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Is the oil world big enough for two swing producers?

Posted on 30 September 2016 by VRS  |  Email |Print

This is what the oil market looks like in 2016: Traders and investors this week had one eye on Algiers, where the Organization of the Petroleum Exporting Countries on Wednesday vowed to cut production for the first time in eight years.
And OPEC has one eye on what is happening in the bountiful shale fields from the Permian Basin in Texas to the Bakken formation on the plains of North Dakota where exploration firms are poised to drill more………………………………………Full Article: Source

BMO: Safe-Haven Demand To Drive Gold, Silver Prices Through To 2019

Posted on 30 September 2016 by VRS  |  Email |Print

Safe-haven demand will continue to drive gold and silver prices higher next year and support the precious metals market in the next three years, according to one Canadian bank that is making across-the-board revisions to its precious metals forecast.
In a report published Thursday, analysts at BMO Capital Markets, said that they see gold prices averaging $1,413 for 2017, up 5% from their previous forecast $1,350 an ounce. “We look past the upcoming Fed meeting in December – though it undoubtedly drives short-term volatility – and instead focus on monetary policy that is anything but “normal” for the next year or two at least,” the analysts said………………………………………Full Article: Source

Amey: Oil Market Volatility More Behind Us than in Front

Posted on 28 September 2016 by VRS  |  Email |Print

Suddenly the tables have been turned on Saudi Arabia. The biggest oil exporter has swapped its traditional role as price dove with regional foe Iran, for years OPEC price hawk. The government in Riyadh is now offering a deal — including its first output cut in eight years — to boost prices; Tehran is dragging its feet.
At the center of the reversal is their contrasting thresholds for enduring economic pain. PIMCO Europe MD and Portfolio Manager Mike Amey discusses oil with Bloomberg’s Anna Edwards on “Countdown.”…………………………………..Full Article: Source

Considering Commodities Amid A.P. Moeller-Maersk’s Split (Video)

Posted on 23 September 2016 by VRS  |  Email |Print

Jonathan Bell, chief investment officer at Stanhope Capital, discusses A.P. Moeller-Maersk splitting and outlook for the commodities market as a whole. He speaks with Guy Johnson, Nejra Cehic and Caroline Hyde on Bloomberg Television’s “On The Move.”.…………………………………….Full Article: Source

Global Oil Glut Belies Risk From OPEC’s Dwindling Output Cushion

Posted on 16 September 2016 by VRS  |  Email |Print

As most of the world focuses on how unfettered oil production will weigh on prices, a few say a rebound is on the cards as the market starts to reflect a growing risk of shortages. OPEC’s strategy of keeping its taps open is leaving a smaller cushion if there’s an unexpected need for more oil.
The group’s spare capacity has dwindled to the least since 2008, U.S. government data show, while global spending cuts have diminished prospects for new output. Prices may jump more than 35 percent from current levels as they start to reflect the risk of a supply squeeze, according to Citigroup Inc. and trader Gunvor Group………………………………………..Full Article: Source

Commodity traders accused of ‘illegitimate’ African fuel trade

Posted on 16 September 2016 by VRS  |  Email |Print

An NGO has slammed Swiss commodity traders for allegedly making handsome profits from selling poor grade fuel to African countries that contains high concentrations of toxic substances, such as sulphur.
Public Eye (known until recently as Berne Declaration) released a report on Thursday that called on traders to stop the legal, but “illegitimate”, practice of selling “African Quality” fuel to countries with low environmental and health standards………………………………………..Full Article: Source

OPEC and IEA say prices will stay lower for longer

Posted on 15 September 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) has said that the pace of global oil demand growth is dropping more quickly than initially predicted. In its latest monthly outlook, the agency lowered its forecast for oil demand growth in 2016 by 100,000 barrels per day, to 1.3 million b/d. It forecast the growth rate would be even lower in 2017, at 1.2 million b/d.
With OPEC producers pumping at close to record-high levels, the stock overhang that has stymied oil price rallies in recent months looks set to continue. Non-OPEC production has been dropping because of low prices, but not by enough to eat into bloated inventories. The IEA estimated that oil inventories in OECD countries hit a new record high in July, of 3.1 billion barrels, a rise of 32.5 million bbl from the previous month………………………………………..Full Article: Source

OPEC points to larger 2017 oil surplus as rivals keep pumping

Posted on 14 September 2016 by VRS  |  Email |Print

OPEC raised its forecast of oil supplies from non-member countries in 2017 as new fields come online and U.S. shale drillers prove more resilient than expected to cheap crude, pointing to a larger surplus in the market next year, Reuters reported.
Demand for crude from the Organization of the Petroleum Exporting Countries will average 32.48 million barrels per day (bpd) in 2017, OPEC said in a monthly report on Monday. That is down 530,000 bpd from the previous forecast………………………………………..Full Article: Source

Saudi and Russia finally ‘agree’ to work together – Bid to stabilize oil market

Posted on 12 September 2016 by VRS  |  Email |Print

The two biggest oil producers in the world last week signed an oil agreement to cooperate for stabilizing the oil prices. This is what every oil producer has been waiting for, as some sort of understanding was required to try stabilizing the oil market particularly the oil prices. The two oil producers have finally agreed in principle to freeze oil production and persuade other producers to follow suit. So far so good!
They also agreed to form joint committees to work on other details for the meeting which will be held in Algeria before the end of this month. It seems all OPEC members as well as Russia are in agreement to freeze production, and for the super producers to iron out the details in order to produce the final binding agreement………………………………………..Full Article: Source

Investing in commodities: Of mice and markets

Posted on 09 September 2016 by VRS  |  Email |Print

A surge in speculation is making commodity markets more volatile. A game of cat and mouse appears to be taking place in the oil market. The felines are big producers who want prices to go higher, the rodents speculators betting that they will fall.
Twice this year, in the first quarter and the third, hedge funds and others have taken out record short positions on futures of West Texas Intermediate (WTI), an American crude-oil benchmark, only to be mauled by (so far empty) talk among members of the OPEC oil cartel and Russia of a production freeze. The resulting scramble by funds to unwind their short positions has fanned a rally in spot oil prices………………………………………..Full Article: Source

OPEC’s dire finances fuel oil freeze talks

Posted on 08 September 2016 by VRS  |  Email |Print

Price wars can be painful — even for the mighty OPEC. That’s why the oil cartel, along with Russia, is once again entertaining a freeze in production aimed at putting a floor beneath low prices.
The goal is to keep prices high enough to give oil-reliant countries a financial boost, but not so high that they encourage their chief rival — American shale oil producers — to start pumping aggressively again………………………………………..Full Article: Source

OPEC Likely to Be Cautious on Output Cap

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC members face a dilemma in the run-up to a new round of oil-production talks later this month: They want to boost crude prices to raise their revenue, but they don’t want to send prices so high that North American shale-oil producers will lift their output.
The result, say officials from members of the Organization of the Petroleum Exporting Countries, is that the cartel is unlikely to make aggressive efforts to curb output when it meets in Algiers beginning Sept. 26………………………………………..Full Article: Source

Gold Extends Biggest Jump Since Brexit on Lowered Fed Rate Bets

Posted on 07 September 2016 by VRS  |  Email |Print

Gold built on its biggest daily increase since June and traded near the highest in almost three weeks as the dollar weakened amid diminishing chances of a U.S. interest-rate rise in September.
Bullion for immediate delivery was 0.2 percent higher at $1,352.16 an ounce at 11:29 a.m. in Singapore, after surging 1.7 percent on Tuesday, the most since the results of the Brexit vote on June 24, according to Bloomberg generic pricing………………………………………..Full Article: Source

Commodities: Flicker of optimism

Posted on 05 September 2016 by VRS  |  Email |Print

Analysts and investors usually hang on the lips of Glencore CEO Ivan Glasenberg at the group’s results presentations to hear where one of the world’s top commodities traders thinks commodity prices are headed.
Glencore and South32, both with a significant exposure to energy and industrial metals, have reported lower profits for their recent financial periods because of weak prices. But they are showing strong cash generation and their optimism about current conditions, after a general firming in commodities since February/March, is reflected in their dividend policies………………………………………..Full Article: Source

Oil market cheers EIA changes to weekly statistics

Posted on 01 September 2016 by VRS  |  Email |Print

The Energy Information Administration has made some changes to the way it reports figures on weekly U.S. oil production, exports and petroleum demand — and analysts say the moves mark a significant improvement to the data the market heavily relies on.
“The improvements to the EIA data will definitely offer a better read for those tracking the fundamentals of the energy markets compared to the less accurate estimates’ that were previously published,” said Tyler Richey, co-editor of The 7:00’s Report………………………………………..Full Article: Source

Iron Ore Dubbed ‘Least Favorite’ by Clarksons as Miners Sink

Posted on 01 September 2016 by VRS  |  Email |Print

Iron ore faces renewed pressure and prices may sink back below $50 a metric ton before year-end as rising supply offsets an improvement in Chinese demand, according to Clarksons Platou Securities Inc., which dubbed the raw material its least favorite commodity.
There’s been a pickup in exports this month after a weak performance in July, said Jeremy Sussman, an analyst at Clarksons Platou in New York. Even as steel output in the largest supplier is set to remain resilient this year, iron ore may sink into the high-$40s, he said in e-mailed comments………………………………………..Full Article: Source

Metals-Miners Run Out of Steam as Citigroup Cuts Outlook

Posted on 01 September 2016 by VRS  |  Email |Print

Shares of gold and base-metals producers, among the best-performing industries on the S&P 500 Index this year, are showing signs of fatigue. A stronger dollar and concerns over the prospect of higher U.S. interest rates are helping send a gauge of gold-mining companies tracked by Bloomberg Intelligence to the biggest monthly decline in more than a year, while a base-metals index slides toward its first such loss since May.
Citigroup Inc. cut its six-month stance on the industry to bearish, reversing an upgrade of the sector following the Brexit vote………………………………………..Full Article: Source

Oil executives say crude market volatility is here to stay

Posted on 31 August 2016 by VRS  |  Email |Print

Crude markets will continue to be plagued by volatility in the short and medium term after suffering the biggest downturn in a generation over the past two years, according to oil-company executives gathering for one of the industry’s biggest conferences in Norway.
Oil declined on Monday amid doubts producers will agree on a deal to stabilise the market when suppliers meet next month for informal talks. Iran’s plan to continue boosting crude output until it regains its pre-sanctions Opec market share is dimming prospects of collective action, according to Patrick Allman-Ward, the chief executive of Sharjah’s Dana Gas, at the ONS conference in Stavangar, Norway……………………………………….Full Article: Source

India to be hit by economic crisis if oil price crosses $60: Subramanian Swamy

Posted on 31 August 2016 by VRS  |  Email |Print

India will be hit by an economic crisis if crude oil price crosses USD 60 per barrel, BJP MP Subramanian Swamy said. “Given the state of our economy, if crude oil price per barrel rises above $60 then we will be hit by an economic crisis,” he tweeted.
US benchmark West Texas Intermediate is trading around $47 per barrel while Brent is at $49 currently. The slump in oil prices last year is one of the factors that helped Indian economy notch up big gains by cutting its import bill and reining in inflation……………………………………….Full Article: Source

G20: Seven steps to sustained economic growth

Posted on 30 August 2016 by VRS  |  Email |Print

The International Chamber of Commerce has put forward a set of business recommendations to help leaders of the world’s major economies prepare for discussions on the world’s most pressing economic policy challenges at next month’s G20 Summit taking place Hangzhou, China.
From climate change and energy to taxation and trade, the recommendations cover seven areas not covered by the 20 principle 2016 policy recommendations developed by the Business -20 (B20), and to which ICC significantly contributed and fully endorses………………………………………..Full Article: Source

OPEC’s market share at a good level, says UAE energy minister

Posted on 29 August 2016 by VRS  |  Email |Print

OPEC’s share of the oil market is at a good level, UAE energy minister Suhail Bin Mohammed al-Mazroui said as the producer group continues to contend with low crude prices. “Regardless of the different views on the oil market, we see that the OPEC current market share is at a good level,” Mazroui said on his official Twitter account on Saturday.
Mazroui also said he believed that any future decision on oil production would require full participation from all members of the Organization of the Petroleum Exporting Countries plus other major producers………………………………………..Full Article: Source

Water: The commodity underwriting our low-carbon future

Posted on 24 August 2016 by VRS  |  Email |Print

The quintessential first thought when you think of saving water, drilled into us at childhood, is turning off the tap when you brush your teeth. As we age and the world advances — with a global climate agreement and the new Sustainable Development Goals — a broader view on water is now mainstream.
It includes economic pillars such as agriculture; the immense amount of cooling water that power plants need to function; and the water embedded in the food you eat, the cotton shirt you wear and even the smart phones we cannot imagine living without………………………………………..Full Article: Source

‘Well-Timed’ OPEC Talk Forces Oil Bears Into Record Reversal

Posted on 22 August 2016 by VRS  |  Email |Print

OPEC has done it again. Talk of a potential deal to freeze output helped push oil close to $50 a barrel and prompted money managers to cut bets on falling prices by the most ever. West Texas Intermediate, the U.S. benchmark, went from a bull to a bear market in less than three weeks.
OPEC is on course to agree to a production freeze because its biggest members are pumping flat-out, said Chakib Khelil, the group’s former president. Saudi Energy Minister Khalid Al-Falih said that the talks may lead to action to stabilize the market………………………………………..Full Article: Source

LBMA says banks back its plan to change London gold market

Posted on 19 August 2016 by VRS  |  Email |Print

Members see an electronic trade repository as the best way to improve transparency. The body charged with regulating London’s $5tn a year gold market says banks in the city are backing its plans to bring greater transparency to the market as the London Metal Exchange prepares to launch a gold futures exchange.
Ruth Crowell, head of the London Bullion Market Association, said its members, which include some of the world’s biggest banks, see an electronic trade repository as the best way to improve transparency and address regulatory pressure that is threatening to drive up costs………………………………………..Full Article: Source

Saudi Arabia has oil traders hanging on every word

Posted on 18 August 2016 by VRS  |  Email |Print

Kingdom offers a reminder that well-chosen words can move the oil market. Central bankers have long understood that a few well-placed words can wield nearly as much power as pulling the actual levers of monetary policy. It is a lesson that Opec and Saudi Arabia has started to heed.
Just a few short sentences from Saudi Arabia’s energy minister Khalid al-Falih last week sent hedge funds scrambling to cover large bets against the oil price, subsequently propelling Brent crude 10 per cent higher and largely silencing fears the market was on the cusp of another rout………………………………………..Full Article: Source

Prickly Iran Defies, Then Keeps OPEC Guessing

Posted on 18 August 2016 by VRS  |  Email |Print

Iran is trying to make a comeback after years of crushing economic and financial sanctions placed against its energy sector by Western powers over Tehran’s nuclear ambitions.
In January, Iran’s deal with the so-called P5+1 (the U.S., U.K., France, Germany, Russia and China) came into effect, effectively reopening international markets to hundreds of thousands of barrels of Iranian oil and returning billions of dollars in frozen oil money to Iran………………………………………..Full Article: Source

End of the Affair as Chinese Commodity Traders Exit Market

Posted on 17 August 2016 by VRS  |  Email |Print

Chinese traders are falling out of love with commodities. Aggregate volumes across the nation’s three biggest exchanges have shrunk to the lowest level in six months, a shadow of the fevered trading in March and April when retail investors charged into markets for everything from iron ore to cotton, driving up prices and stoking fears of a bubble.
Chinese authorities brought an end to the frenzy by introducing curbs on excessive speculation and trading has failed to recover since. Flush with record credit and hunting for returns, investors piled into commodities in the first half of the year, spurred by bets that China’s economic stimulus and industrial reforms would lead to shortages of raw materials………………………………………..Full Article: Source

Mining sector outlook improves despite losses and Brexit

Posted on 17 August 2016 by VRS  |  Email |Print

With mining company BHP Billiton reporting a record loss for the past year, you could be forgiven for thinking it was all doom and gloom for the sector. But all is not as it seems. In fact, data from the FTSE 100 shows quite the opposite. The seven mining companies account for close to 5.5% of the value of the index.
“At the end of 2015 they accounted for around 2.5%, so they’ve more than doubled in a year, which is impressive,” says Jeremy Wrathall, mining team leader at Investec. The reversal in the fortunes of the sector is shown clearly by diversified mining company Anglo American’s experience………………………………………..Full Article: Source

OPEC deal a tough task, as oil output freeze expectations rise

Posted on 16 August 2016 by VRS  |  Email |Print

OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month as top exporter Saudi Arabia appears to want higher prices, according to OPEC sources, although Iran, Iraq and Russia present obstacles to a deal.
OPEC will probably revive talks on freezing oil output levels when it meets non-OPEC nations next month as top exporter Saudi Arabia appears to want higher prices, according to OPEC sources, although Iran, Iraq and Russia present obstacles to a deal………………………………………..Full Article: Source

Chakib Khelil is optimistic about OPEC meeting in Algiers

Posted on 15 August 2016 by VRS  |  Email |Print

Former Algerian Minister of Energy and former president of the Organization of Petroleum Exporting Countries OPEC, Chakib Khelil, is optimistic about the informal meeting of OPEC, to be held in Algiers on the sidelines of the International Forum on Energy on September 26 to 28, especially after the statements of Saudi oil Minister that shows a willingness to move towards market stabilization.
Chakib Khelil believes in his statement to Ennahar TV that OPEC members will fail to rebalance the market as supply remains high compared to demand. Former Algerian Energy Minister added that during the last meeting, “almost all oil producers had reached their maximum production level, they therefore had nothing to lose by deciding a freez.”……………………………………….Full Article: Source

Improved Approach To Investing In Commodities​

Posted on 12 August 2016 by VRS  |  Email |Print

New analysis by Source UK shows that commodity investors can maximise their risk-adjusted returns by using ETFs that provide exposure to ‘second generation’ indices. These aim to improve performance compared to ‘first generation’ indices by managing exposures across the futures curve and diversifying trading strategies.
‘First generation’ indices are susceptible to the negative roll-yield problem because of an inflexible approach to reinvesting in the futures used to track commodities, as they are restricted to trading the front-month contracts where the futures curve is typically the steepest………………………………………..Full Article: Source

Here’s proof that Saudi Arabia doesn’t care about killing oil prices - only the competition

Posted on 12 August 2016 by VRS  |  Email |Print

There is proof that Saudi Arabia is more interested in trying to kill competition in the oil industry at the expense of cratering oil prices - its oil production just hit a record high.
The country said output increased by 123,000 barrels per day, which pushed overall production for July to 10.67 million barrels per day. This surpasses the previous record of 10.56 million per day from June last year. While Saudi does pump out more oil usually in the summer months to sate domestic demand, the record production level is likely to be scrutinised because oil prices are still around 55% lower than they were since June 2014………………………………………..Full Article: Source

World Gold Council, LME to launch LMEprecious in 2017

Posted on 11 August 2016 by VRS  |  Email |Print

The World Gold Council, LME and several key market participants plan to introduce a suite of exchange-traded and centrally-cleared precious metals products.
Gold market development organisation, the World Gold Council, and futures exchange, the London Metal Exchange (LME), together with key market participants including Goldman Sachs, ICBC Standard Bank, Morgan Stanley, Natixis, OSTC and Societe Generale will be launching the initiative as a means to drive greater market transparency and to support and aid ongoing regulatory change………………………………………..Full Article: Source

OPEC smoke and mirrors’ may be all it needs to boost oil

Posted on 10 August 2016 by VRS  |  Email |Print

Just the whiff of an OPEC meeting has driven oil prices higher, squeezed shorts in the futures market — and made further inaction by the cartel more likely. But that hasn’t stopped market chatter that the Organization of Petroleum Exporting Countries could revisit the idea of a production freeze when it meets informally on the sidelines of an energy conference in Algeria late next month.
Oil’s recent dip back into the $30s per barrel may be enough to get some OPEC members to curb their bickering and consider joint action — if crude plummets again. But for now, analysts see the cartel just talking, with the more needy members pushing for relief through a freeze or other deal………………………………………..Full Article: Source

OPEC Under Pressure After Oil’s Slide Into a Bear Market (Video)

Posted on 10 August 2016 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries is talking about oil prices and special meetings in September, a sign it’s under pressure again after crude fell back into a bear market last week. The producers of about 40 percent of the world’s crude found unity and optimism when they last met in June, thanks in large part to the almost 90 percent recovery in prices from a 12-year low.
The market has since renewed its decline as the global supply glut proves more resilient than expected, but there’s little reason to think OPEC is any closer to taking action to eliminate the surplus………………………………………..Full Article: Source

OPEC Still Faces the Same Obstacles to Agreeing Oil-Output Limit

Posted on 09 August 2016 by VRS  |  Email |Print

An informal OPEC meeting next month is unlikely to deliver any agreement to limit production because several members including Iran are still pumping below capacity. Members of the Organization of Petroleum Exporting Countries are planning to hold talks next month on the sidelines of the International Energy Forum in Algeria, the group’s president Mohammed Al Sada said.
But the same obstacles that prevented an agreement on proposals to freeze output in April or fix a new production target in June are still there, according to UBS Group AG………………………………………..Full Article: Source

The victory for gold bulls is only just beginning

Posted on 09 August 2016 by VRS  |  Email |Print

The expansion of unconventional monetary policy will feed demand. Gold prices have rallied more than 30 per cent since the lift-off in US interest rates in December. A sharp reversal in pricing, sentiment and positioning driven by a myriad macro and micro factors has left the gold bears and bulls as polarised as ever.
The bearish camp, which has featured prominent and respected analysts like Goldman Sachs, tends to have a constructive view on the US dollar, the ability to raise interest rates, normalise global monetary policy, and generally a benign view on the global economy and inflationary risks………………………………………..Full Article: Source

Why oil bears shouldn’t count on U.S. shale rebound

Posted on 04 August 2016 by VRS  |  Email |Print

Oil market bears argue that rebounding production in U.S. shale regions will add to the global glut of crude, slowing the rebalancing of the market. Don’t be so sure, say skeptics.
Production-rebound proponents argue that the recent rise in U.S. rig counts reflects a new reality in the oil market. In this scenario, the U.S. crude benchmark’s spring rebound, which saw prices push back above $50 a barrel by early June, and a continued fall in production costs were likely to entice previously hard-hit shale producers to reopen closed wells and rejoin the fray………………………………………..Full Article: Source

Gold Bull Market or just a Bear Market Rally?

Posted on 01 August 2016 by VRS  |  Email |Print

While many are touting a new bull market in Gold, and Silver for that matter, history suggests otherwise. When we look back at the history of commodity prices for the past two centuries we observe generally short bull markets followed by longer bear markets. Since Gold was fixed for most of this period a chart going that far back would be of little use.
Notice for over 200 years commodities remained in a trading range. Demand drove prices up, then oversupply brought prices right back down. This all changed when the US went off the Gold standard in 1971. Commodity prices soared, along with Gold, and the bull/bear cycles became more uniform………………………………………..Full Article: Source

US oil in bear market territory: 5 things to watch

Posted on 29 July 2016 by VRS  |  Email |Print

Crude oil’s quiet slide from its 2016 high sharpens questions about the outlook. The major US crude oil benchmark has fallen into a bear market, heaping more pressure on oil companies and major producing countries that had hoped the worst of the rout was over.
West Texas Intermediate, the main US crude benchmark, fell to $41.14 on late Thursday afternoon, down 20.4 per cent from its intraday peak of $51.67 per barrel on June 9. A 20 per cent decline is the technical definition of a bear market………………………………………..Full Article: Source

Base metal mining market - infrastructure development activities to be key enabler of growth

Posted on 28 July 2016 by VRS  |  Email |Print

Global estimates entail that nearly 40% of the world economy is directly or indirectly affected by the mining industry. Consistent supply of base metals such as copper, zinc, nickel, aluminum, and tin is central to the development of sectors such as infrastructure, construction, manufacturing, transportation, equipment, and utilities. Flourishing growth across these sectors in the past few years, especially in developing regions such as Asia Pacific, is the major demand driver of base metals in the global market.
The European Union has significantly increased its investment aimed at the development of the region’s energy infrastructure, to make it more complaint with renewable energy sources, in the past few years. Transportation, construction, and equipment industries, which are some of the principal consumers of a number of base metals, are also expanding at a plausible rate across the globe. (Press Release)

Buy Commodities; They Shouldn’t Be Tanking

Posted on 27 July 2016 by VRS  |  Email |Print

There’s a new meme going around that claims that we’re heading into a global economic slowdown. It sounds a lot like the other dire warnings that we heard in February, May and most recently in June right after the Brexit vote: “Slowdown! Crash! Recession! Catastrophe!” But the fearmongers were wrong then, and I believe that they’re wrong now.
Granted, the global economy isn’t growing very rapidly. But it is growing — and has defied all expectations of a recession so far because we continue to see high and rising levels of fiscal stimulus from the world’s major economies. That means the United States, China, Japan and very soon even the European Union (I predict)………………………………………..Full Article: Source

July Zinc Price Forecast: Multi-Month Highs Reached

Posted on 27 July 2016 by VRS  |  Email |Print

Zinc prices , along with nickel, rallied to hit multi-month highs last week as investors hedged on continued supply disruptions. According to a report from the Financial Times, the zinc price climbed to its highest point in 14 months to $2,275.5 per metric ton on the London Metal Exchange.
Investor sentiment surrounding commodities has improved due in part to a weaker dollar and growing oil prices, in addition to government stimulus in China. That stimulus has enhanced the Far East nation’s transportation and infrastructure sectors. Meanwhile, nickel could reach as high as $12,000 per metric ton………………………………………..Full Article: Source

Could a Trump win lift gold?

Posted on 26 July 2016 by VRS  |  Email |Print

A new ABN AMRO study states gold will rise in price under a potential Trump presidency. “If Trump were to become president gold prices will likely perform well, because we expect that his policies will be inward looking and will weaken the fundamentals of the US economy,” ABN AMRO report author Georgette Boele said.
The report cited gold’s trajectory under previous presidents, stating that inflation has always been a driver for gold, and economic uncertainty coupled with likely domestic uncertainty will drive investors to gold, creating a more bullish market………………………………………..Full Article: Source

Brexit sparked economic volatility and uncertainty

Posted on 22 July 2016 by VRS  |  Email |Print

The British move fast. While we wrestle for a couple of years with the succession of leadership in the White House, the British have in swift days bounced out Prime Minister David Cameron, and his successor Theresa May, is already governing in 10 Downing Street.
Cameron had no choice but to fall on his sword since for the sake of a squabbling Conservative Party, beset by a reactionary far right, he miscalculated the risk of a national referendum of dubious constitutionality. Britain has got along quite well without the kind of constitution written by the U.S. framers, but this time Britain’s ‘muddling through’ just did not work………………………………………..Full Article: Source

Why the Dollar Is the Enemy of Commodity Values

Posted on 21 July 2016 by VRS  |  Email |Print

The global financial marketplace is a complex, interconnected organism where every company, commodity, and financial asset is just a piece of a much larger picture. What happens with one asset can influence another, and so on. There’s a relationship that exists between asset classes that, while not perfect, tends to follow a pattern over time.
The relationship usually follows a certain order – currencies up, commodities down, bonds up, and stocks up or down. It works in reverse as well with commodities going higher if currencies fall. Keep in mind that commodity values play a bigger role in this relationship than it might appear – commodity prices drive stock and bond performance. Let’s take a look at how this works………………………………………..Full Article: Source

Libya: OPEC member plots big oil comeback

Posted on 21 July 2016 by VRS  |  Email |Print

One of the biggest mysteries in the oil market resides in the war-torn nation of Libya. A long civil war and the rise of ISIS have limited Libya’s oil production to just a fraction of what it was in 2010, before the uprising that ousted and ultimately killed the country’s longtime dictator Moammar Gadhafi.
Libya, a large global oil producer, appeared to reach a breakthrough earlier this month when rival governments in the east and west agreed to merge their competing oil companies. The agreement was hailed as a positive step and some even predicted Libya could quickly double its oil production, flooding the oversaturated market with tons of high-quality crude………………………………………..Full Article: Source

Gold Fields forecast sparkles on strong dollar gold price

Posted on 21 July 2016 by VRS  |  Email |Print

In some rare good news from the gold-mining industry, Gold Fields reported on Tuesday that it expected its output for the year to June to increase marginally to 1.044-million ounces. One analyst said the company, which is headed by Nick Holland, would be increasingly attractive to investors if it continued to reduce its costs.
Citing a slightly stronger US dollar gold price, and an Australian dollar that has weakened 5% year-on-year against the greenback, the company said on Tuesday that it expected its half-year earnings per share to be 14 US cents higher than the zero cents reported in the same period in 2015………………………………………..Full Article: Source

A global battle for trading supremacy in industrial metals

Posted on 18 July 2016 by VRS  |  Email |Print

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

Guess what’s on pace to book the biggest gain among commodities this week

Posted on 15 July 2016 by VRS  |  Email |Print

Cotton futures boast the largest gain among major commodities this week, after rallying Thursday to their highest level in more than two years thanks to a slowdown in global production and signs of stronger demand. Analysts said that the commodity is likely due for a correction after such a spectacular rise, but its lofty prices may be here to stay.
On Thursday, cotton for December delivery rose 1.2% to trade at 74.04 cents a pound on the ICE Futures U.S. exchange. Prices were poised to log their highest settlement since June 2014, and readied for a weekly gain of 12.5%, according to FactSet data………………………………………..Full Article: Source

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