Thu, Nov 27, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Market Pulse more

Saudis to push OPEC to cut output: CNBC survey

Posted on 27 November 2014 by VRS  |  Email |Print

Saudi Arabia will this week push the Organization of Petroleum Exporting Countries (OPEC) to cut production by up to 1.5 million barrels a day to help re-balance the market and lift oil prices from their four-year lows, analysts and strategists told CNBC.
Nineteen out of 30 market professionals contacted by CNBC say OPEC’s leading member Saudi Arabia will spearhead an agreement to cut supply at its November 27 meeting. “Only a 1.5 million barrel-a-day reduction would help stabilize the price at this stage,” Ole Sloth Hansen, head of commodity strategy at Saxo Bank, told CNBC…………………………………..Full Article: Source

OPEC’s Easy Days Setting Oil Production Are Over, Veteran Says; You Need Russia, Norway, Mexico

Posted on 24 November 2014 by VRS  |  Email |Print

The days when OPEC members could almost guarantee consensus when deciding production levels for oil are long gone, according to a veteran of almost two decades of the group’s meetings.
The global glut of crude, which has contributed to a 30 percent decline in prices since June 19, has left the organization dependent on non-members to shore up the market, said former Qatari Oil Minister Abdullah Bin Hamad Al Attiyah. The 12-member Organization of Petroleum Exporting Countries is scheduled to meet in Vienna on Nov. 27…………………………………Full Article: Source

Iran, Venezuela urge oil price support ahead of OPEC meeting

Posted on 17 November 2014 by VRS  |  Email |Print

OPEC hawks Iran and Venezuela on Saturday called on fellow crude producers to shore up prices that have plunged more than 30 percent to four-years low ahead of an OPEC meeting later this month. Oil prices have fallen to below 79 US dollars on abundant and weak demand from 115 dollars a barrel in June. Skepticism that OPEC will cut supply when it meets on November 27 have also weighed on the prices.
So far, only Kuwait and Iran have said a reduction is unlikely, while a Libyan OPEC official, Venezuela and Ecuador have all called for OPEC to cut output. Privately, some delegates are talking of the need for some action, although they warn an agreement will not be easy to reach……………………………………Full Article: Source

Giving in? OPEC finally admits reduced oil demand in 2015

Posted on 14 November 2014 by VRS  |  Email |Print

Global demand for oil from Opec next year will be far below its current output level because of the US shale boom, the group said on Wednesday, as its top producer, Saudi Arabia, kept silent on whether it will cut output to remove surplus oil from the market.
Saudi Arabia, unusually, has not commented publicly on the fall in oil prices to their lowest since 2010, which has prompted industry watchers to wonder whether the kingdom may be moving away from a policy of managing the market and instead pursuing geopolitical goals…………………………………Full Article: Source

UAE Oil Minister Says OPEC Has Not Contributed To Oversupply

Posted on 12 November 2014 by VRS  |  Email |Print

United Arab Emirates energy minister Suhail bin Mohammed al-Mazrou said on Tuesday that oil market fundamentals had not changed, and the Organisation of the Petroleum Exporting Countries (OPEC) had not contributed to oversupply.
Speaking at an energy conference in Abu Dhabi, he said: “Fundamentals in the market didn’t change, OPEC didn’t contribute to an oversupply … We shouldn’t panic.” Asked who was oversupplying the market, the United States or Russia, he replied: “We all know that this supply in the past years came from the revolution in shale oil and (if) you look at numbers you will find this.”……………………………………….Full Article: Source

Precious Metals demand is shifting to emerging markets, led by China and India

Posted on 11 November 2014 by VRS  |  Email |Print

Since 2006, when India and China absorbed about a third of total gold global mining supplies, the average of India and China per capita GDP has approximately tripled to $4,100 (in 2013) with a total population of 2.7 billion. This rapid per capita GDP growth trend is likely to continue and has the potential to accelerate. China surpassed India in 2013 as the world’s largest consumer of gold.
Together, China and India consumed about 70% of global gold production in 2013, up from about 32% in 2006. In many emerging markets, cultural - and in some cases - religious affinities for the precious metals , notably gold are boosting demand………………………………………..Full Article: Source

Gold Bulls Accelerate Retreat to This Year’s Fastest Pace

Posted on 10 November 2014 by VRS  |  Email |Print

Hedge funds made their biggest cut of the year in bullish gold wagers as prices tumbled to the lowest since 2010. The net-long position in New York futures and options contracted 36 percent as long holdings fell the most in almost two years, U.S. government data show. Investors sold 14.4 metric tons of bullion held through exchange-traded products last week, trimming assets to the least since August 2009.
Gold dropped 15 percent from this year’s high in March as signs of a stronger U.S. economy drove the dollar to a five-year high and fueled speculation that the Federal Reserve is moving closer to raising interest rates. Lower oil costs are helping to keep inflation in check and U.S. equities touched records………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Banks brace for Senate’s commodities hearing

Posted on 07 November 2014 by VRS  |  Email |Print

Sen. Carl Levin of Michigan is preparing to take one last swing at Wall Street before leaving Congress. The Senate Permanent Subcommittee on Investigations, chaired by Mr. Levin (D., Mich), announced Thursday a two-day hearing into banks’ involvement in the ownership and trading of physical commodities in late November.
The hearing, which follows a two-year investigation by the subcommittee, is likely to delve into whether banks’ participation in the market for physical commodities influenced prices and harmed consumers. The subcommittee has held discussions with officials from J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley , among others. It wasn’t immediately clear who will appear before the subcommittee, but regulators and companies are expected to appear………………………………………..Full Article: Source

Will the Swiss Referendum Turn Around Gold?

Posted on 07 November 2014 by VRS  |  Email |Print

Gold is in free fall. But a Swiss vote later this month might help stoke a rebound in the yellow metal and alter the contours of the gold market for years to come. Though it sounds farfetched, a referendum in Switzerland on Nov. 30 could force the hand of the Swiss National Bank to buy billions of dollars in gold and never sell.
So far, gold prices have paid little mind to the vote, slumping nearly 13% over the past three months as a rising dollar and diminishing inflation expectations have eroded gold’s appeal………………………………………..Full Article: Source

The Current State of the Global Investment Climate

Posted on 04 November 2014 by VRS  |  Email |Print

There are three elements to the investment climate: The divergence between the US on one hand and Europe and Japan on the other, the drop in many commodity prices, including oil, and the slowing of the Chinese economy.
Last week, the divergence was driven home by policy makers. The contrast could not be starker. The FOMC ended QE, and seemingly began prepare investors for a rate hike next year, and the Bank of Japan, surprise of extending its asset purchases from JPY60-70 trillion a year to JPY80 trillion………………………………………..Full Article: Source

Switzerland’s Gold Bug Moment

Posted on 04 November 2014 by VRS  |  Email |Print

Switzerland will hold a referendum at the end of the month on whether the nation’s central bank should be obliged to hold at least 20 percent of its reserves in gold bullion. While there’s something inherently attractive about a population having its say in how its assets are husbanded, the Swiss need to be mindful of the likely consequences of locking a fifth of their wealth away in a bullion vault.
Switzerland has about 522 billion francs of reserves. Less than 40 billion francs of that is in gold, with 462 billion francs in foreign currency. Measured in the Swiss currency, gold currently costs about 1,130 francs ($1171) per ounce………………………………………..Full Article: Source

FS Investment Committee: Which way for commodities?

Posted on 03 November 2014 by VRS  |  Email |Print

It has been difficult to call the direction of commodities over the past two years but is now the time to buy in? For this month’s investment committee we revisit an asset class we last discussed about 19 months ago – commodities. In March 2013 the subject of the debate was whether, after a decade of rising prices, the “supercycle” enjoyed by commodities was finally at an end.
The general view taken by the committee at the time was that the cycle might not be over on a long-term basis but short-term prices were in for a period of volatility and maybe there was a need to press the pause button on the party………………………………………..Full Article: Source

Kiosk carnage becomes indicator of gold’s top

Posted on 03 November 2014 by VRS  |  Email |Print

Wall Street didn’t call the top in gold—the neighborhood mall did, Buyers may want to be cognizant of that before the next craze takes hold. It used to be that kiosks had cornered the market on retail bullion. All you had to do is follow the growing number of gold kiosks offering to buy used jewelry and coins in 2011. That’s the year when gold prices were on a tear and hit fresh highs in the $1,900 range.
As big investment firms were hiking their forecasts to more than $2,000 an ounce, Main Street was trying to cash in by convincing people they could be missing the opportunity of a lifetime………………………………………..Full Article: Source

OPEC Oil Output Rises in October as Prices Tumble: Survey

Posted on 31 October 2014 by VRS  |  Email |Print

OPEC crude production rose to a 14-month high in October as oil futures sank into a bear market, a Bloomberg survey showed. Production by the 12-member Organization of Petroleum Exporting Countries climbed by 53,000 barrels a day to 30.974 million, led by gains in Iraq, Saudi Arabia and Libya, according to the survey of oil companies, producers and analysts.
Last month’s total was revised 14,000 barrels a day lower to 30.921 million because of changes to the Iraqi, Kuwaiti, Nigerian and Qatari estimates………………………………………..Full Article: Source

The next big market shock can come from ‘Save Swiss gold’ movement

Posted on 29 October 2014 by VRS  |  Email |Print

Love for gold was supposed to be an Indian affair but that was before the Chinese came in and overtook Indian annual purchases. Even this will now change from November 30, 2014 if the Swiss have their way. November 30, 2014 can be a game changing one for the gold market globally. The Alpine country will vote on that day on the so-called “Save our Swiss Gold” initiative.
The motion calls for the central bank to hold at least 20 per cent of its assets in gold, prohibit selling any gold in future and bring back all its reserve of gold back in the country………………………………………..Full Article: Source

Why it’s time to stop fearing OPEC

Posted on 27 October 2014 by VRS  |  Email |Print

The global energy market can be a scary place for America. For decades, one of the biggest reasons has been the cartel known as OPEC. Saudi Arabia and the 11 other nations that make up the Organization of Petroleum Exporting Countries collude openly, setting production limits and shaping the world oil market in their interests.
Concerns about OPEC have driven American energy policy ever since a devastating six-month embargo by Arab oil producers in 1973 plunged the nation into recession and seared the four-letter acronym into the national consciousness………………………………………..Full Article: Source

Switzerland Set To Greedily Grab Gold

Posted on 27 October 2014 by VRS  |  Email |Print

The Swiss National Bank (SNB) could soon be obliged to begin acquiring gold because of a very specific question posed by a referendum. On Sunday, November 30th, 2014, the Swiss will go to the polls to vote their response to a question titled “Save Our Swiss Gold”. If this were approved it would require the SNB to:
Hold 20% of its reserves in gold. Repatriate any gold it holds outside its borders.Cease selling any gold………………………………………..Full Article: Source

Gold Demand in India, China on the Rise

Posted on 27 October 2014 by VRS  |  Email |Print

Appetite for physical gold in India and China has rebounded in recent days, with low prices boosting demand during India’s Diwali festival, the country’s biggest gold-buying occasion of the year.
Demand surrounding this year’s Diwali festival, which was celebrated Thursday, rose by around a third from last year, said Rahul Gupta, managing director of New Delhi-based P.P. Jewelers, a jewelry retail chain. “The gates seem to have come off for festival buyers in the last couple of days,” he said………………………………………..Full Article: Source

The Top Technical Indicators For Commodities Investing

Posted on 24 October 2014 by VRS  |  Email |Print

The primary motive for any trader, investor or speculator is to make trading as profitable as possible. Primarily two techniques, fundamental analysis and technical analysis, are employed for making buy, sell or hold decisions. The technique of fundamental analysis is believed to be ideal for investments involving a longer time period.
It is more research based; it studies demand-supply situations, economic policies, and financials as decision-making criteria. Technical analysis is commonly used by traders, as it is appropriate for short term judgment in the markets–namely, deciding a quick buy and sell, entry and exit points, etc. It is pictorial; it analyzes the past price patterns, trends and volume to construct charts in order to determine future movement………………………………………..Full Article: Source

Libya OPEC Governor Says Group Must Cut Daily Oil Output

Posted on 23 October 2014 by VRS  |  Email |Print

OPEC needs to reduce crude output by at least 500,000 barrels a day, Libya’s governor to the group said, the first time since prices plunged into a bear market that a representative from a member nation has suggested how much production should be cut.
Oil markets are oversupplied by about 1 million barrels a day, Samir Kamal, Libya’s OPEC governor, said by e-mail today. His comments reflected personal views, not the official Libyan position, he said. Libya shouldn’t be expected to reduce its own oil output because the country is still struggling to restore production that has been disrupted for more than a year by political conflict, he said………………………………………..Full Article: Source

A World Without OPEC?

Posted on 23 October 2014 by VRS  |  Email |Print

Forty-one years ago this month, the Arab oil embargo began. The countries that were part of it belonged, of course, to the Organization of Petroleum Exporting Countries — OPEC — which had banded together 13 years earlier to strengthen their ability to negotiate with international oil companies.
The embargo led to widespread shortages in the United States, higher prices at the gas pump and long lines at gas stations. By the time it ended, the price of oil had risen to $12 a barrel from $3. Perhaps more important than the price increases themselves was the new world order the embargo signaled. The embargo “set in motion geopolitical circumstances that eventually allowed (OPEC) to wrest control over global oil production and pricing from the giant international oil companies — ushering in an era of significantly higher oil prices,”……………………………………….Full Article: Source

Will Gold Outshine Platinum? — Overheard

Posted on 23 October 2014 by VRS  |  Email |Print

Gold and platinum are prized for their rarity. What is happening with their prices right now is also pretty unusual. At about $1,245 an ounce, gold isn’t far off parity with platinum at about $1,270. This doesn’t happen often. In the past 20 years, gold has matched or exceeded the platinum price only about 7% of the time. And much of that occurred between the summer of 2011 and early 2013, when quantitative easing was in full swing and hyperbole about the dollar’s demise was at its height.
Similarly, the current price action reflects an anxious world. Gold hasn’t really gained much this year; rather, platinum has collapsed since July. This makes sense. as more than half of platinum demand relates to industrial, primarily, automotive uses. Deflation fears have whacked industrial commodities………………………………………..Full Article: Source

Oil at $80 a Barrel Muffles Forecasts for U.S. Shale Boom

Posted on 22 October 2014 by VRS  |  Email |Print

The bear market in oil has analysts reassessing the U.S. shale boom after five years of historic growth. The U.S. benchmark price dropped to $79.78 a barrel on Oct. 16, the lowest since June 2012. At that level, one-third of U.S. shale oil production would be uneconomic, analysts for New York-based Sanford C. Bernstein & Co. led by Bob Brackett said.
Drillers would add fewer barrels to domestic output than the previous year for the first time since 2010, according to Macquarie Group Ltd., ITG Investment Research and PKVerleger LLC………………………………………..Full Article: Source

More clarity needed in the most volatile commodity oil

Posted on 20 October 2014 by VRS  |  Email |Print

Companies need to know what returns they will get after investing risk capital. When the previous government wanted to double natural gas prices, the oil industry said the new price was, at best, a good interim step towards total market freedom. The government needs to keep in mind two things: one, India needs new discoveries; two, state-run firms have failed to make significant discoveries for a long time.
In framing policies, the government cannot take comfort from the fact that global crude oil prices are in a bear market, having fallen 25% since the June peak of $115. India should be prepared for sudden jumps in prices even as the short-term outlook is rosy for consumers. The International Monetary Fund has downgraded its forecast for global economic growth, while the International Energy Agency has scaled down its forecast for oil demand for the fourth consecutive month………………………………………..Full Article: Source

Gold Bulls Lured Back for First Time in Two Months: Commodities

Posted on 20 October 2014 by VRS  |  Email |Print

Speculators added bullish gold bets for the first time in nine weeks as concern that global economic growth is slowing whipsawed equity markets. The gain in the net-long position in New York gold futures and options snapped the longest run of reductions since 2010. Prices rose for a second week as global equities retreated to an eight-month low.
More than $3.2 trillion was wiped from the value of world shares this month as the International Monetary Fund cut its outlook for global growth in 2015. Federal Reserve policy makers identified slowing foreign economies as a risk to the U.S., spurring the fastest purchases of gold held through exchange-traded products since July………………………………………..Full Article: Source

Saudi supply games expose OPEC impotence

Posted on 16 October 2014 by VRS  |  Email |Print

The oil price is in free fall, down 27 per cent since June and 13 per cent so far in October. Saudi Arabia, the world’s traditional swing producer, has done nothing to defend the $100 (U.S.) a barrel floor price for Brent crude, which had not been breached since July, 2012. Why?
The indifference seems to be intentional. The kingdom increased production last month despite concerns that rapid growth in U.S. shale oil production, recovering output in Libya and Iraq and a slowing pace of demand growth may tip the market into surplus. Reuters reported on Monday that Saudi sources were comfortable with the price trends – although Prince Alwaleed bin Talal, the billionaire Saudi businessman, has expressed reservations on Twitter………………………………………..Full Article: Source

In shift, OPEC price hawk Iran says can live with lower oil

Posted on 15 October 2014 by VRS  |  Email |Print

Iran, in a change of tack, is saying it can live with lower oil prices, moving closer to the views of Saudi Arabia and other Gulf OPEC members and reducing the likelihood of any collective cut in OPEC output to support prices.
OPEC’s traditionally second-largest producer is normally among the first members of the Organization of the Petroleum Exporting Countries to call for supply cuts to support prices. Iran needs relatively high oil prices to balance its budget, analysts say………………………………………..Full Article: Source

World LPG prices plummet on financial market weakness

Posted on 15 October 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group reports that PIRA’s restructured U.S. gasoline balances provide greater clarity and insight. In the U.S., large crude stock build, small product stock draw, and widening commercial stock excess. In Japan, crude stocks build despite higher runs. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
PIRA’s restructured US Gasoline balances provide greater clarity and insight: PIRA’s restructured gasoline balances are in response to the steep decline in volume and the relevance of finished gasoline stocks and imports. The changes to the EIA’s finished balance came about as a result of the decline in MTBE and the rise in ethanol, as the oxygenate of choice………………………………………..Full Article: Source

What OPEC Is Really Telling The IMF

Posted on 10 October 2014 by VRS  |  Email |Print

The Secretary General for the Organization of the Petroleum Exporting Countries (OPEC), H.E. Abdalla Salem El-Badri, issued a statement to the International Monetary Fund (IMF) on Thursday. He touched on a few key points of crude oil prices, the global economic forecast, and emerging markets, to name a few.
What we would stress to our readers is what OPEC sees for global demand and output — that thing called the US Energy Boom hangs in the balance. The underlying message from this statement is that as production in North America continues to grow it will outpace production in the rest of world, driving the demand of oil down over time. Crude oil prices in September fell to their lowest level this year………………………………………..Full Article: Source

Why A Gold Standard Does Not Imply Price Stability

Posted on 10 October 2014 by VRS  |  Email |Print

Last week, Alan Greenspan penned an interesting article in Foreign Affairs that praised China’s recent conversion of some of its $4 trillion foreign exchange reserves into gold bullion and gave the gold standard some further adulation in a world where there is relatively little today from mainstream economists.
This marks the first time the gold standard has been seriously discussed by a senior U.S. policymaker (former or present) since 2012, when two GOP presidential candidates, Newt Gingrich and Ron Paul, along with former Congressman Lewis Lehrman and Grant’s Interest Rate Observer founder James Grant, called for a commission to consider readopting the gold standard………………………………………..Full Article: Source

Is there a reason to fear downturn in commodity prices?

Posted on 08 October 2014 by VRS  |  Email |Print

With few exceptions, commodity prices have fallen sharply in recent months, to their lowest levels in over a year. Relative to stock market indices, broad commodity indices are now at their lowest levels since the late-1990s dot com boom.
But key commodity price ratios, such as those between precious and industrial metals, are already at levels associated with financial crises such as that of 2008. In other words, there is already ‘blood on the commodity streets’, presenting investors and commodity traders with potentially attractive opportunities………………………………………..Full Article: Source

Iran says no plan for OPEC emergency meeting on price fall

Posted on 08 October 2014 by VRS  |  Email |Print

Iran Oil Minister Bijan Zanganeh said on Tuesday that OPEC has no plans to hold an emergency meeting to discuss the recent slide in oil prices, Iran’s oil ministry news agency Shana reported. Brent crude oil fell towards $92 a barrel on Tuesday, pushing towards 27-month lows as weak demand and ample supply outweighed the price support from a weaker dollar.
Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet in Vienna on Nov. 27 to consider whether to adjust their output target of 30 million barrels per day (bpd) for early 2015. “For the moment, there is no plan for an OPEC emergency meeting,” Shana quoted Zanganeh as saying………………………………………..Full Article: Source

Does China Really Impact Global Commodity Prices? (Video)

Posted on 07 October 2014 by VRS  |  Email |Print

Does China really have a strong impact on the US and global commodity prices? No, says economist Kel Kelly. Kel Kelly, economist with GROWMARK, said China doesn’t have a strong impact on the US or global markets because they don’t buy US agricultural products.
He explains the rationale behind his view. Kel spoke at the Global Grains North America conference held in Chicago, Illinois, USA………………………………………..Full Article: Source

EU Moves Closer to Deal on 2030 Climate, Energy Strategy

Posted on 07 October 2014 by VRS  |  Email |Print

The European Union made headway toward a deal on a strategy to shift to a low-carbon economy and boost security of energy supplies amid a natural-gas dispute between Russia and Ukraine.
Energy and environment ministers from the EU’s 28 member states met in Milan yesterday to prepare ground for a compromise at the Oct. 23-24 summit, where the bloc’s leaders are expected to decide on policies for 2030. The challenge for governments is to reconcile the need for cheaper and safer energy while accelerating the pace of emissions reductions………………………………………..Full Article: Source

Oil Prices Are Falling, Not Oil Regimes

Posted on 03 October 2014 by VRS  |  Email |Print

Oil prices continued falling Thursday, dipping to levels last seen almost two years ago, despite a steady drumbeat of perilous developments from Ukraine to Iraq to Hong Kong. But for all the turmoil in oil markets, not all petrostates are panicking. Although big producers, from Saudi Arabia to Russia, rely on high crude prices to balance their budgets, the price hasn’t dropped low enough, or long enough, to fiscally squeeze them just yet.
Crude oil traded in New York slipped below $90 a barrel in midday trading Thursday before settling slightly higher; Brent crude traded in London fell to about $93 a barrel, continuing a plunge that began in June. Oil prices had reached $115 a barrel over the summer, at the height of the Islamic State’s territorial gains in Iraq………………………………………..Full Article: Source

OPEC Price War Signaled by Saudi Move Risks Deeper Drop

Posted on 03 October 2014 by VRS  |  Email |Print

Crude oil is poised to extend the biggest slump in more than two years after Saudi Arabia signaled it’s ready for a price war with other OPEC members, according to Commerzbank AG and Citigroup Inc.
Saudi Aramco, the state-run oil producer of the world’s biggest exporter, cut prices on Oct. 1 for all its exports, reducing those for Asia to the lowest level since 2008. The move suggests that the biggest member of the Organization of Petroleum Exporting Countries is prepared to let prices fall rather than cede market share by paring output to clear a supply surplus, according to Commerzbank………………………………………..Full Article: Source

News Of OPEC’s Death Might Not Be An Exaggeration

Posted on 02 October 2014 by VRS  |  Email |Print

Reports about the death of the Organization of Petroleum Exporting Countries (OPEC) have generally proved to be as accurate as reports about the death of Mark Twain – until now. Back in 1897 the great story teller Twain was able to skewer inaccurate accounts of his passing with an immortal comment that “the report of my death was an exaggeration”.
OPEC, an oil marketing cartel comprised mainly of Arab states, plus a few outliers such as Venezuela, has been able to say the same thing for the past 30 years………………………………………..Full Article: Source

How the U.S. Can Break OPEC

Posted on 02 October 2014 by VRS  |  Email |Print

The U.S. and global economy has been all but crushed by the cartel pricing power of OPEC (Organization of the Petroleum Exporting Countries) for far too long. Worse than a consumption tax, high oil prices, because of our current dependence on internal combustion and compression engines using oil products, have been a burden for decades.
The perpetrators of the cartel force U.S. and global consumers to pay not only for oil but for the costs of social welfare, such as it is, infrastructure and military capability in their respective countries. With the ability to reduce production and their refusal to increase production, despite their available reserves, OPEC members charge what they think the market will bear against what price might otherwise throw the world into recession………………………………………..Full Article: Source

Shale oil eases the economic pain of Middle East military action

Posted on 30 September 2014 by VRS  |  Email |Print

There was a time when headlines about jets bombing Middle Eastern refineries would have sent oil prices soaring. Granted, Islamic State’s facilities aren’t exactly world class. But it is telling that such violence is doing little to lift the price of crude. Brent is down 13 per cent this year and looks set to post its weakest yearly average price since 2010, before the Arab Spring really got going.
The big culprit for this disconnect is shale. US-led growth in oil output from the industrialised world since the start of 2011 has offset supply disruptions in the Organisation of the Petroleum Exporting Countries, according to Citigroup………………………………………..Full Article: Source

Worst isn’t over yet for gold, says Goldman Sachs

Posted on 29 September 2014 by VRS  |  Email |Print

Gold has erased almost all of this year’s gains and looks set for its first quarterly decline in 2014. According to Jeffrey Currie, Head-Commodoties Research Team at Goldman Sachs, the worst is not yet over for gold . The yellow metal is likely to slide down further.
According to Jeffrey, gold had taken much of its support from the political deadlock in Ukraine and geo-political tensions in the Middle East. Having those concerns seems to have faded at least for the time being, gold prices are likely to collapse further. The strengthening US economy has spiked a rally in dollar and stock markets. The S&P 500 index has surged to record highs during this month. Goldman Sachs sees lucid exodus of wealth from gold to other risky assets going forward………………………………………..Full Article: Source

High supplies, fading demand and Ebola fears hit commodities

Posted on 29 September 2014 by VRS  |  Email |Print

The broad-based BBG Commodity Index, which tracks the performance of 22 major commodities, reached a new five-year low before trading close to unchanged on the week. Performances across individual sectors are very mixed, with gains in energy and soft commodities offset by losses in industrial metals and grains.
Stock market weakness, falling bond yields and the strong dollar (which continues to reach new heights) were some of the overall drivers, with geopolitical worries holding steady on the horizon………………………………………..Full Article: Source

Overheard: Falling Prices Hit OPEC

Posted on 26 September 2014 by VRS  |  Email |Print

Oil cartel struggles to cope with falling prices—the heart bleeds, surely. Sympathizing aside, OPEC’s fiscal health is a big factor in arresting the slide in oil prices, down 15% in three months. In a report published Wednesday, Citigroup estimated oil prices at which various major exporters balance their books. These range from $44 a barrel for Kuwait up to $184 for Libya.
Some big producers are squarely in deficit territory. Iran’s price is $130, for example, while Venezuela’s is $161. Brent’s average so far this year—the key metric rather than the current price—is $107………………………………………..Full Article: Source

Iran: OPEC Should Balance Production to Stabilize Crude Prices

Posted on 26 September 2014 by VRS  |  Email |Print

Iran’s Oil Minister said the Organization of the Petroleum Exporting Countries, OPEC, should balance its crude production to stabilize oil prices in the market. “OPEC should definitely balance its production to avoid crude price volatility in the market,” Bijan Namdar Zanganeh said.
Asked about the possible impact of the results of the nuclear negotiations between Iran and six world powers on crude prices, the Iranian oil minister said the prices are “reasonable enough” not to be affected by such issues. Zanganeh’s comments come against the backdrop of the recent sharp drop in crude prices………………………………………..Full Article: Source

OPEC: Breakeven Bad

Posted on 25 September 2014 by VRS  |  Email |Print

Oil cartel struggles to cope with falling prices–the heart bleeds, surely. Sympathizing aside, OPEC’s fiscal health is a big factor in arresting the slide in oil prices, down 15% in three months. In a report published Wednesday, Citigroup estimated oil prices at which various major exporters balance their books. These range from $44 a barrel for Kuwait up to $184 for Libya.
Some big producers are squarely in deficit territory. Iran’s price is $130, for example, while Venezuela’s is $161. Brent’s average so far this year—the key metric rather than the current price—is $107………………………………………..Full Article: Source

What the Charts Are Saying About Gold, Precious Metals

Posted on 25 September 2014 by VRS  |  Email |Print

As bad as conditions have been for gold and precious metals stocks in recent weeks, they could be on the verge of getting much worse. Some key indices, exchange-traded funds and individual stocks are nearing critical support levels, leaving little room for further weakness before the sector breaks down completely.
Here are the levels you need to watch to determine whether to position for a bounce or stay out of the way: The SPDR Gold Shares (GLD) ETF has been falling with virtually no let up since the beginning of August, bringing it within striking distance of its 52-week low of $114.46. The last time GLD traded below this level was 2010, about the midpoint of what would prove to be a three-year rally………………………………………..Full Article: Source

Russia and OPEC look like they are in a slump, but it is only a phase

Posted on 23 September 2014 by VRS  |  Email |Print

Russia and OPEC are under challenge from Western-led sanctions and the surge of US oil production, but it’s only a pause: both will be back stronger, according to a new report.
Since 2006, Russia has roared back from a post-Soviet plunge in oil production, producing a steady 10 million barrels a day, which in turn supports more than 40% of the state budget. A halt to drilling in the Russian Arctic announced Sept. 19 by ExxonMobil shows how Western sanctions could hurt Moscow’s ambitions to maintain at least that level of production for decades to come………………………………………..Full Article: Source

“Gradual” Gold Bull Market to Start 2015, “Next Floor at $1200″ Says GFMS

Posted on 22 September 2014 by VRS  |  Email |Print

Gold’s decade-long bull market is set to resume in 2015, albeit “gradually” from a new bottom according to a new forecast from the market’s leading data analysts, Thomson Reuters GFMS. Thanks to gold’s rally over the first half of 2014 from $1200 to $1400, the consultancy says today in the first Update to its Gold Survey 2014, “Price sensitive [consumer] markets have seen sales slow.
“We believe it will take prices in a $1200-1250 range in order for physical buying from Middle Eastern, East and South East Asian markets to begin to increase.” Low volatility and gold’s tightening price range form “the other defining feature” of the 2014 market to date, GFMS adds, noting that volatility on a 100-day basis has fallen to its second-lowest level since 2005, “undermin[ing] trade volumes.”……………………………………….Full Article: Source

OPEC Supply Risks Mount as Biggest Libyan Field Is Halted

Posted on 19 September 2014 by VRS  |  Email |Print

A reduction in OPEC crude output deepened as Libya’s biggest producing oilfield stopped pumping amid supply cuts from Saudi Arabia and potential disruptions to Nigerian exports. Libya halted the Sharara oilfield as a precaution after a rocket attack on the connected Zawiya refinery three days ago, closing down about 30 percent of national output.
In Africa’s largest oil producer, state-owned Nigerian National Petroleum Corp. was in talks yesterday to prevent a strike that threatened to disrupt exports. Saudi Arabia told the Organization of Petroleum Exporting Countries that in August it made the deepest production cut in 18 months……………………………………..Full Article: Source

OPEC Members See Cut in Output Ceiling as Unlikely

Posted on 18 September 2014 by VRS  |  Email |Print

OPEC members other than Saudi Arabia are unlikely to cut production or agree to a collective cut to the cartel’s output ceiling when it meets in November, several of the group’s delegates said Wednesday. They were speaking after Abdalla Salem el-Badri, the secretary-general of the Organization of the Petroleum Exporting Countries, said Tuesday that the group may lower its production by 500,000 barrels a day to adjust to lower demand for its crude oil next year, according to press reports.
His remarks were widely interpreted as a signal OPEC will cut its output ceiling of 30 million barrels a day, which has been in place since late 2011, when it meets in November…………………………………….Full Article: Source

US to remain biggest diamond market

Posted on 18 September 2014 by VRS  |  Email |Print

The United States is likely to remain the world’s largest market for diamonds for the next 15 years despite a growing appetite for the gems from China and India, leading producer De Beers said Wednesday.
China has the fastest growing demand, jumping to a share of about 15 percent of the world’s diamond market from less than three percent in 2003. But it is not expected to overtake the US market’s 40 percent share for more more than a decade, De Beers CEO Philippe Mellier said…………………………………….Full Article: Source

banner
November 2014
S M T W T F S
« Oct    
 1
2345678
9101112131415
16171819202122
23242526272829
30