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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

Gold Sees Some Mild Profit-Taking, Chart Consolidation Following Recent Gains

Posted on 26 February 2016 by VRS  |  Email |Print

Gold prices are steady to slightly lower in early U.S. trading Thursday, on some profit-taking pressure and chart consolidation following recent good gains. The gold bulls remain in good shape, on a near-term basis. April Comex gold was last down $1.20 at $1,238.00 an ounce. March Comex silver was last down $0.112 at $15.185 an ounce.
Most world stock markets were firmer Thursday, on corrective rebounds from selling pressure seen the past couple days. U.S. stock indexes are pointed toward modestly higher openings Thursday………………………………………..Full Article: Source

Gold jumps above $1,250/oz as investors seek refuge

Posted on 25 February 2016 by VRS  |  Email |Print

Gold rose above $1,250 an ounce and neared a one-year high on Wednesday, acting as counter against risk alongside top-rated government bonds as oil’s earlier weakness rippled into global equity markets.
“Gold is rising on the back of weak risk appetite, but what stands out today is that the market is rising even though the dollar is higher as well,” Jens Pedersen, senior analyst at Danske Bank, said when the greenback was firm………………………………………..Full Article: Source

Two Top Reasons Why Silver Is A Must-Have

Posted on 19 February 2016 by VRS  |  Email |Print

The timing of this silver rally relative to the gold silver ratio (GSR). In the last 100 years, there were three significant silver rallies, with the current one still in progress. Below is a long-term Gold/Silver Ratio chart showing those silver rallies: I have highlighted the periods during which the silver rallies occurred - from bottom to peak.
The silver rally of the 30s started (measured from bottom) before the 1940s major peak of the GSR. The silver rally of the 70s started (measured from bottom) before the 1980 major bottom of the GSR. The current silver rally started (measured from bottom) after the 1991 major peak the GSR………………………………………..Full Article: Source

OPEC still a big player in global crude oil economy

Posted on 18 February 2016 by VRS  |  Email |Print

For many, the mention of the Organization of Petroleum Exporting Countries, widely known as OPEC, carries with it a deep history of oil crises and shocks to the global economy. This was very apparent during OPEC’s height of influence in the 1970s and early ’80s, and again a year or so again when Saudi Arabia’s decision to keep pumping oil, in the face of a world glut, set oil prices into a global tailspin.
But with Russia and a band of Saudi-led OPEC countries tentatively offering Tuesday to freeze oil production levels — a move that could potentially help rescue Canada’s ailing oil industry — the international organization of 13 petrol-exporting nations is again proving its influence on the global stage………………………………………..Full Article: Source

Is Now the Time to Buy Gold in India?

Posted on 18 February 2016 by VRS  |  Email |Print

Gold has regained its shine in India after returns on the metal outperformed other asset classes thanks to a global rise in prices and a weak rupee. Prices of the metal have risen about 16% in India so far this year, outpacing the 12% upswing in international prices of the precious metal.
This is double the 8% return a bond fund would deliver over the same period and the 7.5% return from a bank fixed deposit. During this period, the benchmark S&P BSE Sensex index, tarnished by a global meltdown, has fallen 11%………………………………………..Full Article: Source

‘Several Shortcomings’ In Russia-OPEC Deal, Barclays Warns

Posted on 17 February 2016 by VRS  |  Email |Print

Talk about a dead-cat bounce. Brent oil closed 3% lower on Tuesday, erasing early gains spurred on by a deal between Russia and OPEC-heavy Saudi Arabia to freeze oil production at January levels. WTI crude is still below $30 and looks to settle below Monday’s close by about a nickle.
The only market to benefit so far were Russian equities. But that is unlikely to last 24 hours. Barclays Capital warned early this morning that the Russia-OPEC deal might ultimately disappoint, saying it had “several shortcomings”………………………………………..Full Article: Source

U.S. crude jumps as big producers set for Doha meet

Posted on 16 February 2016 by VRS  |  Email |Print

U.S. oil prices jumped back above $30 a barrel on Tuesday as news of a rare private meeting of top officials from the world’s biggest oil producers spurred speculation of an eventual deal to tackle a deep supply glut.
The world’s top two oil exporters, Saudi Arabia and Russia, will hold talks together with their counterparts from Venezuelaand Qatar in Doha on Tuesday, sources told Reuters. Oil prices have fallen to their lowest in more than a decade over the past year due to booming U.S. supplies and a decision by OPEC to ramp up exports which was aimed at driving higher-cost producers out of the market………………………………………..Full Article: Source

Oil bosses upbeat on market rebound

Posted on 15 February 2016 by VRS  |  Email |Print

Movers and shakers from the oil industry descended on London last week and expressed optimism over a sharp rebound in the beleaguered crude market later this year. Bob Dudley, chief executive of British energy major BP, forecast at the International Petroleum Week industry conference on Wednesday that “the daily (oil) supply and demand” will be balanced in the second half.
“Every storage tank and swimming pool will be full of oil,” Dudley told delegates, acknowledging the vast global supply glut that sent prices plunging close to 13-year lows under $27 (24 euros) per barrel last week………………………………………..Full Article: Source

Positive Iran oil moves raise OPEC alarms

Posted on 15 February 2016 by VRS  |  Email |Print

Only hours after news emerged that Iran has shipped its first oil cargo to Europe in multiple years as well as an announcement by Tehran that it has made a major rise in its oil production, indications emerged that key OPEC producers have become worried over the already deteriorating conditions in the oil market.
Nigeria announced on Sunday that it will soon discuss the new market conditions with Saudi Arabia and Qatar. The announcement was made by the Nigerian Oil Minister Emmanuel Ibe Kachiwku in an interview with Reuters………………………………………..Full Article: Source

Commodities won’t save Australia from recession

Posted on 12 February 2016 by VRS  |  Email |Print

The chief executive of the Australian Securities Exchange is warning that Australia needs to confront structural economic reforms to make a successful transition from the once-in-a-century mining boom.
Elmer Funke Kupper said that, with the mining boom over, Australia will no longer be “saved by nature” and that even with 23 years of unbroken economic growth, no-one should be complacent. Funke Kupper is not forecasting a recession but he told the ABC’s AM program that reforms are critical for Australia to remain competitive in the post-boom world………………………………………..Full Article: Source

Venezuela proposes OPEC, non-OPEC producers “freeze” oil supply

Posted on 12 February 2016 by VRS  |  Email |Print

Some OPEC countries are trying to achieve a consensus among the group and key non-members for an oil production “freeze”, sources familiar with the discussions say, in an attempt to tackle the global glut without cutting supply.
Top exporter Saudi Arabia might be warming to the idea, though it was too early to say whether the kingdom would give its blessing because any deal depends mainly on a commitment by Iran to restrict its plan to boost exports, the sources said………………………………………..Full Article: Source

IEA says oil supply will far outstrip demand in 2016

Posted on 10 February 2016 by VRS  |  Email |Print

The International Energy Agency says oil supply is set to outpace demand this year, keeping a lid on any expected price increases. The organization, which advises countries on energy policy, said in its monthly report Tuesday that global excess supply may reach 2 million barrels per day during the first quarter, and a further 1.5 million barrels a day in the second quarter.
Further stock-building of 300,000 barrels a day is forecast in the second half of the year. The IEA said “if these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term.”……………………………………….Full Article: Source

Don’t hold your breath for a Saudi-led OPEC push to cut output

Posted on 10 February 2016 by VRS  |  Email |Print

By now, any scenarios in which Canada’s battered economy is rescued by a sudden upturn in oil prices have largely disappeared from the conversation. All save one. A hope that one sunny morning Saudi Arabia may wake up, realize the error of its ways, and decide to curtail production remains alive for the oil industry. And why not?
A change of heart by the Saudis could send crude prices higher by $15 to $20 US a barrel in short order, offering some desperately needed breathing room to global oil producers groaning under the strain of job cuts and, for some, the threat of bankruptcy………………………………………..Full Article: Source

Russia And Commodities: A Tale Of 2 Bears

Posted on 09 February 2016 by VRS  |  Email |Print

Russia commands an interesting position in the world these days. On one hand, Vladimir Putin’s star has risen on the international scene. Alliances with Iran and China mean that the Russian leader continues to be a powerful and influential force with on the international scene.
The sanctions on his nation remain because of Russian aid to rebel forces in Ukraine but we have not heard much about that recently. What we have seen is Putin’s presence in Syria, his participation in the war against terrorism and his role as a conduit to the government in Iran. As Iran’s status in the Middle East grows so does Russian influence in the region………………………………………..Full Article: Source

As Big Oil shrinks, boards plot different paths out of crisis

Posted on 09 February 2016 by VRS  |  Email |Print

As oil and gas companies cut ever-deeper into the bone to weather their worst downturn in decades, boards have adopted contrasting strategies to lead them out of the crisis. Crude prices have tumbled around 70 percent over the past 18 months to around $35 a barrel, leading to five of the world’s top oil companies reporting sharp declines in profits in recent days.
Executives at energy firms face a tough balancing act: they must cut spending to stay financially afloat while preserving the production infrastructure and capacity that will allow them to compete and grow when the market recovers………………………………………..Full Article: Source

Secret Opec talks that raised oil price - will it happen again?

Posted on 05 February 2016 by VRS  |  Email |Print

After a year of secret diplomacy and hushed-up talks around the world, Opec’s Saudi Arabia and rival Venezuela were persuaded to cut a deal by non-Opec Mexico that eased the acrimony and led to a much-needed rise in oil prices.
It was 1998, trust had long broken down within Opec and it took outside mediation as a last resort to stop the squabbling to clinch deals at secret meetings in Riyadh, Madrid and Miami. Now, with oil prices touching their lowest level since 2003, Opec officials and deal-brokers are looking back nearly two decades and asking whether a behind-the-scenes deal to curb oil output between Opec and non-Opec Russia could be struck………………………………………..Full Article: Source

London gold market wrestles over future

Posted on 05 February 2016 by VRS  |  Email |Print

There aren’t many places in the UK where you can walk in off the street and buy gold as a retail customer. A new store in London’s St James’s Street a stone’s throw from the Ritz wants shoppers.
“There is unquestionably a physical renaissance going on,” says Ross Norman, of Sharps Pixley, flanked by cabinets showing gold roses and gold watches under a large chandelier. “People want the physical [gold], they don’t want the paper. It’s suggestive of an environment where trust is less than it used to be.”……………………………………….Full Article: Source

Oil could double despite OPEC supply flood

Posted on 03 February 2016 by VRS  |  Email |Print

Plunging oil prices — down more than 30% in the past year — have been the primary contributing factor to the S&P 500’s worst start of the year since 2009, with January clocking in a 5.1% decline. And with crude plunging below $30 again Tuesday, investors are still looking for clues as to when we’ll see a bottom.
While oil’s impact on the economy remains debated, the commodity is unquestionaingly affecting not only the indices but also a range of economic fundamentals from industrial production to earnings and credit………………………………………..Full Article: Source

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