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Global demand for gold will continue to remain strong, and price higher: Experts

Posted on 18 August 2016 by VRS  |  Email |Print

The global economic crisis will continue to drive the demand for gold and silver worldwide. Bullion experts at the India International Gold Convention (IIGC) organized by Foretell Business Solutions unanimously expressed that global demand will continue to remain strong, and price higher.
Ultra-low real interest rates in the USA and elsewhere will continue to drive the demand for both the metals globally. Gold is expected to remain above $1270 per ounce, while silver will continue to remain above $17 per ounce in London market. “In India, demand will pick up in the second half of calendar 2016 after a dismal first half………………………………………..Full Article: Source

Here’s One Reason Why Gold Could Soon Skyrocket by 48.15%

Posted on 18 August 2016 by VRS  |  Email |Print

If you are looking for the next big trade, look at gold prices. The yellow precious metal is trading at severely low prices, and it may be set to provide massive gains. As it stands, there’s a gold rush in play, and no one is talking about it. We see consumers, investors, and central banks running to buy the precious metal. In the process, they could send gold prices through the roof.
Consider this: in the second quarter of 2016, central banks purchased 77 tonnes of gold. This amount is down year-over-year, but keep in mind that they have been net buyers of the precious metal for a very long time………………………………………..Full Article: Source

Spectacular Chinese Gold Demand 2015 Fully Denied By GFMS And Mainstream Media

Posted on 18 August 2016 by VRS  |  Email |Print

Debunking the Thomson Reuters GFMS Gold Survey 2016 report. New information provides a more detailed perspective on the Chinese domestic gold market. In the Gold Survey 2016 report by GFMS that covers the global gold market for calendar year 2015 Chinese gold consumption was assessed at 867 tonnes.
As Chinese wholesale demand, measured by withdrawals from Shanghai Gold Exchange designated vaults, accounted for 2,596 tonnes in 2015 the difference reached an extraordinary peak for the year. ……………………………………….Full Article: Source

When will China economy bottom out?

Posted on 18 August 2016 by VRS  |  Email |Print

China’s economic growth has started to slow down markedly since 2012. And the long-awaited bottoming sign has proved illusive over the past few years. According to a new forecast made in a China Daily article, the growth slowdown could come to an end in one or two years. But it remains to be seen if the prediction proves correct.
It’s widely believed that China’s slowdown since 2012 is mainly a result of the aftershock of the 2008 global financial crisis and the backfiring of the nation’s policy response. Beijing promptly rolled out a 4-trillion-yuan stimulus package back then to counter the crisis. The scheme appeared to work as GDP growth reached 9.6 percent, 9.1 percent, 10.4 percent and 9.3 percent respectively between 2008 and 2011………………………………………..Full Article: Source

Commodity bounce fails to spark Europe markets

Posted on 17 August 2016 by VRS  |  Email |Print

European stocks finished firmly in the red on Tuesday, as strong performances in oil, mining stocks and sterling failed to electrify markets. The pan-European STOXX 600 wavered throughout trade, ending down 0.79 percent provisionally. Most sectors closed in negative territory; however basic resources ended up 1.3 percent.
On the bourses front, the U.K.’s FTSE 100 fell 0.68 percent, as sterling rose against the dollar. Meanwhile, France’s CAC 40 closed 0.83 percent down and Germany’s DAX slipped 0.58 percent………………………………………..Full Article: Source

Iran Undecided on Joining OPEC Meeting

Posted on 17 August 2016 by VRS  |  Email |Print

Iran has made no decision about joining an OPEC meeting on oil output next month and doesn’t expect to reach the production levels that its government has previously said are required before it can make an output agreement, an oil-ministry spokeswoman said Tuesday.
Oil prices have been gaining since last week when Saudi Arabia signaled it would work with other oil producers to stabilize prices. The statements cast a doubt on the success of informal talks due next month in Algiers to revive efforts to tighten output, report Benoit Faucon and Summer Said………………………………………..Full Article: Source

Looking to precious metals? Watch these trends

Posted on 17 August 2016 by VRS  |  Email |Print

The depreciation of the Chinese renminbi and its impact on precious metals has gone largely unnoticed, says Scott Vali, vice-president of equity for CIBC Asset Management. But, “[China] continues to depreciate that currency, and that’s a deflationary shock [to] the global system,” says Vali, who manages the Renaissance Global Resources Fund.
However, “we’re still fairly constructive on gold. There are always gyrations in the near term but [gold’s] well supported as we look out.” The U.K. referendum and threat of Brexit has also affected the bullion market. “Brexit has increased the uncertainty around growth rates not only in the U.K., but has also now put question marks around the sustainability of the Eurozone and [its] growth,” says Vali………………………………………..Full Article: Source

BHP makes record loss after commodity rout and Brazil disaster

Posted on 17 August 2016 by VRS  |  Email |Print

BHP Billiton, the world’s biggest miner, has reported a record loss of $6.4bn (£4.9bn) following a fatal dam disaster in Brazil, a slump in the price of commodities, and a bet on fracking in the US. Miners are struggling due to a sharp fall in commodity prices, sparked by concerns that a slowdown in the Chinese economy could leave a surplus of raw materials.
Andrew Mackenzie, chief executive of the London-listed company, said the last 12 months have been challenging and that commodity prices are likely to remain volatile, even if long-term demand remained robust………………………………………..Full Article: Source

Going Global: Clues in the world economy

Posted on 17 August 2016 by VRS  |  Email |Print

All eyes may be on the domestic post-EU referendum economic outlook, but during this period of global economic volatility it’s important that UK businesses keep a close watch on the bigger picture.
There has been no shortage of negative data on the UK economy – in particular the latest Lloyds Bank purchasing managers’ index, which reported that business activity in July slipped further below the long term average to a level, which if sustained, indicates some contraction in the economy………………………………………..Full Article: Source

U.S. Stocks Get Lift From Commodities Sector

Posted on 16 August 2016 by VRS  |  Email |Print

All three major U.S. stock indexes close at records; miners, chemical producers and industrial companies were among the biggest gainers. U.S. stocks advanced to records Monday, led by gains in commodity-linked shares as crude oil prices reached a one-month high.
All three major U.S. stock indexes closed at all-time highs on the same day Monday, a feat they accomplished Thursday for the first time since 1999. The gains have come during relatively light trading. Monday’s U.S. stock-trading volume was the lowest since the Friday before the Memorial Day holiday………………………………………..Full Article: Source

The next phase of the oil crash will be bad for everybody: economist

Posted on 16 August 2016 by VRS  |  Email |Print

“We are now approaching what will be a very dark part of the global commodity price crash,” High Frequency Economics’ Carl Weinberg said. In a note to clients on Monday, Weinberg warns that the consequences of low oil prices will go from ambiguous to unambiguously bad.
Specifically, he argues that the initial beneficiaries of low oil prices will themselves become losers economically. “Regardless of whether the drop in oil prices has been good or bad for the global economy on balance, what happens next is sure to be bad,” he said………………………………………..Full Article: Source

Saudi Arabia may be ready to budge on its punishing 2-year oil price policy

Posted on 16 August 2016 by VRS  |  Email |Print

Saudi Arabia may finally be willing to work with producer nations to put a floor under oil prices after allowing market forces to determine the cost of a barrel of crude since November 2014, according to Jan Stuart, global energy economist at Credit Suisse.
In fact, the nearly 2-year-old policy, which has sent benchmark crude prices as low as $26 a barrel and hammered the kingdom’s competitors, is not incompatible with intervening in oil markets, Stuart said………………………………………..Full Article: Source

Russia warms to discussions with Saudi Arabia ahead of OPEC meeting in Algeria

Posted on 16 August 2016 by VRS  |  Email |Print

Russia’s Energy Minister Alexander Novak said his country was cooperating with Saudi Arabia to achieve of international oil market stability. He added that the ongoing dialogue between Moscow and Riyadh was witnessing concrete progress in this regard and expressed Russia’s readiness to adopt common measures to reach the aspired goals.
In an interview with Asharq al-Awsat newspaper, Novak said that Saudi-Russian bilateral cooperation was not only focused on building nuclear energy, but further covers wider areas such as nuclear medicine and radio-logic technology………………………………………..Full Article: Source

OPEC Could Still Tip Next Year’s Oil Deficit Into Surplus

Posted on 16 August 2016 by VRS  |  Email |Print

The re-balancing of oversupplied oil markets is on track as demand climbs and U.S. shale production falters, according to the International Energy Agency. The world will face a 560,000 barrel-a-day supply deficit in 2017 if OPEC members pump at the same rate as this year, IEA data show.
If Iran and Iraq add just some of the new capacity they’re planning, Libya recoups a fraction of the supplies lost to political conflict and Nigeria restarts oil fields halted by militant attacks, there’ll be an 810,000 barrel-a-day excess — a fourth year of oversupply………………………………………..Full Article: Source

Commodity Prices Boost Miners’ Efforts to Unload Mountain of Debt

Posted on 16 August 2016 by VRS  |  Email |Print

Global mining companies have pushed hard to ditch their debts: They have sold pits, laid off workers and pruned expenses from every part of their businesses. This year, an extra tailwind from improving commodity prices is helping miners’ repay borrowings more quickly than expected.
The signs of improving balance sheets haven’t come a moment too soon for investors who have seen dividends cut recently as mining companies have prioritized reducing their debt loads………………………………………..Full Article: Source

Is the wild ride in commodities over?

Posted on 15 August 2016 by VRS  |  Email |Print

Congratulations if you called the path of commodity prices this year. You’re probably also among the 0.0001pc of people who guessed Leicester City would win the Premier League. And of course, you predicted Brexit.
In a topsy-turvy world, metals have shown surprising strength. After cratering in 2015, a basket of major commodities has soared in price this year, from the remarkable 36pc climb of iron ore, to the stellar performance of precious metals, with gold and silver up 25pc and 43pc respectively. Zinc, a mineral used to galvanise other metals to stop them rusting, has chalked up a 41pc rise………………………………………..Full Article: Source

Saudi oil witnessing high demand, says Al-Falih

Posted on 15 August 2016 by VRS  |  Email |Print

Saudi Arabia’s Minister of Energy, Industry and Mineral Resources Khalid Al-Falih has stressed that the Kingdom’s production of crude oil is witnessing high demand in most parts of the world. It has gone up in part to meet the increase in seasonal demand during summer and in part to meet higher demand from our customers.
Despite the bearish sentiment engulfing the market, we still see strong demand for our crude in most parts of the world, especially as supply outside OPEC has been declining fast, supply outages increasing, and global demand still showing signs of strength………………………………………..Full Article: Source

Why oil companies must look beyond oil

Posted on 15 August 2016 by VRS  |  Email |Print

Persistently low oil prices have had a devastating effect on the economies of all major oil producers/exporters who are accustomed to a price regime of over $100/b. The lifting of sanctions on Iran and its ability to quickly ramp up to pre-sanction (2012) levels of production and exports has made the market even more liquid and exerted downward pressure on oil prices.
Suddenly when oil prices collapsed, the major oil producers and exporters found themselves in a challenging situation, as falling oil revenues were not sufficient to balance government budgets………………………………………..Full Article: Source

Missed out on the silver rally? It’s not over yet

Posted on 15 August 2016 by VRS  |  Email |Print

For investors who missed silver’s 42-per-cent rally this year, it’s not too late to jump in, according to the firm behind the world’s best-performing exchange-traded fund. The main reason for investors piling back in to precious metals this year – low interest rates – isn’t going away any time soon, said Andrew Chanin, chief executive officer of PureFunds, whose junior silver miner ETF has delivered holders a 278-per-cent return this year.
Silver is rallying the most among major commodities this year as about $9-trillion (U.S.) of debt tracked by the Bloomberg Global Developed Sovereign Bond Index offer yields below zero, meaning those who buy the debt and hold to maturity stand to lose money………………………………………..Full Article: Source

UBS Says Nickel Among Most Preferred on Mining Crackdown, Demand

Posted on 15 August 2016 by VRS  |  Email |Print

Nickel will feel the full impact of mine shutdowns in the Philippines only next year, when exports may fail to ramp up as usual, according to UBS Group AG, describing the metal as one of its most-preferred commodities with prices to be supported by rising demand and global deficits.
The government’s audit of standards in the mining sector is a front-of-mind risk that’s already shut down about 2 percent of world supply, analysts including Daniel Morgan wrote in a note. Ores shipments from the top supplier could fall to 314,000 metric tons next year from 410,000 tons last year, it said………………………………………..Full Article: Source

Saudi Energy Minister Says Kingdom Willing to Help Rebalance Oil Market

Posted on 12 August 2016 by VRS  |  Email |Print

Saudi Arabia would “take any action to help” the crude-oil market and will discuss acting in coordination with other producing countries at a meeting in September, the kingdom’s energy minister said on Thursday.
The comments by Khalid al-Falih, named energy minister in May, come as several nations in the Organization of the Petroleum Exporting Countries push for a revival of limits on oil production. Oil prices have remained stuck below $50 a barrel for much of the summer, well below what many in OPEC, the 14-nation oil cartel, need to balance national budgets………………………………………..Full Article: Source

Saudi Arabia has a $2 trillion reason to play ball with OPEC this fall

Posted on 12 August 2016 by VRS  |  Email |Print

Saudi Arabia just made it much more likely that OPEC and other oil producers will take action if crude prices weaken. Word that the cartel will meet on the sidelines of an energy conference in Algeria in late September had already stirred up the oil market this week, but confirmation Thursday from Saudi Energy Minister Khalid al-Falih gave much more credibility to the idea that OPEC will consider action if oil prices remain low.
West Texas Intermediate futures soared as much as 5 percent in trading Thursday after the Saudi comments, and later settled at $43.49 per barrel, up 4.3 percent………………………………………..Full Article: Source

Brexit leaves investors bullish for gold bullion

Posted on 12 August 2016 by VRS  |  Email |Print

Brexit and the global spread of negative bond yields sparked the biggest investor stampede into gold of any first half on record. Investment demand for the precious metal hit 1,064 tonnes in the first six months of this year, with overall gold demand, which includes spending on jewellery, hitting its highest level since the depths of the financial crisis in 2009, the World Gold Council said.
Alistair Hewitt, head of market intelligence at the council, said: “The expansion of unconventional monetary policy creates uncertainty but it also significantly reduces the opportunity cost of holding gold.”……………………………………….Full Article: Source

Glencore’s Production Cuts Don’t Always Raise Commodities Prices

Posted on 12 August 2016 by VRS  |  Email |Print

Glencore PLC on Thursday reported lower production of copper, coal and zinc in the year’s second quarter as it continued to try to lift prices through output cuts, though results have been mixed.
The Swiss-based mining and trading giant is among the world’s largest producers of those metals, so with commodity prices and the company’s shares plumbing new depths last year, Glencore launched a plan to shut in production. That’s something Chief Executive Ivan Glasenberg had long urged other miners to do………………………………………..Full Article: Source

Commodities Continue to Outpace Equities

Posted on 11 August 2016 by VRS  |  Email |Print

This year has been a volatile one for markets. U.S. equities started the year by plunging over 15% as geopolitical concerns and an oil crisis weighed on investor sentiment. However, from February’s lows, U.S. equity markets have shrugged on the Brexit saga and gone on to all-time highs. However, despite the lofty levels of equity markets, money into commodities continues to outpace equities.
Data from iShares show money flows into commodities continue to trend higher at a steady pace; and, aside from a brief period in late April, the flows consistently have outpaced equities, which shows just how big the 2016 moves in commodities have been. Gold, Palladium and Silver are all over up 30% for the year and despite its recent slide, Oil remains 13.9% higher on the year………………………………………..Full Article: Source

Saudis And Iranians Slug It Out For Oil Market Share

Posted on 11 August 2016 by VRS  |  Email |Print

Saudi Arabia recently discounted the price of its crude to maintain its share of the Asian market, one of the biggest in the world. China is the world’s second largest oil importer after the U.S., while Japan is currently the third largest crude importer.
Saudi Aramco dropped its prices on July 31 for September purchases by Asian customers, between 70 cents and $1.30 a barrel (depending on the oil grade) – one of the contributing factors that sent oil below $42 per barrel that week………………………………………..Full Article: Source

Saudi Oil Output Sets Record Despite Global Glut

Posted on 11 August 2016 by VRS  |  Email |Print

OPEC says kingdom’s July output rose to nearly 11 million barrels as it focused on market share over prices. The fight for market share among the world’s biggest oil producers is still raging, pushing output from OPEC members close to an all-time high in July and suggesting the group isn’t yet seriously considering a meaningful curtailing of production.
Output by Saudi Arabia, OPEC’s key member, reached a high last month, as part of a broader ramp-up by the Organization of the Petroleum Exporting Countries, according to OPEC data published Wednesday………………………………………..Full Article: Source

OPEC Says Weak Oil Demand Is Here to Stay

Posted on 11 August 2016 by VRS  |  Email |Print

Weakness in global oil markets, which has dragged prices to a three-month low, may persist as demand slows seasonally and fuel inventories remain abundant, OPEC predicted.
There are “lingering concerns” that U.S. and European refiners may reduce processing rates as profits fade amid a continuing “overhang” of crude and refined fuels, the Organization of Petroleum Exporting Countries said in its monthly report. Gasoline consumption will taper off in the U.S. with the end of the summer-vacation driving season, it said………………………………………..Full Article: Source

OPEC points to 2017 oil surplus as Saudi output hits record

Posted on 11 August 2016 by VRS  |  Email |Print

Top oil exporter Saudi Arabia boosted its oil output to a record high in July, it told OPEC, in a sign key members remain focused on market share rather than tackling a supply glut by curbing production.
The monthly report from the Organization of the Petroleum Exporting Countries also said output from the 14-member group hit a new high last month, indicating excess global supply may persist into next year. Oil declined almost 15 percent in July on concern about a glut of crude and finished products that would delay a long-awaited rebalancing of the market………………………………………..Full Article: Source

India questions London gold benchmark

Posted on 11 August 2016 by VRS  |  Email |Print

India has said it is setting its own gold standard, being among the largest consumers of gold historically. The Indian Bullion & Jewellers’ Association declares opening and closing gold prices daily based on which sovereign gold bonds are priced. The London Bullion Market Association fixes gold’s opening and closing prices internationally.
Addressing a seminar in Mumbai, IBJA President Mohit Kamboj said the London Bullion Market Association quotes did not match prices in India. Ruth Crowell, chief executive officer of the London Bullion Market Association, reacted to this observation stating, “Whether it is the Indian gold standard or London gold standard is a matter of deliberation. The industry need to sit together to make it happen.”……………………………………….Full Article: Source

Zinc and tin hit fresh 2016 highs, zinc stocks surge in New Orleans

Posted on 11 August 2016 by VRS  |  Email |Print

Base metals were all trading in positive territory on Wednesday morning on the LME – technical buying supported the complex after few of the metals have broken out of their recent ranges, traders said.
Zinc and tin were the outperformers this morning – both metals climbed to their highest in over a year. As well, metals prices are being supported by a weaker dollar, market participants noted. The dollar index was last slightly weaker at 95.60 after data from the US Labour Department on Tuesday showed second quarter productivity in the US falling 0.5 percent, making it the third consecutive quarter of decline………………………………………..Full Article: Source

Emerging-Market Rally Gains Momentum From Improving China Data

Posted on 10 August 2016 by VRS  |  Email |Print

Emerging-market stocks and currencies advanced for a fourth day as narrowing Chinese factory deflation signaled the world’s second-largest economy is stabilizing. Indian bonds rallied after the central bank said it’s keeping up its accommodative policy.
Raw-material producers touched a 13-month high, paced by South Korean steelmaker Posco, while stocks in the Philippines rose for a second day. Data out of China, the biggest trading partner for both nations, showed the producer-price index registered its slowest decline in two years. Turkish stocks rallied as President Recep Tayyip Erdogan visited Russia to rebuild relations with President Vladimir Putin………………………………………..Full Article: Source

Oil short-selling cycle may be at or near turning point: Kemp

Posted on 10 August 2016 by VRS  |  Email |Print

The enormous concentration of bearish short positions in U.S. crude oil futures and options contracts by hedge funds and other money managers left the market ripe for a short-covering rally.
The rebound in futures prices, with the September WTI contract up by 10 percent since Aug 2, has all the characteristics of a short-covering rally. Price moves in the next few trading sessions should give some indication about whether hedge funds have embarked on the liquidation phase of the shorting cycle or are extending their short positions even further………………………………………..Full Article: Source

This is another important step in the modernisation of the gold market

Posted on 10 August 2016 by VRS  |  Email |Print

The London Metal Exchange plans to broaden its scope to take advantage of the lucrative world of precious metal trading through a suite of exchange-traded and centrally-cleared precious metal products.
To be called LMEPrecious, the initiative is a collaboration between the LME and World Gold Council, with support from Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale. LMEprecious will host spot, daily and monthly futures, options and calendar spread contracts for gold and silver. It is likely to include platinum and palladium contracts down the line………………………………………..Full Article: Source

Will Indian gold consumption recover?

Posted on 10 August 2016 by VRS  |  Email |Print

How India will address issues that have roiled the market this year will be the question many will ask at this week’s Indian International Gold Convention in Agra. Several political and economic issues this year threaten the country’s position as one of the two leading gold-consuming nations – the other is China.
Last year, India consumed 668.5 tonnes of jewellery, according to Metals Focus’ annual report, up six percent from 632.2 tonnes in 2014 and 615.7 tonnes in 2013. This compares with 753.4 tonnes in China and overall global consumption of 2,397 tonnes………………………………………..Full Article: Source

Metals up

Posted on 10 August 2016 by VRS  |  Email |Print

Mining metals and affiliates were up on average by 3.9% last week, according to RBC, with molybdenum leading the charge and fellow steel-making ingredients coal and iron ore hot on its heels. The strengthening and hardening agent was up 11.7% for the week, while metallurgical coal was up by 10% and iron ore by an analyst-defying 8.8%.
Thermal coal continued to grow on the back of forced shut downs in China, up 8.1%, while uranium showed some long-overdue form to move up by a solid 4%………………………………………..Full Article: Source

Chinese Traders Roil Commodity Markets

Posted on 09 August 2016 by VRS  |  Email |Print

China has become a mover of global prices; trading volume on the Shanghai and Dalian exchanges has exploded. Chinese markets remain largely closed to foreign investors, and data on them are scarce. But traders say that for years, buying and selling was dominated by state-owned conglomerates, and a handful of funds trading commodities.
Until roughly the last year, metal prices were essentially set in London. Now, China, the world’s top consumer and producer of metals, has become a mover of global prices. Chinese exchanges are staying open until late afternoon in London and midday in New York………………………………………..Full Article: Source

China-driven commodities resurgence continues

Posted on 09 August 2016 by VRS  |  Email |Print

US healthcare stocks had the biggest fall with the sector losing 1.1% overnight. But the main global macro story at the moment is the ongoing resurgence in the commodity complex. Despite another 0.2% gain in the DXY US dollar index overnight, commodities as a whole continued to gain with the Bloomberg commodity index closing up 0.6%.
News that OPEC would be having a September meeting with certain members keen to push for supply cuts again served as the impetus for oil prices to rally. While a deal is highly unlikely to eventuate, the fact that it is even being mentioned shows how much difficulty the past month’s renewed selloff was causing many struggling OPEC members………………………………………..Full Article: Source

Global Commodities Trade: State of Play in H1 2016

Posted on 09 August 2016 by VRS  |  Email |Print

The global commodities market saw tough conditions towards the end of 2014 and throughout 2015. As January 2016 unfolded, prices for crude oil, iron ore, copper and aluminium averaged between 21-69% of their levels when indexed against the same month of 2012. Roskill examines trade trends in the first six months of the year for key commodities, including lithium, tungsten, rare earths, tantalum, salt, vanadium and molybdenum.
However, markets as of mid-2016 appear to be picking up; this was echoed by the World Bank in its quarterly Commodity Markets Outlook published last week, which revealed that most commodity price indices rebounded in Q2 2016. The organisation now expects a modest recovery in the majority of commodity prices in 2017, on the back of increasing demand and tighter supply. (Press Release)

Is Now The Time To Invest In Commodities?

Posted on 09 August 2016 by VRS  |  Email |Print

Commodities as an asset class are frequently overlooked by investors. Many investors and financial professionals view commodities as too speculative or too volatile, and they’re right. Investing in commodities is not for the faint of heart. But as a means of diversification within a long-term investment portfolio, commodities should certainly be considered.
To balance the risks and potential rewards of commodities, the rule to keep in mind is that commodities should only ever be between 5-10% of an investor’s overall portfolio. Any more than that, and your portfolio may be too speculatively weighted or volatile. Any less than that and you’re missing an opportunity to further diversify your portfolio and potentially augment returns………………………………………..Full Article: Source

Oil market déjà vu sets in as OPEC plans ‘informal’ meeting

Posted on 09 August 2016 by VRS  |  Email |Print

Traders can’t shake off a sense of déjà vu following an oil futures rally Monday that appeared to be inspired by major producing countries’ plans to discuss ways to stabilize the market. The Organization of the Petroleum Exporting Countries on Monday said members will hold an “informal meeting” on the sidelines of the 15th International Energy Forum in Algeria on Sept. 26 to Sept. 28.
But this isn’t the first time OPEC has promised to talk about restoring stability and order to the oil market. After all, major oil producers failed to reach a pact to freeze production levels at a meeting in Doha, Qatar earlier this year………………………………………..Full Article: Source

Oil market on path to rebalancing, OPEC monitoring situation - Qatar

Posted on 09 August 2016 by VRS  |  Email |Print

Qatar’s energy minister, and current OPEC president, said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market.
“The recent decline observed in oil prices and the current market volatility is only temporary,” Mohammad bin Saleh al-Sada, Qatar’s minister of energy and industry said in a statement. “OPEC continues to monitor developments closely, and is in constant deliberations with all member states on ways and means to help restore stability and order to the oil market.”……………………………………….Full Article: Source

Copper Climbs as ‘Good News’ From G-8 Overshadows China Concern

Posted on 09 August 2016 by VRS  |  Email |Print

Copper and other industrial metals advanced as signs of economic resilience in Germany and the U.S. outweighed demand concerns from China. In Germany, the largest copper user behind China and the U.S., industrial production increased in June, government data showed Monday, signaling Europe’s largest economy gained momentum ahead of the U.K.’s vote to exit the European Union.
In the U.S., data released Friday showed employment jumped in July for a second month and wages climbed. Those reports overshadowed a decline in China’s copper imports to an 11-month low in July………………………………………..Full Article: Source

Base metals firm, Chinese copper import drop priced in

Posted on 09 August 2016 by VRS  |  Email |Print

Base metals were mostly higher during Monday’s pre-LME trading shrugging off disappointing Chinese data, albeit in quiet trading conditions. Chinese July trade figures had showed overall exports and imports falling 4.4 percent and 12.5 percent respectively, both on a year-on-year basis in US dollar-denominated terms. The decline in imports was the biggest decline since February.
Meanwhile, China’s imports of unwrought copper and copper products fell 14.3 percent month-on-month to 360,000 tonnes in July, according to preliminary data published by the country’s General Administration of Customs on Monday………………………………………..Full Article: Source

Commodities Fatigue Kicks In After Biggest Investment in 7 Years

Posted on 08 August 2016 by VRS  |  Email |Print

Investors are growing tired of commodities after plowing in the most money in seven years. Inflows into raw materials slowed to $2.4 billion in July, the least since money was withdrawn in December, Barclays Plc said in a report Thursday. The smaller amount — not unusual for this time of year — took investment to almost $51 billion so far in 2016, the most since 2009.
There’s a good chance raw-materials interest has peaked, as it has largely been driven by investors seeking a haven in precious metals, signaling wider concerns about commodity fundamentals, Barclays said………………………………………..Full Article: Source

Oil Bear Market Attracts Record Bets on Further Price Slide

Posted on 08 August 2016 by VRS  |  Email |Print

Hedge funds have gone all-in on lower oil prices, counting on seasonal weakness to play out again this year. Money managers increased wagers on declining crude prices to a record as futures dropped to the lowest in more than three months. U.S. crude inventories climbed for a second week as imports arrived at the fastest pace since 2012.
The supply gain comes on the cusp of seasonal refinery maintenance that will curb crude demand. Futures have declined in each of the past five Septembers. “We’re are entering a period of seasonal maintenance, which should put some downward pressure on prices,” said Scott Roberts, co-head of high yield investments and manager of $2.7 billion at Invesco Advisers Inc. in Atlanta………………………………………..Full Article: Source

How Saudi Arabia Has Been Mastering The Oil Market

Posted on 08 August 2016 by VRS  |  Email |Print

Ever since it turned into the world’s largest oil producer back in the 1970s, Saudi Arabia has been the master the oil market by playing three roles effectively. The first role has been that of the “sole stabilizer,” filling the occasional gaps created by production shortfalls by major oil producers to stabilize the oil market.
Like the 1970-72 gap created by the decline in US oil production; the 1978-80 gaps created by the Iranian revolution; and the 1990-1 gaps created by the Iraq-Kuwait war. Sometimes, Saudi Arabia filled this role at great cost………………………………………..Full Article: Source

Western Europe’s Biggest Oil Producer Has a Surprise for Markets

Posted on 08 August 2016 by VRS  |  Email |Print

For Norway, the collapse in crude prices has a silver lining: output has exceeded expectations every month for the past two years. That’s likely to continue as oil companies boost efficiency and pump at full pace as revenue dwindles, according to the head of Petoro AS, the state-owned oil company that owns more than a quarter of the petroleum output in Western Europe’s biggest producer.
“Improvement efforts and the focus on profitability have led to very high regularity,” Chief Executive Officer Grethe Moen said in a phone interview on Friday from Stavanger, Norway’s oil hub. “There’s no sign this won’t last, at least thus far.”……………………………………….Full Article: Source

Oil’s Slope of Hope Is Getting Less Slippery

Posted on 08 August 2016 by VRS  |  Email |Print

Latest crude rally sputters, but seeds of eventual recovery have been planted by severe cuts to investment. Blastoff aborted. It seems to have been a fuel problem this time. Now two years into a bear market, oil prices have failed to sustain a major rally once again.
Rather than a further slide in demand, overzealous refiners are the likely cause. U.S. inventories of gasoline and distillates are nearly 10% and 6% higher than year-ago levels, respectively. Meanwhile, spring supply disruptions in Canada, Nigeria and elsewhere have lessened………………………………………..Full Article: Source

Gold Stocks Are In A Bull Market: How To Make It Work For You

Posted on 08 August 2016 by VRS  |  Email |Print

Gold and gold mining shares have reversed and are showing signs of having entered a sustainable bull cycle. Gold miners will make for excellent medium-term investments, although some companies will outperform. We outline how to pick these outperformers and to profit from them.
Gold is in a bull market. We believe that gold has been in a secular uptrend for most of the 21st century, although it is clear that gold experienced a cyclical decline that began in 2011……………………………………….Full Article: Source

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