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Saudis hand oil market the one thing it really hates

Posted on 10 May 2016 by VRS  |  Email |Print

The removal of Ali al-Naimi as Saudi Arabia’s oil minister ushers in a new age of uncertainty, and more erratic prices. Naimi was a major architect of Saudi’s current policy of forcing oil prices lower through higher supply of crude, but he was also a trusted voice within government and a respected figure at the Organization of the Petroleum Exporting Countries.
His successor Khalid al-Falih is unlikely to command the same influence over output decisions that his 80-year-old predecessor had once enjoyed. The son of a Bedouin who climbed through the ranks of Saudi oil industry technocrats, Naimi commanded the respect of successive rulers in the oil-rich kingdom………………………………………..Full Article: Source

India: Business is sluggish this Akshaya Trithiya due to rising gold prices

Posted on 10 May 2016 by VRS  |  Email |Print

It was a rush for gold on the auspicious day of Akshaya Trithiya on Monday with people thronging various jewellery shops across the city to mark the occasion with a good buy.
According to S Venkatesh Babu, president, Karnataka State Jewellers’ Federation (KJF), the business this year has been low due to the rising gold prices when compared to that of the previous year. The gold price for the day stood at Rs 2,850 per gram and Rs 3,050 for pure gold (24 carat)………………………………………..Full Article: Source

The most powerful man in oil is out - here’s what comes next

Posted on 09 May 2016 by VRS  |  Email |Print

Ali al-Naimi was the most powerful man in the oil business for two decades - until this weekend. As the oil minister of Saudi Arabia, in control of the largest proven crude reserves in the world, al-Naimi was the de-facto leader of OPEC.
At one point he held three key positions at the same time: Minister of petroleum, chairman of Saudi Aramco and chairman of Saudi’s Supreme Petroleum Council. In a word, he called the shots, and he let other OPEC ministers know just that. The past year and a half had been particularly important, as oil prices crashed and oil-dependent countries looked to Saudi Arabia to lead the effort to support prices………………………………………..Full Article: Source

Industry lobby expects 10-15% gold sales growth on Akshaya Tritiya

Posted on 09 May 2016 by VRS  |  Email |Print

The All India Gems & Jewellery Trade Federation (GJF) expects good growth in sales across India on Akshaya Tritiya, which falls on May 9 this year, due to the ongoing wedding season.
“Traditionally, Indians buy jewellery on Akshaya Tritiya and have great faith on this auspicious day. We expect a growth of 10-15% over last year due to pent up demand that was unfulfilled due to non-availability of products in previous months,” said G V Sreedhar, chairman of GJF……………………………………….Full Article: Source

China’s commodities lose more froth as economic worries underpin curbs

Posted on 06 May 2016 by VRS  |  Email |Print

Chinese steel and iron ore futures fell sharply for a third straight day and other commodities also slid on Thursday, giving up more froth after Chinese exchanges slapped curbs to quell speculation that spurred a buying frenzy last month.
Mixed signals on China’s economic health have also weighed on sentiment, breaking earlier perceptions that the world’s second-largest economy had stabilized. Trading volumes have tapered off from record highs hit in April after China’s securities regulator told commodity exchanges in Shanghai, Dalian and Zhengzhou to rein in speculation following rapid price gains in everything from steel to cotton………………………………………..Full Article: Source

Doctor Copper Still Holds Sway as Fed Barometer

Posted on 06 May 2016 by VRS  |  Email |Print

As copper goes, so goes the Federal Reserve. At least, that’s what the market thinks. Copper’s ebb and flow are thought to lend insight into global momentum (or a lack thereof) because it’s used in everything from household appliances to the wiring that powers them.
The highly conductive metal is seen as reliable gauge of economic health: Hence, its oft-used honorific, “doctor.” The transformation of the commodity into a form of collateral, however, (China has stockpiled enough copper to build 30,000 Statues of Liberty) has somewhat diminished the extent to which it still serves as the planet’s financial pulse……………………………………….Full Article: Source

OPEC to Head for June Talks Without Plan for Supply Limits

Posted on 05 May 2016 by VRS  |  Email |Print

There are currently no proposals on the table for OPEC to revive limits on crude output at its June meeting after the failure of talks to freeze production last month, according to six delegates from the group.
A meeting of representatives from the Organization of Petroleum Exporting Countries in Vienna Wednesday discussed how the fundamentals of oil supply and demand are improving, according to two delegates, who asked not to be named because the talks were private. The proposal to freeze output has been overtaken by changes in the market and may no longer be necessary, said two delegates from nations that had supported the idea last month………………………………………..Full Article: Source

Lithium: The lucky commodity?

Posted on 04 May 2016 by VRS  |  Email |Print

Lithium seems to be lucky: it has roared into prominence just when most other things are doing badly, which has given it more pronounced (or at least more noticeable) thrust than probably may have been the case if all boats were rising. Call it the after-burner effect. It is the space capsule that keeps on going when the booster rockets fall away after take-off.
In the past, whatever was the latest fashion in commodity investing had surged in unison with the market in general. So when uranium went crazy in 2007, and hit $136/lb, or when phosphate and potash had their moments in the sun, or nickel went to $50,000/tonne, or gold threatened to get to $2,000/oz, they were not the only shows on the road………………………………………..Full Article: Source

Oil Prices Slide on Bearish Data

Posted on 03 May 2016 by VRS  |  Email |Print

OPEC production figures reinforce concerns oversupply fundamentals still gripping the market. U.S. and global oil prices fell sharply Monday after data showed rising oil stockpiles in the U.S. and increased production from the Organization of the Petroleum Exporting Countries.
Analysts and brokers said the three-month, 70% rally in oil prices appeared to be losing steam, with speculative bets hitting their highest levels in a year even as supply-and-demand conditions have yet to show substantial improvement………………………………………..Full Article: Source

Commodities recovery has sceptics, but a boon while it lasts

Posted on 02 May 2016 by VRS  |  Email |Print

The recovery in commodity markets has plenty of sceptics, including the major resource companies, but the benefits will soon start flowing through the rest of the economy. The lift in the iron ore price from its low of just under $US38 a tonne last December to a high of just under $US70 a tonne last month has paralleled a broader improvement in resource markets including oil, copper and nickel.
It may not be enough to spark fresh investment in new resource projects, but it will boost the profits of the resources sector, delivering more dividends, taxes and royalties and, at the margin, more employment. It should help lift Western Australia — at present the biggest drag on national economic performance — out of its slump………………………………………..Full Article: Source

Rising oil prices throw lifeline to shale producers: Kemp

Posted on 29 April 2016 by VRS  |  Email |Print

Brent prices for 2017 ended trading above $50 per barrel on Wednesday for the first time since mid-December following the largest and most sustained rally in prices since the oil slump started.
The average for the 12 futures contracts expiring in 2017, called the calendar strip, has risen by 34 percent from its recent low of $37.45 on Jan. 20 to $50.26 on April 27.Spot prices, represented by the nearest futures contract, dominate the headlines and are of most interest to analysts and financial investors………………………………………..Full Article: Source

Saudi reforms could be low oil price’s cure

Posted on 27 April 2016 by VRS  |  Email |Print

A major obstacle holding back economic reform in Saudi Arabia has been removed. And with it goes one of the main barriers to a rising oil price. Saudi’s cabinet approved an economic reform plan on April 25 aimed at ending the country’s addiction to crude.
The plan’s author, Deputy Crown Prince Mohammed bin Salman, could plausibly argue that after the price of oil had fallen 60 percent in two years, it was time to radically overhaul the economy and open up new sources of non-oil income. Now that his strategy has won official backing, the 31-year-old prince has a chance to get the best of both worlds by moving ahead with reforms while letting oil prices - which Saudi effectively drives as the swing producer - climb at the same time………………………………………..Full Article: Source

Commodity Hedge Funds Are Hot Again

Posted on 26 April 2016 by VRS  |  Email |Print

The first quarter was a turning point for commodity markets, and the hedge funds that invest in them. The market investors couldn’t wait to get out of a year ago is the one they’re rushing into in 2016.
Commodity hedge funds netted more investor cash in the first quarter than any other type of hedge fund, and their $4 billion of inflows was their largest for any quarter in more than six years. The group has brought in more money that it has had to redeem for seven straight months, the longest winning streak ever tracked by eVestment, which plans to release the data later Monday morning………………………………………..Full Article: Source

Why cheap oil hasn’t saved the US economy

Posted on 25 April 2016 by VRS  |  Email |Print

Cheaper oil boosts an economy. It’s Econ 101. But while growth has been chugging along in America, it hasn’t been as vigorous as you’d expect with a 60% drop in oil prices since 2014. Former US Treasury secretary Larry Summers has called the lack of a big bounce one of the biggest economic puzzles of our time.
Somehow, it may even turn out to be bad for the economy. The economy should get a lift through several channels. One of the most significant is that lower fuel prices mean people have more money to spend on other things………………………………………..Full Article: Source

OPEC Officials: May Discuss Oil Freeze at June Meeting

Posted on 22 April 2016 by VRS  |  Email |Print

OPEC is ‘still alive’ as a force in the oil market, says secretary-general Abdallah Salem el-Badri. OPEC spoke on Thursday, but the market wasn’t listening. The Organization of the Petroleum Exporting Countries could revive talk of freezing oil production along with nonmembers at its next meeting in June, said top oil officials on Thursday.
A production freeze was an idea that had helped send prices rallying more than 50% from 12-year lows last winter. But after the 13-nation producer group ultimately failed to strike a production deal with Russia in Qatar over the weekend, investors didn’t react much to the news that freeze talks could soon be renewed………………………………………..Full Article: Source

Iron ore break-even points halve but unlikely to dive much further: Citi

Posted on 21 April 2016 by VRS  |  Email |Print

The “breakeven” point at which the world’s largest iron ore producers are neither making nor losing cash has halved in less than three years but is unlikely to continue its steep decline, Citi says.
The “break-even” points at which the world’s largest iron ore producers are neither making nor losing cash have halved in less than three years but are unlikely to continue their steep decline, Citi says. An analysis conducted by Citi found that in the second half of 2013, the “big five” iron ore producers needed an average benchmark iron ore price of approximately $US64.30 a tonne to break even on exports to China. ……………………………………….Full Article: Source

Switzerland – A trading paradise?

Posted on 20 April 2016 by VRS  |  Email |Print

How do Swiss-based commodities giants Glencore or Vale operate in the field and what are the consequences of their work for those living there? A new documentary by respected Swiss director Daniel Schweizer takes a rare look behind the scenes of this industry.
“Today some of the biggest extraction and trading firms are based between Geneva, Zug and Lausanne. Switzerland has a great responsibility accepting them here and monitoring them so little,” declared Schweizer at the world premiere of his new documentary Trading Paradise, shown at the Visions du Réel film festival in Nyon last weekend………………………………………..Full Article: Source

China to launch gold benchmark

Posted on 19 April 2016 by VRS  |  Email |Print

China will launch a new contract today to set a “benchmark” price for gold bullion in the world’s biggest producer and consumer of gold, as part of efforts to increase its influence in pricing of the precious metal.
The yuan-denominated gold fix will be launched on the Shanghai Gold Exchange this morning, with the benchmark price at 257.97 yuan (US$39.83) per gram, said a statement released by the exchange yesterday. Eighteen banks and bullion traders have been chosen as initial market makers for the fix, including 10 Chinese lenders, Standard Chartered Bank, Australia and New Zealand Banking Group and six domestic and international bullion traders including Switzerland-based MKS Gold Ltd, the exchange said………………………………………..Full Article: Source

Copper mines shut in Chile as deluge floods Santiago streets

Posted on 18 April 2016 by VRS  |  Email |Print

Service restoration work to resume production is estimated to take at least three days, equivalent to 5,000 metric tons of copper production. Codelco, the world’s biggest copper producer, and Anglo American Plc shut mines after heavy rains in central Chile over the weekend.
Operations at Codelco’s El Teniente underground mine were halted and homes and roads were inundated as the Cachapoal River broke its banks in the O’Higgins region south of Santiago. Meanwhile, London-based Anglo American suspended its Los Bronces open-pit mine in the Andes mountains above the capital for safety reasons, while continuing some processing using stockpiled ore………………………………………..Full Article: Source

Copper Climbs With Metals, Miners as China Data Improves Outlook

Posted on 14 April 2016 by VRS  |  Email |Print

Industrial metals and mining shares jumped as Chinese trade data showed recovering demand in the biggest consumer of the commodities. Freeport-McMoRan Inc., the biggest publicly traded copper miner, headed for its highest closing price in five months.
China’s overseas shipments grew 11.5 percent in dollar terms in March from a year earlier, compared with a 25 percent slump in February, when factories and offices were closed for a week-long holiday. Copper imports rose for the first time this year, gaining 36 percent on the month to a record 570,000 metric tons………………………………………..Full Article: Source

South America Suffers From End of Commodities Boom

Posted on 13 April 2016 by VRS  |  Email |Print

World Bank foresees second year of economic contraction in Latin America and the Caribbean. The economies of Latin America and the Caribbean will likely contract for a second consecutive year, dragged down by South American countries that rely heavily on commodities and are more exposed to the slowdown in China, the World Bank said Tuesday.
In its semiannual report on the region, the World Bank said it expects output to shrink 0.9% from 2015 as the region enters its fifth year of economic slowdown………………………………………..Full Article: Source

Damaged Opec has lost the power to influence a world broken by debt

Posted on 13 April 2016 by VRS  |  Email |Print

Opec and non-Opec oil producers meet in Doha next Sunday to decide on what to do about the still depressed oil price. On the agenda is a proposal to freeze production at January or February levels, with a view to possibly cutting it at the following meeting in June.
Time was when such machinations would be front page news. Journalists would hang on the every word of Opec’s vainglorious overlords, and their pronouncements would be major market moving events, with sometimes profound repercussions for the global economy………………………………………..Full Article: Source

Is China Becoming An Even Bigger Player In The World’s Gold Market?

Posted on 12 April 2016 by VRS  |  Email |Print

China, the world’s largest producer and consumer of gold, may be expanding its presence in the international gold market. According to a new story by the Wall Street Journal, low gold prices in recent years have driven a new wave of international gold asset acquisitions by Chinese companies.
Sprott Asset Management CEO Peter Grosskopf says China’s five or six gold companies are all better-positioned financially than their North American counterparts. “I have been in touch with all of them, and they all have plans for increasing assets overseas,” Grosskopf says………………………………………..Full Article: Source

Opec’s days as economic force are ‘over’

Posted on 11 April 2016 by VRS  |  Email |Print

‘The era of Opec as a decisive force in the world economy is over’ argues Daniel Yergin. Opec’s economic power is broken, says the unofficial historian of the oil industry, who has argued that the association of oil exporting countries has become irretrievably divided and is unable to reverse the current slump in crude prices.
Daniel Yergin, whose Pulitzer-prize winning book The Prize provides a comprehensive history of oil and power, said he believes the association’s economic prowess has been undone by its inability to agree on how to stop the oil crisis.Yergin, who is also vice-chairman of data provider IHS, said the recent disagreements among Opec members have revealed how weak the organisation now is………………………………………..Full Article: Source

OPEC’s political agenda and the price of oil

Posted on 08 April 2016 by VRS  |  Email |Print

Because we trade ProShares Ultra Bloomberg Crude Oil and ProShares UltraShort Bloomberg Crude Oil as that relates to West Texas Intermediate (WTI), and because the words of OPEC largely influence those prices, the politics surrounding oil is immediately entertaining, and of special interest, to me.
In this case, I’m talking specifically about Saudi Arabia and Iran. Of course, there’s more going on in the oil space than just what we’re seeing from these two countries, but the price of oil has recently been influenced what Saudi Arabia has said about participating in a production freeze when OPEC meets with Russia on April 17………………………………………..Full Article: Source

Oil prices lower on IMF’s ‘not-so-good news’

Posted on 06 April 2016 by VRS  |  Email |Print

Crude oil prices moved lower for a second straight day as the International Monetary Fund gauged the prospects of “mediocre” economy momentum. The IMF warned Chinese growth patterns may have a lingering ripple effect on the global economy.
Chinese slowdown last year dragged on broader economic momentum and 2016 started with a hiccup following steep declines in the benchmark Shanghai Composite Index. Speaking in Germany, IMF Managing Director Christine Lagarde said the global economy was moving forward and there were no signs of imminent crisis………………………………………..Full Article: Source

Gold is the pile of poker chips in the next global crisis

Posted on 06 April 2016 by VRS  |  Email |Print

Countries around the world are acquiring gold at an accelerated rate in order to diversify their reserve positions. This trend, combined with the huge reserves held by the U.S., Eurozone and the IMF amount to a shadow gold standard.
The best way to evaluate this shadow gold standard among various countries is to use the ratio of gold to the gross domestic product, (GDP). This Gold-to-GDP ratio can easily be calculated using official figures and compared across countries to see where real gold power resides………………………………………..Full Article: Source

Crude oil market to rebalance in 2016-17: Adnoc CEO

Posted on 05 April 2016 by VRS  |  Email |Print

Global crude oil prices should increase slowly over 2016 and 2017, as supply and demand rebalances, the CEO of state-owned Abu Dhabi National Oil Co., or ADNOC, said Monday. “Over the last few weeks, we have seen some recovery in prices. While we expect to experience continue volatility in the short term, we expect to see a slow but upward improvement in prices in the medium term”, ADNOC CEO Sultan al-Jaber said in an interview with official news agency Wam.
“Overall, we think 2016 and 2017 will be the years during which markets will start to rebalance the gap between demand and supply, barring unforeseen events”, he added………………………………………..Full Article: Source

Saudi Arabia will only freeze its oil output if Iran does so - and it won’t

Posted on 04 April 2016 by VRS  |  Email |Print

The recovery in the price of oil may not be sustainable as Iran chooses to play hard ball. There’s quite a way to go yet. Burgeoning oil-producer unity, which was leading toward an accord in Doha to cap output, came under immense strain as Saudi Arabia’s deputy crown prince said the kingdom’s commitment depended on regional rival Iran, which has already ruled out its participation.
If any producer increases output - and Iran has made clear its intention to do so - Saudi Arabia will likewise boost sales, Mohammed bin Salman said this weekend in an interview with Bloomberg………………………………………..Full Article: Source

3 Ways to Turn Metal Into Cash

Posted on 01 April 2016 by VRS  |  Email |Print

Precious metals are volatile in the best of times. Nowadays, the price swings for investors is like being attached to a tennis ball at Wimbledon. The swings can be rapid, violent and go in either direction. Then they can swing right back.
Worse, however, is that before and after the financial crisis, there is no clear long-term direction for precious metals. See, the great thing about stocks is that they have a long-term upward bias. Over time, stocks go up. Precious metals don’t. That’s why I don’t believe they have a place in a long-term diversified portfolio………………………………………..Full Article: Source

The Extend-and-Pretend Oil Market

Posted on 31 March 2016 by VRS  |  Email |Print

See, OPEC: Janet Yellen knows how to do a freeze. Or, rather, a very slow thaw.The Federal Reserve Chair’s reassurance of a gradual approach to raising interest rates helped revive an oil market losing its fascination with OPEC’s chatter.
(Good job, too, what with Saudi Arabia and Kuwait announcing on the same day they would actually restart a field shut down in 2014. Clearly, the supply freeze is a complicated affair.)So, too, though, is the Fed’s relationship with oil. And if you want to see how frozen, low rates can wreak havoc, cast your mind back to the housing crisis………………………………………..Full Article: Source

OPEC oil output rises in March as Iran, Iraq growth offsets outages

Posted on 31 March 2016 by VRS  |  Email |Print

OPEC oil output is rising in March, a Reuters survey found, as higher supply from Iran after the lifting of sanctions and near-record exports from southern Iraq offset maintenance and outages in smaller producers.
The survey also found no major change in production in top exporter Saudi Arabia - another sign that Riyadh is serious about freezing output to support prices, which hit a 12-year low near $27 a barrel in January but have since recovered to $40. Producers are meeting on April 17 in Qatar to discuss the plan………………………………………..Full Article: Source

Riding out the commodities storm

Posted on 30 March 2016 by VRS  |  Email |Print

The era of oil shocks is far from over. In the past two years, oil prices have been in a free-fall, tumbling from US$100 (RM401.5) a barrel to around US$30. Frighteningly, nobody knows for sure where the bottom is. The International Energy Agency optimistically predicts a rebound to US$80 a barrel in 2020.
Calculation by the Federal Reserve Bank at St Louis proposes oil prices could drop all the way to zero by mid-2019. This by no means suggests that oil will be offered for free. The conclusion is based on a model that combines inflation expectations with oil prices. What the study does point to is the contradiction of economic data and the roller-coaster nature of the oil market………………………………………..Full Article: Source

OPEC’s Little Helper

Posted on 29 March 2016 by VRS  |  Email |Print

Oil ministers from OPEC and non-member countries are looking hard for a recovery in prices, and are hoping their meeting next month will produce an output freeze that can be a first step toward that goal.
They’re getting some surprise help from Iraq, the member which added more to supply last year than any other country, and that’s due in large part to a change in fortunes in Kurdistan.The Kurdish Regional Government had planned to be overseeing production of 1 million barrels a day of oil by now. Instead, it faces declining output, recurring difficulties in getting its oil to market and renewed pressure from federal authorities………………………………………..Full Article: Source

Russia near to critical US$48 oil price for recovery

Posted on 24 March 2016 by VRS  |  Email |Print

Oil prices need to hit US$48 a barrel in order for the Russian economy to achieve the stimulus it needs and consumer confidence to return, says one analyst as numbers this week indicate a genuine strengthening of the commodity.
IHS Global European LVS Forecasts manager CEE, Tatiana Hristova outlined the importance of hitting the near US$50 mark, but the last few days alone have seen it reach US$42. “The trend unfortunately leans towards the pessimistic forecast – US$38 a barrel,” Hristova noted. “Two years down the road [perhaps] US$48 – that is a critical level for the Russian economy. The rebound with Russia will be a lengthy process – US$80 we expect by 2020 and US$100 maybe by 2026.”……………………………………….Full Article: Source

Doctor Copper Hiding in Shanghai Warehouse

Posted on 24 March 2016 by VRS  |  Email |Print

The price of copper has risen as China keeps buying this industrial metal, sending positive signals about the state of demand in its economy. But there is evidence that the metal is just being stockpiled, raising questions about what those signals actually say.
Instead, a rebound that has added 15% to the price of copper since mid-January could be more about technical factors and a cheaper greenback than resilience in Chinese demand………………………………………..Full Article: Source

Aluminum emerges as most widely used base metal across the globe

Posted on 22 March 2016 by VRS  |  Email |Print

Base metals are crucial in the growth of the infrastructure, manufacturing, and utilities sectors of a country. Base metal mining refers to the mining of the major industrial non-ferrous metals such as nickel, lead-zinc, copper, tin, and aluminium.
Rapid infrastructure development across the globe has propelled the growth of the global base metal mining market. The global base metal mining market is expected to expand at a CAGR of 5.01% during the period between 2015 and 2023. In terms of volume, the overall market stood at 103.33 million metric tons (MMT) in 2014 and is projected to reach 160.19 MMT by 2023………………………………………..Full Article: Source

Saudi Arabia Won’t Let Oil Prices Stay Over $40

Posted on 21 March 2016 by VRS  |  Email |Print

Saudi Arabia faces a stark choice: either let markets crush American frackers or watch American frackers crush markets. After testing the upper twenties for a couple times, oil prices have staged a huge rally lately, trading above the $40 mark. Energy companies have rallied along, helping major Wall Street averages race towards new highs.
But the oil rally may not last for too long. Saudi Arabia won’t let it last, in our opinion. Once, Saudi Arabia liked higher oil prices. The higher the better, as it will bring more revenues to the royal coffers. That was back in the old good days when Saudi Arabia was the world’s largest oil producer and OPEC’s boss………………………………………..Full Article: Source

Odds on, odds off: London gold market seemingly confused on best route forward

Posted on 18 March 2016 by VRS  |  Email |Print

With Cheltenham races this week, everyone is in betting mood. It would appear that the cards could be stacked in IntercontinentalExchange’s favor, as the operator has come up as an outside favourite to possibly succeed the London Bullion Market Association ‘request for proposal’ to reform the London gold market.
Why? Because the other two rumored exchanges involved in the process — the London Metal Exchange and CME Group — have already been touted, maybe? “The market is currently built on hearsay, and rumors,” said one source close to the situation………………………………………..Full Article: Source

Oil Production Freeze to Stabilize Market by 2017

Posted on 17 March 2016 by VRS  |  Email |Print

Earlier in the day, Novak said that major oil producers would meet in the capital of Qatar, Doha, on April 17 to discuss the agreement on oil production freeze.
“If such agreements will be reached, the re-balancing will be reduced according to our estimates, to the term from six to nine months. At the end of 2016, in the beginning of 2017 we could see the balance of supply and demand, and consequently, the stabilization of the oil market,” Novak told reporters. Unless the deal is agreed on, the oil market will reach the balance in late 2017, Novak said………………………………………..Full Article: Source

Gold Sees Solid Gains In Aftermath of Dovish FOMC Statement

Posted on 17 March 2016 by VRS  |  Email |Print

Gold prices were solidly higher in afternoon trading Wednesday, getting a good boost following a dovish FOMC statement. Gold prices were trading near steady just before the statement’s release at 2:00 p.m. Eastern time. April Comex gold is now up $15.80 at $1,246.70 an ounce. May Comex silver was last up $0.189 at $15.45 an ounce.
The U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that began Tuesday and ended early Wednesday afternoon saw its statement downgrade U.S. economic growth and inflation expectations, and suggested the Fed would only raise interest rates twice this year—instead of the three or four times that some Fed watchers had expected………………………………………..Full Article: Source

Nickel in deficit in 2016, but more production cuts needed

Posted on 16 March 2016 by VRS  |  Email |Print

Major production cuts and a substantial draw-down of exchange inventory are needed to trigger a sustained price recovery in nickel, despite a likely market deficit this year, Russia’s Norilsk Nickel said Tuesday.
“Nickel industry restructuring seems to be picking up pace in 2016. With some production cuts (mainly in China) already announced in 2015 and further production cuts scheduled in 2016, we also see a substantial amount of high cost nickel operations have been put up for sale,” the world’s largest nickel producer said in its 2015 results statement………………………………………..Full Article: Source

London gold fix rigging: Fact or fiction?

Posted on 15 March 2016 by VRS  |  Email |Print

The London Gold Market is a part of the London Bullion Market, which is a wholesale over-the-counter market for the trading gold and silver, coordinated by the London Bullion Market Association.
It is the wholesale market – the usual minimum size of transaction is 2,000 ounces of gold (while the standard size is 5,000 ounces) – individual investors are practically excluded from the market. The London Gold Market was the most important gold market until the 1970s, when the American Commodity Exchange Inc. (Comex) started to trade gold futures and soon gained prominence………………………………………..Full Article: Source

Shale Patch Pain Sees Speculators Boost Bets on Oil Price Rise

Posted on 14 March 2016 by VRS  |  Email |Print

Hedge funds are the most bullish on oil in almost a year as the U.S. shale boom unravels and demand for gasoline strengthens. Signs that producers won’t be able to sustain a supply glut are intensifying, with the International Energy Agency calling a bottom for the price rout.
U.S. output is near a 15-month low as companies from Anadarko Petroleum Corp. to Chesapeake Energy Corp. cut jobs and park rigs to conserve cash, while several missed debt payments. Meantime, U.S. gasoline consumption rose to the highest on record for this time of the year………………………………………..Full Article: Source

Steel chrysanthemums: A China-driven rally in metals prices may be as fleeting as spring

Posted on 11 March 2016 by VRS  |  Email |Print

The spectacular leap of almost 20% in the price of iron ore on March 7th reveals a lot about the idiosyncrasies of commodities markets. Coming on the first trading day after the opening of China’s National People’s Congress, at which the government pledged to maintain GDP growth of at least 6.5% a year for the next five years, the jump may well have reflected renewed optimism about the appetite of the world’s biggest steel consumer.
But the price of physical commodities tends to depend more on supply, demand and inventories than on the expectations of financial markets. So a giant flower show in Tangshan, China’s biggest steel-producing city, may be an equally good—and more fragrant—explanation for the sudden rally………………………………………..Full Article: Source

Beware ‘premature surge’ in commodities: Goldman

Posted on 09 March 2016 by VRS  |  Email |Print

Gold, iron ore and oil prices are seeing a rebound at the moment with many analysts believing that commodity prices have “bottomed out” and are eyeing gains, but Goldman Sachs has issued a warning on the current surge in commodities arguing that it is “not sustainable.”
Goldman’s commodity analysts noted that while last year commodity prices were driven lower by deflation, divergence and deleveraging, current market views on “reflation, realignment and re-levering have driven a premature surge in commodity prices that we believe is not sustainable.”……………………………………….Full Article: Source

Where has the oil gone? Missing barrels and market rebalancing

Posted on 09 March 2016 by VRS  |  Email |Print

Global oil production exceeded consumption by just over 1 billion barrels in 2014/15, according to the International Energy Agency (IEA). Production exceeded consumption by an average of 0.9 million barrels per day in 2014 and 2.0 million bpd in 2015.
Of the 1 billion barrels reportedly produced but not consumed, roughly 420 million are being stored on land in member countries of the Organisation for Economic Cooperation and Development (OECD). Another 75 million barrels are thought to be stored at sea or in transit by tanker somewhere from the oil fields to the refineries………………………………………..Full Article: Source

Sorry, OPEC: U.S. oil production at 43-year high

Posted on 02 March 2016 by VRS  |  Email |Print

Sorry, OPEC. The U.S. oil boom isn’t dead yet. The U.S. pumped an average of 9.43 million barrels per day last year, according to new government figures. That’s the highest level since 1972 and represents an impressive growth of 89% since 2008.
The crash in oil prices has caused production to slow a little in recent months. But shale oil producers have held up far better than many feared. “The U.S. oil industry has demonstrated remarkable resilience,” said Jason Bordoff, a professor at Columbia University and a former energy adviser to President Obama………………………………………..Full Article: Source

India: A welcome Budget for commodity market

Posted on 01 March 2016 by VRS  |  Email |Print

There were many announcements in the Budget that were favourable for the commodity market. The Finance Minister also announced a common e-platform for farmers for 585 wholesale markets. For commodity traders, the icing on the cake came in the form of the proposal to announce new commodity derivatives by SEBI.
The Indian commodity market is currently in shambles. The National Spot Exchange fiasco, the slow developments after the SEBI-FMC merger and the continued distress of farmers due to poor supply chain infrastructure have all added to the problems. The clean-up in the commodity market is finally happening. With the regulator SEBI being asked to introduce new instruments soon, the market will see its liquidity improve………………………………………..Full Article: Source

Gold Becomes the Biggest Winner of 2016

Posted on 29 February 2016 by VRS  |  Email |Print

Gold’s comeback is dominating 2016. The precious metal is the year’s best-performing major asset. Its 15 percent gain is topping gauges of high-yield and investment grade bonds, Treasuries, all currencies and major stock indexes in developing and emerging countries.
Turmoil across global equity and currency markets has sparked demand for a haven. Speculators raised their net-long position in gold to the highest in a year………………………………………..Full Article: Source

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