Fri, Dec 19, 2014
A A A
Welcome preal121
RSS

Commodities Briefing - Category | Market Pulse more

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

Can aluminium prices sustain their rally?

Posted on 18 September 2014 by VRS  |  Email |Print

This year has seen a revival in aluminium prices along with prices for a number of other base metals, such as zinc and nickel. Whereas the strength in zinc and nickel prices has been mainly supply - driven, the picture for aluminium is more nuanced.
Aluminium is the second most produced metal in the world and is used in a wide range of applications, from construction and cars to packaging. The industry has been suffering from oversupply since 2007, mainly due to large capacity increases in China and the Middle East. Prices have been falling since 2011, leading to shutdown of smelters…………………………………….Full Article: Source

Commodity Funds Are Struggling in Low-Volatility Environment

Posted on 17 September 2014 by VRS  |  Email |Print

Commodity hedge funds, which tend to perform the best when volatility spikes, have suffered in some areas this year with wrongly timed bets. Winners include Duet Commodities, Cumulus Energy, Merchant Commodity, whereas Brevan Howard Commodities Fund, Armajaro Commodities and Andurand Capital had a tough run through most of the year.
The recent surge in volatility has helped some, but most of the gains came from natural gas and soft commodities. Oil and precious metals have not done any favors to hedge funds who had major positions as prices tumbled………………………………………Full Article: Source

Libya, Iraq Insecurity May Hit Future OPEC Supply Prospects

Posted on 16 September 2014 by VRS  |  Email |Print

Amid a continuing slide in global oil prices, the head of OPEC has said political insecurity in Iraq and Libya could affect the oil-producing cartel’s future output prospects.
In an interview at the Organization of the Petroleum Exporting Countries’ headquarters, Secretary-General Abdalla Salem el-Badri said that while Iraq has great potential to grow oil production, it needs to solve its security problems. “If there is no security, there will be no investment,” he said. “If there is no investment, there will be no additional supply.”……………………………………….Full Article: Source

Why Goldman Sachs is Wrong on Gold

Posted on 16 September 2014 by VRS  |  Email |Print

Wall Street powerhouse Goldman Sachs has recently reiterated its negative view on gold, which it has held for the past year. However, it is now doubling down on this view and advising clients to actually go short the metal. Jeff Currie, head of commodity research at Goldman noted “Our target is really driven by the view that we think that the Fed will ultimately be the dominate force here and put more downward pressure [on prices]“.
While I am in agreement with Goldman that the Fed will be the dominant force behind the price of gold, I believe the central bank will soon be back into the QE business, rather than raising interest rates and crushing the dollar price of gold………………………………………..Full Article: Source

How poor countries seemed to be catching up with rich ones

Posted on 15 September 2014 by VRS  |  Email |Print

If the 20th century belonged to the rich countries of North America and Europe, the thinking among some economists goes, then the 21st will be the era of the emerging world. Economic growth across emerging markets has been scorching since 2000. Some of the largest countries, like India and China, managed growth rates above 10% per year. Continued growth at such rates would mean a process of “convergence” with the rich world.
That would mean higher living standards in developing countries and a shift in the balance of economic and political power. Yet those prospects seem to be diminishing. Growth rates are dropping across emerging markets, from the largest—including countries like Brazil and Russia that are now in recession—to the smallest. As a result, the rate of convergence has dropped to almost zero. What was driving convergence, and why has it stopped?……………………………………….Full Article: Source

Commodity price slump is a matter of perspective

Posted on 12 September 2014 by VRS  |  Email |Print

Commodity prices may have come under pressure this year, but they are still 115 per cent above their 1990s average, with iron ore and oil up over 500 per cent, according to a long-term analysis of commodity prices by HSBC.
But taking an even long-term view back to the 19th century, commodity prices are actually about normal, HSBC found. In the future, sugar and meat prices will increase sharply, oil will go up further, and metal prices will remain strong, the bank’s economists predict………………………………………..Full Article: Source

Silver Loses Its Polish

Posted on 12 September 2014 by VRS  |  Email |Print

It hasn’t been a good day for precious metals. We already reported that gold is on its way to its fourth straight day of declines thanks to a strong U.S. dollar and falling demand for a safe haven. But silver has also taken a thumping, and earlier today fell to its lowest price in 14 months. That took silver-focused ETFs along for the ride.
Silver futures for December delivery dropped 1.5% to $18.65 an ounce after earlier falling to $18.57, the lowest price since June 28, 2013. Checking in on solver ETFs, the iShares Silver Trust (SLV) fell 1.9% to $17.90. The Proshares Ultra Silver (AGQ) fell 3.6% to $55.40, while the ProShares UltraShort Silver (ZSL) rose 3.8% $91.03………………………………………..Full Article: Source

OPEC says world will need less of its oil next year

Posted on 11 September 2014 by VRS  |  Email |Print

OPEC said demand for its crude oil will be lower than expected next year, with a surge in US output potentially bringing its production to levels not seen since the past decade.
In its monthly oil-market report, the Organization of the Petroleum Exporting Countries said it had lowered the estimate of demand for its crude by 200,000 barrels a day for 2015 and by the same amount for this year. As a result, markets will need 300,000 barrels a day less of OPEC crude next year, it said………………………………………..Full Article: Source

Limited physical demand poses risk for Gold: Barclays

Posted on 08 September 2014 by VRS  |  Email |Print

Limited physical demand for gold will put the yellow metal under downside risk, a report by Barclays said. The strength of the dollar has weighed upon gold, but prices have held up relatively well, considering the magnitude of the move in the currency.
Macro data from the US have been better than expected, increasing market speculation of earlier rate hikes. While in Europe, the ECB rate cut and ABS purchase programme to be launched in October have driven the euro to weaken further against the dollar. The EUR/USD is now trading at levels last seen in July 2013 on the back of the ECB announcement and expectations for a Fed rate hike next year………………………………………..Full Article: Source

Why the crisis in Ukraine isn’t saving gold

Posted on 05 September 2014 by VRS  |  Email |Print

Whenever a geopolitical crisis rears its head—such as the one slowly unfolding between Russia and Ukraine—Wall Street can be quick to tie gold’s daily moves to any belligerent or peaceful headlines. Many turn to bullion in times of turmoil, viewing gold as a safe haven asset that rises when situations gets scary.
But according to gold experts, that betrays a basic misunderstanding of how the gold market works. “I don’t think the geopoliticals are doing anything for gold. And the only time they do is if they destabilize the equity market,” said Edward Meir, senior commodity consultant with INTL FCStone………………………………………..Full Article: Source

Did Opec Miss the Shale Boat?

Posted on 04 September 2014 by VRS  |  Email |Print

Opec missed the fracking bandwagon according to this article that includes quotes from a secret letter written by Prince Al-Waleed Bin Talal, a high-ranking member of the Saudi royal family, that drew attention to the threat posed by non-Opec unconventional resource production growth.
“In addition to the many discoveries of oil and gas in the U.S., Canada and Australia,” the prince wrote, “there are also great discoveries of shale gas, which will lead to a reduction of consumption of our oil.” It does not appear conditions exist in Opec nations that would facilitate similar levels of shale development seen in North America………………………………………..Full Article: Source

Policy uncertainty threatens to slow renewable energy momentum

Posted on 02 September 2014 by VRS  |  Email |Print

IEA forecast sees renewable power as a cost-competitive option in an increasing number of cases, but facing growing risks to deployment over the medium term. The expansion of renewable energy will slow over the next five years unless policy uncertainty is diminished, the International Energy Agency (IEA) has said in its third annual Medium-Term Renewable Energy Market Report.
According to the report, power generation from renewable sources such as wind, solar and hydro grew strongly in 2013, reaching almost 22% of global generation, and was on par with electricity from gas, whose generation remained relatively stable………………………………………..Full Article: Source

Brent Oil Extends Two-Month Slump Amid OPEC Expansion

Posted on 02 September 2014 by VRS  |  Email |Print

Brent crude extended a two-month slide as OPEC’s production was seen increasing and manufacturing gauges in Europe and China missed estimates. West Texas Intermediate fell in New York.
Futures slid as much as 0.6 percent in London, having retreated more than $9 in July and August. The Organization of Petroleum Exporting Countries boosted output by 891,000 barrels a day to 31 million in August, the highest level in a year, estimates compiled by Bloomberg show………………………………………..Full Article: Source

How to Simplify Commodities

Posted on 01 September 2014 by VRS  |  Email |Print

Investors have long known that adding a dash of commodities to their portfolios can be beneficial to their wealth. The only problem has been implementing this strategy. It’s difficult to know which commodities are a good bet, and broad commodities-focused indexes are inadequate. Investors also worry that futures prices don’t always track the spot market.
But veteran economist David Ranson, at Cambria, Calif.-based HC Wainwright & Co. Economics, might have a solution to all these potential problems: investing in just four commodities………………………………………..Full Article: Source

Iraq and Libya spark oil production fears

Posted on 29 August 2014 by VRS  |  Email |Print

The world fears an oil crisis will occur if the security situation in oil-producing countries does not improve, especially in Iraq and Libya, two prominent producing countries. Everyone is concerned and is expecting the suspension of the Iraqi oil supply at any time now. If an Iraqi oil disaster occurs — especially if production allocated for export is halted — oil prices will easily hit an average of $130 per barrel and will only cease to fluctuate when Iraq regains calm and stability.
There is an urgent demand on Iraqi oil in both the short and long term. The suspension of production is equivalent to 1 million barrels per day (bpd) of Libyan oil supplies and nearly 3.3 million bpd of Iraqi supplies………………………………………..Full Article: Source

All’s Fair In Love And War And Oil

Posted on 27 August 2014 by VRS  |  Email |Print

An Iraqi Kurdish crude oil tanker has been seen floating off the coast of Israel after offloading its cargo, ship tracking data has shown. If true, the transaction would be in open defiance of Baghdad, with whom Israel has no diplomatic or commercial relations. Furthermore, any commercial transaction between an Arab country and Israel violates the ruling of the Arab Boycott Bureau that bans all commercial exchanges with the Jewish state.
But it would not be the first time that Kurdish oil has found its way into the Israeli market. Iraqi Kurdistan, although autonomous, is still in principle supposed to conduct its oil transactions through Baghdad. Selling into the oil market directly and independently of Baghdad provides the Kurds in northern Iraq with much needed funds. It also helps the Kurds move away from Baghdad and toward independence, which it has made no secret of wanting………………………………………..Full Article: Source

How to Invest in Silver Today for Double-Digit Gains

Posted on 27 August 2014 by VRS  |  Email |Print

If you’ve been watching silver for some time, you know it’s been in the doghouse. After peaking at $49 back in April 2011 the white metal is down 60%, having languished between $19 and $22 for the past two years.
But a confluence of factors is building that make today’s silver prices look downright cheap. Here’s how the bull is going to run - and how you can ride it all the way up from here… To explain how the precious white metal behaves, I like to use the phrase: silver is like gold - on steroids………………………………………..Full Article: Source

US Mint Platinum Coins Bypassed in Rush for Gold

Posted on 22 August 2014 by VRS  |  Email |Print

Five months after the U.S. Mint began producing coins made with platinum, sales have all but collapsed as investors continue to favor gold and silver.
“It’s not considered a currency,” said Jason Carstensen, a medical-sales representative in Ventura, California, who spends about $2,000 a month on coins. Gold and silver have value as hedges against a devaluation of the dollar, while platinum is viewed as an industrial commodity, he said………………………………………..Full Article: Source

OPEC output dropped, Nigeria’s output increased in July

Posted on 19 August 2014 by VRS  |  Email |Print

Crude oil production from the Organisation of Petroleum Exporting Countries (OPEC) dipped by 30,000 barrels per day (bpd) in June to 29.94 million bdp, according to the latest Platts survey of OPEC and oil industry officials and analysts.
Meanwhile, Nigeria’s oil production rose to 1.98 million barrels per day in July, the highest since March this year. The country’s production stood at 1.87mb/d in March. The survey showed Iraq’s output plunge of 160,000 b/d was largely offset by production increases from several other OPEC member countries………………………………………..Full Article: Source

World Awash in Oil Shields Markets From 2008 Price Shock

Posted on 15 August 2014 by VRS  |  Email |Print

Fighting across Iraq, Libya, Ukraine and Gaza, and an accelerating economy, should mean higher oil prices. Yet crude is falling. Six years ago, oil soared to a record $147 a barrel as tension mounted over Iran’s nuclear program and the world economy had just seen the strongest period of sustained growth since the 1970s. Now, West Texas Intermediate, the U.S. benchmark price, has traded below $100 for 10 days and Brent, the European equivalent, tumbled to a 13-month low.
What’s changed is the shale fracking boom. The U.S. is pumping the most oil in 27 years, adding more than 3 million barrels of daily supply since 2008. The International Energy Agency said yesterday that a supply glut is shielding the market from disruptions. Bank of America Corp., Citigroup Inc. and BNP Paribas SA concur………………………………………..Full Article: Source

Gold loses shine as Chinese curb jewellery purchases

Posted on 15 August 2014 by VRS  |  Email |Print

India regained its position as the world’s leading gold buyer in the second quarter as Chinese demand for jewellery, gold coins and bars dropped sharply from record levels amid a government crackdown on corruption. Soaring purchases by retail customers in 2013 helped China overtake India as the world largest gold consumer for the first time.
The buying frenzy, which led to a temporary shortage of physical gold stocks, was sparked by the 28 per cent fall in the precious metal’s price last year, the worst performance in more than three decades………………………………………..Full Article: Source

Gold Firmer s Geopolitics Keeps Sellers At Bay

Posted on 13 August 2014 by VRS  |  Email |Print

Gold prices are modestly higher in subdued early U.S. trading Tuesday. Some safe-haven demand is still present in the market place, evidenced not only by the firmer gold prices but also by a stronger U.S. dollar and higher U.S. Treasury prices. December Comex gold was last up $3.20 at $1,312.50 an ounce. Spot gold was last quoted up $0.80 at $1,311.75. December Comex silver last traded up $0.014 at $20.175 an ounce.
There are still geopolitical hotspots in the world that have the attention of the market place: civil war in Iraq, in which the U.S. has just injected military force; the Russia-Ukraine tensions; and the Israel-Hamas fighting. ……………………………….Full Article: Source

Global growth in use of gasoline outpaces diesel in 2014

Posted on 08 August 2014 by VRS  |  Email |Print

Unlike in recent years, growth in global gasoline consumption is outpacing diesel growth in 2014. At the same time, new refining capacity engineered to produce more distillate than gasoline is coming online in 2014. The narrowing spread for December 2014 futures contracts demonstrates how these two factors may be temporarily leading to a tighter global gasoline market than was expected at the beginning of the year.
On July 8, the futures price premium of New York Harbor ultra-low-sulfur diesel (heating oil) over reformulated blendstock for oxygenate blending (RBOB) for December 2014 delivery fell to 22 cents per gallon on the New York Mercantile Exchange (Nymex)………………………………………..Full Article: Source

Manipulation of gold is self-evident

Posted on 08 August 2014 by VRS  |  Email |Print

Eighty years of manipulating gold markets….stock, bond and currency markets. The manipulation of markets is not exclusive to gold. Stock, bond and currency markets are also manipulated, but there is one difference. Gold’s price is manipulated downward, while stock, bond and currency markets are typically manipulated upward.
In February 2014, Bloomberg reported there were indications that gold has been manipulated for the past decade………………………………………..Full Article: Source

Silver To Eventually Benefit From Rising Industrial Demand

Posted on 06 August 2014 by VRS  |  Email |Print

ETF Securities looks for improving industrial demand to ultimately underpin silver, although worries about rising U.S. interest rates may pressure precious metals in the near term.
“From a fundamental perspective, the strong correlation to gold continues to pressure the silver price lower….Largely to blame is the stronger U.S. dollar and improving investor sentiment, which is being buoyed by the robust U.S. recovery and the re-rating of the potential for tighter Fed policy as the central bank remains on track to wind down its bond buying by year-end,” said the provider of metals exchange-traded funds………………………………………..Full Article: Source

Energy: Exports and Sanctions, Criss-Crossing the Atlantic

Posted on 04 August 2014 by VRS  |  Email |Print

It’s been a busy week in energy, particularly on the geopolitical front, with Washington at a loss over exactly whose side to take in the Iraq-Kurdish oil showdown, the implications of new sanctions against Russia unclear at best, and continued conflict and chaos in Iraq, Syria and Libya that has speculators reaching the limits of their predictive powers.
On Monday, a Texas judge ordered US Marshalls to seize a tanker carrying a million barrels of Kurdish oil off the US coast—at the behest of the Iraqi authorities in Baghdad–but two days later the story is that the tanker is too far offshore to be in Texas’ jurisdiction, so some more time has been bought for the Kurds to sell their wares on the international market………………………………………..Full Article: Source

Peak oil proponents still dancing around reality

Posted on 04 August 2014 by VRS  |  Email |Print

The debate over whether we are running out of oil sometimes resembles the medieval controversy over how many angels could dance on the head of a pin. By redefining the size of the pin and the agility of the angels, today’s “peak oil” proponents have managed to continue the argument.
The characters have changed though. Matthew Simmons, author of Twilight in the Desert, casting doubt on Saudi oil production, died in August 2010, and the Oil Drum website closed down last September. New disputants, including economist James Hamilton from the University of California, and Stephen Kopits, the managing director of the consultancy Douglas-Westwood, argue that oil production is limited by geology and is a severe drag on economic growth………………………………………..Full Article: Source

North American oil output versus OPEC

Posted on 01 August 2014 by VRS  |  Email |Print

GlobalData has said that global oil demand in 2014 is forecast to increase by approximately 1.2 million bpd compared to levels last year, while non-OPEC members’ production will grow by approximately 1.6 million bpd which will reduce the call for OPEC production. GlobalData’s research has also said that a significant increase in non-OPEC production is forecast to occur, particularly in North America, where crude oil and condensate production will increase by approximately 1.3 million bpd.
Carmine Rositano, Managing Analyst, Downstream Oil & Gas, GlobalData, said, ‘crude oil production increases are also expected in South America, the Former Soviet Union and from the greater use of biofuels. This will more than offset slightly lower production anticipated in the North Sea and Mexico………………………………………..Full Article: Source

World oil demand in 2015 forecast to grow 1.2 mb/d

Posted on 31 July 2014 by VRS  |  Email |Print

Despite some weakness in the first half of the year, the world economy continues to recover, OPEC Monthly Oil Market Report for July 2014 said. Global GDP growth in 2014 is now forecast at 3.1 percent, slightly higher than the estimated 2.9 percent for 2013. The US experienced a surprisingly large contraction in economic activity in the first quarter due to severe winter weather, leading to a downward revision in US GDP growth to 1.6 percent from 2.4 percent previously.
However, with the US economy expected to rebound and continued large monetary stimulus in the Euro-zone and Japan, the OECD is seen growing by 1.7 percent in 2014 and 2.0 percent in 2015………………………………………..Full Article: Source

Commodities: Probability of El Nino developing falls to 50%

Posted on 30 July 2014 by VRS  |  Email |Print

The commodities complex saw few changes on Monday, although geopolitical concerns buoyed gold prices while oil futures traders stayed on the sidelines ahead of weekly supply data scheduled for release on Wednesday.
President Barack Obama was expected to meet with four of his European counterparts, with the possibility of new sanctions being levied on specific sectors of the Russian economy a distinct possibility. Gold futures for delivery in December ended trading $3.4 lower at $1,305.8/oz. on COMEX. Front month West Texas crude futures slipped by 20 cents to $101.67/barrel on NYMEX………………………………………..Full Article: Source

banner
banner
December 2014
S M T W T F S
« Nov    
 123456
78910111213
14151617181920
21222324252627
28293031