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Russia needs high oil prices to survive

Posted on 01 August 2014 by VRS  |  Email |Print

For all the sanctions Western leaders can throw at Russia, the biggest threat to President Vladimir Putin’s ability to back separatists in east Ukraine is something beyond his or their control: the price of oil. With Russia’s $2 trillion economy heavily dependent on crude exports, oil prices are always closely monitored by the Kremlin, but the government is particularly wary now as tensions with the West mount and sanctions ratchet up.
Such conflicts often push up crude prices, but as long as oil, which accounts for 40 percent of state revenues, remains above the average $104 per barrel written into the 2014 budget, Moscow has little immediate need to worry………………………………………..Full Article: Source

Higher oil prices lift Exxon’s profit as production sags

Posted on 01 August 2014 by VRS  |  Email |Print

Exxon Mobil Corp, the world’s largest publicly traded oil company, reported a stronger-than-expected quarterly profit on Thursday as higher prices for its crude and natural gas offset a 6 percent drop in production.
Exxon has struggled in recent quarters to replenish its reserves quickly, investing in massive new projects in Russia and Papua New Guinea that take years to develop. Meanwhile, many of its smaller, more-nimble peers have aggressively developed shale formations around North America, fueling massive production and exciting Wall Street………………………………………..Full Article: Source

Oil prices drive projected carbon dioxide enhanced oil recovery

Posted on 31 July 2014 by VRS  |  Email |Print

In its 2014 Annual Energy Outlook (AEO2014), the US Energy Information Administration (EIA) projects that the price of oil will largely determine whether to use carbon dioxide enhanced oil recovery (EOR) technologies to extract additional crude oil from existing producing fields. The OPEC oil output rises in July on fragile Libyan reboundinjection of CO2 gas into oil reservoirs at high pressure forces the CO2 to mix with oil. This reduced the oil’s viscosity and causes the oil to increase in volume.
The result is an increase in the total cumulative volume of oil produced and in the percentage of oil-in-place that is recovered. The decision by a producer whether or not to employ this technique depends on a number of factors, including the geophysical properties of the reservoir, the oil within that reservoir, the cost of applying CO2 EOR and the revenue received from the additional production………………………………………..Full Article: Source

Infographic: Oil Prices and the Middle East Crisis

Posted on 31 July 2014 by VRS  |  Email |Print

In terms of the oil market, tension and unrest in the Middle East is a driving factor that investors should consider. As Visual Capitalist Notes, Ernst and Young has reported that prices for oil were up in the second quarter, largely as a result of geopolitical tensions.
In the infographic below, Visual Capitalist takes a look at how conflicts in the Middle East are affecting the oil price………………………………………..Full Article: Source

US growth, inflation numbers drop gold price through $1,300

Posted on 31 July 2014 by VRS  |  Email |Print

The gold price fell below the psychologically important $1,300 an ounce level on Wednesday after strong economic data outweighed safe haven buying on geopolitical concerns. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery in early morning trade exchanged hands for $1,294.60 an ounce, down $5.60 from Tuesday’s trading session.
US gross domestic product grew at a 4% annual pace in the second quarter, according to government data released Wednesday. First quarter number were also adjusted, showing a smaller contraction………………………………………..Full Article: Source

Robust copper price prompts switch to aluminum

Posted on 31 July 2014 by VRS  |  Email |Print

In New York trade on Wednesday copper rallied after much stronger than anticipated US GDP figures, reaching a high of $3.2625. Defying market expectations, the copper price dug itself out of a near four-year low struck mid-March of $2.92 a pound and has gained more than 7% since early June. The metal is now down only 4% in 2014.
The copper price is highly correlated with economic growth thanks to the widespread use of the metal in the construction, transport and power industries, and the robustness of the red metal is prompting industry to switch to much cheaper aluminum for some applications………………………………………..Full Article: Source

Gold price holds above $1,300, focus on Fed policy meeting

Posted on 30 July 2014 by VRS  |  Email |Print

Gold was little changed just above USD 1,300 an ounce on Tuesday, supported by geopolitical tensions in the Middle East and Ukraine, with investors also focusing on U.S. jobs data and a Federal Reserve policy meeting this week.
The Fed kicks off its two-day meeting later on Tuesday, with markets watching for clues as to when the U.S. central bank will begin increasing interest rates. The Fed will make a statement on Wednesday at the end of the meeting. “Gold is going to be range-bound until the Fed meeting and economic data later this week,” said Mark To, head of research at Hong Kong`s Wing Fung Financial Group………………………………………..Full Article: Source

Zinc, lead buoyed as value hunters tune into global growth story

Posted on 30 July 2014 by VRS  |  Email |Print

Zinc prices matched three-year highs hit the session before on Tuesday and lead inched to a new 17-month top as investors ploughed into metals that have lagged this year and appear undervalued on prospects of reviving global growth.
Manufacturing growth in the world’s top metals user China expanded at its fastest clip in 18 months in July, an initial survey showed, while in general the U.S. economy has gathered pace, with a brightening picture seen in its labour market………………………………………..Full Article: Source

Gold Price In 2014 Consolidating Above Major Support Area

Posted on 29 July 2014 by VRS  |  Email |Print

So far, the gold price in 2014 in the first six months has been trading in a tight range between $1190 and $1390. The yellow metal had one significant rally in February / March and one moderate rally starting in June.
The spikes in the gold price in 2014 have been driven partly by fear and partly by inflation expectations. The first rally coincided with the outbreak of tensions in Ukraine. The second (modest) rally was driven by the US Fed statement mid June that inflation expectations are soaring………………………………………..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

Gas Prices Don’t Reflect Record Levels Of U.S. Refinery Output

Posted on 28 July 2014 by VRS  |  Email |Print

The price of gasoline in the United States will remain fairly static for the immediate future, even though refineries are working at record levels because of the surge in oil production. The U.S. Energy Information Agency (EIA) said July 24 in its weekly petroleum report that refineries took in 16.8 million barrels of crude per day for the previous two weeks, more than the last record set in 2005.
The refining output broke the old record in the week of July 13 with input levels at 16.6 million barrels a day, particularly at refineries in the Midwest and the Gulf coast, the EIA said. This was the highest level it recorded since 1989………………………………………..Full Article: Source

Goldman Does It Again: Upgrades Gold Price Target To $1,200

Posted on 28 July 2014 by VRS  |  Email |Print

Goldman equity analysts Andrew Quail and Jitendra Pandey have increased their long term inflation adjusted gold price forecast to $1,200/ounce from $1,066/ounce. They recognize that gold is trading at about a 9% premium to their estimate and foresee the precious metal reverting back to a cost sustaining level.
Such level, which Quail and Pandey estimate to be $1,200/ounce, comprises costs incurred to obtain gold that include extracting, storing, exploring and building infrastructure………………………………………..Full Article: Source

Gold Bulls Boost Bet on Rally as Prices Extend Drop

Posted on 28 July 2014 by VRS  |  Email |Print

Hedge funds increased their bets on a gold rally, just before prices fell for a second week as an accelerating U.S. economy outweighed concern that violence between Russia and Ukraine will escalate.
Money managers increased their net-long position by 3.1 percent in the week through July 22, U.S. government data show. Two days later, prices dropped to a five-week low amid declining demand. Purchases by China, the world’s biggest user, fell 19 percent in the first six months of the year………………………………………..Full Article: Source

Banks accused of manipulating price of silver

Posted on 28 July 2014 by VRS  |  Email |Print

HSBC, Deutsche Bank and the Bank of Nova Scotia have been accused of rigging the price of silver. According to J Scott Nicholson, an investor who filed a lawsuit against them in the US, the banks abused their position of controlling the daily silver benchmark by unlawfully manipulating it to reap illegitimate rewards from trading.
This would have been detrimental to other investors in the $5-trillion silver market, who base billions of dollars worth of transactions on the benchmark………………………………………..Full Article: Source

Slackness in agri-commodity prices likely to be short term

Posted on 28 July 2014 by VRS  |  Email |Print

Agri-commodity counters are witnessing volatility due to the revival of monsoons in the second half of July. While this could be a short-term phenomenon, in the medium to long-term agri-commodity prices are still looking bullish.
Between June 1 and July 15 there was a 43 per cent deficit in rainfall. However in the second half of July there was some recovery and the deficit narrowed down to 25 per cent. This has led to slight correction in most of the agri-commodities and some have also remained volatile in the past week………………………………………..Full Article: Source

Can OPEC Control World Oil Prices

Posted on 25 July 2014 by VRS  |  Email |Print

It is the world’s most famous cartel OPEC that currently controls almost three quarters of the world’s crude oil, a commodity that, as of right now, industrialized nations cannot do without. OPEC is currently an organization comprised of 11 member countries: Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.
Formed in 1960 by 5 countries, OPEC clearly dominates world oil as its member countries produce 41% of the world’s oil, and comprise 55% percent of the world’s traded oil. Perhaps the most important statistic is the amount of the world’s oil reserves that OPEC member countries control; they control over 78% of all crude oil reserves………………………………………..Full Article: Source

Goldman on Gold: Target $1,050 an Ounce, But $1,200 is the Real ‘Floor’

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs’ commodity strategists write this week that they remain doubters of gold’s 2014 rally, sticking to their prediction that the metal will reach $1,050 in price by the end of the year. To come true, it would mean a slump in gold’s price of 19% or greater from current levels. That’s pretty bearish.
But the GS’ strategists’ bearishness has a limit. In a note to clients this week, the strategists write that they expect the $1,200 level, or roughly 7% beneath Thursday’s prices, to function as “a good estimate of the floor price for gold.”……………………………………….Full Article: Source

Gold and Investments That Don’t Glitter

Posted on 25 July 2014 by VRS  |  Email |Print

Gold has had a rough week, no doubt pressured by a rising dollar, weaker demand from Chinese importers, and as one RBC Capital analyst diplomatically put it, “a lack of new geopolitical developments.”
Nor did it help matters that Goldman Sachs has issued a report this week stating that it remains skeptical of the 2014 rally in gold. The influential investment bank, as reported by Barrons.com, is sticking to a prediction that the precious metal will fall to $1,050 an ounce by the end of the year, a slump in gold’s price of 19% or greater from current levels………………………………………..Full Article: Source

Is Silver Really Worth $50 an Ounce?

Posted on 25 July 2014 by VRS  |  Email |Print

With Wall Street and institutional investors continuing to place some big bets on precious metals, there are growing calls from some analysts that silver is significantly undervalued and is worth $50 an ounce. This may sound ludicrous to some investors — the metal is now trading at U.S. $21 an ounce — but there is a rationale behind the argument.
There is a strong correlation between gold and silver prices and while gold has rallied strongly this year after seeing its price collapse after the Fed started unwinding quantitative easing at the end of 2012, the price of silver hasn’t kept up. The key driver of this emerging view among analysts is the gold-to-silver ratio, which measures how many ounces of silver are required to purchase an ounce of gold………………………………………..Full Article: Source

Goldman Raises Nickel Price Forecast as Deficit Looms Amid Ban

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. raised its price forecast for nickel as the market is swinging to a deficit next year following an ore-export ban in Indonesia. The bank’s 12-month estimate is now $22,000 a metric ton, up 38 percent from the previous projection of $16,000, analysts led by Max Layton wrote in a report.
They increased zinc and aluminum by at least 11 percent to $2,500 a ton and $2,100 a ton, respectively, saying iron ore, gold and copper have “the greatest downside” among the mining commodities………………………………………..Full Article: Source

Analysts eye gold price rise as geopolitics outweighs policy tightening

Posted on 24 July 2014 by VRS  |  Email |Print

The price of gold is expected to rise over the coming months even if US Federal Reserve progresses with plans to tightening its monetary policy, according to analysts. Fed chair Janet Yellen recently suggested that the central bank could move to raise interest rates sooner than the market expects, assuming US economic indicators continue to show sustained improvement.
Capital Economics points out that any tightening of US monetary policy would act as a negative for the gold price “at face value”. Rising interest rates would be expected to hurt the price of gold and other non-yielding assets………………………………………..Full Article: Source

Will Gold Prices Fall Even Further?

Posted on 24 July 2014 by VRS  |  Email |Print

Marc Faber, publisher of The Gloom, Boom & Doom Report, told Bloomberg on July 21 that investors should be buying gold and gold miners to take advantage of the rally he expects in the price of the precious metal.
Faber recommends that investors protect the value of their assets by taking positions in gold and gold stocks to hedge against the negative impacts of worsening geopolitical situations and unrestricted money printing. The idea is that global investors will soon flock to gold again to protect against currency devaluation, inflation, and the unknown fallout of major global conflicts………………………………………..Full Article: Source

Risk of oil price rises due to conflicts

Posted on 23 July 2014 by VRS  |  Email |Print

World stock markets and global economic recovery are at risk from a sharp rise in oil prices triggered by military conflicts, a leading economist said. A combination of fighting in the Middle East and the shooting down of the passenger jet over Ukraine sent crude oil prices rising by $2 a barrel in the past week, said Steen Jakobsen, chief economist at Saxo Bank.
He said markets had got used to believing that low interest rates would save the world economy and had been duped into believing what happened in the real world did not matter. Jakobsen added: “We smiled while globalisation reduced prices and made our companies more profit now the escalation of wars reflect a world where growth is short and energy is expensive and increasingly hard to get………………………………………..Full Article: Source

Oil price gains lose steam on rising dollar

Posted on 23 July 2014 by VRS  |  Email |Print

Oil prices rose Tuesday, supported by a threat of tougher sanctions against Russia and fierce fighting in Gaza, but lost steam as the dollar rallied against the euro, traders said. Brent North Sea crude for delivery in September had edged up four cents to stand at $107.72 a barrel in late London deals, after trading up 64 cents around midday in the British capital.
US benchmark West Texas Intermediate (WTI) for August was 14 cents higher at $104.73 a barrel, pulling back from levels above $105 seen earlier in the day………………………………………..Full Article: Source

Speculators cut bets on higher oil prices

Posted on 22 July 2014 by VRS  |  Email |Print

Speculators cut their bets on higher Brent crude oil prices by almost a quarter in the week to July 15 after prices dropped to three-month lows. Hedge funds and other money managers curbed their net long futures and options positions to 151,981 – the lowest since April 8 – from 201,568 contracts, the IntercontinentalExchange said in its Commitment of Traders report on Monday.
Concerns about supply disruptions eased, leading investors to unwind bullish positions and sell futures contracts. This prompted prices to fall to $104.39 a barrel – the lowest in three months – in the week ending July 15, after rising to more than $115 a barrel in mid-June………………………………………..Full Article: Source

Oil price spike will hit ‘fragile three’

Posted on 22 July 2014 by VRS  |  Email |Print

Three of the so-called ‘fragile five’ would be among the worst hit countries if unrest in Iraq sparks another spike in oil prices, Capital Economics has claimed. Chief emerging markets economist Neil Shearing said the group’s forecast is for prices to drop back to below $100 per barrel by the end of the year, in part due to increased supply from the rest of the Middle East.
But if prices do spike beyond current levels, vulnerable markets such as Turkey, South Africa and India would find themselves in the eye of the storm………………………………………..Full Article: Source

Gold over $1,300; conflicts spur safe-haven bids

Posted on 22 July 2014 by VRS  |  Email |Print

Gold stabilized near $1,310 an ounce on Tuesday as escalating tensions over conflicts in Ukraine and the Gaza strip dented global risk appetite and burnished the metal’s safe-haven appeal. Spot gold was little changed at $1,311.16 an ounce by 0009 GMT, after ending flat in the previous session.
The United States, alarmed by escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500………………………………………..Full Article: Source

Will Gold price crash below $1,200?

Posted on 22 July 2014 by VRS  |  Email |Print

Over the past few weeks we have seen mining stocks make a transition out of a stage one base and into a new bull market. This transition is likely to be complete this week.
Since May they have been going higher. Two weeks ago they had a nice surge up to their March highs and the 250 level on the HUI. Last week though they dipped for a few days below that level………………………………………..Full Article: Source

Chinese commodity financing scam dents copper’s prospects

Posted on 22 July 2014 by VRS  |  Email |Print

Copper prices on the London Metal Exchange have dropped over five per cent since the beginning of the year to $6,987 (₹4.22 lakh) a tonne. A major reason for this fall is the drop in demand after a scandal over financing of commodities broke out in China. Data on Chinese copper imports show sharp drop in consumption.
The scam came to light a couple of months ago and it has seen copper shipments to China drop drastically. In May, copper imports declined 16 per cent to 3,80,000 tonnes from April and last month they slipped further to 3,50,000 tonnes………………………………………..Full Article: Source

Commodity prices will dip as super-cycle ends: Goldman Sachs

Posted on 18 July 2014 by VRS  |  Email |Print

Commodities from iron ore to copper and Brent crude will drop over the next five years as global supplies climb, according to Goldman Sachs Group, which highlighted oil’s recent losses as a sign of increased output. There will be substantial declines in some metals, energy and bulk commodities, analysts including Chief Currency Strategist Robin Brooks wrote in a report.
The period of continued year-on-year price rises for most commodities is over, they said in the report, which was dated July 15. Banks from Citigroup to Deutsche Bank AG have called an end to the commodities super-cycle, when China’s surging demand combined with supply constraints to more than double prices in the 12 years through 2010………………………………………..Full Article: Source

Supply setbacks will push oil price higher

Posted on 18 July 2014 by VRS  |  Email |Print

A possible resumption of oil exports from Libya, as yet unhindered production in Iraq, and hopes of a nuclear deal with Iran, have caught the oil market on the hop. It was only a month ago that Brent, the international crude oil marker, rose to more than $115 a barrel amid fears of a disruption to oil supplies as insurgents swept across northern Iraq. But these anxieties soon dissipated and oil has been in freefall.
This week Brent suffered its biggest one day percentage drop since January, triggering a scramble to unwind positions that took the price to a low of $104 a barrel. Traders are now asking whether the rapid sell-off is over or has further to run………………………………………..Full Article: Source

Gold edges above $1,300/oz as Russia sanctions hit equities

Posted on 18 July 2014 by VRS  |  Email |Print

Gold rose on Thursday, extending the previous day’s recovery from four-week lows as investors took advantage of lower prices to buy and as a fresh round of U.S. sanctions on Russia weighed on stock markets. The sanctions, the toughest yet imposed by the United States, also helped send palladium to 13-1/2-year highs. The metal is chiefly sourced from Russia.
Spot gold was up 0.4 percent at $1,303.60 an ounce at 1340 GMT, while U.S. gold futures for August delivery were up $4.90 an ounce at $1,304.70. Spot prices fell more than 3 percent over the first two days of this week to their lowest since mid-June, at $1,291.70………………………………………..Full Article: Source

Grains lead the way as global commodity prices decline

Posted on 18 July 2014 by VRS  |  Email |Print

The prospect of a huge U.S. crop harvest has hammered crop prices down to multi-year lows. Rising supply is the main factor in grain price weakness, but commodities in general are also declining in value.
After rising to a two-year high in June and out performing the S&P 500 stock index in the first six months of the year, the Thomson Reuters/Core Commodity CRB Index, a measure of prices for 19 commodities, had declined for 11 straight trading sessions as of July 11, the longest decline in records going back to 1994………………………………………..Full Article: Source

Commodities to fall in price over next five years, says Goldman Sachs

Posted on 17 July 2014 by VRS  |  Email |Print

Commodities from iron ore to copper and Brent crude are expected to see price falls over the next five years as global supplies increase, according to Goldman Sachs. There will be substantial declines in some metals, energy and bulk commodities, analysts including chief currency strategist Robin Brooks wrote in a report. The period of continued year-on-year price rises for most commodities is over, they said.
Banks from Citigroup to Deutsche Bank have called an end to the commodities super-cycle, when China’s surging demand for raw materials combined with supply constraints at mines and wells to more than double prices in the 12 years to the end of 2010. Commodities rallied this year from three consecutive annual losses as a lack of rainfall in Brazil lifted coffee 46 per cent and a ban of ore exports from Indonesia spurred a 39 per cent increase in nickel………………………………………..Full Article: Source

New silver price is ‘improvement’ on fix

Posted on 17 July 2014 by VRS  |  Email |Print

The unfortunate name will disappear. So too will the private teleconference, as well as the ownership by a handful of banks that have run the London Silver Fix – the global benchmark price – since 1897. And the cloak of secrecy over the trading volumes will be lifted.
But anyone thinking there has been a complete change in the way the daily snapshot of the silver market is conducted would be mistaken. The new benchmark, to be administered jointly by Thomson Reuters and the CME Group from August 15, keeps some of the main features of the silver fixing, in particular the auction-style process used to calculate the reference price………………………………………..Full Article: Source

How to Take Advantage of Volatility in Oil Prices

Posted on 16 July 2014 by VRS  |  Email |Print

Crude oil prices actually fell 3.1% last week despite rising tensions in Iraq and continued geopolitical turmoil in Israel. However, despite this decline, tensions pushed crude oil’s implied volatility to three-week highs.
Although crude oil prices will likely stabilize as the U.S. moves further into the summer driving season, volatility could continue to move higher, allowing investors to profit from an options strategy called a straddle………………………………………..Full Article: Source

Here Are Three Factors That Could Drag Down Oil Prices Even More

Posted on 16 July 2014 by VRS  |  Email |Print

In the past three weeks the price of West Texas Intermediate crude oil has lost 6% of its value; a barrel is currently priced at around $100. The recent plunge in oil prices has also dragged down the shares of big oil producers such as BP and Chevron.
BP’s stock is at $51.84, down 1.7% since the beginning of the month. Shares of Chevron are at $129.35, down 0.9% during July. But will crude oil prices continue to decline in the coming weeks? Following are are three factors that could keep pressure on oil pressures………………………………………..Full Article: Source

Did Goldman Sachs just blatantly manipulate the gold price down?

Posted on 16 July 2014 by VRS  |  Email |Print

If the gold market was a horse race then after yesterday’s sudden fall for no apparent reason observers would be calling for a stewards’ enquiry. Certainly those looking at a replacement for the London gold fix ought to be paying attention.
Just days after Goldman Sachs renewed its propaganda onslaught against the precious metal in a long article on Bloomberg the price dropped by 2.3 per cent, its biggest one day drop this year. Did it fall or was it pushed?……………………………………….Full Article: Source

Gold Prices Poised to Continue Their Breakdown

Posted on 16 July 2014 by VRS  |  Email |Print

It’s the proverbial pie in the face for traders who were sure gold was destined for higher highs. On Monday, gold prices, along with the SPDR Gold Shares (GLD), plunged a stunning 2.3% — the biggest one-day dip of the year — when Portugal’s debt crisis didn’t cause the country to sink into the ocean and drag the rest of Europe down with it.
The closing price of gold on Monday was $1,306.70 per ounce, pulling the commodity’s price to its lowest level since June 18. That was the day before gold prices soared after Janet Yellen vowed to keep interest rates low, and thereby keep the U.S. dollar suppressed………………………………………..Full Article: Source

Commodity Price Volatility: What Should Producers Do About It?

Posted on 15 July 2014 by VRS  |  Email |Print

What can you do in your business about commodity price volatility? I’ve written recently about Commodity Prices: Basics for Businesses That Buy, Sell or Use Basic Materials and Commodities Prices: Why Do They Shoot Up And Then Collapse? If commodities are important to your business, can you hedge away your challenges? And if you can, should you?
Investors may find the underlying analysis useful as they think about how they trade. Businesses can have basically three relationships with commodities: producers, users or traders This article is about producers; the others relationships will be covered in subsequent articles………………………………………..Full Article: Source

EIA expects higher gasoline prices for driving season, full year

Posted on 15 July 2014 by VRS  |  Email |Print

During the April-September summer driving season this year in the US, regular gasoline retail prices will average $3.66/gal, 8¢/gal higher than last year and 4¢ higher than projected last month, according to a forecast from the US Energy Information Administration in its July Short-Term Energy Outlook (STEO).
As lower refinery margins more than offset higher crude oil prices, regular gasoline retail prices are projected to fall from an average of $3.68/gal during the second quarter to $3.64/gal during the third quarter. EIA expects regular gasoline retail prices to average $3.54/gal this year and $3.45/gal in 2015. This compares with the agency’s forecasts of $3.50/gal this year and $3.38/gal in 2015 in last month’s STEO………………………………………..Full Article: Source

3 Ways to Cash in on Higher Gold Prices

Posted on 15 July 2014 by VRS  |  Email |Print

There are growing signs the rally in gold will be sustained, with gold prices continuing to defy the bearish predictions of a number of analysts and investment banks, including Goldman Sachs.
Furthermore, with gold prices remaining above $1,300 per ounce, growing demand and falling supply and a number of billionaire investors including George Soros making large bets on the precious metal and beaten down gold miners, now may just be the time to make a bet on gold. But the key question for investors is how to make that bet, so let’s take a closer look at three ways to invest in gold………………………………………..Full Article: Source

What’s Behind Gold Prices’ Biggest Daily Drop of 2014

Posted on 15 July 2014 by VRS  |  Email |Print

Gold prices (Monday) fell sharply by 2.3% for the biggest one-day drop of 2014. U.S. gold futures for August delivery were down $30.70 at $1,306.70 an ounce – their biggest one-day drop since December. Spot gold fell $33.50 at $1,305.50 an ounce.
The sell-off happened quickly following the Comex futures market open in early U.S. trading according to Kitco, suggesting a big sell order hit the futures market at that time………………………………………..Full Article: Source

Gold looks bullish toward $1370, 1430: Barclays

Posted on 15 July 2014 by VRS  |  Email |Print

Gold appears bullish towards $1370 per ounce and then $1430 an ounce levels, according to Barclays. It said that recent gains in precious metals look toppy. Therefore, selling on any gold price rallies is suggested especially when it is expected that legs of support to give and to expose gold on the downside.
“We caution against interpreting recent strength in investor flows as a long-term shift in sentiment, as gold still represents healthy selling opportunity,” according to Barclays………………………………………..Full Article: Source

Citi Looks For Stabilization In Gold Prices, Upbeat On Palladium

Posted on 15 July 2014 by VRS  |  Email |Print

Citi Research looks for gold to stabilize for the rest of 2014 and is most bullish on palladium among the precious metals. The bank has revised its forecast to $1,300 gold in 2014, followed by $1,365 next year.
“Essentially we see stabilization in gold prices through this year in a $1,290/oz.-$1,350/oz. range, with stronger physical market activity from retail investors, ETF (exchange-traded-fund) flows and central banks essentially limiting any potential downside moves,” the bank said………………………………………..Full Article: Source

Less Demand for OPEC Oil as Other Sources Increase Supply

Posted on 14 July 2014 by VRS  |  Email |Print

OPEC is cutting its forecast of demand for its own oil by 300,000 barrels a day in 2015 because of an increased supply of crude from other sources, particularly the United States and Canada.
The cartel’s secretariat in Vienna issued its first estimates for the year on July 10 in its latest monthly report on the global oil market. Its conclusion: Demand for crude from the 12 OPEC members should remain at an estimated 29.7 million barrels a day (MBD) through 2014, but drop to 29.4 MBD in 2015………………………………………..Full Article: Source

Demand for OPEC oil seen to taper off

Posted on 14 July 2014 by VRS  |  Email |Print

World’s top crude consumer, the United States, is now the world’s top producer too, overtaking Russia and the OPEC kingpin Saudi Arabia. In the first quarter of 2014, the United States extracted more than 11 million barrels of crude per day, compared with Russia’ daily output of 10.53 million bpd and Saudi Arabia’s 9.45 million bpd, Bloomberg reported citing Energy Intelligence Group. And the US was already declared in 2010 as the world’s largest natural gas producer.
Last month the Paris-based International Energy Agency too conceded that the US was the biggest producer of oil and natural gas liquids………………………………………..Full Article: Source

Reality Blows Crude Oil Price Seriously Off Course

Posted on 14 July 2014 by VRS  |  Email |Print

In classic fashion market operators and manipulators gave a false signal to hopeful speculators, by nudging up oil prices on the Nymex, ICE and other oil markets, on Thursday 10th July. Then the market riggers crushed them, Friday 11th, with a 2.2% one-day crash of prices. To be sure we have to wait for Monday 15th trades to see if the new canonical oil price of $100-per-barrel can be set back in place like Humpty Dumpty, and will hold.
Chances are, it won’t. Two-percent-daily price cuts can slash oil back to where it belongs at about $80 per barrel, quite fast. Marketwatch was forced to comment, 12 July, that US WTI and ICE Brent futures dropped below $101 a barrel and $107 a barrel on Friday to mark a fourth weekly loss and their lowest close in two months………………………………………..Full Article: Source

BofA-ML raises 2014 gold price forecast citing a lack of mine supply growth

Posted on 14 July 2014 by VRS  |  Email |Print

Bank of America Merrill Lynch has raised its 2014 gold price forecast, citing a lack of mine supply growth and steady demand for the yellow metal from emerging markets. The bank lifted its gold price forecast for this year by 0.8 per cent to $1,308 per ounce from $1,298, and kept its 2015 price outlook unchanged at $1,375 an ounce.
“We believe the continued monetary easing, accompanied by asset price inflation in many countries causes some apprehension that should bring investors back into the market,” BofA analyst Michael Widmer said………………………………………..Full Article: Source

Rigging of Silver prices and the plight of investors

Posted on 14 July 2014 by VRS  |  Email |Print

Silver is not just any old commodity. It is old money. Despite massive efforts and price fixing, clipping and manipulation, it has remained central to monetary and political systems for centuries. Today it is small and relatively dark in the context of modern investing.
Desperate times call for desperate measures. And the desperation to buy and hold metal should simply be proportional to the desperation of the will of the monetary powers to maintain the status quo………………………………………..Full Article: Source

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