to $1,263.10 an ounce. Over the past five days, gold has declined 2.7%. The SPDR Gold Trust ETF was down 0.4% on Thursday.
Although referendum polls remained tight, the Ipsos Mori poll for the Evening Standard newspaper, showed 52% of U.K. respondents in the “remain” camp compared with 48% backing the “leave” side. European stocks and the pound extended gains after the poll. Ipsos Mori’s June 16 survey had the “leave” side ahead………………………………………..Full Article: Source

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