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Gold snaps two-day rally before Fed statement

Posted on 30 April 2015 by VRS  |  Email |Print

Gold fell on Wednesday as investors took profits following a two-day rally, but soft US economic data that hurt the dollar and lowered expectations for a Federal Reserve rate rise in June limited losses.
Spot gold was down 0.3 per cent at $1,210.91 an ounce at 1309 GMT. It has gained nearly 3 per cent in the last two sessions, climbing to a three-week high of $1,215 on Tuesday. US gold futures for June delivery fell $5.90 an ounce to $1,207.80, after rising to their highest level since April 7 in the previous session………………………………………..Full Article: Source

Opec officials said to plan technical talks with non-Opec in May

Posted on 29 April 2015 by VRS  |  Email |Print

Opec officials will meet with representatives from oil producers outside the group to discuss the global market in May, a few weeks before the organization’s ministerial meeting, according to two people with direct knowledge of the matter.
Technical experts from Russia, Mexico and Oman will confer with counterparts from the OrganiSation of Petroleum Exporting Countries’ 12 members at the group’s secretariat in Vienna on May 12 to 13, said the people, who asked not to be identified because the talks are private. The conference was suggested by member nation Venezuela, they said, which has urged OPEC to revive prices by cutting output………………………………………..Full Article: Source

Strong demand to rebalance oil market by early 2016

Posted on 23 April 2015 by VRS  |  Email |Print

Global oil demand is set to rise by 1 million or even 1.5 million barrels per day (bpd) in 2015, according to a range of forecasters. Coupled with a fall in shale output in the second half of the year, as the decline in the US rig count takes effect, that should be enough to bring the oil market near to balance by early 2016.
Worldwide consumption will increase by a little over 1 million bpd in 2015, according to forecasts published this month by both the International Energy Agency and the US Energy Information Administration (EIA). Ian Taylor,CEO of Vitol, the world’s largest oil trader, has also predicted demand will grow by around 1 million bpd, at a conference hosted by the Financial Times……………………………………Full Article: Source

Will outlook turn bright for Cotton in CY2015-16?

Posted on 22 April 2015 by VRS  |  Email |Print

At a time when Cotton farmers are committing suicides in India over the depressive price regime, reports suggest that outlook is likely to remain bleak in CY 2015/16. Prices, both international and domestic, are unlikely to see triggers for any upside. China’s new cotton policy has triggered the declining trend for international cotton prices and prices has been traversing the downward trajectory since April 2014. Cotton prices has been range-bound since November 2014 at $1.5/Kg.
The prices remain significantly lower over the previous corresponding period and were lower by 26% in February 2015 on YoY basis. India-based rating firm ICRA in its latest report has predicted that the cotton prices are expected to remain at similar levels in CY 2015/16 with downside bias…………………………………..Full Article: Source

Fed could be to blame for oil’s decline: Analyst

Posted on 21 April 2015 by VRS  |  Email |Print

The dramatic 10-month drop in the price of oil could be due to ultra-loose monetary policy by the U.S. Federal Reserve, according to a senior analyst at a major financial services company. Mark Lewis from Kepler Cheuvreux said on Monday that the boom in U.S. shale gas production over the last few years that had helped push down oil prices was partly driven by the Fed’s “very, very low interest rates.”
“The financial dimension to the shale story is hugely important,” he told CNBC. “I think it’s questionable whether we would ever have had the increase in oil production we’ve had out of the shale plays over the last three or four years if we hadn’t been in this environment.”………………………………….Full Article: Source

Steel demand in China forecast to decline through 2016

Posted on 21 April 2015 by VRS  |  Email |Print

Steel demand in China will shrink this year and next to extend the first annual contraction since 1995 as economic growth in the world’s biggest producer slows, according to the World Steel Association.
China’s steel use will drop 0.5 per cent to 707.2 million metric tons in 2015 and fall to 703.7 million tons next year, the group said in a statement. In 2014, demand declined 3.3 per cent to 710.8 million tons, according to the Brussels-based body, whose members account for 85 per cent of global output…………………………………..Full Article: Source

Gold production may peak in 2015 — report

Posted on 20 April 2015 by VRS  |  Email |Print

World gold production may peak this year, as plummeting prices for the precious metal make it difficult for companies to develop new mines. According to a report by the World Gold Council, the industry’s market development organization, production rose 2% to 3,114 tons last year from the previous year, setting a new record for the sixth straight year.
However, the report also said gold production will reach its highest point in 2015 and then slow. Given the WGC was established by mining companies, the report could be seen as a message from gold producers that they will reduce output……………………………………Full Article: Source

Saudi Arabia Leads OPEC Oil Boom as U.S. Shale Growth Slows

Posted on 16 April 2015 by VRS  |  Email |Print

Saudi Arabia pumped close to a record amount of crude oil last month, leading the biggest surge in OPEC output in almost four years just as the U.S. shale boom shows signs of slowing, the International Energy Agency said.
The Organization of Petroleum Exporting Countries may extend its biggest output gain since June 2011 into next month as recovery in Libya and Iraq adds to the Saudi increase, the IEA said. Average U.S. oil production of 12.6 million barrels a day in the first six months of 2015 will slide to 12.5 million by the fourth quarter as companies curb drilling, the agency said………………………………………..Full Article: Source

Gold Bullion To Max Out At $5,000 Per Ounce

Posted on 16 April 2015 by VRS  |  Email |Print

Renowned financial analysts and trends forecaster Martin Armstrong has said that gold will “probably max out at $5,000 per ounce” as “people lose confidence in government” and that we will see riots and unrest globally in the coming months – the fall of this year.
It a very interesting interview with Greg Hunter of the excellent USAWatchdog.com, Armstrong says: “Gold rises when people lose confidence in government. It has nothing to do with inflation. So, when you start to worry about government is not going to survive or who’s going to win, that’s when gold rises. Short term, we still have the risk of it going under $1,000 per ounce. It’s going to flip when everything is right. It will probably max out at $5,000 per ounce.”……………………………………….Full Article: Source

Indian gold market subdued, premiums low and likely to stay so: sources

Posted on 16 April 2015 by VRS  |  Email |Print

The Indian gold market is not expecting any fireworks in terms of premium business in 2015, with most participants downbeat, expecting premiums to trade in a tight range of $1-$2/oz above the dollar spot price, sources said this week.
One broker said that unless the dollar gold price dramatically drops $100-$150/oz, it is doubtful that premiums will move higher from the current range. He noted that Indian physical buyers have become too savvy and that as soon as the price in local currency terms dips, they are quick to buy. However, the local market has ample supply, so premiums see little reaction………………………………………..Full Article: Source

IEA Chief Economist: No Immediate Oil Market Impact After Iran Deal

Posted on 14 April 2015 by VRS  |  Email |Print

It could take three to five years for a new wave of Iranian oil to significantly increase world petroleum supplies and have a lasting impact on prices, the chief economist of the International Energy Agency said Monday.
The prospect of a deal to lift Western sanctions in exchange for limits on Iran’s nuclear program has added a new layer of volatility to an oil market reeling from a historic collapse in prices, from about $115 a barrel last summer to a low of $47 in January. Brent crude, the global benchmark, was trading at about $59 Monday afternoon in London………………………………………..Full Article: Source

Precious metal bears eating bulls for lunch

Posted on 14 April 2015 by VRS  |  Email |Print

Weekend reading has served us rather well to catch up on current (potentially future) views and thoughts. Concern about the world economy is still the spotlight, continued fight of deflation and lower crude oil prices, China economy hard landing hitting the front page, volatile Middle East wars and the never ending tension between Ukraine and Russia seems to sum up a fair amount of uncertainty and volatility.
Looking at this week, China GDP data will serve as a catalyst to currencies that heavily depend on it. Further contraction in the 2nd largest economy could spell disaster as global demand could diminish and a snowball effect of fear may grip the market………………………………………..Full Article: Source

World Oil Demand On The Rise Says Saudi Oil Minister

Posted on 13 April 2015 by VRS  |  Email |Print

Saudi Arabia’s oil production was up to 10.3 million barrels in March, and an senior Saudi energy official says that will meet an annual global rise in demand of as much as 1 million barrels a day. In fact, total yearly demand around the world is expected to reach 105 million barrels a day by 2025, Ibrahim al-Muhanna told an energy conference in Riyadh on April 10.
Al-Muhanna, an adviser to Saudi Oil Minister Ali al-Naimi, said the current depression in both oil prices and demand is a “temporary, unnatural situation,” and that in the foreseeable future there will be “continued growth in demand for the various types of energy, including oil.”……………………………………….Full Article: Source

Commodity trading in Switzerland

Posted on 10 April 2015 by VRS  |  Email |Print

Representatives from the Swiss Government, individual trading companies and transparency advocates will discuss the current lack of publicly available information about commodity trading in Switzerland at UNCTAD’s sixth annual Global Commodities Forum at the Palais des Nations in Geneva on 13–14 April 2015.
The Forum continues a debate, begun at the 2014 event, on the need for improved transparency in the commodity trading sector – with Switzerland as its focus this year. The current dearth of information complicates governments’ responsibility to formulate policies that are effective as well as feasible to implement, and a lack of transparency represents a growing and significant reputational risk to firms, and their home and host governments………………………………………..Full Article: Source

OPEC’s no-cut strategy is not working, Iran says

Posted on 10 April 2015 by VRS  |  Email |Print

OPEC’s strategy of holding output steady is not working and the group’s members should discuss production levels before its next meeting in June, Iran’s oil minister said, a sign of the pain lower prices are causing OPEC’s less wealthy producers.
However, Bijan Zanganeh also told Reuters it was up to other members of the Organization of Petroleum Exporting Countries (OPEC) to make way for any extra Iranian crude that reaches world markets if Western sanctions on Tehran are lifted………………………………………..Full Article: Source

China’s iron ore tax cut puts heat on Australian miners

Posted on 09 April 2015 by VRS  |  Email |Print

China has sent a blunt warning to governments in Australia that it will strive to keep its domestic iron ore miners afloat by announcing a new round of tax cuts for the embattled industry. Just days after the Western Australian Government started giving royalty relief to junior miners like BC Iron, China’s State Council announced that Chinese iron ore miners would receive a 6 yuan ($1.27) tax cut on each tonne of iron ore produced.
The introduction of a subsidy by the world’s largest steelmaker may further hurt iron ore prices which fell to a 10-year of $US47.08 per tonne last week, and is bad news for Australian miners hoping to survive long enough to succeed the Chinese domestic miners………………………………………..Full Article: Source

OPEC has lost its swagger — and may never get it back

Posted on 07 April 2015 by VRS  |  Email |Print

OPEC is losing its clout. The Organization of the Petroleum Exporting Countries, or OPEC, which controls more than 80% of the world’s oil reserves (as of 2013), isn’t wielding the unrivaled sway over crude-oil prices that it has been credited with in the past.
Since the 12-nation organization announced last year that it wouldn’t slash oil production to curb a mounting supply glut fueled, in part, by U.S. shale producers, a growing chorus of market watchers are declaring the cartel dead — or at least significantly neutered. Bank of America’s Head of Commodities Francisco Blanch is the latest Wall Streeter writing OPEC’s epitaph………………………………………..Full Article: Source

10 Commodities Investments to Rev Up Your Portfolio

Posted on 02 April 2015 by VRS  |  Email |Print

You may not have much of a taste for commodities right now, and who could blame you? At a time when Wall Street has seen healthy run-ups, many commodities stocks have taken a beating. But as equities experts put it, you can’t keep a good stock down, especially when it trades in an area where there’s a proven need or demand that’s bound to increase.
“The [Thomson Reuters CoreCommodity CRB Index] has been in a bear market since its peak in 2011, making commodities seem like a questionable investment,” says John O’Donnell, chief knowledge officer of Online Trading Academy, based in Irvine, California. “But just like it’s proven contrarian wisdom that the best time to buy is when there’s ‘blood in the street,’ courageous and patient investors now have the opportunity to buy when there’s gold in the street.”……………………………………….Full Article: Source

Riyadh dancing in new oil market

Posted on 31 March 2015 by VRS  |  Email |Print

Saudi Arabia is forced to react to changing crude oil market dynamics by offering discounts to its potential clients in Asia, Wood Mackenzie said Monday.
“Saudi Arabia had to cut its price in Asia to ensure its crude oil remained attractive to the region’s refiners,” Wood Mackenzie market analyst Sushant Gupta said in a statement Monday. “Hence, having competitive prices will be an important mechanism that Saudi Arabia would be adopting to secure its market share.”……………………………………….Full Article: Source

Cotton, the other globally glutted commodity

Posted on 31 March 2015 by VRS  |  Email |Print

The price of a given commodity is falling, rapidly. A key market has way more of the stuff than it used to. Producers are panicking and trying to shift resources to avoid selling into the glut—not to mention the strong US dollar is making it harder for manufacturers around the world to import what they need.
That’s a scenario that has been playing out a lot recently, as a global economic slowdown (paywall) makes it harder for countries around the world absorb all the natural resources getting plucked and mined from the earth. One of the latest examples: cotton. And the key market stuffed to the brim with it? China………………………………………..Full Article: Source

Angola joins Venezuela among biggest losers of oil’s tumble

Posted on 30 March 2015 by VRS  |  Email |Print

Plunging oil prices have been an economic windfall for U.S. consumers, primarily through greater savings at the pump. In energy-reliant countries around the world like Angola, however, the effect has been far less beneficial.
Social and economic turmoil in countries like Venezuela and Russia—largely because of the swoon in global oil prices—has drawn attention away from Angola, an OPEC member that is Africa’s second-largest oil producer. The country churns out 1.75 million barrels of oil per day, according to the Energy Information Agency (EIA)………………………………………..Full Article: Source

Iraq supports Opec policy to defend market share

Posted on 27 March 2015 by VRS  |  Email |Print

Iraq supports the Organization of the Petroleum Exporting Countries (Opec’s) policy of defending the group’s market share by keeping oil production steady, an Iraqi parliamentary oil official said, despite pressure on the Arab state’s budget.
The Opec holds its next meeting in June and so far looks set to keep policy unchanged. Adanan Al Janabi, Iraq’s chairman of oil and energy parliamentary committee, said this would be a move he agreed with. “Iraq is with the general consensus of Opec that we should not be fighting for the price but rather for market share,” he told reporters on the sidelines of an industry event in Doha………………………………………..Full Article: Source

Taiwan’s commodity price bulletin board to go online soon

Posted on 25 March 2015 by VRS  |  Email |Print

As part of efforts to promote the transparency of data on commodity prices, Taiwan’s Executive Yuan or Cabinet is establishing a commodity price bulletin board that will be put online by the end of the month, Vice Premier Chang San-cheng said Monday.
The planned “Commodity Price Bulletin Platform” will offer viewers information on prices of 60 kinds of vital products and will also have a special page where people can express their opinions and proposals, increasing the opportunities for citizen participation, Chang said during a meeting of the Executive Yuan’s price stabilization panel………………………………………..Full Article: Source

Preparing for a Brent Benchmark With No Brent Oil

Posted on 20 March 2015 by VRS  |  Email |Print

It was once a behemoth, a massive North Sea oil field whose importance to the world crude market was summed up by its name atop the global benchmark price: Brent. Today, the Brent field, northeast of Scotland’s remote Shetland Islands, is all but tapped dry. It produces about 1,000 barrels a day in a global market of 93 million daily barrels.
Royal Dutch Shell PLC is awaiting approval to scrap the first of four Eiffel Tower-sized platforms that have sucked Brent-branded crude from the seabed for almost 40 years. In a few years, the Brent benchmark—a crucial metric for global oil prices—will contain no actual Brent at all………………………………………..Full Article: Source

Commodities explained: The new gold fix

Posted on 20 March 2015 by VRS  |  Email |Print

London is the centre of the gold world, accounting for about three quarters of the world’s bullion trading. On Friday the twice-daily process used for almost a century to “fix” the price of precious metal goes digital.
What is the gold fix? Started in 1919, the daily meeting to decide on a benchmark price was held at NM Rothschild with five bullion dealers and an agent of the Bank of England. Originally held once a day, companies involved in the early years included Rothschild, Mocatta & Goldsmid, Samuel Montagu, Sharps Pixley and Johnson Matthey Bankers………………………………………..Full Article: Source

The Way Gold Prices Are Set is Changing Forever

Posted on 19 March 2015 by VRS  |  Email |Print

Almost a century of tradition will disappear from the gold market as technology takes over. Thursday will be the last day that traders at four banks agree by phone twice-daily prices used by miners to central banks to deal and value bullion. Gold will be the last precious metal to drop the London fixings after silver, platinum and palladium made way for electronic auctions last year.
More firms able to participate in the benchmark will make the $18 trillion global market more transparent, said ICE Benchmark Administration, which will start running the LBMA Gold Price on Friday. Anyone can follow auctions online, rather than needing a line to a fixing dealer………………………………………..Full Article: Source

Iran oil supply concerns are ‘unduly bearish’: Analyst

Posted on 18 March 2015 by VRS  |  Email |Print

Concerns that a nuclear deal with Iran could end sanctions on that country and flood an oversupplied market with oil are “unduly bearish,” the managing director at Clearview Energy Partners said. “The deal they have probably won’t bring back crude exports to their full level right away,” Kevin Book said. “It’s probably going to be a series of gates and steps, a process where Iran has to do some things, the West will give some sanctions relief.”
Oil prices began another leg downward last week as participants in negotiations over Iran’s nuclear program suggested they are making progress toward a deal. The April contract for U.S. crude touched a six-year low below $43 on Monday after prices rebounded slightly in January and February………………………………………..Full Article: Source

Gold havens hit by dollar ascendancy

Posted on 17 March 2015 by VRS  |  Email |Print

Gold bugs are wary of a strong dollar, and with good reason. In the early 1980s, gold fell 60 per cent from a peak of $850 as the US currency strengthened. By contrast, in 2001 gold started its long march upwards just as the dollar started to weaken.
As the US dollar surges again, the market is wondering how far gold has to fall. The strong dollar has already capped a rally in January, which was spurred by uncertainty over Greek elections and European quantitative easing. Gold is down 39 per cent since August 2011 as the trade-weighted dollar index has risen 36 per cent………………………………………..Full Article: Source

Global scenario muddies commodities outlook

Posted on 16 March 2015 by VRS  |  Email |Print

Commodities present a spectre of confusion; seen from ­Europe, the picture becomes even harder to read. For every good indicator, there’s a contrarian possibility. With Europe, this comes in spades. This edition of Pure Speculation comes from Paris. From here the problems that loom so large in Australia — the iron ore and coal bleakness, the juniors running out of money — somewhat recede in the face of an emerging global scenario that hints at serious portents for commodity prices.
Sitting here at the centre of the storm, the desperate situation in which Europe finds itself becomes all the more worrying than they appear from Sydney or Perth. Over the weekend, the media here was celebrating the fact that Ireland, after all its economic troubles, was showing a real spurt of growth. But that’s about it with the good news………………………………………..Full Article: Source

More Coal Cuts Seen Ahead as Demand for Steel Slows: Commodities

Posted on 13 March 2015 by VRS  |  Email |Print

In the last year, mining companies eliminated about 15 million tons of production capacity for the coal used to make steel, while outlining plans to double those cuts in the near future. It won’t be near enough.
That’s the determination of Chief Executive Officer Don Lindsay at Teck Resources Ltd., the world’s second-biggest exporter of metallurgical coal. For supply to match flagging demand, the industry must cut a total of as much as 45 million tons, he says, raising the ante as prices sit at a six-year low………………………………………..Full Article: Source

Shale oil to dominate Russia-OPEC talks in June

Posted on 12 March 2015 by VRS  |  Email |Print

Russia said on Wednesday it would meet OPEC in June to discuss the impact of shale oil on global markets, just days before the producers’ group decides whether its policy of high production is sufficient to stifle the U.S. energy boom.
The comment, from Russian Energy Minister Alexander Novak, comes as Saudi Arabia has said in recent weeks it wanted non-OPEC producers to cooperate with the Organization of the Petroleum Exporting Countries in future because the group would not cut output unilaterally and lose market share as a result………………………………………..Full Article: Source

Palladium Set to Keep Top Performer Status among Precious Metals in 2015

Posted on 12 March 2015 by VRS  |  Email |Print

Palladium seems to be the sole bright spot in the murky precious metals sector once again as it extends its 2014 rally with prices rising six percent on the first month of the year. This is in sharp contrast with its sister metal, platinum, which is facing its third year of losses.
“We foresee another positive year for palladium based upon attractive supply/demand fundamentals, despite the backdrop of a relatively weak global economy,” said Ross Norman, chief executive of Sharps Pixley, a London-based precious metal seekingalpha.com broker. He saw an ongoing supply deficit of around 1.4 million ounces, propelling an average price forecast of $845 per ounce, up from 2014′s $799. Palladium is expected to extend those gains to an average of $900 per ounce in 2016………………………………………..Full Article: Source

Positive Outlook On Gold From PDAC

Posted on 09 March 2015 by VRS  |  Email |Print

In 2014, the tone at the Prospectors & Developers of Canada (PDAC) Convention was decidedly chillier inside the hall than it was outside. I couldn’t get one gold or silver company executive to look me in the eye. Some didn’t even come to the conference!
But today, the atmosphere inside the convention hall is warm and jovial. There’s a heavy layer of snow on the ground, but hundreds of precious metals and industrial metals companies are out in full force. That’s because gold has started to emerge from a six-year slump. And the reasons to own gold and mining shares are piling up like mountains of bullion………………………………………..Full Article: Source

Miners pray the commodities collapse has hit rock-bottom

Posted on 09 March 2015 by VRS  |  Email |Print

Life in Australia’s gold pits are not what it once was, but dealmakers in the ailing sector are ready to strike after betting on a turnaround. At the height of the mining boom, lorry drivers working in Western Australia’s Pilbara iron ore belt would have expected to take home something in the region of £100,000 a year in basic salary as China’s demand for commodities countinued unabated.
Nowadays, mining companies Down Under have even cut steak sauce off the menu and cancelled the free staff barbecues to cut costs. The days of mineworkers earning salaries and bonuses comparable to a fully qualified doctor are long gone………………………………………..Full Article: Source

Rated Funds 2015: Commodities

Posted on 06 March 2015 by VRS  |  Email |Print

Commodities have been a disappointing asset class to invest in over the past three years but our four Rated Funds in this group are managed by respected specialists in their field. We have sought to provide “best in class” ideas for investors interested in agricultural commodities, energy, industrial commodities and precious metals.
Like other more specialised asset groups, such funds can provide good diversification and the potential for handsome gains in a portfolio that is already well-represented by traditional asset classes such as equities and bonds………………………………………..Full Article: Source

The Newest Commodity: Oil Storage Space

Posted on 06 March 2015 by VRS  |  Email |Print

U.S. crude-oil storage tanks are filling rapidly, with inventories posting their largest gain in nearly 14 years last week. The cost to store oil is also rising, as tank space becomes scarce in some regions. Gulf Coast storage is at an all-time high of 219.9 million barrels, the U.S . Energy Information Administration said Wednesday, which is about 77% of capacity.
Perhaps coincidentally, CME Group Inc. said Wednesday that it’s starting a new futures contract to trade – what else? – Gulf Coast crude-oil storage. CME owns the New York Mercantile Exchange. The exchange operator says this is the first-ever oil-storage futures contract. It will work like this:……………………………………….Full Article: Source

Why OPEC is dead

Posted on 05 March 2015 by VRS  |  Email |Print

With oil’s price collapse, we can now declare that OPEC’s reign as king of the market is over. However, just as certain is the fact that there is no one to assume the throne. A new oil market and industry are taking shape—and without clear leadership, there will be many positive and negative consequences for global energy security.
As we consider OPEC’s fall, it is important to understand that it was never able to fully control the oil spigot at whim, nor the global economic forces most responsible for setting the oil price. In fact, at the rise of its intervention in the oil market in the 1970s, when its Arab members ordered an embargo that sent prices skyrocketing, OPEC’s actions actually hurt itself more than its consumers and contributed to its eventual decline………………………………………..Full Article: Source

Gold Extends Gains On Seasonal Demand, Global Cues

Posted on 03 March 2015 by VRS  |  Email |Print

Gold prices maintained its upward journey for the second day with a gain of another Rs 180 to Rs 27,300 per 10 gm, supported by increased buying and a firming trend overseas. Silver also moved up by 400 to 37,600 per kg on increased offtake by industrial units and coin makers.
Traders said increased buying by jewellers and retailers, triggered by wedding season demand and a firming global trend, mainly kept precious metals higher. Globally, the precious metal advanced to the highest level in almost two weeks, after China announced a second interest-rate cut in three months and the U.S. reported a slower pace of economic expansion than estimated, traders said………………………………………..Full Article: Source

India: Budget on commodities

Posted on 02 March 2015 by VRS  |  Email |Print

An important proposal that will impact the commodity industry is the plan to merge commodities market regulator Forward Market Commission with capital market watchdog SEBI. Finance Minister Arun Jaitley said “the proposed merger would help streamline the monitoring of commodity futures trading and curb wild speculation.”
This proposal is likely to bring convergence in regulation of various financial markets, such as securities, commodities and currency derivatives. Tracking of related money flows into such markets will also be easier. This will lead to implementing the long pending FCRA amendment bill. For brokers, substantial savings in costs are anticipated as separate set-ups for regulatory compliance may not be required………………………………………..Full Article: Source

India Budget 2015: High profile oil & gas sector gets no mention by FM Jaitley

Posted on 02 March 2015 by VRS  |  Email |Print

Barring duty rejig for petrol and diesel, Finance Minister Arun Jaitley did not mention the high profile oil and gas sector in his Budget speech yesterday. This happened against the backdrop of certain inputs by the Petroleum Ministry being found among the stacks of stolen documents.
Jaitley, presenting the Budget for 2015-16 yesterday in the Lok Sabha, did not mention of any initiative in the oil and gas sector other than an excise duty rejig on petrol and diesel to make available Rs 40,000 crore for roads and highway construction. A dozen persons were arrested last month for allegedly stealing official documents from the coal, power and oil ministries. The stacks of stolen documents recovered included details of exploration sites, natural gas pricing and the Oil Ministry’s arbitration with Reliance Industries……………………………………….Full Article: Source

Oil industry investment plunges after commodity price tumble

Posted on 27 February 2015 by VRS  |  Email |Print

A sharp fall in oil prices has led to a decline in investment by the oil and gas industry, which statisticians believe reflects falling profitability in the sector. Investment in the oil and gas industry slumped in the final three months of last year, amid a dramatic collapse in the price of oil.
Business investment fell by £0.6bn in the final quarter of 2014, down 1.4pc on the previous three months, the Office for National Statistics (ONS) said. The unexpected drop marked a second quarterly fall in investment. The Bank of England had pencilled in growth of 2.5pc for the period………………………………………..Full Article: Source

Oil Demand Seen as Growing

Posted on 26 February 2015 by VRS  |  Email |Print

Demand for crude oil is growing, Saudi Arabia’s top oil official said Wednesday, amid new data showing the world is getting hungry again for petroleum products and potentially bolstering OPEC’s decision to maintain production in the face of a price collapse.
Saudi Arabia Oil Minister Ali al-Naimi used his first public comments since December to note that the oil market had become “calm” and chided anyone who would “rock the markets.” “Why do you want to rock the markets? The markets are calm…Demand is growing,” Mr. Naimi told reporters on the sidelines of a conference in Jazan, a coastal city in Saudi Arabi’s southwest………………………………………..Full Article: Source

Copper Signal May Be Flashing Green

Posted on 26 February 2015 by VRS  |  Email |Print

Copper has been down for so long that some are saying the only way is up. A key signal in the market is starting to flash green, with bets that copper prices will continue to fall recently hitting a record high on the London Metal Exchange, though they’ve since started to fall back. For some, that suggests the red metal’s fortunes may be about to turn. At these levels, there’s simply no more stomach to bet against copper, they say.
“People have kind of run out of ammunition,” said Guy Wolf, global head of market analytics at Marex Spectron, a broker “There’s no more new money to come in.” According to Marex Spectron, there were 130,000 lots that were bets that copper would fall on Jan. 29. That was equivalent to 76% of all copper contracts registered with the London Metal Exchange, a record high, above even the bets made against copper during the global financial crisis of 2008, according Mr. Wolf………………………………………..Full Article: Source

Market not paying enough attention to copper supply situation: Citi

Posted on 25 February 2015 by VRS  |  Email |Print

The current bearish sentiment toward copper is being driven by concerns about China’s economy slowing with the market ignoring the fact that mine supply is looking increasingly constrained, Citibank’s research department said Tuesday.
Over the last decade, average global copper consumption growth has been in the region of 2.5% a year, “a remarkably low average given the strong growth in China consumption rates. This average annual rate is less than half that for aluminium.” Analyst at the bank David Wilson said that two factors have been at work to limit the rate of global copper demand growth………………………………………..Full Article: Source

Copper Tells Two Stories on Global Economy

Posted on 24 February 2015 by VRS  |  Email |Print

It is often claimed that copper prices are a reliable barometer of the global economy’s health. Those who monitor the metal closely are sharply divided over its condition. As of Monday, copper’s spot price on the London Metal Exchange had fallen nearly 10% since the start of the year. Even so, the metal has staged a partial recovery from a five-year low reached on Jan. 29, rising 5.1% from that low to $5,672 a ton on Monday.
The whipsawing in prices has been mirrored in the shares of major copper producers. Chile-based Antofagasta PLC’s stock fell 13% in January but has since recovered the lost ground………………………………………..Full Article: Source

Comodities ‘super-cycle’ stalls without wheels

Posted on 23 February 2015 by VRS  |  Email |Print

We may have been deluding ourselves with regard to the recent commodity super-cycle — the apogee of which, by the way, has probably been over for as long as seven years. It may not been so super after all. Charts produced during the week by London-based Capital Economics reveals a pattern of commodity moves that should confound any view that these items have retained good value over the long term.
For one thing, the price surge that reached its most exciting level just before the GFC struck in 2008, was not the greatest in real terms. Adjusted for inflation, the highest peak for commodities was caused by World War I, followed by the oil shock of the 1970s (and sustained by the gold burst in 1980)………………………………………..Full Article: Source

Why Gold Is Looking Lustrous Once Again

Posted on 23 February 2015 by VRS  |  Email |Print

Since peaking above $1,900 an ounce in September 2011, gold prices have declined by nearly 40%, settling at around $1,200 an ounce on Friday. I became bearish on gold in January 2013 and discussed why this January 25, 2013 global macroeconomic commentary, citing: 1) the passing dangers of a euro zone breakup (after Spain, Portugal and Greece were bailed out by their richer peers), 2) the recovering U.S. economy, and 3) that gold was highly vulnerable to a major decline after a 12-year bull market.
I slapped a 12- to 18-month price target of $1,100-$1,300 an ounce—when gold traded at $1,660 an ounce. It now appears that the decline in gold prices is nearly over, and that there will be a great long-term buying opportunity in gold this year………………………………………..Full Article: Source

Nickel Falls to 12-Month Low as Greece Impasse Fuels Demand Woes

Posted on 20 February 2015 by VRS  |  Email |Print

Nickel prices dropped to a 12-month low on concern that European demand for industrial metals will falter amid signs of snags in Greece’s debt talks. Germany rebuffed Greece’s request for an extension of its aid program as euro-area finance ministers prepare to meet to avert a cash crunch for the region’s most-indebted nation. A gauge of the six main prices on the London Metal Exchange has declined 6.6 percent this year.
“There are lots of concerns in Europe whether a deal will be done, and that’s still very much hanging in the balance,” Nic Brown, the head of commodity research at Natixis SA in London, said in a telephone interview. “Issues in Greece epitomize the wider problems for Europe.”……………………………………….Full Article: Source

Gold Edges Higher After Fed Minutes Reveal Rate Worries

Posted on 19 February 2015 by VRS  |  Email |Print

Gold reversed losses Wednesday after minutes from the Federal Reserve’s last meeting showed some central bank officials were worried about raising rates too soon. Gold for April delivery, the most actively traded contract, was recently up 0.2% at $1,211 a troy ounce in electronic trading on the Comex division of the New York Mercantile Exchange. Gold prices ended floor trading down 0.7% at $1,200.20 an ounce, the lowest settlement since Jan. 2.
Minutes from the Fed’s Jan. 27-28 policy meeting showed some officials believed it would be prudent to delay raising interest rates, fearing that financial markets may overreact to tighter monetary policy. Other Fed officials continue to argue for a rate increase in the near term, the minutes showed………………………………………..Full Article: Source

RBA Cut as China Commodity, Local Consumption Doubts Remain

Posted on 18 February 2015 by VRS  |  Email |Print

The Reserve Bank of Australia said doubts about a pickup in domestic spending and China’s appetite for raw materials prompted this month’s decision to lower interest rates, and reiterated that the Aussie dollar remains too high.
“There was considerable uncertainty around the timing and extent of the expected increase in household consumption growth and non-mining business investment,” it said in minutes of the first meeting of the year, where it debated whether to cut straight away or wait a month. There was also a lack of clarity on “the outlook for the Chinese property market and its implications for Chinese demand for commodities,” it said………………………………………..Full Article: Source

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