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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

Saudi Arabia ready to manage oil market but all must cooperate

Posted on 02 February 2016 by VRS  |  Email |Print

Saudi Arabia is ready to manage the oil market under the condition that “everybody must cooperate”, from OPEC members to other oil producers outside the exporting group, the Saudi-owned al-Hayat newspaper cited an OPEC source as saying.
“It is still early to talk about holding an OPEC emergency meeting, especially since the amount of crude that Iran would pump into the markets after lifting the sanctions is still unknown. That will not be entirely clear before at least two months from now,” al-Hayat quoted the OPEC source as saying on Monday………………………………………..Full Article: Source

Oil price gains amid Opec, Russia meeting speculation

Posted on 01 February 2016 by VRS  |  Email |Print

Oil capped a second weekly gain amid speculation that Opec and Russia will meet to discuss trimming crude production to bolster prices. Russian energy minister Alexander Novak said that while Opec member Venezuela proposed a meeting next month, nothing is scheduled.
Russia, after months of insisting it was happy to keep pumping at full throttle, suggested in recent comments it is open to compromise with Opec. Equities climbed as the Bank of Japan’s unexpected monetary stimulus boosted confidence that central banks remain vigilant for slowing economic growth……………………………………….Full Article: Source

Miners bracing for ‘doomsday’

Posted on 01 February 2016 by VRS  |  Email |Print

Glencore chief executive Ivan Glasenberg rejected predictions that copper would fall below $US4000 a tonne, dubbing it a “doomsday” price. Rio Tinto chief executive Sam Walsh last year said the idea that iron-ore prices would fall to $US30 a tonne was from “fantasy land.”
Since Mr Glasenberg’s comments in September, copper prices have tumbled nearly 20 per cent, falling close to $US4300 a tonne. It has risen in recent days, but was down 1.3 per cent at $US4530 in London on Thursday and an ­increasing number of analysts are now saying prices will go below $US4000 soon………………………………………..Full Article: Source

Commodity Price Plunge Threatens Developing Nations

Posted on 29 January 2016 by VRS  |  Email |Print

While the severe Chinese growth recession has already played havoc with major global economic nations’ export volume in a broad spectrum of industrial products, little has been publicized regarding the “Beijing bust’s” impact on dozens of developing nations’ commodity trade, both in volume and price drops.
Many of these nations, such as some in Africa and South America, as well as Australia, had literally owed their growth to the rapacious appetite of China’s 20-year economic expansion surge. This included such basic products as thermal coal, copper, oil, iron ore, nickel, zinc, aluminum, etc. which fed the Asian giant’s seemingly unstoppable drive to world economic leadership………………………………………..Full Article: Source

IMF, World Bank move to forestall oil-led defaults

Posted on 29 January 2016 by VRS  |  Email |Print

Officials from the International Monetary Fund and the World Bank are heading to Azerbaijan to discuss a possible $US4 billion ($5.7 billion) emergency loan package in what risks becoming the first of a series of bailouts stemming from the tumbling oil price.
The Baku visit, which follows a currency crisis triggered by the collapse in crude, comes amid concern at the two global institutions over emerging market producers from central Asia to Latin America. The fund and the bank have also been monitoring developments in other oil-producing countries such as Brazil, which is now mired in its worst recession in more than a century, and Ecuador………………………………………..Full Article: Source

Oil price: ‘we’re going to see more fireworks’

Posted on 28 January 2016 by VRS  |  Email |Print

Oil has steadied at a still-low $31 a barrel, with a major report on US inventories due later. The oil price endured wild swings on Tuesday, rising more than six per cent at one point to above $32 a barrel and touching session lows below $29.
Both the international and US benchmarks are extremely volatile at the moment as the determination of many analysts that painfully low and loss-making prices must soon turn higher runs up against stubborn negative sentiment on excess supplies. A sustained recovery remains unlikely until there is at least some movement from larger producers on output………………………………………..Full Article: Source

Russians want to talk to OPEC about output, pipeline chief says

Posted on 28 January 2016 by VRS  |  Email |Print

Russian officials have decided they should talk to Saudi Arabia and other OPEC countries about output cuts to bolster oil prices, the head of Russia’s pipeline monopoly said on Wednesday, remarks that helped spur a sharp rise in world prices.
Oil futures surged more than 5 percent after the comments by Nikolai Tokarev, head of oil pipeline monopoly Transneft, which gave the strongest hint yet of possible cooperation between the top non-OPEC oil producer and the cartel to try to reverse a record glut………………………………………..Full Article: Source

2016: Silver could go on a winning streak

Posted on 26 January 2016 by VRS  |  Email |Print

When gold prices rise, silver normally does too – and it tends to outperform the yellow metal. Some commodities specialists think silver prices could stage a recovery this year. “There’s an inherent link between the two. Silver is gold’s little sister and when gold moves higher, silver does too,” says Clive Burstow, manager of Barings Global Mining fund.
Silver is notoriously volatile, and is down 2.27 per cent in the last month. But silver has something gold hasn’t – its use in industry. While the prices of most metals fell last year amid broad negativity towards commodities in general, silver also suffered from weak demand for electronics and other goods………………………………………..Full Article: Source

Will OPEC Be Able to Make Oil Precious Again?

Posted on 25 January 2016 by VRS  |  Email |Print

OPEC has announced it would hold an emergency session due to falling prices in the global oil market. The participants will discuss countering the poor market conditions.
The Organization of the Petroleum Exporting Countries (OPEC) may hold an emergency session in March, Nigerian Minister of State for Petroleum Emmanuel Ibe Kachikwu said recently. According to him, with oil below $35 a barrel, oil producers have enough reasons to be worried………………………………………..Full Article: Source

An argument for commodities

Posted on 22 January 2016 by VRS  |  Email |Print

With oil trading below $30 a barrel and Chinese growth continuing to slow, it is understandable that investor sentiment toward commodities is close to hitting its all-time lows.
But, argues James Butterfill, this bodes well for the commodities complex over the longer term. Indeed, speaking at the firm’s investment conference in London, ETF Securities’ head of research and investment strategy argued that the level of bearishness is one of a number of contrarian indicators pointing to eventual better times ahead………………………………………..Full Article: Source

Chart shows oil not only commodity suffering from global glut

Posted on 21 January 2016 by VRS  |  Email |Print

It seems everyone knows the world is flooded with crude oil, but black gold is far from the only commodity that is saddled with a global glut. It’s the downside of the commodity supercycle. On the way up, ravenous demand led by China sent prices of everything from crude to soybeans to iron ore soaring. Producers responded in classic supply-demand fashion: Churning out more to meet demand.
But China’s economy has slowed and global demand has weakened, leaving many commodities grossly oversupplied. And while there’s a lot to the old saying that the “best cure for low prices is low prices,” demand has been slow to respond. China’s economy is slowing and global manufacturing is in less than stellar shape………………………………………..Full Article: Source

Venezuela Said to Request Emergency OPEC Meeting in Letter

Posted on 21 January 2016 by VRS  |  Email |Print

Venezuela wrote to fellow OPEC producers requesting an emergency meeting as the collapse in oil prices hurts the group’s most vulnerable members, according to five people with knowledge of the matter.
The letter was sent to the 12 other members of the Organization of Petroleum Exporting Countries, the people said, asking not to be identified as the document isn’t public. Venezuela has repeatedly called for OPEC members to meet as slumping oil prices sap government revenue. De facto leader Saudi Arabia, which has insisted it won’t cut production unless non-OPEC exporters cooperate, signaled again on Jan. 17 that it will stick to its strategy of defending market share………………………………………..Full Article: Source

Compass CEO Andrew Su says risk of Arab Spring may force Saudi Arabia, OPEC to cut oil output

Posted on 20 January 2016 by VRS  |  Email |Print

Holding on to around 30-million-barrel-a-day production ceiling could land OPEC’s powerbroker with its own Arab Spring, one industry expert has warned. The prolonged slump in oil prices has eaten away the huge cash pile of Saudi Arabia, forcing the oil giant to introduce austerity measures such as cuts to subsidies it offers its citizens that can potentially fuel social unrest.
Andrew Su, chief executive of Australian brokerage Compass Global Markets, told CNBC, “When the Saudis and OPEC moved to push prices lower last year, they were trying to keep pressure on Russia and the US shale producers. That has happened.”……………………………………….Full Article: Source

OPEC sees oil market rebalancing in 2016

Posted on 19 January 2016 by VRS  |  Email |Print

OPEC forecast on Monday that oil supply from non-member countries will post a larger-than-expected decline this year due to the collapse in prices, boosting the need for crude from the producer group.
Supply outside the Organization of the Petroleum Exporting Countries (OPEC) would decline by 660,000 barrels per day (bpd) in 2016, led by the United States, OPEC said in a report. Last month, OPEC predicted a drop of 380,000 bpd………………………………………..Full Article: Source

Gold miners say output has peaked as losses reshape the industry

Posted on 18 January 2016 by VRS  |  Email |Print

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices. The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.
Kelvin Dushnisky, president of Barrick Gold, the world’s largest gold miner by annual output, said: “Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.”……………………………………….Full Article: Source

Why the commodities crunch could hurt stability in Latin America

Posted on 15 January 2016 by VRS  |  Email |Print

Much of Latin America has seen an unusually long period of relative political stability since the early 2000s. With the exception of Cuba, democratically elected governments seem embedded throughout the region.
The political rules of the game largely seem to be followed. Indeed, the international outcry following the 2009 coup that removed Honduras’ president, Manuel Zelaya, served to reinforce how much Latin American politics had changed since the 1970s, when military dictatorships were the dominant form of government………………………………………..Full Article: Source

An ‘Acute Shortage’ in Gold Can Boost Prices

Posted on 15 January 2016 by VRS  |  Email |Print

An acute shortage of readily marketable physical gold is developing that we believe will deepen in years to come. This possibility seems to be unrecognized by those who are short the gold market through paper contracts.
The relentless dumping of synthetic or paper gold contracts since 2011 by speculators in Western financial markets has caused the shortage. The steady selling has driven down the price of physical gold, hobbled the gold-mining industry, and drained the stores of gold held in the vaults of Western financial centers………………………………………..Full Article: Source

The bull and bear case for crude oil

Posted on 13 January 2016 by VRS  |  Email |Print

Oil’s dire performance since the start of the new year continued on Tuesday as prices of benchmark Brent crude and US marker West Texas Intermediate flirted with $30 a barrel. Concerns about China’s economy, whose growth led a surge in global oil demand over the past decade, together with still robust US production and a jump in output from Opec producers has taken prices to levels last seen more than a decade ago.
But where do prices go from here? The Bear Case — Ed Morse, global head of commodities research at Citigroup: “It would take an unusual series of supply disruptions to change this course of price behaviour. In the short-run the market outlook for oil is fairly bleak………………………………………..Full Article: Source

Gold Joins Commodities Selloff

Posted on 12 January 2016 by VRS  |  Email |Print

Gold prices gave up gains Monday as a broad selloff in commodities and a stronger dollar pulled the market down. Front-month gold futures for January lost $1.30, or 0.1%, to $1,096.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Gains had approached 1% overnight but slid throughout traditional U.S. trading hours.
The market had lost ground Friday, too, after a surprisingly strong set of U.S. jobs numbers strengthened the dollar. Gold, like other dollar-denominated commodities, typically moves in the opposite direction of the dollar because an appreciating dollar makes gold more expensive for traders who primarily use another currency………………………………………..Full Article: Source

OPEC’s Trillion-Dollar Miscalculation

Posted on 11 January 2016 by VRS  |  Email |Print

I suspect if Saudi Arabia were able to travel back in time to OPEC’s November 2014 meeting, the oil markets would look very different today. Because at that meeting the group made a decision that has thus far proven to be very costly to OPEC members.
The decision left me scratching my head at the time. Whenever I try to anticipate an OPEC decision, I first ask myself, “What would I do if I were responsible for making that decision?” Of course to OPEC, the self-interests of its members are more important than the interests of the rest of the world………………………………………..Full Article: Source

Why Commodities Crashed in 2015

Posted on 07 January 2016 by VRS  |  Email |Print

Commodities have already had a tough 2015 – but earlier this week, prices for everything, from crude oil to industrial metals such as iron ore and copper, plummeted even further. The sector is contending with the lowest prices since the financial crisis, perhaps even this century. Here is a brief guide to what is happening, how each of the main commodities are faring, and why it matters for global growth.
How bad is this crunch?: Earlier this week, crude oil dipped below $40 a barrel for the first time since 2009. The situation was so dire that the Bloomberg Commodity Index, which covers a wide range of natural resources, dropped to its lowest level since June 1999. After two days of freefall, prices have plateaued, with the oil price managing a brief recovery………………………………………..Full Article: Source

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