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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

Inflation - Are Commodities Talking to Us?

Posted on 29 July 2014 by VRS  |  Email |Print

Markets often do talk to us, if only we would listen. Our ears serve as only part of listening. An open mind is also required. Regrettably, minds receptive to new thoughts and questions have been somewhat outmoded in the investment world for many years. Why else do so many seem to ignore what commodities are saying?
Commodities may be saying that complacency on prices might be inappropriate. In the chart below is plotted the year-to-year percentage change for the U.S. consumer price index, black line, and a like measure for the median U.S. CPI as prepared by the Cleveland Federal Reserve Bank………………………………………..Full Article: Source

Industrial metals emerge stronger in 2014, bullion, energy weakness continues

Posted on 28 July 2014 by VRS  |  Email |Print

Industrial metals have emerged stronger in 2014 while weakness continues in energy and bullion complex that emerged recently. The gains in base metals have been driven by increased speculation about a rising supply deficit in aluminum over the coming two years as demand keeps rising at a time where some fo the major producers outside China have reduced production, noted Ole S Hansen, Head of Commodity Strategy at Saxo Bank.
The general imporovement in economic data out of China and the US, the world’s two biggest consumers by far, has also helped improve sentiment during the past couple of months………………………………………..Full Article: Source

Why Gold Attracts Conspiracy Theorists

Posted on 25 July 2014 by VRS  |  Email |Print

Few things attract as many conspiracy theories and theorists as gold does. The most enduring conspiracy theory seems to be that central banks around the world are colluding to keep a lid on gold prices. The logic here presumably is that a spike in gold prices could be construed by market participants as a harbinger of inflation, and if it occurred, would force central banks to raise interest rates from their artificially low levels (2009 – circa 2014).
Another sub-plot is that the biggest gold exchange-traded funds (ETFs) have a huge shortfall in the amount of gold they hold. Here are three reasons why the noble metal is a favorite subject for conspiracy theorists everywhere……………………………………….Full Article: Source

OPEC exports more petroleum products to Asia-Pacific in 2013

Posted on 24 July 2014 by VRS  |  Email |Print

OPEC member countries exported 4.5 mb/d of petroleum products in 2013, with the largest share devoted to Asian and Pacific countries (3.1 mb/d or 68.5 percent), the Organization of the Petroleum Exporting Countries (OPEC) said its latest “Annual Statistical Bulletin” released Tuesday.
The report noted that European and North American countries received smaller shares of OPEC petroleum product exports (0.6 mb/d or 14.0 percent and 0.2 mb/d or 5.2 percent, respectively). The refinery capacity of OPEC member countries increased by a 4.9 percent during 2013 compared to 2012. In 2013, OPEC Member Countries held 11.0 percent of total world refinery capacity, up from 10.5 percent in 2012………………………………………..Full Article: Source

OPEC’s Two-Decade Ride on Global Growth Stalls

Posted on 23 July 2014 by VRS  |  Email |Print

For the past two decades, growth in the global economy spelled higher revenues for the Organization of Petroleum Exporting Countries. Not any more.
The CHART OF THE DAY shows how last year was the first since 1993 that the value of OPEC’s total crude exports didn’t track the direction of global gross domestic product. The bottom panel shows how the group supplying about 40 percent of the world’s oil fetched lower average prices and also shipped fewer barrels year on year………………………………………..Full Article: Source

OPEC Says Oil Production, Market Share Fell in 2013

Posted on 21 July 2014 by VRS  |  Email |Print

OPEC said Friday its crude production and market share fell last year as a boom in U.S. shale dents demand for its oil. In an annual statistical report, the Organization of the Petroleum Exporting Countries said its collective crude production was down 2.5% during 2013 on an annual basis.
OPEC’s share of total global production in 2013 averaged 43.4%, down from the 44.6% in 2012, it said. Global oil production and demand rose last year but was largely captured by OPEC’s rivals, notably a rise in nonconventional U.S. production………………………………………..Full Article: Source

Platts Survey: OPEC Missed its June Target of 30,000 barrels Per Day

Posted on 21 July 2014 by VRS  |  Email |Print

Oil production from the Mideast-dominated Organization of the Petroleum Exporting Countries (OPEC) dipped by 30,000 barrels per day (b/d) in June to 29.94 million b/d, according to the latest Platts survey of OPEC plus industry officials and analysts. The survey showed Iraq’s output plunge of 160,000 b/d in some war-torn areas was largely offset by production increases from several other OPEC member countries.
“Small though it may be, a dip in OPEC output is the last thing the consuming world wants to see,” said John Kingston, Platts global director of news. “OPEC had seen the call on its crude averaging 30.4 million b/d in the second half of this year, so any drop in production from the organization – even an involuntary one – could be viewed as a move in the wrong direction,” King added………………………………………..Full Article: Source

A Look At Gold Prices And Quantitative Easing

Posted on 17 July 2014 by VRS  |  Email |Print

Gold has been a bit reactionary over the past days bouncing around on geopolitical stress and words from the US Federal Reserve Chief. Mario Draghi just a month ago sent the metals market on a whirlwind when the central bank moved to help the eurozone recovery moving to negative interest rates. Lately global stress shifted from Iran to Ukraine and then to Iraq.
With tensions between Palestine and Israel reaching war, Iraq has been pushed off the front pages of the papers. Gold peaked just a week ago close to 1350 and tumbled yesterday to below 1295 and stands flat this morning at 1297.10 after Fed Chair Janet Yellen’s testimony before the US Senate. Yellen said U.S. labor markets are far from healthy and signaled the central bank would not be in a hurry to hike interest rates………………………………………..Full Article: Source

Global agri-commodities: Cocoa, Coffee top gainers Soybean, Corn, Wheat top losers

Posted on 17 July 2014 by VRS  |  Email |Print

Bearish trend is prevailing in most agri-commodities traded in Chicago Board of Trade (CBOT) and Intercontinental Exchange (ICE) amidst rise in acreage, record production estimates and falling demand.
Soybean has slumped more than $1.50 a bushel to trade under $11 for the first time in a year. Reuters analyst said that soybean still remains at an unusually large premium to its competitor rapeseed, the second widely produced and consumed oil seed in the world. Hence investors must be ready for further drop in soybean prices, the analyst said………………………………………..Full Article: Source

Goldman thrives as commods rivals melt away

Posted on 16 July 2014 by VRS  |  Email |Print

Goldman Sachs’ commodities business, known for its muscular trading operation, is rapidly expanding in a plainer and less politically charged area even as listless markets and increased regulation force rivals to beat a retreat. Commodity finance is among the fastest-growing segments of Goldman’s commodities business, the bank’s executives said.
“The financing side of the equation has gone from being a sort of appendage to being a really major organ for us,” Greg Agran, Goldman’s global co-head of commodities trading, said. “When we think about growth going forward over the next few years, I actually think the commodity finance business is one of the areas we are most excited about”………………………………………..Full Article: Source

Oil drops sharply as supply concerns ease

Posted on 16 July 2014 by VRS  |  Email |Print

Brent crude suffered its biggest one-day percentage fall since the start of the year as concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts.
ICE August Brent fell to a three-month low of $104.39 a barrel, extending losses since the middle of June, when insurgents swept across northern Iraq, to more than 9 per cent………………………………………..Full Article: Source

Global oil supply and demand equation poses risks

Posted on 15 July 2014 by VRS  |  Email |Print

Looking ahead few years, global demand for oil will continue to increase because of rising prosperity in emerging economies. Supply, however, will still remain constrained. Soon, the world will not be able to produce all the oil it needs as demand is continually rising while supply is falling. According to International Energy Agency (IEA), oil consumption will rise by 56% between now and 2040, with China and India responsible for half of this increase in consumption.
Global oil demand for 2013 will probably be around 91.3 million barrels per day (mb/d). Demand will grow to 92.6 mb/d in 2014, according to the IEA……………………………………….Full Article: Source

Global oil demand expected to grow along with economy, cartel says

Posted on 11 July 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Counties said Thursday it expected the world will need more oil because of improvements in the global economy. Global oil demand for 2015 is expected to grow by 1.2 million bpd to average 92.3 million bpd as the world economy picks up steam, OPEC said in its monthly market report.
“Despite some weakness in the first half of the year, the world economy continues to recover,” the report said. “Global gross domestic production growth in 2014 is now forecast at 3.1 percent, slightly higher than the estimated 2.9 percent for 2013.”……………………………………….Full Article: Source

No ‘gold rush’: Germany keeps reserves in the US

Posted on 08 July 2014 by VRS  |  Email |Print

Germany’s plan to bring back the nation’s gold reserves to Frankfurt by 2020 has fizzled, and instead has for now decided to leave $635 billion of gold in US vaults. Home to the world’s second largest gold reserves, worth $141 billion, Germany only keeps about one third of its gold ‘at home’, the rest is abroad.
45 percent is in the US Federal Reserve in New York, 13 percent in London, 11 percent in Paris, and only 31 percent in the Bundesbank in Frankfurt. “The Americans are taking good care of our gold, we have no reasons for mistrust,” Nobert Barthle, the German Parliament Budget spokesman, told RT……………………………………..Full Article: Source

Technology paves road to freedom from OPEC

Posted on 04 July 2014 by VRS  |  Email |Print

News out of Iraq has helped drive oil prices higher in recent weeks. One of the predictable results has been a slew of articles about how rising oil prices could thwart a U.S. economic resurgence. While that might be partially and temporarily true in the very short run, the reality is that the U.S. will have relatively stable energy prices for the foreseeable future.
In general, most of the articles miss the real reasons behind slow economic growth and are just breathy attempts to get pageviews. The main reason for the rangebound energy prices in America — which I discussed here — is the rapid pace of energy-related technology the past decade. ……………………………………….Full Article: Source

World Oil Markets Can Deal With Situation In Iraq – Lew

Posted on 03 July 2014 by VRS  |  Email |Print

US Treasury Secretary Jack Lew said on Tuesday there was ample oil production capacity to offset any supply disruptions that may occur due to the violence in Iraq. “I believe that world energy markets will be able to deal with the situation as it goes forward,” Lew said.
“I don’t think it’s in the interest of any of the parties in Iraq for there to be a severe disruption in supply,” he added. “There is sufficient capacity in the world right now to deal with whatever we need to deal with.”……………………………………….Full Article: Source

The Best Types of Gold to Buy Now

Posted on 24 June 2014 by VRS  |  Email |Print

Investing in gold is a great way to diversify investment portfolios, hedge against a financial crisis, and even protect against inflation. But with so many different types of gold to buy, finding the right gold investment can be a difficult task for retail investors.
One of the most popular types of gold investments is gold coins. There are numerous types of gold coins traded throughout the world, and they all have different weights, fineness, face values, and intrinsic values………………………………………..Full Article: Source

Extra responsibility for Saudi Arabia

Posted on 20 June 2014 by VRS  |  Email |Print

The recent OPEC meeting was a non-event to the extent that most of the world media failed to show up to cover the meeting. No wonder. A roll over of the existing 30 million barrels per day (bpd) was expected and what happened was exactly like before in similar meetings.
For quite some time, the organization under the leadership of Riyadh, has managed to come with a new working formula devoid of typical political maneuvering — namely, freezing discussions on quotas, keep an eye on the demand and supply fluctuations and adjust whenever necessary by pumping more oil or cut some, and at the same time leave the price to be determined by the market………………………………………..Full Article: Source

OPEC, the Phantom Menace

Posted on 17 June 2014 by VRS  |  Email |Print

From the Keystone pipeline to Ukraine to fracking and American self-sufficiency, Washington is abuzz about energy politics these days, but top U.S. policymakers continue to make mistakes when thinking about world energy markets.
For example, James Woolsey, a former director of the CIA and self-proclaimed energy hawk, argues that the Organization of the Petroleum Exporting Countries (OPEC) has a grip on global oil and gasoline prices so tight that the United States will never be free of its influence. Like most people, Woolsey wrongly believes that OPEC is a powerful cartel………………………………………..Full Article: Source

Saudi Arabia Proposes Reducing OPEC Meets From Twice To Once A Year

Posted on 16 June 2014 by VRS  |  Email |Print

Saudi Arabia has suggested OPEC meet just once a year, rather than twice, a sharp reduction from the days when the group met for up to seven times a year in the early 2000s. The OPEC meetings since 2012 have produced no policy change and Wednesday’s gathering in Vienna was no exception, sticking with its production target of 30 million barrels per day (bpd).
The 12-member cartel used to give traders more to worry about, meeting several times a year, convening emergency meetings at short notice and sometimes making surprise decisions as it tried to micro-manage the oil market………………………………………..Full Article: Source

China Commodity Loans Add to Surge in Offshore Borrowing

Posted on 13 June 2014 by VRS  |  Email |Print

The commodity-backed loans at the center of a probe into an alleged financial scam at a Chinese port are part of a ramp-up in offshore borrowing by Chinese companies that Beijing is looking to tamp down.
As Chinese authorities tightened credit at home in the past year, local firms instead looked abroad for financing. Asian-Pacific banks alone had $1.2 trillion in loan exposure to China at the end of 2013, up two-and-a-half times from 2010, according to Fitch Ratings………………………………………..Full Article: Source

OPEC Ministers Agree to Maintain Output Quota

Posted on 12 June 2014 by VRS  |  Email |Print

Delegates of the Organization of the Petroleum Exporting Countries agreed to roll over the group’s production quota, maintaining the group’s current official production output. The decision comes despite concerns over adequate global supply. Libya has struggled to lift its output amid political turmoil in the country. Meanwhile, global growth—and by extension, oil demand—has been picking up.
OPEC, which is holding its semiannual meeting in the Austrian capital, agreed to keep its official output quota at 30 million barrels a day, delegates said. OPEC produces about one in three barrels of the world’s crude………………………………………..Full Article: Source

Saudi Arabia, Kuwait expect OPEC to maintain current oil output

Posted on 11 June 2014 by VRS  |  Email |Print

Saudi Arabia and Kuwait said on Tuesday they expect OPEC to keep oil production levels stable so as not to alter prices at a meeting of the cartel this week. Saudi Oil Minister Ali al-Nuaimi said the market was “stable and balanced” and that he therefore believed there would not be any decision to change output.
“The price is at a comfortable level for producer and consumer countries as well as for the oil industry,” he said ahead of Wednesday’s meeting of the Organisation of Petroleum Exporting Countries in Vienna………………………………………..Full Article: Source

Iraq, Venezuela say OPEC to roll over output ceiling

Posted on 10 June 2014 by VRS  |  Email |Print

The OPEC oil producers’ cartel appeared set to maintain its output ceiling later this week, Iraq and Venezuela said here on Monday. The Organization for Petroleum Exporting Countries, whose dozen member nations together supply about one third of the world’s crude, have a daily collective output target of 30 million barrels of oil.
“I have a feeling we are expecting to have another rollover,” Venezuelan Energy Minister Rafael Ramirez told reporters in the Austrian capital, two days before Wednesday’s OPEC gathering………………………………………..Full Article: Source

India: FMC takes steps to restore investor confidence in commodities market

Posted on 09 June 2014 by VRS  |  Email |Print

To revive investor confidence in commodities market that has plummeted after the NSEL crisis, sector regulator FMC has asked the Securities and Exchange Board of India (SEBI) to make it mandatory for listed companies to disclose their exposure in commodities hedging.
The Forward Markets Commission (FMC) has also written to the Finance Ministry to direct banks to insist on borrowers, who have exposure to commodities, hedging their price risks………………………………………..Full Article: Source

Opec focus switches to supply challenge

Posted on 06 June 2014 by VRS  |  Email |Print

When Opec last met six months ago the discussion in and around its secretariat building in central Vienna centred on how the oil cartel might have to cut production to accommodate rising output from a trio of countries – Iran, Iraq and Libya.
But as oil ministers from the 12 member countries prepare to gather in the Austrian capital for next week’s meeting, there is a different talking point. The focus is no longer about reducing production but whether Opec can pump enough oil to meet the “call”, or demand for its crude, given the growing number of problems among its member countries………………………………………..Full Article: Source

OPEC Crude Output Advances from 3-Year Low

Posted on 03 June 2014 by VRS  |  Email |Print

The Organisation of Petroleum Exporting Countries (OPEC) crude production climbed in May for the first time in three months, led by gains in Angola and Saudi Arabia, a Bloomberg survey showed.
Output from the 12-member OPEC countries rose by 75,000 barrels a day to an average 29.988 million, according to the survey of oil companies, producers and analysts. Last month’s total was revised 50,000 barrels a day higher to 29.913 million because of changes to the Saudi Arabian and United Arab Emirates estimates………………………………………..Full Article: Source

Dubai in Land of OPEC Gives Blessing to Going Green: Arab Credit

Posted on 29 May 2014 by VRS  |  Email |Print

Dubai, better known for palm-shaped islands and the world’s tallest skyscraper than energy conservation, is on a mission to cut power and water use as the rising costs of fuel and desalination threaten future growth.
The utility leading the campaign for conservation is the one benefiting the most from soaring demand. Dubai Electricity & Water Authority, whose bonds have outperformed Persian Gulf companies on the strength of rising demand, created a unit to advise customers on ways to reduce consumption while the government may start a fund to help energy saving, Chief Executive Officer Saeed Mohammed Al Tayer said……………………………………….Full Article: Source

Gold Bear Market Is Losing Momentum

Posted on 29 May 2014 by VRS  |  Email |Print

It’s constructive to look at the other side of your positions to see where you might be wrong. If you’re long a market, a good way to do this is by taking the inverse of the symbol representing your position. At stockcharts.com, you do this by putting “$ONE:” in front of your symbol and it shows you a chart of the inverse of your position.
I like to do this instead of looking at the leveraged ETFs because they tend to decay over time. The non-leveraged inverse ETFs are fine, but they don’t exist for many markets. Therefore using “$ONE:” gives you the bear market perspective of anything you want to look at………………………………………..Full Article: Source

Has The US Shale Oil Miracle Disappeared?

Posted on 23 May 2014 by VRS  |  Email |Print

The US shale oil “miracle” has about as much believability left as Jimmy Swaggart. Just today, we learned that the EIA has placed a hefty downward revision on its estimate of the amount of recoverable oil in the #1 shale reserve in the US, the Monterey in California.
As recently as yesterday, the much-publicized Monterey formation accounted for nearly two-thirds of all technically-recoverable US shale oil resources. But by this morning? The EIA now estimates these reserves to be 96% lower than it previously claimed……………………………………..Full Article: Source

GCC economies must reduce dependence on commodities

Posted on 21 May 2014 by VRS  |  Email |Print

Falling oil prices will pose a challenge to GCC hydrocarbon exporters unless governments step up their diversification efforts and develop more export industries, according to a new report by ICAEW. In its latest quarterly Economic Insight report, produced by its partner, the Centre for Economics and Business Research (Cebr), the accountancy and finance body says expanding competitiveness across a broader range of export industries will require improvements in education, skills and innovation to be successful.
According to Economic Insight: Middle East Q2 2014, GCC economies are now more dependent on commodity exports than they were 10 years ago despite the diversification agenda. Commodities still account for 86.8 per cent of Saudi Arabia’s total goods exports by value and nearly two thirds of the UAE’s. Even Bahrain, with the fewest hydrocarbon resources of any GCC economy, relies on commodity exports for nearly three-quarters of goods exports…………………………………..Full Article: Source

Indian gold consumption to increase?

Posted on 21 May 2014 by VRS  |  Email |Print

Gold consumption in India, the world’s second-largest user, will probably increase in the second half as import restrictions are relaxed by the new government, according to the World Gold Council.
Demand may climb as high as 1,000 tons this year, said Somasundaram P.R., the managing director for India. That compares with 974.8 tons in 2013 and a record of 1,006.3 tons in 2010, according to data from the London-based WGC. Imports plunged 52 percent in the first quarter from a year earlier, the group said………………………………….Full Article: Source

Iran Says OPEC Needs to Make Room For Its Oil

Posted on 20 May 2014 by VRS  |  Email |Print

Iran’s oil output is moving away from a 20-month high reached earlier this year. Nevertheless, with OPEC expecting growing demand for its crude, Iran says it’s ready to make its presence known on the international oil stage.
Iran is serious about achieving a position on the international stage that’s reflective of its reserve potential, the country’s oil minister, Bijan Zanganeh, told an international energy summit in Moscow. Zanganeh, a career official in the Iranian energy sector, said challenges of long-term energy security have come into question, though with what he says is 157 billion barrels of crude oil in place, the Islamic republic is up to the task…………………………………….Full Article: Source

Move Over OPEC and Russia, America is in the Oil-Price Driver’s Seat

Posted on 19 May 2014 by VRS  |  Email |Print

Want to know something that you probably haven’t considered, but will absolutely blow your mind? Since 2011, two of the world’s top 25 oil-exporting nations — Libya and Sudan — have seen production completely fall off a cliff, Export volumes from Venezuela and Mexico have been on a slow decline for a decade, and Russia and the West are in the midst of a Cold War-esque standoff over Ukraine.
Yet over the last three years, the price of crude oil has not just stayed flat, it has declined. Step back and think about that for a minute. This was a market that used to go into panic mode if the king of Saudi Arabia had a bad meal, and now nearly 2 million barrels a day in production can vanish from the global market without anyone blinking an eye…………………………………….Full Article: Source

IEA says Opec oil supply could fall short

Posted on 16 May 2014 by VRS  |  Email |Print

Opec, the oil-producing cartel, will need to increase production significantly in the second half of the year in order to meet world demand, according to the west’s energy watchdog.
While production gains of about 400,000 barrels a day in April have gone some way towards easing tight global markets, the International Energy Agency says a bigger increase will be needed in the second half of the year when consumption picks up after the northern hemisphere summer………………………………………..Full Article: Source

China, Middle East to take on more crude, OPEC says

Posted on 14 May 2014 by VRS  |  Email |Print

Though the European economy is showing signs of recovery, OPEC said Tuesday much of the growth in oil demand is coming from the Middle East and China.
The Organization of Petroleum Exporting Countries said in its monthly market report for May global oil demand is expected to increase by 1.14 million barrels per day to 91.15 bpd this year. “Almost half of annual oil demand growth is seen coming from China and the Middle East,” OPEC’s report said………………………………………..Full Article: Source

Bank-led commodity decorrelation theory rejected by analysts

Posted on 08 May 2014 by VRS  |  Email |Print

Unctad economists’ argument that bank withdrawals are loosening correlation between commodities and equities “doesn’t make any sense”, say analysts. Analysts have criticised the findings of two economists at the United Nations Conference on Trade and Development (Unctad), who claim the withdrawal of banks from commodity markets has driven down the correlation between commodities and other asset classes.
“To say that banks exiting creates a decorrelation doesn’t make any sense to me,” says Michael Haigh, New York-based global head of commodities research at Societe Generale Corporate & Investment Banking (SG CIB)………………………………………..Full Article: Source

Steel: Asia output strong, EU to witness increase after two years of decline

Posted on 08 May 2014 by VRS  |  Email |Print

Strong growth in Asia production and increase in European Union (EU) production after two years of decline, will raise total production of steel by 3% to 1655 mn tons in 2014, according to MEPS International.
MEPS estimates a growth of 2.6% for EU region at 170 mn tons. Steel manufacturing in Europe, excluding the EU and CIS, should reach 40 million tonnes in 2014 - a rise of 3.1 percent, year-on-year. Our 2014 forecast for steelmaking in the CIS has been downgraded in this issue and now stands at 108.5 million tonnes. This represents a slight decrease from the previous year’s outturn………………………………………..Full Article: Source

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