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Gold will be back, eventually

Posted on 16 November 2016 by VRS  |  Email |Print

Anyone waiting for gold to spring back and into an unrestrained bull run after a surprisingly poor reaction to Donald Trump’s election to the White House are likely to be disappointed, according to RBC analyst Tyler Broda.
The near-term macro-economic environment created by a Trump government suggests a gold price not far north of current trading levels and there is room for further losses. “Following president-elect Donald Trump’s victory, the markets have seen a sharp increase in volatility, especially as we push through the paradigm shift of a potentially more inflationary and higher nominal rate environment,” Broda said in a note this week………………………………….Full Article: Source

Iron ore swoons as China eyes reining in commodity speculators

Posted on 16 November 2016 by VRS  |  Email |Print

The music may be stopping for iron ore, with the commodity falling sharply overnight and dragging down Australia’s major miners as traders started to worry about Chinese regulators stepping in to reduce sharp price swings.
Iron ore dropped 8.7 per cent to $US72.80 a tonne in a single session overnight, according to the Steel Index, from a two-year high of $US79.70 the previous day. Speculators became worried that China would tighten curbs on trading of a range of commodity futures and have sold off materials ranging from coal and steel to soybeans, Reuters reported………………………………….Full Article: Source

Hanjin bankruptcy sees freight rates bottom out

Posted on 16 November 2016 by VRS  |  Email |Print

Spot rates of oceangoing container ships appear to have bottomed out. In addition to growing demand for ships bound for the U.S., the collapse of leading South Korean marine shipper Hanjin Shipping accelerated attempts by other companies to shore up earnings with higher freight rates.
With the introduction of large container ships aimed at reducing operating costs, the shipping capacity supply and demand balance is not too tight, but the prevailing view is that the rock-bottom prices seen this past spring are unlikely to reoccur………………………………….Full Article: Source

Chinese Speculators Shake Up Global Commodity Markets

Posted on 15 November 2016 by VRS  |  Email |Print

Global commodity markets are being rattled again by a familiar force: China’s army of cash-rich investors. A renewed rush into Chinese commodity futures is encouraging wild swings in prices for products including coal, iron ore and rubber, raising concerns about the return of a speculation frenzy.
The price paid for physical iron ore, the key ingredient in steel, has risen by about a quarter in the past week to its highest level in more than two years. Analysts and traders have linked the rally to renewed bets by Chinese speculators……………………………………..Full Article: Source

Trump Effect on Commodities: Copper Up, Oil Down (Video)

Posted on 15 November 2016 by VRS  |  Email |Print

Emad Mostaque, strategist at Eclectic Strategy, examines what is driving oil as prices dip to a three-month low and looks at the commodities market in the wake of the U.S. election. He speaks on “Bloomberg Daybreak: Americas.”.……………………………………Full Article: Source

Commodities: Flying High or Feet of Clay

Posted on 15 November 2016 by VRS  |  Email |Print

What does the fate of the BRIC countries and the launch of the latest acronym for investors tell us about today’s commodities businesses? Forget the BRICs and the MINTs; it appears that there is a new acronym in town. In October, market research firm, Absolute Strategy Research (ASR), launched CARBNS, a new commodities-dominated grouping, consisting of Canada, Colombia, Australia, Russia, Brazil, Norway, and South Africa.
This mix of developed and developing economies is ASR’s attempt to address the shortcomings of the traditional emerging market groupings that have dominated investment portfolios and benchmark indices for the past fifteen years……………………………………..Full Article: Source

OPEC Expects Crude Oil Prices to Hit $60 by 2020

Posted on 15 November 2016 by VRS  |  Email |Print

The EIA (U.S. Energy Information Administration) estimates that crude oil supply could outstrip demand by 730,000 bpd (barrels per day) in 1Q17. High US crude oil, gasoline, and distillate inventories, the strengthening dollar, and rising US crude oil rigs could also pressure crude oil prices.
The failure of OPEC’s (Organization of the Petroleum Exporting Countries) plan to cap production and successful implementation of Donald Trump’s energy policies would mean a period of lower crude oil prices. Goldman Sachs (GS) expects that the failure of OPEC’s meeting could see US crude oil prices test $40 per barrel in the short term……………………………………..Full Article: Source

Should you buy or sell gold after Trump’s victory?

Posted on 15 November 2016 by VRS  |  Email |Print

When it became increasingly clear that Donald Trump was about to win the US election, the price of gold soared. It reached a high of $1332 per ounce and sustained most of this rise through the day following the election victory. However, since then it has fallen back to $1220 per ounce, as investors have favoured risk-on trades rather than risk-off ones.
In the short run, this trend could continue and the price of gold may come under pressure. Investors seem to have put political risk to one side for the moment and are not all that interested in Trump’s policies on immigration and foreign policy……………………………………..Full Article: Source

Will Downward Trend in Gold and Silver Continue?

Posted on 15 November 2016 by VRS  |  Email |Print

The gold market is going through some unusual changes right now. Although there is a surging demand from regions such as India, the overall gold price is crashing hard. In fact, its value dropped by 6% on Thursday and Friday, which is quite surprising. It appears that investors deem precious metals too”risky” to invest in right now.
It has not been a good week for gold bugs all over the world. Prices have dropped by as much as 6% this week, settling at a low of nearly US$1,220 per ounce. Experts seem to look at Trump’s election victory as the reason for this drop, although it looks like other factors are at play as well……………………………………..Full Article: Source

Metals rally overprices impact of Trump’s infrastructure plan: Goldman Sachs

Posted on 15 November 2016 by VRS  |  Email |Print

The sharp rally in metals and bulk commodities was “too much too fast,” because the impact of Donald Trump’s infrastructure plan on global demand was tiny compared to that of China, Goldman Sachs analysts cautioned in a report.
In his victory speech on Wednesday, Trump proposed a “$1 trillion over a 10-year period” infrastructure stimulus plan, sending iron ore prices up about 5 percent to around $74 a metric ton soon after. Iron ore traded around $80 a ton on Monday, compared to all-time lows around $38 a ton hit 11 months ago……………………………………..Full Article: Source

Moody’s: Risks to global growth on the rise

Posted on 15 November 2016 by VRS  |  Email |Print

Global economic growth will remain at a historically low level next year, susceptible to a Chinese shock, fragmentation in the euro area and fresh financial market volatility, according to Moody’s.
In a report published on November 14, the ratings agency said it expects global growth to rise to 3% next year and 2.9 % in 2018, from 2.6% in 2016, but that the risks to the trajectory have risen. Moody’s wrote: “We believe that the US and Japan are growing close to potential. Countries in the euro area are recovering at a stable, but modest pace. However, economic activity in the UK is expected to weaken, as uncertainty about its future economic path dampens investment.”…………………………………….Full Article: Source

Donald Trump the builder gives commodities a big lift

Posted on 14 November 2016 by VRS  |  Email |Print

Mineral commodity markets have found something to celebrate with US president-elect Donald Trump’s campaign promise to rebuild America with a $US500 billion ($660bn) job-creating infrastructure splurge.
Metal prices have zoomed higher since Trump’s election victory, and the bulk commodities of iron ore and coal have soared from their already elevated levels, which can be traced back to numerous China factors. But will Trump the builder really make much of a difference in the long run?……………………………………Full Article: Source

Iran Pumps More Oil as Saudi Minister Calls for OPEC Output Cuts

Posted on 14 November 2016 by VRS  |  Email |Print

Iran boosted oil output at three western fields faster than it expected as rival OPEC producer Saudi Arabia called for a collective output cut later this month to help rebalance the market.
Output at the fields west of the Karoun River, near Iran’s border with Iraq, rose to about 250,000 barrels per day from 65,000 barrels in 2013, the Oil Ministry’s news service Shana reported Sunday, citing President Hassan Rouhani at a ceremony to formally open the project. Iran had expected to reach that output target by the end of the year, Mohsen Ghamsari, director for international affairs at the National Iranian Oil Co., said in September…………………………………….Full Article: Source

Trump’s policies can scale up oil market volatility

Posted on 14 November 2016 by VRS  |  Email |Print

When the final result of the US elections was announced and Donald Trump won, markets around the world went into a tailspin where commodities and stock markets fell precipitously.
But the market meltdown soon fizzled out and prices recovered to near previous levels regardless of the election result. Brent crude prices fell to $43 (Dh158) a barrel on November 9, but recovered to $45.5 a barrel the next day as the focus shifted from Trump’s victory to expectations from Opec…………………………………….Full Article: Source

Where Did That Gold Rally Go?

Posted on 14 November 2016 by VRS  |  Email |Print

Last week at this time, most analysts expected that gold could rally to $1,400 an ounce on a surprise Trump victory. And, in the wee hours of Tuesday evening as it became apparent Trump was leading, gold delivered, jumping over 5%.Sign up Kitco Newsletter But…..that was Tuesday.
Since its super rally, the price of gold has more than reversed all of its previous gains and it is now trading at a five-month low. So, what happened to the Brexitesque effect of Trump? Well, as research firm Capital Economics said this Friday, markets appear to believe that a Trump victory will lead to major infrastructure spending and much more aggressive Fed tightening…………………………………….Full Article: Source

Iron ore’s ballistic rally has seen prices double from the lows

Posted on 14 November 2016 by VRS  |  Email |Print

Iron ore prices have more than doubled from the all-time lows struck 11 months ago. Doubled. According to Metal Bulletin, the spot price for benchmark 62% fines surged 7.7% to $79.81 a tonne on Friday, extending its gain in 2016 to 83.2%.
It was the largest percentage gain since April 21, and the largest in dollar terms since March 7 when it jumped $9.99 a tonne. Remarkable…………………………………….Full Article: Source

Commodities Recover From Jolt as Markets Assess Trump Win

Posted on 11 November 2016 by VRS  |  Email |Print

Raw materials and shares of the companies producing them were whipsawed as investors wrestled with the implications of Donald Trump’s stunning victory in the U.S. presidential election.
Oil reversed a slide to end higher, while gold was little changed after an early jump on haven demand. Industrial metals fell and then soared, pulling mining shares with them as investors bet governments would fend off weaker growth with infrastructure spending…………………………………..Full Article: Source

Commodities – Flying High or Feet of Clay

Posted on 11 November 2016 by VRS  |  Email |Print

Forget the BRICs and the MINTs; it appears that there is a new acronym in town. In October, market research firm, Absolute Strategy Research (ASR), launched CARBNS, a new commodities-dominated grouping, consisting of Canada, Colombia, Australia, Russia, Brazil, Norway, and South Africa.
This mix of developed and developing economies is ASR’s attempt to address the shortcomings of the traditional emerging market groupings that have dominated investment portfolios and benchmark indices for the past fifteen years. These groupings – which are often erroneously assumed to have a strong positive correlation with commodities – have attracted criticism because they have implied some kind of equivalence between very disparate countries…………………………………..Full Article: Source

Oil surplus may continue in 2017 without OPEC cut, IEA says

Posted on 11 November 2016 by VRS  |  Email |Print

The oil market surplus may run into a third year in 2017 without an output cut from OPEC, while escalating production from exporters around the globe could lead to relentless supply growth, the International Energy Agency said on Thursday.
In its monthly oil market report, the group said global supply rose by 800,000 barrels per day in October to 97.8 million bpd, led by record OPEC output and rising production from non-OPEC members such as Russia, Brazil, Canada and Kazakhstan. The Paris-based IEA kept its demand growth forecast for 2016 at 1.2 million bpd and expects consumption to increase at the same pace next year, having gradually slowed from a five-year peak of 1.8 million bpd in 2015…………………………………..Full Article: Source

How Trump’s victory complicates OPEC’s oil output plans

Posted on 11 November 2016 by VRS  |  Email |Print

Republican Donald Trump’s surprise win in the U.S. presidential election just three weeks ahead of the Organization of the Petroleum Exporting Countries’ meeting in Vienna poses a unique dilemma for the oil-producer plan to curb crude production.
Trump, who will take office in January, has said he wants to make the U.S. completely energy independent and remove restrictions on oil drilling on federal land. That could lead to a larger glut of supplies and lower prices, both of which are why OPEC reached a proposal in late September to curb member production. But Trump’s energy plans could also help the U.S. grow its oil market share, which is also a notorious worry for OPEC…………………………………..Full Article: Source

How will Trump’s energy policy affect global oil market?

Posted on 11 November 2016 by VRS  |  Email |Print

The ability of Donald Trump as the US president to influence the oil market will not be concentrated in the US but in three other places - Libya, Venezuela and Russia, Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS), a Washington based think tank focused on energy security, and a senior adviser to the United States Energy Security Council, said.
“Trump will re-engage with Libya and bring about to its reconstruction. This will mean, among other things, restoring Libyan production which alone could easily bring one million barrels a day to the market,” he said…………………………………..Full Article: Source

Copper plays catch-up with November surge

Posted on 11 November 2016 by VRS  |  Email |Print

After lagging behind rivals for most of 2016, the metal price has exploded recently. A wave of speculative buying has helped pushed copper to its highest level in more than a year, helping to reverse its underperformance against other industrial metals.
After going nowhere for most of the year, copper has surged 20 per cent over the past two weeks, attracting the attention of momentum trading funds. It has also forced short sellers to buy back their positions. “Speculators are finally returning to the copper market,” said Xiao Fu, head of commodity markets strategy at Bank of China International…………………………………..Full Article: Source

Iron Ore’s Near-Doubling Shows Reversal From Loser to Leader

Posted on 11 November 2016 by VRS  |  Email |Print

There’s just no stopping iron ore. Benchmark prices are on their way to doubling as concern eases about a slowdown in China, and steps by exchanges in the world’s top buyer to curb spikes in other commodities including coal and steel lure funds into the raw material.
Ore with 62 percent content delivered to Qingdao rallied to $74.12 a dry metric ton on Thursday, the highest level since November 2014, after gaining 94 percent from December’s low, according to Metal Bulletin Ltd. In Asia, SGX AsiaClear futures are up 98 percent since their closing low the same month, while the contract on the Dalian exchange has now more than doubled…………………………………..Full Article: Source

Chinese regulator bans futures brokers from providing margin financing

Posted on 11 November 2016 by VRS  |  Email |Print

China’s futures brokers have been banned from providing margin financing, part of tighter measures aimed at cracking down speculation in the overheated financial market, according to a report in state-owned Shanghai Securities News.
The move by the China Securities Regulatory Commission comes amid other sweeping measures by the country’s major commodities exchanges this week, six months after the government stepped in to try to deflate a speculative bubble in the market…………………………………..Full Article: Source

Commodities react to Donald Trump’s reflationary rhetoric

Posted on 10 November 2016 by VRS  |  Email |Print

Gold is Donald Trump’s favourite metal. The taps on his private jet are 24-karat gold-plated. His $100 vodka is adorned with a golden “T”. He even hankers after the gold standard. He must have found it gratifying, therefore, that gold soared to its highest price since Brexit after his overnight victory in America’s presidential election. But copper and industrial metals also rallied. They tell a similar story: prepare for reflation.
Gold is both a haven and a hedge against inflation. Initially, its rally appeared to be a rush for safety. The dollar and stockmarkets plunged as Mr Trump headed closer to victory, pushing panic-driven flows into the yellow metal………………………………………Full Article: Source

Commodities Recover From Jolt as Markets Assess Trump Win

Posted on 10 November 2016 by VRS  |  Email |Print

Raw materials and shares of the companies producing them were whipsawed as investors wrestled with the implications of Donald Trump’s stunning victory in the U.S. presidential election.
Oil reversed a slide, while gold was little changed after an early jump on haven demand. Industrial metals fell and then soared, pulling mining shares with them as investors bet governments would fend off weaker growth with infrastructure spending………………………………………Full Article: Source

Is the Slump in Commodities Over?

Posted on 10 November 2016 by VRS  |  Email |Print

Commodities, particularly iron ore and steel-making or coking coal, have surged in recent months, giving considerable hope to beaten-down miners. This has triggered a massive rally among miners, including Teck Resources Ltd., which is up by an unbelievable 260% for the year to date.
Surprisingly, there are signs that this inconceivable rally may be far from over. You see, the central bank of Australia has daringly called an end to the commodities bust and has lifted the country’s terms of trade………………………………………Full Article: Source

OPEC Deal Becomes More Urgent, Harder to Reach on Trump Win

Posted on 10 November 2016 by VRS  |  Email |Print

OPEC was already struggling to finalize a deal on production cuts this month. And then Donald Trump was elected President of the U.S. The Organization of Petroleum Exporting Countries faces increasing urgency to take measures that will support oil prices as Trump’s surprise victory threatens to deepen a market sell-off, said UBS Group AG.
Yet the uncertainty arising from the President-Elect’s policies — from climate change to the U.S. shale industry and sanctions on Iran — will make resolving differences between producers even harder………………………………………Full Article: Source

Trump win a boost for miners

Posted on 10 November 2016 by VRS  |  Email |Print

As Donald Trump’s shock presidential election victory ripples through financial markets, it’s far from doom and gloom for metals producers, according to Jefferies Group LLC.
Miners such as Freeport-McMoRan Inc are set to benefit on the prospect of increased US infrastructure spending that pushes up demand for copper and other mined commodities at a time of tightening global supply, Jefferies analysts including Christopher LaFemina wrote in a note to clients Wednesday. A weaker dollar would also be a positive for copper and gold………………………………………Full Article: Source

Iron ore and base metals surge on Donald Trump’s win

Posted on 10 November 2016 by VRS  |  Email |Print

Iron ore has surged to a 12-month high of $US70 a tonne as a result of Donald Trump’s victory in the presidential election, as copper, nickel and zinc also enjoyed big gains.
The Chinese spot price of iron ore, Australia’s most important export commodity, rose 3.9 per cent to $US70.98 ($92.71) a tonne. Iron ore has now risen 85 per cent since touching a low of $US38.30 in December last year………………………………………Full Article: Source

Iran’s iron ore exports jump 54% as prices rise

Posted on 10 November 2016 by VRS  |  Email |Print

Iron ore exports jumped 54% to 8.46 million mt in the first half of the Iranian year, to September 21, despite the Iranian government’s policy to halt exports of raw materials, official customs statistics show.
Official statistics also show the Iranian steel industry imported 65,000 mt of iron ore pellet, a 93% year-on-year drop. Iran also imported 98,400 mt of metallurgical coal in the same period, down about 76% year on year………………………………………Full Article: Source

How America’s new president will affect the global economy

Posted on 10 November 2016 by VRS  |  Email |Print

From trade war with China to jobs turmoil in Mexico, Trump’s reign will pose new threats to already fragile world economy. Donald Trump’s victory in the US presidential elections will have implications for the whole global economy.
America’s neighbour to the south has most to lose from the new Republican president. Trump’s message to blue-collar voters in the rust-belt states was that US manufacturing jobs have migrated across the Rio Grande as a result of the North American Free Trade Agreement signed by Bill Clinton in the early 1990s………………………………………Full Article: Source

OPEC Raises Oil-Demand Forecast on Outlook for Cheaper Crude

Posted on 09 November 2016 by VRS  |  Email |Print

OPEC raised its forecast for global oil demand next year and through the end of the decade, anticipating that cheaper crude will spur consumption even as economic growth slows.
Demand will reach 95.3 million barrels a day in 2017, according to the producer group’s annual World Oil Outlook report released Tuesday. That’s an increase of 300,000 barrels a day from last year’s forecast. The Organization of Petroleum Exporting Countries also raised its outlook for oil use in 2018, 2019 and 2020, when it sees demand reaching 98.3 million barrels a day, or 900,000 more than the group projected in its previous annual outlook…………………………………….Full Article: Source

Oil market to mark a ‘turning point’ in 2016: OPEC

Posted on 09 November 2016 by VRS  |  Email |Print

This year marks a “turning point” for oil toward a more balanced market, but the lower oil-price environment, market instability and uncertainties surrounding environmental policies will continue to muddle the long-term outlook for the market, the Organization of the Petroleum Exporting Countries said in an annual report issued Tuesday.
“The oil market has shown signs that it is heading toward a more balanced situation” since the previous outlook report was released in December of last year, said OPEC, but it added that volatility continues and challenges remain on “several fronts.”……………………………………Full Article: Source

OPEC Boss Warns of Oil-Market Instability If No Deal on Output

Posted on 09 November 2016 by VRS  |  Email |Print

OPEC’s chief warned of prolonged instability in the oil market if the producer group and other major crude suppliers fail to act jointly to limit output and curb a global glut.
An inability of the Organization of Petroleum Exporting Countries to implement the deal it reached in Algiers in September will have “negative consequences on the already fragile state of the industry,” OPEC Secretary-General Mohammed Barkindo said Tuesday at a briefing in Abu Dhabi. Markets are “eagerly awaiting” combined action by OPEC and non-OPEC producers, he said…………………………………….Full Article: Source

World gold council: India demand down 28% in Q3 on high prices

Posted on 09 November 2016 by VRS  |  Email |Print

Gold demand in India was down 28 per cent at 195 tonnes (271 tonnes) in the third quarter on the back of high prices and Government policies targeted at diverting physical gold demand into financial products linked to gold.
The Central government recently levied excise duty of 1 per cent on gold jewellery, besides making PAN card disclosures mandatory for purchase of gold above ₹2 lakh. The voluntary income disclosure scheme also instilled a fear factor on consumers and had a negative impact on overall demand, said Somasundaram PR, MD (India), World Gold Council…………………………………….Full Article: Source

Global Gold Jewelry Demand Falls 21% In Q3

Posted on 09 November 2016 by VRS  |  Email |Print

Gold jewelry demand saw its largest decline in two years, according to the World Gold Council, the market development organization for the gold industry.
Demand in the third quarter of 2016 fell 21 percent, year-over-year, to 493.1 tons largely due to high prices for the precious metal on the world market, the WGC said in its quarterly Gold Demand Trends report. However, every region faced its own difficulties that contributed to the decline…………………………………….Full Article: Source

What will the US election mean for gold?

Posted on 09 November 2016 by VRS  |  Email |Print

It looks like it’s going to be Hillary. At least, that’s what the markets decided yesterday, in the wake of the FBI announcement that her emails showed no criminal wrongdoing. Both the Dow Jones and the S&P 500 were up 2%, the dollar was up 1% and gold took a 2% slap in the face.
The world isn’t going to end. Business will be as usual. The status quo will prevail. Really? Not sure. But what I’m thinking about is the outlook for gold in all this… The question we’re all wondering now is whether we’re going to see a Brexit-type upset in the US election. We’ll know the answer to that by tomorrow…………………………………….Full Article: Source

Copper MMI: Bull Market Around the Corner?

Posted on 09 November 2016 by VRS  |  Email |Print

Our Copper MMI held steady at 61 points in October. At first glance, it might appear that there is nothing bullish about that. Markets remain in surplus due to producers’ unwillingness to cut capacity.
Copper prices have lagged the rest of the industrial metals this year and we’ve been pretty bearish on copper since 2011. But, although still early to make a call, there might be a bull lurking in the shadows. Copper prices might be setting up for a big run. Although prices didn’t rise in October, they showed resilience in the face of a rising dollar…………………………………….Full Article: Source

The strains of a weak global economy are showing

Posted on 08 November 2016 by VRS  |  Email |Print

The strains of a global economy mired in a low growth, lowinflation and low interest rate regime are starting to show. Populist, anti-establishment and anti-globalisation sentiment is on the rise across the developed markets. If this leads to a marked deterioration in the quality of economic decision making, it could spell the end of a seven-year period of growth — however weak — for the global economy.
But there are alternative possibilities: a new wave of insurgent politicians could shake things up for the better; or incumbent politicians and central bankers could raise their game and deal with economic headwinds once and for all………………………………………Full Article: Source

Is the Uptrend in Commodities Far From Over?

Posted on 08 November 2016 by VRS  |  Email |Print

Rising volatility prices across the financial markets in recent weeks has many investors concerned about the future direction and stability of their investments.
Commodity traders have shown to be especially sensitive and based on the broad selling it appears that most assets were getting dragged down regardless of underlying fundamentals. In the article below, we’ll take a look at the charts of several commodity-related assets and try to determine if recent momentum has created a buying opportunity………………………………………Full Article: Source

Oil investor impatience grows over global surplus

Posted on 08 November 2016 by VRS  |  Email |Print

Oil investors are growing increasingly disgruntled with the pace at which supply and demand are rebalancing, cutting their bullish bets and pushing the benchmark price to its biggest discount relative to future prices in nine months.
The premium of Brent crude futures for delivery in six months over those for prompt delivery, one measure of confidence in the market outlook, on Monday shot to its largest since February, the point at which Opec first floated the idea of a possible deal on output to erode a two-year-old global surplus………………………………………Full Article: Source

Oil Market: It Could Turn Bloody, Again

Posted on 08 November 2016 by VRS  |  Email |Print

Crude oil could be heading back down to the $20s again, if Saudi Arabia makes good on its threat to raise oil output – and if the Federal Reserve hikes interest rates in December. After talking the oil market up for three months, OPEC and its new ally Russia has been unable to execute on Saudi kingdom’s s output freeze strategy.
That was obvious in the OPEC experts meeting last week, where the old animosities between Riyadh and Teheran resurfaced, spoiling the chances of a final deal, according to a Reuters report………………………………………Full Article: Source

Deal Or No Deal? An OPEC Oil Cut Looks Increasingly Unlikely

Posted on 08 November 2016 by VRS  |  Email |Print

At its meeting in Algiers last month OPEC said it intended to work together to figure out how to reduce the oversupply of crude oil sloshing around global markets. The announcement of the mere intention to work together on a deal drove benchmark oil prices up to $55 a barrel, the highest level in months.
It was just the kind of reassuring move that Saudi Arabia needed to get investors keen on its $17.5 billion bond issue. And a golden opportunity for America’s frackers to lock in the higher prices they needed to keep right on drilling………………………………………Full Article: Source

Will Oil Producers Outside OPEC Join the Cause to Freeze?

Posted on 08 November 2016 by VRS  |  Email |Print

Eni SpA’s chief executive officer called for oil producers outside OPEC to join the group in cutting production to stabilize the market and said his company could still make money with crude at $50 a barrel.
OPEC, which pumps about 40 percent of the world’s oil, agreed in Algiers last month to trim output for the first time in eight years, and is trying to persuade producers from outside the group, such as Russia, to join the cuts………………………………………Full Article: Source

Oman feels oil market oversupplied

Posted on 08 November 2016 by VRS  |  Email |Print

Small non-OPEC oil producer Oman said on Monday the petroleum market remained oversupplied. “I think … the fundamental problem is still there that we are oversupplying the market with this product that is finite and difficult to find,” Minister of Oil and Gas Mohammad bin Hamad al-Rumhy told an oil conference in Abu Dhabi.
“I am concerned although optimistic… Maybe we have seen the bottom, but we don’t know how long this bottom will last.” He added he was looking forward to talks between OPEC and non-OPEC about how to shore up the market………………………………………Full Article: Source

World Bank raises oil price forecast for 2017

Posted on 08 November 2016 by VRS  |  Email |Print

The World Bank is raising its 2017 forecast for crude oil prices to $55 per barrel from $53 per barrel. It explained that this was the case as members of the Organization of the Petroleum Exporting Countries (OPEC) prepared to limit production after a long period of unrestrained output.
It said in its Online Media Briefing Centre (OMBC) available to the Ghana News Agency that energy prices, which included oil, natural gas and coal, were projected to jump almost 25 percent overall next year, a larger increase than anticipated in July………………………………………Full Article: Source

Don’t Count Out Gold Just Yet; Contested Clinton Victory Could Drive Gold To $1,350

Posted on 08 November 2016 by VRS  |  Email |Print

It’s too soon to discount gold even as prices fall nearly 2% Monday on abating election jitters, according to some analysts. Sunday, the FBI came out and said that after reviewing newly discovered emails, it continues to recommend not pursuing charges against Democratic presidential candidate Hillary Clinton.
The news provided some relief for the Clinton campaign, which saw its lead against Republican candidate Donald Trump fall sharply when the FBI first announced the discovery of the emails. Since the FBI’s latest disclosure, there has been a pickup in “risk-on” sentiment that has pushed U.S. equity markets up almost 2% across the board and drove gold prices down, below the key psychological level of $1,300 an ounce………………………………………Full Article: Source

OPEC’s game of ‘Deal or No Deal’ could push oil prices below $30

Posted on 04 November 2016 by VRS  |  Email |Print

NBC used to air a fast-paced television game show called “Deal or No Deal.” The oil markets have been playing a version of that with OPEC and certain non-OPEC members who, in a desperate attempt to save their economies, are trying to forge a deal on limiting oil production.
As is usually the case, when Saudi Arabia speaks, the oil market listens, and, in a departure from their previous position of engaging in a bare-knuckle brawl for global market share, they have been leading the charge to reign in oil production………………………………………Full Article: Source

The Wave of Imports Crushing the Oil Market

Posted on 04 November 2016 by VRS  |  Email |Print

OPEC’s increased output is still on its way into the world market, and foundering oil prices may have further to fall. A record amount of oil just went into U.S. storage last week. Some of it is probably only an accounting snag. But a lot of it appears to be from a wave of oil still on the way to U.S. shores.
All the pressure is pushing U.S. crude to plumb new one-month lows Thursday. It’s the second-straight day of declines tied to the data showing more crude went into storage last week than any other in 34 years of government records. Imports hit a four-year high, and international exporters are still pumping full tilt, loading up more and more oil into ships for sale around the world………………………………………Full Article: Source

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December 2016
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