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Persistence of instability in the oil market: Kemp

Posted on 15 September 2016 by VRS  |  Email |Print

Volatility has always been the defining characteristic of oil and other commodity markets, defying repeated attempts to stabilise prices. Volatility is present at all timescales from seconds, minutes and hours to days, weeks, months and years.
At the macro-scale, the oil market has been characterised since its inception in the 1860s by a series of booms and busts lasting for years at a time. Efforts to tame the boom-bust cycle through the control of prices and production have repeatedly broken down………………………………………..Full Article: Source

As global investment in new oil projects plummets, crude’s share of the energy mix grows

Posted on 15 September 2016 by VRS  |  Email |Print

Oil’s share of the global energy mix grew in 2015, the International Energy Agency said Wednesday, as new investment in oil and gas production and exploration fell for the second straight year.
In its annual report on global energy investment, the Paris-based IEA found that oil investment made up the largest portion of total spending at 45 per cent, compared to 37 per cent on electricity generation, the second-highest. Oil’s share of total global consumption also grew over the year, despite a rise in the popularity of electric cars and higher fuel efficiency vehicles………………………………………..Full Article: Source

Iran and the oil freeze enigma

Posted on 15 September 2016 by VRS  |  Email |Print

The upcoming event has increased discussions between OPEC and non-OPEC members in recent weeks, while Iran, Saudi Arabia, and Russia stand in the center of attention as the main role players. On one hand, Saudi Arabia, the world’s largest oil exporter, has reportedly made an agreement to collaborate with Russia, the world’s top oil producer, on stabilizing the international oil market by setting up a working group to monitor it and come up with ways to promote stability.
Saudi Arabia’s Energy Minister Khalid Al-Falih has expressed hope that this month’s meeting between producers in Algiers would lead to an agreement although “there’s no need to freeze production now”. His Russian counterpart, Alexander Novak, has affirmed that the two nations were seeking ways to ease oil market volatility………………………………………..Full Article: Source

Gold Market – Evaluating The “Rally”: How Long To Get To $10,000/oz?

Posted on 15 September 2016 by VRS  |  Email |Print

There’s a “rally” in the gold market right now, and (to a lesser extent) in silver. We’re told this by the mainstream media – in between its salvos of gold-bashing. Sadly, we have also seen this parroted by numerous Alternative Media commentators. So let’s examine this “rally” yet again.
The rally started almost precisely on the first day of the year (nothing suspicious about that). In the 8 ½ months since then, the price of gold has risen by roughly $250, or a little below $30/month. For convenience, let’s say that the price has been advancing by about $1 per day………………………………………..Full Article: Source

BHP bullish on Chinese steel despite forecasts

Posted on 15 September 2016 by VRS  |  Email |Print

BHP Billiton still expects China’s steel production to continue to grow despite almost all other forecasters and the Chinese industry itself saying peak production has already passed.
BHP chief commodities forecaster Huw McKay acknowledges Chinese steel production has fallen in recent times, with most analysts forecasting output will hover at 800-830 million tonnes a year. “We’re not convinced,’’ Mr McKay wrote in BHP’s corporate blog, Prospects. “We expect Chinese demand will rise modestly over the next decade.’’……………………………………….Full Article: Source

The commodities market and Asia: what’s hot and what’s not

Posted on 14 September 2016 by VRS  |  Email |Print

A ceiling for oil prices and concern about commodities financing were main themes at FT’s commodities summit. This month the Financial Times hosted its third Asia commodities summit, bringing together some of the region’s most powerful traders and executives in Singapore to discuss the challenges and opportunities facing the industry.
Based on conversations with delegates and panel discussions, here are the main themes that emerged. The oil market is slowly rebalancing supply, but prices will remain subdued as a huge overhang of inventory is digested. Several speakers said crude oil would trade in a narrow range and struggle to breach $60 a barrel in part due to stocks but also the resilience of US shale drillers………………………………………..Full Article: Source

Global upstream oil and gas spending to fall 24 percent in 2016: IEA

Posted on 14 September 2016 by VRS  |  Email |Print

Global upstream oil and gas investments are expected to plummet 24 percent this year, with little signs of improvement for 2017, the International Energy Agency (IEA) said. This year’s dip will come on top of a 25 percent drop in spending in the sector recorded in 2015 with its total of $583 billion, the IEA said in a report.
“The total fall exceeds $300 billion over the two years – an unprecedented occurrence,” the report said, adding two consecutive years of reduced upstream oil and gas investment had not been seen for 40 years. “Furthermore, there are no signs that companies plan to increase their upstream capital spending in 2017,” it said………………………………………..Full Article: Source

IEA Changes View on Oil Glut, Sees Surplus Enduring in 2017

Posted on 14 September 2016 by VRS  |  Email |Print

The surplus in global oil markets will last for longer than previously thought, persisting into late 2017 as demand growth slumps and supply proves resilient, the International Energy Agency said. World oil stockpiles will continue to accumulate through 2017, a fourth consecutive year of oversupply, according to the IEA.
Consumption growth sagged to a two-year low in the third quarter as demand faltered in China and India, while record output from OPEC’s Gulf members is compounding the glut, it said. Just last month the agency predicted the market would return to equilibrium this year………………………………………..Full Article: Source

Waiting for the oil market to rebalance? It may still be a while, warns IEA

Posted on 14 September 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) has warned that the global oil market’s rebalancing after its two year battle against a chronic glut of supply will continue for at least another year.
The agency said that slowdown in oil demand growth will fail to mop up the steady supply of fresh flows from countries within the Organisation of Petroleum Exporting Countries (Opec) and the growing output from those outside the cartel. Although non-Opec producers, including the US, have produced less oil this year than the one before, the IEA says that surging Opec production has offset the decline………………………………………..Full Article: Source

Slowdown in oil demand growth will cap prices, says energy agency

Posted on 14 September 2016 by VRS  |  Email |Print

Alongside gloomy forecast by Opec, IEA report sent oil prices down to $47 a barrel. A sharp slowdown in global oil demand growth will put a lid on prices, according to the International Energy Agency, which said ballooning oil stocks and rising supply would also mean the crude market is likely to be oversupplied through the first six months of 2017.
The IEA report published on Tuesday tallied with a gloomy forecast by the Opec oil cartel about the prospects for demand over the next year, sending oil prices down to $47 (£35) a barrel………………………………………..Full Article: Source

Gold Caught Between Drop In Equities And Potential Rate Hikes - Analysts

Posted on 14 September 2016 by VRS  |  Email |Print

Weaker U.S. equity is helping gold prices to stay in the green but hyper-sensitivity to U.S. interest rates expectations is keeping the yellow metal from seeing a bigger rally, according to some analysts.
“The market is completely wild and unpredictable right now because of next week’s Federal Reserve decision,” said Sean Lusk, director of commercial hedging Walsh Trading, “On a day when the Dow [Jones Industrial Average] is down 200 plus points you would expect to see gold higher but it’s not.”……………………………………….Full Article: Source

Nickel Leads Drop in Metals as Crude Oil Slide Saps Commodities

Posted on 14 September 2016 by VRS  |  Email |Print

Nickel capped its biggest two-day drop in a month, leading declines in industrial metals, as a decline in crude oil dragged down commodities and equities. A gauge of mining-company shares sagged to the lowest since July, paced by Freeport-McMoRan Inc.
Crude fell as much as 3.3 percent as the International Energy Agency said a surplus will last longer than previously thought. Lower energy prices help reduce production costs, deterring miners from trimming output amid ample supply of some metals. Equities also retreated following gains on Monday, which came after Federal Reserve Governor Lael Brainard damped expectations for an interest-rate increase at next week’s Fed meeting………………………………………..Full Article: Source

Oil market glut to continue as Opec rivals resist an output slowdown

Posted on 13 September 2016 by VRS  |  Email |Print

The global oil market glut which has pressured prices for over two years will continue into 2017 as oil production from outside the Organisation of Petroleum Exporting Countries (Opec) proves more resilient than earlier forecasts.
In its monthly report the Opec, which controls more than a third of the world’s oil supply, said that oil flows from countries beyond its cartel continue at higher than expected rates. Non-Opec oil is set to slow by about 610,000 barrels a day this year, slower than the 790,000 barrel a day cut expected by the market………………………………………..Full Article: Source

OPEC: The Fed’s next move will impact oil markets

Posted on 13 September 2016 by VRS  |  Email |Print

Central banks such as the U.S. Federal Reserve will be crucial in determining the state of global growth and the overall health of the energy sector, according to the latest monthly report from oil producer group OPEC.
In its latest September report, the 14-member oil producing cartel said that the trend of “moderate” global growth was likely to continue in 2016 and 2017 and that imminent central bank decisions and political developments were likely “to be influential.”……………………………………….Full Article: Source

Here’s One Sign That ‘Peak Oil’ Is Dead

Posted on 13 September 2016 by VRS  |  Email |Print

Peak Oil: gone and forgotten? Google Inc. searches for the idea that once helped propel oil prices to nearly $150 per barrel have dwindled to almost nothing, according to a Sanford C. Bernstein analysis.
The theory that oil prices would have to rise as supply inevitably declined gained hold on popular imaginations in the mid- to late 2000s, but has since languished in internet obscurity, as new discoveries and technology, including the shale revolution that helped push U.S. oil production to a 40-year high, have ensured plentiful amounts of crude in recent years………………………………………..Full Article: Source

OPEC revises Russian oil output estimate higher

Posted on 13 September 2016 by VRS  |  Email |Print

With oil production on pace to increase through the year, economists at OPEC said Russia’s economy is already on a clear road to modest recovery. In its monthly market report for September, economists at the Organization of Petroleum Exporting Countries said the Russian economy remains in recession through the year, though recovery is expected in 2017.
“It has been confirmed that GDP declined by 0.6 percent year-on-year in the second quarter, after seeing a 1.2 percent drop in the first quarter,” the report read. “This represents the smallest contraction in the economy since it fell into recession in first quarter 2015.”……………………………………….Full Article: Source

Precious metals fall as investors position for higher rates

Posted on 13 September 2016 by VRS  |  Email |Print

Gold, silver, platinum and palladium all dropped for a fourth straight day as expectations grew that the U.S. will raise rates this year. The European Central Bank held off on extending stimulus and the Bank of Japan may do the same next week, said Jonathan Butler, a precious metals strategist at Mitsubishi Corp. in London.
Friday’s “move in gold is spilling over into the other metals as well,” Butler said by phone. “We’re not going to see ever-looser monetary policy and it’s not going to get ever-more attractive to hold precious metals into the future.”……………………………………….Full Article: Source

Copper, the global economic bellwether, hits a 2-month low

Posted on 13 September 2016 by VRS  |  Email |Print

Chinese manufacturing will show if metals sell-off is generic risk aversion or economic slowdown. One of the reasons the latest equity and bond wobble is quite a worry for some investors is that they reckon central banks are becoming more inured to the market’s emotional blackmail.
And, crucially, this is occurring amid some signs of further fretting over global demand. The US dollar was softer early on Monday, but buck-denominated industrial commodities were not immune to the broader angst. Oil prices continued to be choppy, while base metals struggled………………………………………..Full Article: Source

Graphite not a commodity bubble says Kibaran Resources

Posted on 13 September 2016 by VRS  |  Email |Print

Equity market concerns that the expansion of the graphite sector has been too rapid has been dismissed by ASX-listed graphite junior, Kibaran Resources. Kibaran Resources is the owners of the near-term US$77.5 million Epanko graphite mining venture in Tanzania.
MD Andrew Spinks, said graphite was “certainly not a bubble”. “Graphite is set to be a major global commodity – it is going to be one of the raw materials of the future - a major commodity - so talks of bubbles are premature.”……………………………………….Full Article: Source

Race into commodity investments risks stalling as rallies falter

Posted on 12 September 2016 by VRS  |  Email |Print

Flows into commodity investments have hit their highest levels since the global financial crisis as negative interest rates boost the appeal of real assets, but they risk reversing as rallies falter in metals and oil. The threat of investors liquidating their commodity stakes has climbed in recent years as speculative funds have become dominant and longer-term investors increasingly shun the sector.
Some $51-billion (U.S.) has moved into commodities investments in the first seven months of the year, the most since 2009, according to Barclays, which tracks the flows. Investors scrambled to take advantage of this year’s rebound in many markets after the 19-commodity Thomson Reuters/Core Commodity CRB Index had more than halved since 2011………………………………………..Full Article: Source

Commodities: Rising fortunes

Posted on 12 September 2016 by VRS  |  Email |Print

Gold could reach US$1 500/oz by the end of this year and $1 650/oz by 2021 as global political and economic fears show no signs of abating and US interest rate hikes are likely to be “slow and low”, Afriforesight chief energy economist and CEO Charles Kieck says.
Gold is one of the commodities that Afriforesight is most bullish about over the next five years, though its economists are also forecasting steady and gradually improving prices for some steel-making materials and platinum group metals (PGMs)………………………………………..Full Article: Source

Oil Bears Dominate Market as Skepticism Grows Over Output Limits

Posted on 12 September 2016 by VRS  |  Email |Print

The longer OPEC and other producers talk about a ceiling on crude output, the more doubts grow in the market. Money managers increased wagers on falling prices by the most in three months as a meeting between Russia and Saudi Arabia ended without specific measures to support prices. Producers have pledged to discuss action in Algiers later this month.
“The more they talk, the less people listen,” said Michael D. Cohen, an analyst at Barclays Plc in New York. “If you look at the actual statements from the Saudis, there’s not a lot of enthusiasm. They’re saying that either they don’t believe a substantial intervention is needed right now or that if other producers want a freeze, they’ll go along.”……………………………………….Full Article: Source

Saudi likely to name new OPEC governor

Posted on 12 September 2016 by VRS  |  Email |Print

Saudi Arabia is likely to appoint a new OPEC governor and national representative, a source familiar with the matter said. Adeeb al-Aama will replace Mohammed al-Madi as OPEC governor while Ayad al-Qahtani will become the new national representative replacing Nasser al-Dossari.
Aama works as deputy managing director at Saudi Aramco’s office in London, according to his Linkedin profile. Qahtani heads Aramco’s global economic and energy outlooks and scenarios………………………………………..Full Article: Source

OPEC to Trump Adviser: No Chance

Posted on 12 September 2016 by VRS  |  Email |Print

Energy adviser to Donald Trump, CEO of Continental Resources, Harold Hamm has history with OPEC. Back in 1999, he led a group of independent U.S. oil producers calling on the government to impose duties of as much as 240 percent on crude oil imports from a number of OPEC countries, and Mexico too, for good measure.
He claimed the producers were selling their oil in the U.S. at unfairly low prices: WTI crude oil had fallen to as little as $10.35 a barrel in December 1998. U.S. oil production outside Alaska is back at 8 million barrels a day after peaking near 9.2 million……………………………………….Full Article: Source

Biggest commodity surprise of 2016 is a windfall for miners

Posted on 12 September 2016 by VRS  |  Email |Print

The surprise surge in coal prices should provide an unexpected profit boost for the world’s biggest mining companies as they navigate a commodity downturn that sapped earnings.
Gains for coking coal, used with iron ore to make steel, accelerated in recent weeks and benchmark prices from top producer Australia jumped 9.5 per cent on Thursday, the most since at least 2013. At current prices, that would add almost $US5 billion ($A6.6 billion) to BHP Billiton’s underlying earnings before interest, tax, depreciation and amortisation in the year ending June 30, according to Liberum Capital………………………………………..Full Article: Source

Global markets being jolted by systematic funds

Posted on 12 September 2016 by VRS  |  Email |Print

Volatility is back and it is back with a bang. After an extremely quiet August, where Rupee traded within a very tight range against US Dollar, we are seeing a good bit of two way movement in the pair.
A string of weak US economic reports had initially caused reversal in expectation for a Fed hike in September and a result USD had dropped sharply from 67.00 levels to all way down to 66.32 levels on spot. However, the party in Rupee did not last long as strong intervention from RBI and later a sharp reversal in risk assets globally, pushed USDINR back towards 66.70 levels………………………………………..Full Article: Source

Did a Commodity Bull Market Just Get Started? (Video)

Posted on 09 September 2016 by VRS  |  Email |Print

Metals and other commodities have bottomed and are beginning what is likely to be a long push higher, says Scott Colyer, CEO of Advisors Asset Management. Easy money from Central Banks will fuel the rally.……………………………………….Full Article: Source

Biggest Commodity Surprise of 2016 Is a Windfall for Miners

Posted on 09 September 2016 by VRS  |  Email |Print

The surprise surge in coal prices should provide an unexpected profit boost for the world’s biggest mining companies as they navigate a commodity downturn that sapped earnings. Gains for coking coal, used with iron ore to make steel, accelerated in recent weeks and benchmark prices from top producer Australia jumped 9.5 percent on Thursday, the most since at least 2013.
At current prices, that would add almost $5 billion to BHP Billiton Ltd.’s underlying earnings before interest, tax, depreciation and amortization in the year ending June 30, according to Liberum Capital Ltd………………………………………..Full Article: Source

Russian-Saudi Deal on Oil Market Not to Have Long Term Effect - Sberbank CEO

Posted on 09 September 2016 by VRS  |  Email |Print

The Russia-Saudi Arabia agreement aimed at stabilization of global oil prices will not have a long term effect, CEO of Russia’s Sberbank Herman Gref said. “I think it will not be a long term trend,” Gref said.
On Monday, Russian Energy Minister Alexander Novak and his Saudi counterpart Khalid bin Abdulaziz Al Falih signed a declaration in Hangzhou, China aiming to calm the volatile energy market, which has been rocked by slumping oil prices and a massive production glut. The agreement provides that the sides will establish a monitoring group to track oil market indexes and to give recommendations on market regulation………………………………………..Full Article: Source

Saudi Oil Output Said to Drop as OPEC Debates Production Freeze

Posted on 09 September 2016 by VRS  |  Email |Print

Saudi Arabia told OPEC that its oil production dropped by 40,000 barrels a day in August to 10.63 million barrels as the group debates a deal to curb output to shore up prices.
The figures were submitted to the Organization of Petroleum Exporting Countries, according a person with knowledge of the data, who asked not to be identified because the information hadn’t yet been made public. The country’s output declined from an all-time high of 10.67 million barrels a day in July, according to OPEC submissions………………………………………..Full Article: Source

Cramer: Drop in oil inventories signals a treacherous market

Posted on 09 September 2016 by VRS  |  Email |Print

The market’s reaction to oil inventories on Thursday told Jim Cramer that it really only has the ability to focus on one bullish idea at a time and dumps everything else.
“When you have a market that decides only one thing is working, and it doesn’t bother with anything else, you have a market that is a lot more treacherous than it seems,” the “Mad Money” host said. The price of crude shot up on Thursday after oil inventories indicated a large drawdown of 14.5 million barrels………………………………………..Full Article: Source

Is a global consensus starting to build around carbon market mechanisms?

Posted on 09 September 2016 by VRS  |  Email |Print

UNFCCC meetings in Asia Pacific region and developing countries have recently explored new market approaches towards tackling emissions. Tackling climate change is perhaps too often seen by the public as a job for governments, but in recent years it has often been businesses, cities, and public organisations that have been leading the way with their decarbonisation efforts.
As the window for keeping global temperatures rises within 1.5C - or even well below 2C - gets ever narrower, it is increasingly necessary for action to come from a broader range of areas, including cities, public bodies, the private sector and even individuals………………………………………..Full Article: Source

Oil market faces supply crunch within a year, warns HSBC

Posted on 08 September 2016 by VRS  |  Email |Print

The global oil market should brace itself for a looming supply crunch as early as next year, which could lead to price shocks and a growing dependence on exports from the Middle East.
HSBC analysts have warned that demand for oil will help to balance the oversupplied market by the year’s end. But as demand continues to climb against a backdrop of low investment in new reserves the global market runs the risk of supply shocks and rocketing prices within the next two years………………………………………..Full Article: Source

Oil deals keep slipping through OPEC’s fingers

Posted on 08 September 2016 by VRS  |  Email |Print

The initial excitement over the G20 agreement between Saudi Arabia and Russia to co-operate in a bid try to stabilise the oil market started to evaporate overnight, as a more realistic assessment of the implications of the agreement started to emerge.
In effect, the market concluded that the co-operation agreement, which includes the establishment of a working group between the world’s two largest producers, was not that much different to the succession of failed attempts to agree to freezes or caps on production that have been put forward ever since the oil price cracked in 2014………………………………………..Full Article: Source

Commodity traders ‘key to managing risks’ in volatile global economy

Posted on 07 September 2016 by VRS  |  Email |Print

Commodity traders play an even more important role in managing risks and logistics now, given the increased complexity and volatility of the global economy, according to a leading finance academic.
“Commodity traders reduce prices that consumers pay and increase the price producers receive by moving commodities from producers to consumers in an efficient way,” said Professor Craig Pirrong of the University of Houston. He added that they respond to supply and demand shocks by adjusting commodity flows………………………………………..Full Article: Source

Talks by Russia’s Putin and Saudi prince could be big deal for oil market

Posted on 07 September 2016 by VRS  |  Email |Print

Russian President Vladimir Putin’s seemingly cozy talks with Saudi Arabia could put a floor under oil prices, possibly limiting what could have been a sharp drop later this month. In a surprise move over the long Labor Day weekend, Russia and Saudi Arabia agreed to cooperate in world oil markets.
There was no immediate deal to act but they say they are moving toward a strategic energy partnership and could take action in the future. The joint statement was signed by both countries’ oil ministers on the sidelines of the G-20 summit in China, after a meeting between Putin and Saudi Deputy Crown Prince Mohammed bin Salman………………………………………..Full Article: Source

Iran Supports Any Measure to Stabilize Oil Market, Minister Says

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC’s third-largest producer, the Islamic Republic signals willingness to support the possible revival of a global deal on freezing oil production levels. Iran supports an oil price of $50-60 per barrel and any measure to stabilize the market, state TV quoted the country’s oil minister as saying on Tuesday. 
“Iran wants a stable market and therefore any measure that helps the stabilization of the oil market is supported by Iran,” Bijan Zanganeh said after meeting OPEC Secretary-General Mohammed Barkindo in Tehran………………………………………..Full Article: Source

OPEC’s Crude Is Too Sour for This Oil-Market Upstart

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC’s biggest producers are playing second fiddle to smaller suppliers in a coveted corner of the oil market. Crude with a lot of sulfur, including supply from Saudi Arabia and Iran, is too sour to be processed easily at its plants, said Zhang Liucheng, director and vice-president at Shandong Dongming Petrochemical Group, the biggest among China’s private refineries.
Most of the independent companies, which have been courted by sellers since they were granted access into international oil markets last year, are instead seeking ‘sweeter’ cargoes with lower sulfur content, he said………………………………………..Full Article: Source

Banks’ Commodity Woes Deepen as Energy and Metals Earnings Hit

Posted on 06 September 2016 by VRS  |  Email |Print

It’s looking like another bad year for the biggest banks when it comes to commodities. Revenue from raw materials at Goldman Sachs Group Inc., JPMorgan Chase & Co. and 10 other top banks slid 25 percent in the first half to $2.2 billion from a year earlier, according to analytics firm Coalition Development Ltd.
That was the lowest first-half amount in at least half a decade amid a “lackluster” performance across energy and industrial metals, the company said in a report on Tuesday………………………………………..Full Article: Source

The pieces of Putin’s grand plan to remake the global oil market are falling into place

Posted on 06 September 2016 by VRS  |  Email |Print

Step by step, Russian President Vladimir Putin is making advances in his grand plan to become the major player in the oil market by co-ordinating the conflicting forces in the Middle East.
And, at the G20 conference, Putin made it clear to all participants where he was headed as he re-signed with Saudi Arabia. Significantly, the Saudi’s greatest supporter, the United States of America, was not part of the game and Russia replaces US influence………………………………………..Full Article: Source

Saudi, Russia Pledge Oil Cooperation Without Agreeing Freeze

Posted on 06 September 2016 by VRS  |  Email |Print

The world’s top two crude-oil producers pledged to cooperate to stabilize global markets, while failing to announce any specific measures to bolster prices. “We have a number of tools at our disposal for joint actions,” Russian Energy Minister Alexander Novak said following a meeting with his Saudi counterpart Khalid Al-Falih. Both agree that an output freeze would be the most constructive instrument, he said.
Despite promise of a “significant” announcement — leading to a 5.5 percent jump in oil prices — no concrete actions were revealed at the joint press briefing in Hangzhou………………………………………..Full Article: Source

Oil market rocked by Russia-Saudi co-operation pact

Posted on 06 September 2016 by VRS  |  Email |Print

Saudi Arabia and Russia have forged a deal to use their combined market dominance to help stabilise the oil market as it recovers from its two year downturn. The oil giants, which together contribute over 20pc to global supply, agreed on the sidelines of the G20 summit in China to form a ‘working group’ which will track the market’s recovery and make recommendations on how to ensure stability.
The pact did little to help steady the market on Monday morning as prices swung wildly - first spurred by hope that the pact would include a supply freeze deal before retreating after it emerged that the pact would not result in immediate action………………………………………..Full Article: Source

Qatar hopes OPEC members to overcome challenges

Posted on 06 September 2016 by VRS  |  Email |Print

Qatar’s Prime Minister Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani and OPEC Secretary General Mohammad Sanusi Barkindo discussed global oil market situation, the cartel reported September 5.
The meeting in Doha was also attended by Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and current OPEC Conference President. The Qatari Prime Minister expressed confidence that Barkindo would work closely with OPEC member countries to overcome the current challenges in the interest of all oil producers and consumers………………………………………..Full Article: Source

China Tells G20 To Avoid ‘Empty Talk’, Cure Global Economy

Posted on 05 September 2016 by VRS  |  Email |Print

Chinese President Xi Jinping urged world leaders to avoid “empty talk” and confront sluggish economic growth and rising protectionism as their summit opened on Sunday in the scenic city of Hangzhou.
Xi welcomed Group of 20 presidents and prime ministers with a handshake, and an extended clasp with Barack Obama, as both men smiled despite protocol stumbles around the US leader’s visit. The Chinese leader said the world economy “still faces multiple risks and challenges including a lack of growth momentum and consumption, turbulent financial markets, receding global trade and investment”………………………………………..Full Article: Source

Oil Market: Saudi Arabia’s New Game Plan

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia has a new game plan: to confuse oil traders and investors. That’s the impression one gets by listening to Saudi Arabia’s new oil minister – who is talking markets up one day, down the next day, and up the day after.
Ever since Saudi Arabia succeeded the US and became the world’s largest oil producer back in the 1970s, the Kingdom has played many games to master the oil market. Sometimes it was “swing” producer, filling occasional gaps created by production shortfalls by major oil producers to soothe the oil market………………………………………..Full Article: Source

Russia and Saudi Arabia Agree to Work for Oil-Market Stability

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia and Russia agreed to work together to ensure oil market stability even as leaders from the world’s two biggest crude producers stopped short of offering detailed proposals.
Oil-market stability is impossible without Saudi-Russian cooperation, the kingdom’s influential Deputy Crown Prince Mohammed bin Salman said after meeting on Sunday with President Vladimir Putin in Hangzhou, China. Prince Mohammed made his comments three days after Putin said he’d like OPEC and Russia to agree to freeze crude supply to steady the market………………………………………..Full Article: Source

London copper near 2-mth low; outlook sluggish

Posted on 05 September 2016 by VRS  |  Email |Print

London copper hovered near its weakest in two months on Monday as the dollar gained ground and as investors bet that more mine supply would drag on prices for the rest of the year. A long weekend in the United States was set to keep trading in check.
“We are cautious about the near-term price outlook for copper and aluminium … in view of the pending U.S. Fed rate hikes, slower-than-expected capacity reduction in aluminium in China and a near-term oversupply threat in the global copper market” Argonaut Securities said in report………………………………………..Full Article: Source

Iron ore finished last week on its highs

Posted on 05 September 2016 by VRS  |  Email |Print

Iron ore prices rebounded modestly on Friday, recovering the ground lost in the previous two sessions. According to Metal Bulletin, the spot price for benchmark 62% fines rose by 0.9% to $59.39 a tonne, leaving it at the highest level seen since August 25.
Year to date it has gained 36.3%. Metal Bulletin note the gain — the largest since August 16 — corresponded with the visit of policymakers to key industrial centres in China to check on the status of planned capacity cuts across steel and coal operators………………………………………..Full Article: Source

Commodity prices signal improved economy

Posted on 02 September 2016 by VRS  |  Email |Print

The financial services firm pointed to recent readings from the Reserve Bank of Australia’s (RBA) commodity price index, with Fiducian investment manager Conrad Burge saying this could cause a turnaround in the country’s terms of trade.
“The RBA index of commodity prices actually picked up somewhat in July and as a result, national income measures, which reflect ‘the real purchasing power of income generated by domestic production’ could also now be moving up once again after a long period of weakness,” he said………………………………………..Full Article: Source

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Posted on 02 September 2016 by VRS  |  Email |Print

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.
The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions. “The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified………………………………………..Full Article: Source

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September 2016
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