Thu, Mar 5, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Market Moves more

Rio Tinto dismisses talk of deal with Glencore

Posted on 13 February 2015 by VRS  |  Email |Print

Rio Tinto does not need to do a deal with Glencore, its chief executive Sam Walsh said after the Anglo-Australian miner defied the gloom in the commodities sector by increasing its dividend and announcing a $2bn share buyback.
Rio has been under pressure to make good on promises to increase returns to shareholders and ward off any fresh approach from Glencore. The Swiss-based mining house can make another approach in April under UK takeover rules, after a merger proposal was rebuffed by Rio last year………………………………………..Full Article: Source

Shale and Non-OPEC Producers Hit Hardest By Low Oil Prices

Posted on 12 February 2015 by VRS  |  Email |Print

The plunge in global crude prices makes it difficult for North American shale oil producers to survive, the chairman of Russian gas giant Gazprom said in Saudi Arabia on Wednesday. Viktor Zubkov told an industry gathering that “a lot” of shale producers are suffering from the drop in oil prices and current conditions make shale production “nonsense.”
“The low price of oil, $45, $50, or even $60 (per barrel), it’s not a driver for shale business,” he told the International Energy Forum (IEF) in Riyadh. Crude prices dropped from around $100 to below $50 per barrel over the past year on concerns over a supply glut and weakening demand………………………………………..Full Article: Source

Chinese banks bulk up in London’s commodity sector

Posted on 11 February 2015 by VRS  |  Email |Print

Under large chandeliers in London’s ornate Gibson Hall, China’s largest bank earlier this month celebrated its $690m purchase of a 60 per cent stake in Standard Bank’s global markets unit. The acquisition will help Industrial and Commercial Bank of China offer a full range of commodities services to its clients, some of China’s largest natural resources companies, as it moves to compete with western banks such as Citi and Goldman Sachs.
ICBC’s purchase is the latest foray by a Chinese entity into London’s commodities market, as such banks see an opportunity to service Chinese clients who produce and consume the bulk of the world’s resources as western banks withdraw from the sector………………………………………..Full Article: Source

Oil market rebalancing ‘could take years’: IEA

Posted on 11 February 2015 by VRS  |  Email |Print

The global oil market could be out of balance for years, and it will never be the same because of U.S. shale production, the International Energy Agency said Tuesday.
“A partial rebound in oil prices over the last month following a 60 percent crash since June suggests market participants are seeing light at the end of the tunnel and growing confident that spending cuts by oil companies will lead to a market recovery,” the IEA said in its February oil market report……………………………………….Full Article: Source

Russia will be biggest loser from oil price fall, warns IEA

Posted on 11 February 2015 by VRS  |  Email |Print

International Energy Agency uses market report to point to biggest potential loser from oil price slump. Russia will be the biggest loser from the current downturn in oil prices as the Organisation of the Petroleum Exporting Countries (Opec) seizes back a bigger share of the world crude market, the world’s top energy watchdog has said.
In its closely-watched medium-term market report the International Energy Agency (IEA) said that Russia’s output of crude would contract by 560,000 barrels per day (bpd) through to 2020. “Russia facing a perfect storm of collapsing prices, international sanctions and currency depreciation, will likely emerge as the industry’s top loser,” said the IEA………………………………………..Full Article: Source

Oil drops sharply as IEA expects inventories to rise

Posted on 11 February 2015 by VRS  |  Email |Print

Crude oil prices fell for the first time in four sessions on Tuesday after the International Energy Agency (IEA) warned that ample supplies will raise global inventories before investment cuts begin to significantly dent production.
Oil stockpiles in member countries of the Paris-based Organization for Economic Cooperation and Development (OECD) may approach a record 2.83 billion barrels by mid-2015, said the IEA, advisor on energy policy to a group of Western nations. US March crude futures fell US$2.84, or 5.37 per cent, to settle at US$50.02 a barrel, after dropping to US$49.86………………………………………..Full Article: Source

Singapore DBS says total commodities exposure is S$30 bln

Posted on 11 February 2015 by VRS  |  Email |Print

Singapore’s DBS Group Holdings has total commodities exposure of S$30 billion ($22.18 billion), with the bulk of it in trade finance, Chief Executive Officer Piyush Gupta said on Tuesday.
DBS, Singapore’s biggest bank, took some charges on the commodities exposure in China in its fourth-quarter results. It reported a small rise in core fourth-quarter net profit which fell short of analysts’ estimates………………………………………..Full Article: Source

Commodities Are Down—but Hardly Out

Posted on 10 February 2015 by VRS  |  Email |Print

Do commodities still have a place in the average investor’s portfolio? The 2007-09 recession caused everyone to re-evaluate their tolerance for risk, and nowhere was this felt more strongly than in the commodities arena, where anything from a coffee-eating pest to severe drought could cost an investor hundreds of thousands of dollars.
Several years of negative returns for most commodities haven’t endeared the asset class to investors: For the three years through January, the S&P GSCI Commodity Index posted a negative return of 40%. That came after a 52% decline between June 2008 and June 2011………………………………………..Full Article: Source

Tempted by fall in global commodities? Here’s how to trade commodity-based funds

Posted on 10 February 2015 by VRS  |  Email |Print

It’s difficult days for those investors who bet on the global commodities theme. The DSP Blackrock World Mining Fund crashed 24 per cent over the last one year. Its annualised loss for the 2 and 3 year holding period is also placed at 18 per cent and 14 per cent respectively. The country-specific funds, catering to resource-rich nations, have also been affected by the crash in commodity prices.
For example, the annualised losses for 1, 2 and 3 years holding period for HSBC Brazil Fund is 15 cent, 16 per cent and 11 per cent respectively. Here too, the NAV of the growth option is below par. What should investors do with these funds now? Should existing investors book losses and move out or should they hold on to them, hoping for a recovery………………………………………..Full Article: Source

OPEC Blamed for Low Crude Oil Prices

Posted on 09 February 2015 by VRS  |  Email |Print

The Bank for International Settlements (BIS), the global clearinghouse for sovereign banks, released on Saturday an update to its report on global liquidity conditions. As part of this update, BIS included its explanation of what’s happened in the oil markets and its safe to say that the members of OPEC are not likely to be impressed with the Bank’s conclusion.
Comparing the current 50% drop in crude prices to other episodes of oil price declines in 1996 and 2008, BIS notes that both previous price collapses “were associated with sizeable reductions in oil consumption and, in 1996, with a significant expansion of production.”……………………………………….Full Article: Source

New Mideast Oil Refineries Could Stir Up Fuel-Market Dynamics

Posted on 09 February 2015 by VRS  |  Email |Print

The startup of two huge oil refineries earlier this year in the Middle East is set to shake up fuel markets from Asia to Europe as the oil-producing region expands its influence beyond just exporting vast amounts of unprocessed crude.
The projects, together with a third large refinery that began operating in Saudi Arabia last year, are expected to process 1.2 million barrels of oil a day at full capacity in the next few months, equivalent to slightly more than 1% of the world’s total oil-refining capacity………………………………………..Full Article: Source

Dubai Gold Jewelry Demand Higher After Slow Star to Year

Posted on 09 February 2015 by VRS  |  Email |Print

Gold-jewelry demand in Dubai is picking up after a slow start to the year when buyers were held back due to high prices, according to Tawhid Abdullah, chairman of the Dubai Gold & Jewellery Group, a retailer in the gold souk.
Industry sales are probably 8 percent higher so far this year compared with the same period in 2014, Abdullah said in an interview at a commodities conference in Dubai on Sunday. In January, when gold jumped to a five-month high, demand was probably 2 to 3 percent higher over a year earlier, he said………………………………………..Full Article: Source

Analysts bearish on copper despite recent spike

Posted on 06 February 2015 by VRS  |  Email |Print

The copper price hit a two-week high after easing measures by China’s central bank lifted hopes of growing demand for the metal, but analysts don’t expect the rally to last. The London Metal Exchange spot price for copper rose to $US5755 a tonne late on Wednesday, the highest in two weeks, after the People’s Bank of China cut the reserve requirement ratio for banks, while in the US, service industries expanded at a faster pace in January, with both events fuelling expectations for economic growth.
In Asian trade on Thursday, copper gave up some of its gains, slipping to $US5650 a tonne. Only a week ago the spot price for the base metal was $US5391, the lowest since July 2009………………………………………..Full Article: Source

Commodities Are In Focus

Posted on 05 February 2015 by VRS  |  Email |Print

The general sentiment is shifting among traders, particularly with crude moving higher. The reports of rigs pulled out of the field, along with strikes in the US Shale Crude Oil sector, has amplified the speculation that perhaps, the supply is going to become constrained very soon.
But, if you think slightly outside the box, from a demand perspective, there isn’t any decent news out there at all. For instance, the US economic data is uninterruptedly on the downward side and this has jammed their GDP reading and even the ISM manufacturing data released yesterday was pretty terrible………………………………………..Full Article: Source

Oil’s Surge to Bull Market Viewed as Temporary Bounce

Posted on 05 February 2015 by VRS  |  Email |Print

Oil is back! Or maybe not. After suffering its longest rout in history, crude rebounded Tuesday, entering a bull market after soaring 24 percent from a six-year low reached in January. Behind the gain was speculation that curbs in investment will cut production.
For all the optimism among traders, firms from Barclays Plc to Societe Generale SA and UBS Group AG say the rally is just temporary because less spending won’t eliminate a glut overnight. Instead of heading back to $100 a barrel, oil could fall as low as $30 because supply surpluses won’t disappear overnight, said Miswin Mahesh, a commodities analyst at Barclays………………………………………..Full Article: Source

Gold Ticks Higher on Worries Over Greece

Posted on 05 February 2015 by VRS  |  Email |Print

Gold prices ended higher Wednesday, as investors hunkered down for drawn-out debt negotiations with Greece, boosting demand for the precious metal as a safe-haven asset. Gold for April delivery, the most actively traded contract, rose $4.20, or 0.3%, to close at $1,264.50 a troy ounce on the Comex division of the New York Mercantile Exchange.
After a friendly reception in France and Italy earlier this week, Greece’s newly elected leaders are meeting with more skeptical politicians in Belgium and Germany, where they hope to press the European government into easing terms of the country’s international bailout………………………………………..Full Article: Source

Commodities Head for Biggest 3-Day Rally Since 2012 as Oil Gains

Posted on 04 February 2015 by VRS  |  Email |Print

Commodities are showing signs of life after prices fell to a 12-year low. Brent crude is poised for a bull market, climbing 2.6 percent as of 11:42 a.m. in New York on speculation that production will be curbed. The Bloomberg Commodity Index of 22 raw materials advanced 1.3 percent to 102.68, set for the best performance over three days since 2012. Sugar, copper and wheat advanced more than 2 percent.
Greece retreated from its call for a debt writedown and the Reserve Bank of Australia unexpectedly cut interest rates to a new record low, joining central banks from Canada to India that have reduced borrowing costs this year to support their economies………………………………………..Full Article: Source

India: The supercycle of commodities is over

Posted on 04 February 2015 by VRS  |  Email |Print

India is one of the largest consumers—and producers—of several commodities, particularly precious metals and agri-based ones. It is thus one of the major Asian economies to influence global price movements. Investors, traders, hedgers and fund houses have always dabbled in commodities, either to expand their trading portfolio or to use it as a hedge against inflation.
The dynamics of trading at India’s commodity markets have changed in recent years. Average daily trading volumes have fallen from a peak of about Rs 75,000 crore in late 2012 to about Rs 25,000 crore today. With deterrents like a commodity transaction tax and weak global demand, expect challenging times this year………………………………………..Full Article: Source

Gold’s relationship with oil ‘decoupled’, interest rates key: BoA/Merrill

Posted on 04 February 2015 by VRS  |  Email |Print

Gold has “decoupled” its century-old relationship with oil and is now being driven by interest rates and currencies, according to Bank of America/Merrill Lynch Tuesday. “Moreover, we think that a unique combination of factors is again making gold attractive in investor portfolios: negative nominal interest rates, a closing volatility gap to other asset classes, and improving weekly returns. After all, unlike government bonds or fiat currency, gold is no one’s liability,” said BoA/ML analyst Michael Widmer.
Gold has been performing well so far in 2015. The price surged by more than 10% in January alone, breaking through $1,300/oz as investors sought a safe haven………………………………………..Full Article: Source

Global deflation risk deepens as China economy slows

Posted on 03 February 2015 by VRS  |  Email |Print

The risk of global deflation looms large for 2015 as surveys of China’s mammoth manufacturing sector showed excess supply and insufficient demand in January drove down prices and production. While the pulse of activity was livelier in Japan, India and South Korea, they shared a common condition of slowing inflation.
“The slide in global oil prices and inflation has turned out to be even bigger than anticipated,” said David Hensley, an economist at JP Morgan, and central banks from Europe to Canada to India have responded by easing policy. “What is now in the pipeline will help extend the near-term impulse from energy to economic growth into the second half of the year.”……………………………………….Full Article: Source

2015, the dearth of mining M&As

Posted on 03 February 2015 by VRS  |  Email |Print

The mining and metals sector is braced for another tough year, with returns set to disappoint investors while mergers and acquisition (M&A) activity is expected to be weak. The year 2014 for the mining sector has been described as tough and 2015 will be no different, chiefly due to the commodity price slump that is expected to dent the level of deal making.
“With commodity prices falling [in 2014], it was difficult to take a view of effectively putting together a business plan to target an acquisition on the basis where you can have a degree of confidence in underlying numbers,” said Standard Bank global head of mining & metals Rajat Kohli………………………………………..Full Article: Source

U.S. refinery strike rattles global oil market

Posted on 03 February 2015 by VRS  |  Email |Print

A strike at nine refineries and chemical plants across the U.S., the first of its kind in 35 years, is having an impact on global crude oil prices. Over the weekend, the United Steelworkers Union (USW) announced a work stoppage at facilities in Texas, Kentucky, Washington State and California. At issue was what the labor group described as excessive overtime demands, unsafe staffing levels and dangerous working conditions.
A USW official also criticized “the industry’s refusal to make opportunities for workers in the trade crafts; the flagrant contracting out that impacts health and safety on the job; and the erosion of our workplace, where qualified and experienced union workers are replaced by contractors when they leave or retire.”……………………………………….Full Article: Source

Chinese Banks in Talks to Take Part in Gold Fix Replacement

Posted on 03 February 2015 by VRS  |  Email |Print

Chinese banks are among those in talks to take part in the replacement for the century-old gold fixing benchmark. There’s a “more diverse pool” of participants, including from China, interested in being part of the LBMA Gold Price, Ruth Crowell, chief executive of the London Bullion Market Association, said in a statement Monday. The LBMA declined to comment on the number and names of those in talks for the new mechanism that will start in March.
No Chinese companies have ever directly participated in the 95-year old price-setting ritual that takes place twice daily by phone between four banks. ICE Benchmark Administration was chosen in November to run the replacement, after silver, platinum and palladium ditched daily fixings last year. Chinese gold demand has more than doubled since 2009………………………………………..Full Article: Source

Bulk commodity shipping rates fall sharply

Posted on 02 February 2015 by VRS  |  Email |Print

The Baltic Dry index has slumped to its lowest level in almost three decades, hit hard by falling commodity prices and glut of ships. The index, which tracks rates for ships carrying bulk commodities such as iron ore and thermal coal, fell 24 points, or 3.8 per cent, to 608 points on Friday.
It has dropped 95 per cent from its 2008 peak of 11,793, and is currently trading at a level not seen since the devastating shipping crisis of the 1980s. The dry-bulk market has been sunk by a perfect storm as an armada of new ships, ordered after the financial crisis, have hit the seas just as Chinese economic growth has slowed and commodity prices have taken another lurch lower………………………………………..Full Article: Source

OPEC oil output up in January

Posted on 02 February 2015 by VRS  |  Email |Print

Total oil production by OPEC members rose by a substantial 483,000 bpd in January, the biggest monthly rise in output since February 2014, according to Bloomberg estimates. OPEC produced 30.9mn bpd last month, well above the 30mn bpd ceiling, despite a sharp -26 per cent m/m decline in OPEC’s reference oil price. The OPEC reference price averaged just $44 in January, down from $66 in December and $105 in January 2014.
Emirates NBD reports that the main contributors to the surge in OPEC output last month were Saudi Arabia (+220,000 bpd to 9.7mn), Iraq (+200,000 bpd to 3.9mn) and Angola (+190,000 bpd to 1.8mn). Some of this was offset by lower output from Libya (-150,000 bpd to 0.3mn) and Nigeria (-40,000 bpd to 2.0mn). Among the other GCC oil producers, Kuwait increased production by 60,000 bpd while the UAE and Qatar kept output unchanged m/m………………………………………..Full Article: Source

Commodity Shipping Measure Falls to 28-Year Low on China Demand

Posted on 30 January 2015 by VRS  |  Email |Print

A measure of global shipping costs for commodities fell to a 28-year low as slowing growth in China’s demand for cargoes compounds the effect a fleet glut. The Baltic Dry Index plunged 5.1 percent to 632 points, the lowest since Aug. 22, 1986, according to data from the Baltic Exchange in London on Thursday. Freight rates for all the vessel types within the measure declined.
China, the world’s biggest buyer of of coal and iron ore, will increase imports of the two commodities by 6 percent this year, down from a growth rate of 8.7 percent in 2014, according to estimates from Clarkson Plc, the world’s largest shipbroker. The nation’s economic expansion this year will be the slowest since 1990, the average of 67 economists’ forecasts compiled by Bloomberg shows………………………………………..Full Article: Source

Commodities, Geneva and the Swiss franc

Posted on 30 January 2015 by VRS  |  Email |Print

Bunge, the international agricultural trader, is closing its sugar and ethanol operations in London and moving them to Geneva, the home of its grain trading hub. Its decision is counterintuitive, especially at a time when the jump in the currency after the Swiss ditched their franc cap has pushed.
Bunge says the move will “improve efficiency and further integrate with our core trading businesses”, and there are worse places in the world to work. Commodities traders have a long history in Switzerland, especially in Geneva. Easy access to finance, low taxes and relatively light regulation have made it a good place to do business………………………………………..Full Article: Source

Why the OPEC Secretary General Believes Oil Prices Have Bottomed

Posted on 30 January 2015 by VRS  |  Email |Print

Nowadays, you’ll find plenty of predictions about the future direction of oil prices. But some are worth paying particular attention to. On Monday, Abdullah al-Badri, the Secretary-General of OPEC, said that he expects oil prices to bottom out around current levels. He would know as well as anyone. That said, what makes US$45 per barrel such a logical bottom for oil prices? Is there a risk that prices could fall lower? And how should you react as an investor?
There are reasons to believe the Secretary-General. With such low prices, producers have already been cutting back. According to oil services giant Baker Hughes, the number of oil rigs fell for the seventh straight week, and is now at its lowest level since January 2013………………………………………..Full Article: Source

Goldman puts end date on commodities slump

Posted on 29 January 2015 by VRS  |  Email |Print

The light at the end of the tunnel for commodities may be but one year away. Goldman Sachs is sceptical that there will be any gains for commodities over the next three months, but is much more optimistic there will be gains over the next 12 months. In the short-term, things could get worse.
“Despite the large declines in commodity prices, we see risks as still skewed to the downside over the near-term,” Goldman Sachs advised. Much is down to oil. The plunge in oil prices will weigh on investment indexes based on commodities in the short-term. Until oil settles or starts to rise, there will be downward pressure in copper and gold markets, according to the bank………………………………………..Full Article: Source

China insolvencies to hit commodities

Posted on 29 January 2015 by VRS  |  Email |Print

Insolvencies are to increase in China, Hong Kong and Taiwan this year, with traders facing greater challenges than ever in accessing finance. Euler Hermes, the Paris-based trade credit insurance provider, warned that it expects the number of Chinese companies filing for bankruptcy to increase by 5% in 2015, with a similar rise predicted in Hong Kong.
“The credit conditions are already tight, especially for any projects financed by non-bank institutions. The regulatory bias is likely to be towards tightening further to contain financing risk,” the company’s senior economist for Asia, Mahamoud Islam, tells GTR………………………………………..Full Article: Source

Former US Official Says OPEC Can No Longer Control Oil Price

Posted on 29 January 2015 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) can no longer control the oil price, as there are new independent markets, such as those in Russia and the United States, Charles McConnell, a former Obama administration energy official told RIA Novosti.
“Forty years ago they [Middle Eastern oil producers] formed a cartel. And they controlled the price, and the entire world was dependent. And control from the Middle East is no longer true. The world has changed — Russia has and produces significant volumes of oil, as does the US and Canada,” he stated………………………………………..Full Article: Source

Commodities collapse could wipe out entire year’s profits at Standard Chartered

Posted on 29 January 2015 by VRS  |  Email |Print

Macquarie analysis predicts that 1980s-style oil price slump and default spike will mean huge losses at under-pressure bank. Standard Chartered faces losing a year’s profits from the recent collapse in commodity prices as loan defaults spike in a repeat of the 1980s crisis, according to the Australian bank Macquarie.
The Asia-focused British bank is believed to be one of the biggest losers from the slump in oil, iron ore and copper prices, with $61bn (£40.2bn) of exposures to producers and traders………………………………………..Full Article: Source

China commodity trade data show winners are scarce: Russell

Posted on 28 January 2015 by VRS  |  Email |Print

China’s detailed commodity trade figures for 2014 do much to confirm that the trend has changed to higher import volumes being dependent on lower commodity prices, but there are a few notable exceptions.
Major commodities such as crude oil, iron ore and copper all showed increased imports on the back of falling prices, illustrating the changed dynamic in commodity markets whereby supply became the dominant driver of prices………………………………………..Full Article: Source

Copper slips to new five-year low

Posted on 28 January 2015 by VRS  |  Email |Print

Copper futures have closed significantly lower on the London Metal Exchange with the release of worse-than-expected economic data out of the US sending prices tumbling to near five-and-a-half-year lows. The LME’s three-month copper contract was down 2.8 per cent at $US5,425.00 a metric tonne at Tuesday’s PM kerb close - having been down almost three per cent at an intra-day low of $US5,418.00 a tonne.
Copper prices plunged again as sellers came back into the market thanks to an apparent growth slowdown to come in the US, according to Jasper Lawler, a market analyst at CMC Markets………………………………………..Full Article: Source

Commodities? Brazil Iron-Ore Startup Says Cosmetics a Better Bet

Posted on 28 January 2015 by VRS  |  Email |Print

Things are so bad for mining projects in Brazil that startup All Ore Mineracao SA (AORE3) is changing its line of business for something more glamorous: cosmetics. All Ore, whose 2009 listing made it the last iron-ore company to start trading on the Sao Paulo stock exchange, said it’s abandoning commodities to focus instead in the beauty and health-care market.
The company, which hadn’t yet started operations at iron-ore and gold projects in northern Brazil, will buy a cosmetic producer and change its corporate purpose, it said in a regulatory filing Tuesday. Investors approved. Shares jumped as much as 70 percent………………………………………..Full Article: Source

Opec’s Badri expects some oil price rebound soon

Posted on 27 January 2015 by VRS  |  Email |Print

Oil prices at current levels may have reached a floor and could move higher very soon, Opec Secretary-General Abdullah al-Badri said on Monday. “Now the prices are around US$45-US$55 and I think maybe they reached the bottom and will see some rebound very soon,” Mr Badri said in an interview.
Asked about the prospects for Saudi Arabian oil policy under a new king, Mr Badri said: “Saudi Arabia is a stable country, is a stable government, and I think things will be normal.”……………………………………….Full Article: Source

Goldman Sachs: Coal hits ‘retirement age;’ IEA disagrees

Posted on 27 January 2015 by VRS  |  Email |Print

If Vegas bookmakers were taking bets on whether Gateway Pacific Terminal would be built, the odds would have been getting longer in the past few months. Earlier this month came the ostensible bombshell that opponents of SSA Marine’s proposed coal terminal at Cherry Point have been waiting for: A clear request from Lummi Nation to the U.S. Army Corps of Engineers to deny a federal permit for the terminal.
Case history has been favorable to Indian tribes, and Lummi Nation in particular, when it comes to protecting the traditional fishing grounds granted by treaty. In November, a financial expert from an organization that seeks to wean the world off coal told a Bellingham audience the end was near for the fossil fuel. ……………………………………….Full Article: Source

Gold Eases as Greece Uncertainty Fades

Posted on 27 January 2015 by VRS  |  Email |Print

Gold prices fell Monday, as investors took profits on the metal’s recent rally after a victorious antiausterity party in Greece didn’t appear inclined to take the country out of the eurozone. Gold for February delivery, the most actively traded contract, closed down $13.20, or 1%, at $1,279.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices hit $1,307.80 an ounce last week, their highest level since August, in part on worries that if the leftist Syriza party won Sunday’s election, party leaders would want Greece to exit the eurozone. Some investors like to shift their money to gold in turbulent times………………………………………..Full Article: Source

Japanese aluminum stocks hit all-time high, putting pressure on prices

Posted on 27 January 2015 by VRS  |  Email |Print

Aluminum stocks had risen to 413,000-419,900 mt in Japan, which is an all-time high, putting pressure on local prices as some companies want to destock before March, the end of the Japanese financial year, market sources said Monday, January 26. Aluminum stocks at three main Japanese ports had swollen by the end of December, according to trading house surveys.
Some recent buy tenders settled low as a result, traders said. Two Japanese consumers were seeking 500-1,000 mt lots via tender last week, traders said. They were seeking deliveries into Nagoya and Yokohama………………………………………..Full Article: Source

OPEC is in for long war with US shale producers

Posted on 26 January 2015 by VRS  |  Email |Print

It is in the interests of the Organisation of the Petroleum Exporting Countries to slow that process. The situation is analogous to chemotherapy: OPEC hopes low oil prices will curtail shale before they destroy its own finances. That explains why the death of Saudi Arabia’s King Abdullah is unlikely to mean a shift in strategy. But OPEC could be in for a longer struggle than many expect.
Oil’s collapse is affecting drilling. By Friday, the US rig count had fallen by 15 per cent since its most recent peak in September, according to Baker Hughes. Meanwhile, surveying 50 North American exploration and production companies that have ­issued guidance so far, Tudor, Pickering, Holt & Co finds their aggregate capital expenditure budget for 2015 is about a third lower than last year………………………………………..Full Article: Source

Best and worst commodities in 2014

Posted on 23 January 2015 by VRS  |  Email |Print

Commodities are hugely cyclical as is all too evident at the moment, with oil and metal prices in steep decline. A look at what did well in 2014 and what didn’t reveals how fortunes change and unearths a number of surprises. Website Visual Capitalist has run an infographic illustrating the annual returns for all commodities last year - the Periodic Table of Commodity Returns - with accompanying comment.
First, the two worst performers in 2014 were the two best performers the previous year: oil and natural gas. This speaks to the short-term volatility of commodities, as well to the fact that investors need to be looking to the long term. While something may swing up and down in a short time horizon, in the long term it may prove to fulfill the investment thesis based on supply and demand fundamentals……………………………………….Full Article: Source

OPEC Will Blink in Battle With U.S. Shale Drillers, Poll Shows

Posted on 23 January 2015 by VRS  |  Email |Print

U.S. shale drillers won’t scale back output quickly enough for OPEC to avoid production cuts this year, according to a quarterly poll of Bloomberg subscribers.
Forty-nine percent of analysts, traders and investors surveyed said the Organization of Petroleum Exporting Countries will have to lower its production target this year, while 34 percent said shale drillers will lower output in time. Seventeen percent weren’t sure………………………………………..Full Article: Source

Gold Prices Get a Boost While Oil Spirals Downwards

Posted on 23 January 2015 by VRS  |  Email |Print

Gold’s relationship to oil has been turned on its head. Investors who saw little value in the metal last month, as plunging energy costs curbed inflation, have started buying in January even as crude continues to tumble. Bullion is off to its best start to a year since 1980 while West Texas Intermediate is trading near the lowest since April 2009.
The correlation between the two commodities that reached a 16-month high in December is now the weakest in five months. The about-face reflects an investor shift in focus away from the benefits of cheap fuel to the risk of economy-damaging deflation. Oil costs are so low that gold buyers are seeking a hedge against prolonged declines in consumer prices………………………………………..Full Article: Source

Is this the start of a gold bull market?

Posted on 23 January 2015 by VRS  |  Email |Print

Many strategists are saying a gold bull market has just begun, as investors crowd into the one asset that isn’t getting debased by central banks. Chart analyst point to the price breaking out of long-term resistance levels.
“The breakout above technical re-entrance levels ($1,250) has placed a new floor from which the rally is likely to continue,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “We look for a climb towards to $1,325-$1,350 in the near term.”……………………………………….Full Article: Source

OPEC, oil companies clash at Davos over price collapse

Posted on 22 January 2015 by VRS  |  Email |Print

OPEC defended on Wednesday its decision not to intervene to halt the oil price collapse, shrugging off warnings by top energy firms that the cartel’s policy could lead to a huge supply shortage as investments dry up.
The strain the halving of oil prices since June is putting on producers was laid bare when non-member Oman voiced its first direct, public criticism of the Organization of the Petroleum Exporting Countries’ November decision not to cut production but instead to focus on market share………………………………………..Full Article: Source

Oman Joins Other Oil Nations Saying OPEC Decision Wrong

Posted on 22 January 2015 by VRS  |  Email |Print

Oman, the biggest Middle Eastern oil producer that’s not a member of OPEC, joined Venezuela and Iran in questioning the group’s decision to keep its output target unchanged even with crude prices falling.
Oman is having a “really difficult time” because of low oil prices, Oman’s Oil Minister Mohammed Al-Rumhy said at a conference in Kuwait City. Standard & Poor’s lowered the country’s outlook to negative from stable on Dec. 5, citing a risk that oil may drop more than expected………………………………………..Full Article: Source

Gold fifth best performing commodity of 2014

Posted on 22 January 2015 by VRS  |  Email |Print

Before you gold bulls out there cry ‘rubbish’ it should be borne in mind that last year was a disastrous year for virtually all commodities across the board. Only four internationally traded commodities showed gains over the year, while gold was the least bad negative performer among the rest with a drop of only 1.7% – but has shot up nearly 10% since the start of the year.
Indeed, as we pointed out in a recent article, gold performed positively over 2014 in virtually every currency other than the U.S. dollar. So despite being a disappointing year for dollar area gold bulls, it will have been a positive year in all non-dollar tied nations………………………………………..Full Article: Source

Commodities, Currency Commotion Brings Volatility

Posted on 21 January 2015 by VRS  |  Email |Print

Traders return from a long holiday weekend already riding a slippery slope of volatility greased by international events and uncertainty heading into the depths of earnings season. In fact, volatility is higher across many asset classes.
For starters, the CBOE Volatility Index (VIX), which tracks the implied volatility priced into S&P 500 Index (SPX) options, hit a three-week high of 23.43 Friday as the SPX was at risk of a six-day losing skid. But true to Freaky Friday form, the broader market rebounded late in the day. SPX support now lies at 2000, with resistance hovering at 2022………………………………………..Full Article: Source

IMF lowers growth outlook for commodity exporters

Posted on 21 January 2015 by VRS  |  Email |Print

The International Monetary Fund (IMF) has lowered its 2015 growth forecasts for commodity exporters, including South Africa, saying the projected growth rebound for commodity-exporting developing countries will be weaker than had been forecast in the fund’s October World Economic Outlook (WEO).
The WEO Update, released on January 20, lowered South Africa’s 2015 gross domestic product (GDP) projection to 2.1% from 2.3% in October, which was in line with the IMF’s 2014 Article IV Staff Report on South Africa released in December. The fund decreased its 2016 GDP growth projection for South Africa by 0.3 of a percentage point to 2.5%………………………………………..Full Article: Source

Oil slides as IMF cuts global growth forecast

Posted on 21 January 2015 by VRS  |  Email |Print

World oil prices fell on Tuesday after the International Monetary Fund slashed its world economic growth forecast, stoking fresh fears over the strength of global crude demand. In late afternoon London deals, Brent North Sea crude for delivery in March dropped 55 cents to US$48.29 (S$64.60) a barrel.
US benchmark West Texas Intermediate for February sank US$1.97 to trade at US$46.72 per barrel. “Oil prices fell back … dented by the global demand outlook suggested by the IMF,” said Jasper Lawler, analyst at CMC Markets………………………………………..Full Article: Source

banner
banner
March 2015
S M T W T F S
« Feb    
1234567
891011121314
15161718192021
22232425262728
293031