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The silver market in 2013

Posted on 15 November 2013 by VRS  |  Email |Print

There are several factors, some positive and others negative, that will affect the price of silver going forward. First up, let’s have the not-so-good news facing the silver price.
In 2013, total supply of silver is expected to climb by around 0.7%, much of this is thanks to the 7% or 28 Moz (million ounce) increase in mine supply but offset by the 8% decline in scrap silver supply………………………………………..Full Article: Source

International Energy Agency warns of future oil supply crunch

Posted on 13 November 2013 by VRS  |  Email |Print

The International Energy Agency has sounded the alarm about a potential oil supply crunch and higher prices as key Gulf producers delay investment in the face of surging US shale output.
In a strident warning against complacency in the oil market, the developed world’s energy body said key Gulf producers have been adopting a “wait and see approach” to investment, because of the perception that the US shale revolution would produce an “abundance of oil”………………………………………..Full Article: Source

Oil market stable, prices steady, say two OPEC members

Posted on 12 November 2013 by VRS  |  Email |Print

OPEC expects global demand for its crude to fall in the next five years because of increasing supplies outside the 12-member group. The oil market is stable and prices are steady, two oil ministers said on Sunday, weeks ahead of an OPEC meeting to decide whether the group needs to adjust its output target.
“I think no, now the market is stable,” Angola’s oil minister Jose Botelho de Vasconcelos told Reuters in Abu Dhabi, when asked if OPEC needs to change its oil policy when the group meets next on December 4 in Vienna………………………………………..Full Article: Source

Libya’s oil may be its downfall

Posted on 12 November 2013 by VRS  |  Email |Print

The self-declared government of Cyrenaica, a district in eastern Libya, said it established its own oil company that’s ready to put crude oil on the international market. Libya since Moammar Gadhafi’s dictatorship ended in 2011 has struggled to return to the level of stability he ensured with an iron fist.
Now, one of Africa’s leading oil states is tearing apart at the seams defined largely along the divisions suppressed during Gadhafi’s autocracy. With 48 billion barrels of proven oil reserves at stake, what’s next for Libya may have less to do with political reform than it does with who controls the oil spigots………………………………………..Full Article: Source

Chinese demand drives gold prices

Posted on 12 November 2013 by VRS  |  Email |Print

India is the largest gold importer in the world. From 2012 to 2013, the nation imported 845 tons of the metal, and in October, it increased its gold and silver imports by 62.5% to $1.3 billion.
China is the second largest gold importer, but it may end up surpassing India to become number one. It’s expected that China may consume 1,000 tons of gold this year, particularly considering it imported as much as 826 tons from Hong Kong in just the first nine months of the year – twice as much as the same period last year………………………………………..Full Article: Source

The OPEC oil embargo: The story four decades later

Posted on 11 November 2013 by VRS  |  Email |Print

Business-led innovation and market-based solutions can drive a shift to more efficient renewable energy systems. Forty years ago, the US and much of the Europe learned difficult lessons about their dangerous addiction to fossil fuels.
Following Israel’s victory in the Yom Kippur War, the Arab members of the Organization of the Petroleum Exporting Countries (OPEC) announced an oil embargo on Israel’s supporters. Developed countries, faced with the sudden cutoff of a key energy source and a major spike in world oil prices, felt powerless………………………………………..Full Article: Source

Is demand for gold heavily understated - Are the statistics issued by GFMS wrong and Sprott right?

Posted on 08 November 2013 by VRS  |  Email |Print

With the fragmentation of the gold market, as we’re describing in this series on the gold market, the gold price is not reflecting the true balance of demand and supply. It’s reflecting the balance of the demand and supply that’s routed through London and other developed world markets and distribution systems.
This doesn’t represent the entire gold market, and yet gold prices paid between buyers and sellers in the entire gold market are still referenced to the developed world gold markets, particularly the London Gold Fixings………………………………………..Full Article: Source

OPEC should still be worried about American energy

Posted on 07 November 2013 by VRS  |  Email |Print

Why can’t OPEC get a good night’s sleep? Because North America is experiencing an energy revolution that can’t be slowed. The cartel:
For decades OPEC has been able to control global energy markets by manipulating production levels to keep prices elevated. During the 1970’s, OPEC was able to choke off America’s oil supply and slow down our economy. Now states like North Dakota, Texas, and others are trying to put an end to America’s dependence on OPEC………………………………………..Full Article: Source

What have we learned in the 40 years since the OPEC oil embargo?

Posted on 06 November 2013 by VRS  |  Email |Print

Forty years ago, Egypt crossed the Suez Canal to begin a war that killed some 27,000 people and left the nation of Israel fighting for its life. When it was over, after much U.S. support, Israel had won. But the effects of the war are still being felt in America and elsewhere.
The key effect was the first so-called OPEC oil embargo, an act of vengeance aimed at the U.S. and its allies for supporting Israel. Its short-term results were the indignity of gas-station lines, improvised alternate-day rationing and even the banning of Christmas lights (in Oregon)………………………………………..Full Article: Source

What is gold really worth

Posted on 05 November 2013 by VRS  |  Email |Print

Al Jazeera released a TV interview with Nick Barisheff, CEO of Toronto based Bullion Management Group and author of the book “$10,000 – Why gold’s inevitable rise is the investor’s safe haven” Bullion Management Group has close to 0.5 billion of dollars worth of assets. Barisheff explains why he thinks gold could go to $10,000 in this decade and what the real value is of gold.
Coincidence or not, the video is not accessible in the US (some sources report it is blocked on Youtube). That is why we are providing the transcript in this article of the most important elements of the interview………………………………………..Full Article: Source

Commodities: Are they on the rebound?’

Posted on 04 November 2013 by VRS  |  Email |Print

Diary of a Private Investor: James Bartholomew bought commodity shares early in the expectation of a strong recovery. It is possible that this idea is a bit too early. To be honest, I have already been “too early” with it for some time. The idea is commodity shares. I think their time will come again and perhaps soon.
The FTSE index of mining companies has been falling for almost four years. It has declined by more than 40pc while the FTSE 100 index has risen by 10pc. The miners continued to do worse than other shares right up until the beginning of July. And then? They stopped………………………………………..Full Article: Source

What worries OPEC the most?

Posted on 04 November 2013 by VRS  |  Email |Print

For decades, the Organization of the Petroleum Exporting Countries, better known as OPEC, has wielded extraordinary power over the global oil market. The organization, which consists of 12 member countries, accounts for roughly 40% of total global oil production and controls a little over 80% of the world’s oil reserves.
But the recent surge in non-OPEC oil supplies, led by the North American shale oil boom, and the risk of a downturn in the global economy pose significant threats to the cartel’s continued prosperity. Let’s take a closer look………………………………………..Full Article: Source

Silver and gold: Lone options in an exponential world​

Posted on 01 November 2013 by VRS  |  Email |Print

Monetary inflation, by whatever euphemism and at multiple stages in its cycle, has clear benefits to some but major disadvantages for the majority. Sadly, the impact of the final leg of the century-long monetary experiment may be far uglier than many would like to imagine.
Inflation and the Big Banks: Obviously, moderate to runaway inflation is horrible for the middle class and poor. Inflation is less of an issue for large financial institutions who get first dibs on newly created credit via primary dealer status. More dollars inflate the nominal size of their balance sheets — a positive in the eyes of shareholders…………………….Full Article: Source

Is it 1982 all over again for gold?

Posted on 30 October 2013 by VRS  |  Email |Print

Despite climbing by more than 10% a year since 1968, bullion has struggled to post anything other than flat returns during 2013. With global growth on the up, it’s hardly surprising that the precious metal has had such a difficult run, but put in its historical context, gold hasn’t performed as badly in more than 30 years, leaving experts wondering whether gold is now looking incredibly cheap.
As pointed out by Adrian Ash, head of research at gold and silver exchange Bullionvault.com, the yellow metal has had an “upside down year”, offering investors little clarity about where gold’s price could be heading next. “Gold in 2013 has done almost exactly the opposite of what it typically does,” he said. “Crashing in spring, and rising sharply in summer, the gold price has reversed what veteran investors call seasonal patterns.”……………………………………Full Article: Source

OPEC sees no danger to its production plans

Posted on 29 October 2013 by VRS  |  Email |Print

OPEC, the Organization of the Petroleum Exporting Countries, said on Monday there would still be demand for its oil despite the shale oil boom in the United States, downplaying concerns the group may lose its market share.
Boom in shale oil production in the United States has changed the global energy landscape, as Washington has ceded its ranking as top global oil importer to China by cutting its import needs. Next year, the United States is set to overtake Russia as the world’s top oil producer due to the growing non-conventional oil output, the International Energy Agency (IEA) said this month………………………………………..Full Article: Source

Indian gold demand soldiers on despite govt intervention - UBS

Posted on 29 October 2013 by VRS  |  Email |Print

The line between investment and jewellery demand within India is often decidedly blurry. This is one of the many reasons why the Indian government’s quest to rein in gold imports is rather quixotic and, it begs the question, how sustainable is the current regulatory framework?
In its daily precious metals note, UBS asks exactly that, commenting that, while the situation is fluid, “There is a clear recognition of the reality that a decent portion of demand – particularly in the form of jewellery and ornaments linked to festivals and wedding traditions – will remain intact.”……………………………………….Full Article: Source

Iran’s oil industry is trying for a comeback

Posted on 28 October 2013 by VRS  |  Email |Print

Iran’s oil exports are being ravaged by sanctions, but there are signs under the new president, Hassan Rouhani, that efforts to attract old clients may be boosting the Islamic republic’s most essential economic lifeline.
China, India and Japan, which account for half of Iran’s oil exports, all increased their purchases over the past several months, offering some new hope to Iran and complicating U.S.-led efforts to put pressure on Iran over its disputed nuclear program by attempting to cut off its main source of income………………………………………..Full Article: Source

Precious metals bullion banks making a killing by killing sentiment

Posted on 25 October 2013 by VRS  |  Email |Print

After expanding debt by more than $8 trillion and printing at least $85 billion per month, monitoring the “price” of practically anything is a risky option. Among other distortions created by price controls, sentiment is particularly vexing for the precious metals market.
First off, the banks that determine prices are trading houses that go months at a time without a trading loss. Second, the sample used to measure sentiment is based also on an entirely paper affair………………………………………..Full Article: Source

Clash of the oil titans

Posted on 23 October 2013 by VRS  |  Email |Print

Saudi Arabia and Iran, two titans of the oil industry, are heading for a headlong confrontation in what could result in a destructive and devastating new episode of conflict in the Middle East.
The potential for destructive power in the event of Tehran and Riyadh opting for a military confrontation is huge and goes well beyond anything we have seen in the region. To get an apercu of what such a conflict would entail, have a look at the civil war currently raging in Syria and multiply it tenfold………………………………………..Full Article: Source

Does OPEC still matter for U.S. oil?

Posted on 21 October 2013 by VRS  |  Email |Print

U.S. energy policy has been shaped by one critical event that happened 40 years ago this week: the OPEC oil embargo of 1973. Since then, the United States has embarked on an ambitious goal of drilling for our own oil and gas, as well as diversifying our energy portfolio.
In this segment, Joel discusses why the shift away from OPEC domination could be a major opportunity for companies like Schlumberger and Kinder Morgan as well as whether OPEC is still the force it once was………………………………………..Full Article: Source

IEA: energy efficiency can be the ‘world’s first fuel’

Posted on 18 October 2013 by VRS  |  Email |Print

The size of investment in energy efficiency measures is equal to that in renewable and traditional energy, making it a significant form of fuel, according to the International Energy Association (IEA).
In its new Energy Efficiency Market Report, the organisation notes that investment in energy efficiency rose to $300 billion (£186 billion) in 2011, gaining an important position among the world’s most important fuels………………………………………..Full Article: Source

Gold swings as U.S. lawmakers seen nearing deal on debt ceiling

Posted on 15 October 2013 by VRS  |  Email |Print

Gold swung between gains and losses amid speculation that U.S. lawmakers will forge a deal to avoid breaching the nation’s debt ceiling and end a two-week partial government shutdown. Silver dropped for a sixth day.
Bullion for immediate delivery lost as much as 0.5 percent to $1,266.40 an ounce and gained 0.3 percent, before trading at $1,274.53 at 10:31 a.m. in Singapore. Prices fell to $1,260.61 on Oct. 11, the lowest since July 11, on expectations that a deal would be reached. Gold for December delivery dropped 0.2 percent to $1,274 on the Comex in New York………………………………………..Full Article: Source

OPEC crude output is at the right level, says UAE

Posted on 14 October 2013 by VRS  |  Email |Print

OPEC’s crude oil production is at a suitable level for the market and there is no talk of the cartel changing output when it meets in December, UAE energy minister Suhail bin Mohammed al-Mazroui said on Sunday.
A senior official from Angola, a fellow member of the Organization of the Petroleum Exporting Countries (OPEC), later said he shared the minister’s view on OPEC’s output target of 30 million barrels per day (bpd). OPEC, which pumps more than a third of the world’s oil, meets on Dec. 4 in Vienna to decide whether to adjust the output target………………………………………..Full Article: Source

Forty years after OPEC embargo, U.S. is energy giant

Posted on 11 October 2013 by VRS  |  Email |Print

Forty years ago this month, the Organization of the Petroleum Exporting Countries proclaimed an embargo on oil exports to the U.S. as retaliation for its support of Israel in the Yom Kippur War. It would last only five months, but it haunts U.S. energy policy to this day.
The modern global energy market bears scant resemblance to what existed 40 years ago. Today’s market is far more diversified and resilient. Thanks to the shale gas revolution and soaring domestic oil and gas production, the U.S. has reduced the cost of its energy and become a major exporter of refined products………………………………………..Full Article: Source

Sustainability indicators: A decade of collective achievement by the steel industry

Posted on 10 October 2013 by VRS  |  Email |Print

The steel industry established a set of eight sustainability indicators in 2003 to measure its environmental, social and economic performance, in recognition of the industry’s responsibility to meet the growing demand for steel in a sustainable way.
Sustainability reporting at a global level is a major programme that the steel industry undertakes to manage its performance, demonstrate its commitment to sustainability, enhance transparency and show responsibility in dealing with global challenges,” said Edwin Basson, Director General of worldsteel………………………………………..Full Article: Source

How Iran plays the oil game … and wins

Posted on 07 October 2013 by VRS  |  Email |Print

Instability in Libya and other parts of North Africa may be giving international investors the jitters. In August, U.S. energy explorer Apache Corp. said it had enough of the political upheaval in Egypt and sold its assets there to its Chinese counterpart, Sinopec. In neighboring Libya, Exxon and Royal Dutch Shell said they’d had enough of the unrest, though Italy’s Eni and Spain’s Repsol weren’t so squeamish.
To the west, in Algeria, while BP and Statoil remained resilient, BG Group and ConocoPhillips said they’d take their business elsewhere. With much of the region in a static state of upheaval, Iran could be the unlikely winner of the post-Arab Spring energy prize………………………………………..Full Article: Source

Commodity markets will go dark if shutdown continues: John Kemp

Posted on 03 October 2013 by VRS  |  Email |Print

If the U.S. government shutdown continues for more than a few days, commodity markets will find themselves flying blind, as the public servants responsible for producing statistics on which traders and investors rely are sent home.
The Commodity Futures Trading Commission (CFTC) said Tuesday it will not publish the commitments of traders and other market reports during the shutdown, depriving participants in the world’s biggest derivative markets for energy and agricultural products of price-moving information about the positions of other producers, consumers and speculators………………………………………..Full Article: Source

OPEC relaxed about cost-sensitive shale oil

Posted on 02 October 2013 by VRS  |  Email |Print

A rise in output of North American tight oil will not trouble OPEC, the group’s secretary general said on Tuesday, maintaining his view that the new supply source will not significantly impact the group’s market share.
Abdullah Al-Badri, attending the annual Oil and Money conference in London, referred to forecasts of rising production of tight oil, also known as shale, but said that would not be a problem for the 12-member OPEC. “I do not think that with this quantity OPEC is in trouble,” Badri said………………………………………..Full Article: Source

Gods forbid: Temples guard their gold from government

Posted on 30 September 2013 by VRS  |  Email |Print

Hindu temples are resisting divulging their gold holdings - perhaps nearly half the amount held in Fort Knox - amid mistrust of the motives of authorities who are trying to cut a hefty import bill that is hurting the economy.
The central bank, which has already taken steps that have slowed to a trickle the incoming supplies that have exacerbated India’s current account deficit, has sent letters to some of the country’s richest temples asking for details of their gold. It says the inquiries are simply data collection, but Hindu groups are up in arms………………………………………..Full Article: Source

Gold and silver prices: Mapping short term volatility

Posted on 27 September 2013 by VRS  |  Email |Print

After years of paying attention to the price action and not the mainstream market commentary — thanks in large part to Ted Butler and GATA — here are some of the dominate forces that currently seem to be determining price movements in the precious metals:Downside Probability.
Jobs data comes out every few weeks. This almost always puts downside pressure on the market, with about a 90% probability. Also, presidential press conferences tend to have a 70% downside probability. The powers that suppress the precious metals prices cannot have metals surging while the president speaks………………………………………..Full Article: Source

Iran sanctions: Why oil is where Tehran feels the pain

Posted on 26 September 2013 by VRS  |  Email |Print

The last four years of economic sanctions by the U.S., the European Union and other western partners have ground down the Iranian economy.
At this time last year, the Iranian rial had plummeted 80% from its peak, inflation had shot up, poultry and bread were in short supply and there were numerous reports of layoffs in the state manufacturing sector. But the most glaring example of the pain exerted has to be in the energy sector………………………………………..Full Article: Source

Fifty shades of gold

Posted on 23 September 2013 by VRS  |  Email |Print

Goldman Sachs (GS) created a stir earlier this week when it forecasted that gold would fall to $1,000 an ounce by the end of 2014, as the firm expected the Federal Reserve to reduce its bond buying program. Goldman also suggested that gold miners might want to hedge their output, locking in 2013 prices.
HSBC analysts have also been bearish on gold, although the firm admits that lower gold prices tend to draw out tremendous demand from emerging markets, especially China. Because of that demand, HSBC believes gold will end 2014 at around $1,435 an ounce, says MarketWatch………………………………..Full Article: Source

Will Caspian oil and gas producers take Russia’s place in EU?

Posted on 13 September 2013 by VRS  |  Email |Print

There may be as much as 48 billion barrels of oil and 292 trillion cubic feet of natural gas in the Caspian region. There’s probably even more yet to be discovered. In June, a BP-led consortium operating in the Shah Deniz natural gas field in the Caspian Sea chose a pipeline option that could redraw the European energy map.
On Wednesday, operators at one of the largest oil fields in the world, Kashagan, announced the first well was opened for production. With Russian energy shifting its focus elsewhere, the Caspian region may be fast becoming Europe’s preferred choice for oil and gas………………………………………..Full Article: Source

OPEC forecasts increase of Azerbaijan’s oil output

Posted on 12 September 2013 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) predicts Azerbaijan’s oil production to increase by 20,000 barrels per day (bpd) and reach 0.9 million bpd in 2014.
In its Monthly Oil-Market Report for September published on Sept.10, OPEC said that the highest level of Azerbaijan’s oil production in 2014 will be observed in the fourth quarter and amount to 0.93 million bpd………………………………………..Full Article: Source

IEA concerned about oil prices, rules out strategic stock release

Posted on 11 September 2013 by VRS  |  Email |Print

The International Energy Agency is concerned about current high oil prices, but does not see the need for any release of strategic stockpiles, as the market is well supplied despite supply outages in Libya, the group’s head said on Tuesday.
Supply outages from Libya and concerns the escalating situation in Syria could spill into other Middle East countries pushed up prices for international benchmark Brent to a six-month peak above $117 per barrel late last month. But Brent dropped to a one-week low below $113 on Tuesday………………………………………..Full Article: Source

China’s Aug commodities imports fall from highs but stay elevated

Posted on 09 September 2013 by VRS  |  Email |Print

China’s imports of crude oil, iron ore, copper and soybeans fell in August from July’s record highs, but shipments stayed at elevated levels as manufacturing activity in the world’s second-largest economy gains pace.
Headline trade data showed China’s overall imports and exports in August were stronger than expected and have sustained the upward trend since July, adding to evidence that the world’s top commodity buyer may have avoided a sharp slowdown………………………………………..Full Article: Source

Scrap gold sales jumping in India as price advances to record

Posted on 05 September 2013 by VRS  |  Email |Print

Sales of scrap gold in India are surging as the plunge in the nation’s currency drives bullion prices to a record, easing a supply crunch caused by curbs on imports by the world’s largest consumer.
Supplies of recycled bullion, mostly coins and bars, have climbed to 100 kilograms to 150 kilograms a day in Mumbai, the country’s biggest gold market, from 5 kilograms to 10 kilograms a week earlier, said Prithviraj Kothari, managing director of Riddhisiddhi Bullions Ltd. Investors, who bought the metal at lower prices, are leading the rush to sell, said S. Venkatesh Babu, president of the Jewellers’ Association of Bengaluru………………………………………..Full Article: Source

Gold borrowing costs drop as forward rates turn positive

Posted on 03 September 2013 by VRS  |  Email |Print

Gold forward offered rates turned positive for the first time in eight weeks in London, lowering one-month bullion borrowing costs to an almost two-month low.
The one-month gold forward offered rate, which shows the interest rate at which dealers will lend metal for dollars, was at 0.00167 percent today after remaining negative since July 8, data compiled by Bloomberg show. The one-month lease rate fell to 0.1809 percent, the least since July 5………………………………………..Full Article: Source

For investors, no need to duck. Just diversify

Posted on 02 September 2013 by VRS  |  Email |Print

It’s a very risky environment for the markets right now. It’s also a very good time to be an investor. These two propositions may seem contradictory, but they’re not — at least in the view of David P. Kelly, chief global strategist at J.P. Morgan Funds.
“There are many problems in the economy and in the markets, certainly,” Mr. Kelly said in an interview. Short-term losses could easily be on the way, and they could be painful. “But the answer for a long-term investor isn’t to avoid risk,” he said. “It is to be extremely diversified — and to invest in equities. You’re likely to do much better that way than if you stay out of the markets.”……………………………………….Full Article: Source

OPEC to cut oil exports as consumption wanes, Oil Movements says

Posted on 30 August 2013 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will reduce shipments through to mid-September as refiners carry out seasonal maintenance, tanker-tracker Oil Movements said.
The group, which supplies about 40 percent of the world’s oil, will cut exports by 220,000 barrels a day, or 0.9 percent, to about 23.59 million barrels a day in the four weeks to Sept. 14 from the period to Aug. 17, the researcher said today in an e-mailed report. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………………..Full Article: Source

Saudis offer Russia secret oil deal if it drops Syria

Posted on 27 August 2013 by VRS  |  Email |Print

Saudi Arabia has secretly offered Russia a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime in Syria.
The revelations come amid high tension in the Middle East, with US, British, and French warships poised for missile strikes against Syria, and Iran threatening to retaliate. The strategic jitters pushed Brent crude prices to a five-month high of $US112 a barrel………………………………………..Full Article: Source

India will not lease gold bought from IMF

Posted on 22 August 2013 by VRS  |  Email |Print

India has no proposal to lease gold bought from the IMF according to India’s Economic Affairs Secretary, Arvind Mayaram. His comments came in a text message. The influential in India, Hindu Business Line newspaper, had reported earlier that the government will consider leasing out 200 tons of gold bought from IMF in 2009, citing finance ministry officials it didn’t identify.
With strains in the LBMA gold market, further pressure may be being applied to India to now help with supply after their recent draconian attempted measures to restrict demand………………………………………..Full Article: Source

OPEC operating in mixed market

Posted on 20 August 2013 by VRS  |  Email |Print

Oil production from members of the Organization of Petroleum Exporting Countries was high to keep pace with local demand, an analyst said.
The Joint Organizations Data Initiative, a project supervised by Riyadh’s International Energy Forum, said oil production from Saudi Arabia declined by 20,000 barrels per day in June to 9.6 million. Iraqi and Kuwaiti oil production followed a similar trend, with 6 percent declines reported from May to June………………………………………..Full Article: Source

Gold in a bear hug: US recovery, stronger dollar to temper prices

Posted on 16 August 2013 by VRS  |  Email |Print

The price of gold has been falling amid expectations of a US economic recovery and a stronger dollar. Domestically, too, gold prices have been falling. And this trend will continue for some time more, analysts said.
“Gold prices are under pressure and trading in range of $1,270 (Rs 77,470) to $1,350 (Rs 82,350) on speculation that the US Federal Reserve will start tapering its bond buying programme from September,” said Renisha Chainani, commodity analyst, Edelweiss Financial Services……………………………………….Full Article: Source

Trucks, trains, or pipelines – The best way to transport petroleum

Posted on 15 August 2013 by VRS  |  Email |Print

The U.S. is the most fully developed petroleum transport nation – we have crude oil, natural gas, gasoline, and diesel and jet fuel in transit 24/7/365 – mostly in pipelines. Lives lost are rare and environmental damage while awful at leak locations is a tiny amount of the total product moved.
The horrible truth, and one might pray for the souls lost last month in Quebec, is train transport is far more dangerous. The Quebec train disaster killed at least 38 people, and counting. No pipeline failure has ever come close to this level of human death and suffering………………………………………..Full Article: Source

The great OPEC bailout

Posted on 14 August 2013 by VRS  |  Email |Print

It’s difficult to pin down an exact dollar amount when it comes to the billions of our money that will ultimately be wasted bailing out the U.S. auto industry, all because the Treasury Department has a tendency to continually revise its numbers.
Their most recent report pegged the amount lost at around $25 billion. And if you think that’s bad, prepare yourself. You’re in for a shock when you learn about the bailout going down right now… It’s taking place in a sector that’s even more crucial to the world economy than the auto industry — energy………………………………………..Full Article: Source

Political unrest could contstrain OPEC exports ‘indefinitely’, says IEA

Posted on 12 August 2013 by VRS  |  Email |Print

Political unrest and infrastructure problems in the Middle East and Africa could constrain exports “indefinitely” in some parts of the region, the International Energy Agency (IEA) has warned.
The IEA, which consults developed nations on energy policies, said North America’s shale boom was insulating the world from steep oil price spikes as several OPEC members struggle to maintain production due to unrest and infrastructure problems………………………………………..Full Article: Source

Why are banks’ physical commodity assets so controversial?

Posted on 09 August 2013 by VRS  |  Email |Print

After weeks of discussions by regulators on whether banks should continue to be allowed to own physical commodity assets such as warehouses, oil tankers and power plants, Financial News looks at why bank ownership of commodity assets is so controversial.
At a hearing in front of the US Senate Banking Committee last week, Commodity Futures Trading Commission chairman Gary Gensler said: “These markets [commodities] matter. They matter on the dining table at night. They matter for somebody buying a six-pack of beer. They matter when we all fill up a tank of gas.”……………………………………….Full Article: Source

Which banks own physical commodity assets?

Posted on 08 August 2013 by VRS  |  Email |Print

On the coast of Colombia there is a port that goes by the name of Sociedad Portuaria de Río Córdoba; a privately operated facility for loading coal onto vessels for export. It is also owned by global investment bank Goldman Sachs.
As discussions heat up among regulators on banks owning commodity assets it is worth asking who exactly owns what?……………………………………….Full Article: Source

Oil demand is hitting a peak

Posted on 05 August 2013 by VRS  |  Email |Print

The dawn of the oil age was fairly recent. Although the stuff was used to waterproof boats in the Middle East 6,000 years ago, extracting it in earnest began only in 1859 after an oil strike in Pennsylvania. The first barrels of crude fetched $18 (around $450 at today’s prices).
It was used to make kerosene, the main fuel for artificial lighting after overfishing led to a shortage of whale blubber. Other liquids produced in the refining process, too unstable or smoky for lamplight, were burned or dumped………………………………………..Full Article: Source

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