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Venezuela, Ignored By OPEC, Seeks Oil-price Relief Elsewhere

Posted on 21 November 2014 by VRS  |  Email |Print

Venezuela, openly frustrated by Saudi Arabia’s refusal to support a cut in crude production, is reaching out beyond OPEC to discuss ways to stop the recent decline in oil prices.
OPEC will be meeting at its Vienna headquarters on Nov. 27 to decide on its production goals, but on Nov. 17, Venezuelan President Nicolas Maduro said he and Russia were working to set up a meeting “very soon” with oil countries outside OPEC as well as within the cartel to discuss ways to prop up the price of crude, which is now at a four-year low………………………………….Full Article: Source

Oil price firms as optimism surrounding OPEC meet grows

Posted on 21 November 2014 by VRS  |  Email |Print

Growing optimism that OPEC will constrain oil supply to prop up prices prompted the price of crude to nudge up higher. OPEC is the cartel of oil exporting nations and is meeting next Thursday (Nov 27).
Reportedly, the odds are growing the group will either cut production or more rigorously enforce their own production quotas as the price of oil has slumped over 25% since June. West Texas Intermediate futures - for January 2015 delivery - is up 0.56% to US$75.06………………………………….Full Article: Source

Oil Prices Rise on Changing OPEC Expectations

Posted on 21 November 2014 by VRS  |  Email |Print

Oil prices gained Thursday, snapping a three-day losing streak, on expectations that the Organization of the Petroleum Exporting Countries would take action at its meeting next week to stop prices from falling.
Oil prices have plunged about 30% since mid-June on concerns about ample global supplies and tepid demand growth. OPEC, which controls about one third of global production, has acted in the past to cut output to keep prices high. However, traders have grown skeptical in recent months that the group, especially top exporter Saudi Arabia, will reduce production at its Nov. 27 meeting………………………………….Full Article: Source

Buy gold on dips to $1,175-78/oz

Posted on 21 November 2014 by VRS  |  Email |Print

Comex gold futures were higher on Thursday but limited by dollar strength after Federal Reserve minutes suggested the United States is still likely to raise interest rates next year. Gold also fell sharply on Wednesday after a poll showed weaker support among Swiss voters for a referendum proposal that would force the central bank to boost its gold reserves. Selling by gold funds resumed after a brief pause this week.
Comex gold futures moved perfectly in line with expectations. As anticipated, favoured view initially expects a rebound to $1,185-90 an ounce levels. Prices have once again tested the psychological resistance at $1,200. However, if it fails to follow-through higher as cautioned earlier, could see another round of selling which could take prices lower to recent lows or even lower. Momentum in the short-term picture looks favourable for a push higher towards $1,235-40 levels………………………………….Full Article: Source

Gold rises as price drop tempts physical buyers

Posted on 21 November 2014 by VRS  |  Email |Print

Gold rose on Thursday on data showing rising U.S. inflation, and after the previous day’s 1-percent drop triggered renewed physical interest by price-sensitive Asian buyers. Bullion investors focused on U.S. Labor Department data which showed underlying inflation pressures rose in October, even though that also bolstered expectations of a mid-2015 interest rate hike from the Federal Reserve.
The gold market also ignored other data that showed a strengthening U.S. economy, including rising existing home sales and lower weekly jobless claims………………………………….Full Article: Source

Gold price stuck under $1,200/oz as FOMC fail to surprise

Posted on 21 November 2014 by VRS  |  Email |Print

The gold price was stuck under $1,200 per ounce during Thursday morning sessions, as the FOMC minutes released yesterday failed to surprise or ignite the market. The spot gold price was last at $1,185.20/1,186 per ounce, up $3.40 on the previous day’s close.
“After gradually rising from rather depressed levels since the beginning of November, prices are finally approaching the psychologically important $1,200 level. The market tested this level several times on Wednesday but failed to break decisively higher,” said Credit Suisse………………………………….Full Article: Source

The iron ore price slump won’t stop BHP and Rio

Posted on 21 November 2014 by VRS  |  Email |Print

With the iron ore price touching $US70 a tonne overnight, the price is closing in on the point where only Rio Tinto and BHP Billiton will have profitable iron ore businesses. Despite the continuing collapse in the price, however, both remain committed to driving increased production volumes.
Any of the smaller producers hoping for some relief from the apparently inexorable decline in the price to levels below $US70 a tonne — when the price usually firms in November and December as China’s steel mills build up their stocks — would have had them dashed by Andrew Mackenzie’s comments at BHP’s annual meeting in Adelaide today………………………………….Full Article: Source

What are the consequences of commodities price slump?

Posted on 20 November 2014 by VRS  |  Email |Print

When prices of commodity rise they transfer riches from consumers to producers but when they fall consumers benefit. With so much at stake, the turning points are important. Currently we are standing at the cusp of such a turning point.
Commodity prices have fallen nearly 15 per cent since June-end, according to Bloomberg index. The Economist price index for Commodities has fallen by 16.5 per cent in terms of the dollar. Last week, the price of crude oil on NYMEX dropped to a four-year low of $74 a barrel from some $107 in June………………………………Full Article: Source

Wall Street firms accused of driving up commodity prices

Posted on 20 November 2014 by VRS  |  Email |Print

Machinations by financial firms that have bought up huge swaths of coal mines, aluminum warehouses, or natural gas reserves could be leading to higher prices for consumers and companies that rely on those natural products, a new Senate report alleges.
Furthermore, Wall Street titans may be exposing themselves to huge risks and reaping unfair trading advantages by investing heavily in physical commodities, according to the Senate Permanent Subcommittee on Investigations………………………………Full Article: Source

Oil and gold price plunge does not signal a global recession, experts say

Posted on 20 November 2014 by VRS  |  Email |Print

In a rare phenomenon, the prices of completely unrelated commodities are falling. Is another global recession coming? Not quite. What could possibly cause several different kinds of commodities – from oil to gold to silver – to drop at the same time?
Prices for nearly two dozen commodities – from crude oil to corn – are in the red. A major index that tracks commodities, the S&P GSCI, is down about 18% on the year and is trading at four-year lows………………………………Full Article: Source

Oil Price Drop Set to Spur Gas Price Rally, Perpetual CEO Says

Posted on 20 November 2014 by VRS  |  Email |Print

Natural gas, which has dropped 38 percent in the past 10 years, is poised to gain as falling oil prices reduce production from wells that pump both fossil fuels, according to Perpetual Energy Inc. (PMT)
“We needed to see oil prices roll over for gas to actually have its day or at least show some stronger pricing,” Sue Riddell Rose said in an interview at a FirstEnergy conference in Toronto. “The only growth basins that we’ve had in North America have actually been really where you’ve got liquids-rich gas and now with oil prices going down, prices of those commodities have really come off hard.”……………………………..Full Article: Source

Gold Price Drops $20 on Swiss Gold Vote “No” Opinion Poll

Posted on 20 November 2014 by VRS  |  Email |Print

Gold Prices sank 1.7% late in London trade Wednesday, erasing most of the last week’s gain as the latest opinion poll of the upcoming Swiss referendum put the “Yes” camp well short of a majority.
Prompted by a petition under Switzerland’s “direct democracy” rules, the referendum will on Sunday 30 November ask voters whether the country’s central bank should boost its gold holdings to 20% of reserves from the current 8%. The Swiss National Bank could then neither sell gold in future, nor store any of its holdings – likely swollen from 1040 tonnes today to nearer 2,500 or more – outside the country………………………………Full Article: Source

Silver demand to fall 7 percent in 2014 -Thomson Reuters GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Demand for silver will post a 7 percent decline in 2014 because of a slower pace of buying by jewelers and industrial fabricators in the first three quarters of the year, metals consultant Thomson Reuters GFMS said on Tuesday.
Harmonized European sales tax rates that started in January have driven up retail silver investment product prices, reducing demand on the continent, the Thomson Reuters unit said in an interim market review. Thomson Reuters GFMS said it expected total physical demand, which includes jewelry, coins and bars, silverware and industrial fabrication, to fall 6.7 percent to 1,004.5 million troy ounces (31,243.44 tonnes) in 2014 from a record high of 1,077 million ounces (33,498.44 tonnes) last year………………………………Full Article: Source

Silver Physical Demand Forecast to Drop 6.7% in ’14: GFMS

Posted on 20 November 2014 by VRS  |  Email |Print

Physical demand for silver will decline 6.7 percent this year, driven by a slump in coins and bars, as prices headed for the second straight yearly decline, Thomson Reuters GFMS said.
Consumption will fall to about 1 billion ounces from 1.08 billion in 2013, according to a Thomson Reuters GFMS report released today on behalf of the Washington-based Silver Institute………………………………Full Article: Source

Goldman reports copper price to fall

Posted on 20 November 2014 by VRS  |  Email |Print

Max Layton, an analyst, in his report, affirmed that, the bank has declined its outlook for copper in the year 2015, from 6,400 dollars per metric tonne to 6,217 dollars per metric tonne. The report also asserted that the marginal production cost of the base metal, for the year 2015 will lie between, 5,600 dollars per tonne, and 6,300 dollars per tonne.
The report by the bank expressed that, the strength of the dollar, and decline in the price of the input, shows the lower cost of the metal and lower prices in the market for the metal. In case of the commodity markets, which are found to be in balance or in slight surplus, the price of the commodity, will always trade with or around the marginal operating cost………………………………Full Article: Source

Aluminium pricing may never be the same again: Andy Home

Posted on 20 November 2014 by VRS  |  Email |Print

The splintering of the global aluminium price is becoming ever more acute. Physical premiums on both sides of the Atlantic have just sailed through the $500 per tonne level, widening the disconnect between the global reference price set on the London Metal Exchange (LME) and the “all-in” price paid by manufacturers.
There is accumulating evidence that first-stage aluminium users, who have up to now taken the unhedgeable premium pain, are looking to pass it down the supply chain to their own customers. If they do, what was once considered a temporary aberration risks becoming embedded throughout the aluminium industry………………………………Full Article: Source

How low oil price is killing earnings projections

Posted on 19 November 2014 by VRS  |  Email |Print

Investors hoping that companies break the cycle of posting strong profits but weak sales growth will have to hang on a while longer. The revenue outlook for the next several quarters among blue-chip companies has weakened considerably, with estimates pegging growth at barely positive by midyear, according to an analysis from brokerage ConvergEx.
That runs counter to hopes that companies would break free from the pattern of cutting their way to profits and being able to generate above-trend sales for future growth……………………………………Full Article: Source

Lower Oil Prices Could Pressure Some Canadian Provinces

Posted on 19 November 2014 by VRS  |  Email |Print

Crude oil has been like black gold for Canada’s three energy-exporting provinces, but further declines in oil prices could spill some red ink onto their balance sheets.
Alberta, Saskatchewan and the east coast province of Newfoundland and Labrador have enough flexibility to maintain their high credit ratings even if oil prices drop to around $60 and remain there for the 2015-16 fiscal year, bond rating firm Moody’s Investors Service said in a report Tuesday. Oil is currently around $75 dollars a barrel……………………………………Full Article: Source

Gold heading to $700 but other commodities set to bounce: Ramsey

Posted on 19 November 2014 by VRS  |  Email |Print

Commodities prices have seen a sharp decline in the second half of this year. The price of crude oil has dropped below $80 a barrel and is hovering around four-year lows. Platinum, copper and silver are all trading sharply lower as well since June. The Bloomberg commodity index is down 15%.
Increased supply and slowing global demand is pushing down prices. The slowing Chinese economy in particular is weakening commodities because demand for everything from corn to cotton to copper is down……………………………………Full Article: Source

Why Commodity Prices Are Down and May Go Lower

Posted on 18 November 2014 by VRS  |  Email |Print

A multitude of mavens, pundits, sages, wizards, writers, and assorted talking heads with various but vested interests in the hard commodities sector have weighed-in on the supposed demise of the secular bull market in “stuff” over the past few months.
Reactions have been varied but predictable: the usual suspects in the gold- and silver-bug camps have played the market manipulation card to explain the overall weakness in precious metals prices; the China perma-bears have claimed the downtick in industrial commodities to be a foreshadowing of the pending collapse of that country’s decade-long economic growth; ………………………………..Full Article: Source

Cracks widen at OPEC as oil prices tumble

Posted on 18 November 2014 by VRS  |  Email |Print

Oil prices firmly below $80 a barrel are rattling nerves within the Organization of the Petroleum Exporting Countries (OPEC) and calls are mounting for concrete action at the group’s crucial next meeting this month.
Over the weekend oil-producing countries Kuwait and Iran raised concerns about oil’s worrying lows and what OPEC should be doing to help protect its members’ economies. Kuwait’s cabinet and the country’s Supreme Petroleum Council held an “extraordinary” joint meeting Sunday to consider measures to stop the slide in prices…………………………………Full Article: Source

5 reasons why crude oil price may have found a bottom

Posted on 18 November 2014 by VRS  |  Email |Print

According to T. Gnanasekar Director, CommTrendz, technical charts suggest Brent crude has found a bottom. “Though the Friday’s rebound was mostly a short-covering and profit-booking one, there are chances that prices might have bottomed out for the time being,” says Gnanasekar. But to sustain above the technical levels, a commodity requires some demand coming in or a fundamental support. Gnanasekar says that some support may come in due to the onset of winter.
2) However on the supply side, there could be a possible production cut by the Organization of the Petroleum Exporting Countries (OPEC) which is meeting on November 27. Earlier, OPEC used to say $100 is the safe price below which it will intervene in the market. However, that has not happened yet as slowdown in major consuming countries like China and Euro Zone have hurt demand sentiment…………………………………Full Article: Source

Iraq expects 2015 budget based on $80 per barrel oil price

Posted on 18 November 2014 by VRS  |  Email |Print

OPEC producer Iraq expects to base its 2015 budget on an oil price of $80 per barrel, Oil Minister Adel Abdel Mehdi told parliament on Monday. Oil prices have fallen to below $80 on abundant and weak demand from $115 a barrel in June. Skepticism that OPEC will cut supply when it meets on Nov. 27 have also weighed on the prices.
Iraq’s budget breakeven point for 2014 is above $100 a barrel according to the IMF, but Abdel Mehdi suggested production levels might rise next year. He said government forecast southern Iraq output of 2.75 million barrels per day. “If Kurdistan and Kirkuk oil will enter, it is possible we reach numbers that will exceed the number …in (the) 2014 budget of 3.4 million barrels.”………………………………..Full Article: Source

Falling Oil Prices Test OPEC Unity

Posted on 18 November 2014 by VRS  |  Email |Print

As global crude prices plunged earlier this month, Venezuela’s foreign minister asked to see Saudi Arabia’s top oil official at a climate-change conference on Margarita Island, off the South American coast.
Ali al-Naimi, the Saudi oil minister, was expecting a plea to reduce oil output and bolster markets. In anticipation, according to people familiar with the matter, he brought a message to Venezuelan Foreign Minister Rafael Ramirez : Saudi Arabia won’t cut production on its own…………………………………Full Article: Source

Gold Price Golden Bottom?

Posted on 18 November 2014 by VRS  |  Email |Print

If commodities and gold are ready to reverse then the first thing that has to happen is the dollar needs to form a top. I think that may have occurred on November 7th when the last employment report was released. Notice how the dollar formed a key reversal on that day, that was retested Friday and failed, forming a bearish engulfing candlestick.
Considering that the daily cycle is now on day 22 and late in the cycle timing band, the odds are good that the reversal Friday marked at least a daily cycle top in the dollar index. If that’s the case then the euro’s daily cycle should have bottomed………………………………..Full Article: Source

Warning Signs From Commodity Prices

Posted on 17 November 2014 by VRS  |  Email |Print

For many consumers and businesses the recent drop in commodity prices has provided a tidy windfall — one analyst estimated that the typical American household would save $400 a year thanks to lower gasoline prices. But the tumbling price of fuels, metals and other commodities is also sending a warning about the global economy.
Over all, commodity prices have fallen nearly 15 percent since late June, according to a Bloomberg index. Last week, the price of crude oil dropped to a four-year low, about $74 a barrel, down from about $107 a barrel in June. The prices of metals like copper, platinum and silver have also fallen sharply since the summer……………………………………Full Article: Source

Even a fall in the oil price is bad news for the eurozone

Posted on 17 November 2014 by VRS  |  Email |Print

Lower oil prices will accentuate the move to lower inflation which is already under way. This weekend the leaders of the so-called G-20, the world’s 20 largest economies, have been pontificating in Brisbane, Australia, about the state of the world economy and what can be done to make it better. These gatherings amount to much sound and fury but signify, if not quite nothing, then very little.
Meanwhile, the ineluctable economic forces that really do shape the world and its prosperity quietly do their work, for good or ill. At the moment, one of those forces is promising to do far more to raise global prosperity than any international agreements or treaties ever could, namely the sharp drop in the price of oil……………………………………Full Article: Source

Iran, Venezuela urge oil price support ahead of OPEC meeting

Posted on 17 November 2014 by VRS  |  Email |Print

OPEC hawks Iran and Venezuela on Saturday called on fellow crude producers to shore up prices that have plunged more than 30 percent to four-years low ahead of an OPEC meeting later this month. Oil prices have fallen to below 79 US dollars on abundant and weak demand from 115 dollars a barrel in June. Skepticism that OPEC will cut supply when it meets on November 27 have also weighed on the prices.
So far, only Kuwait and Iran have said a reduction is unlikely, while a Libyan OPEC official, Venezuela and Ecuador have all called for OPEC to cut output. Privately, some delegates are talking of the need for some action, although they warn an agreement will not be easy to reach……………………………………Full Article: Source

Russia Threatened by Oil Price Slump Till 2015

Posted on 17 November 2014 by VRS  |  Email |Print

In a blow to the financing of the state budget and Russian oil majors alike, global crude prices will likely remain low until 2015, according to the International Energy Agency’s (IEA) Oil Market Report for November, released late last week. “It is increasingly clear that we have begun a new chapter in the history of the oil markets,” the agency said in its report.
On Thursday, oil prices hit a four-year minimum of $78 per barrel and although recovering slightly stayed below $80 until the end of the week. Just one month ago analysts predicted $80 per barrel would be the bottom for the continuing drop in oil prices but as the year approaches its end, $65 is already considered possible……………………………………Full Article: Source

Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM

Posted on 17 November 2014 by VRS  |  Email |Print

“Finally!” in English, “Por fin!” in Spanish and “About bloody time!!” in Australian. The belated rally in gold and silver finally got underway when it was least expected. The contrarian wins again!
The final bear market rally in gold and silver kicked off after a fake out move lower and should end with a fake out move higher. That’s the way I see it anyway. Of course the permabulls will be back out in force again calling the next great bull market now in progress and this rally should terminate when those calls reach fever pitch……………………………………Full Article: Source

Are You Preparing For $10,000 Gold?

Posted on 17 November 2014 by VRS  |  Email |Print

If someone told you back in the year 2001, when gold was below $300, that within 10 years it would approach $2000, would you have thought them to be crazy? What if someone now tells you that gold can go from the $1000 region to $10,000 within the next 10-15 years? Sounds just as crazy, right? Well, since many of you already think I am crazy, then I guess this will just be par for the course.
Yes, this article is being written by one of the very few who came into 2014 exceptionally bearish on the precious metals. Remember my line that “2014 will be the year of the whipsaw and the year the bulls die?” Again, the market has followed through very nicely on both. But, not all the bulls have been vanquished just yet, and it should only be a matter of time until they are……………………………………Full Article: Source

Could Gold Reach $800?

Posted on 17 November 2014 by VRS  |  Email |Print

They say beauty is in the eyes of the beholder. And what could be more beautiful than bullions of pure gold? Gold has always held a special allure for jewelry lovers. But it has also been a key investment commodity. Gold has been regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge.
Since 2011, however, gold has topped out and has fallen almost 40 percent from its all-time highs, far below bulls’ anticipated targets. Silver, too, has crashed, along with many other base metals. Growth in developed and underdeveloped economies has slackened considerably of late, a reflection of the slowdown in the manufacturing industries around the world. In fact, at this point, there is no good reason for investors to hold gold in the U.S……………………………………Full Article: Source

ANZ Cuts Commodity Price Forecasts on Slowing Chinese Growth

Posted on 14 November 2014 by VRS  |  Email |Print

Australia & New Zealand Banking Group Ltd. trimmed its price projections for commodities including oil, iron ore and nickel next year on slowing growth in China and rising inventories.
The bank cut its forecasts by an average 5.1 percent for next year and 3.8 percent for 2016, analysts including Mark Pervan wrote in a report today. The lender reduced its 2015 iron ore estimate by 22 percent to $78 a metric ton and its Brent crude outlook by 8.2 percent to $92 a barrel…………………………………Full Article: Source

U.S. Oil Prices Drop Below $75 a Barrel

Posted on 14 November 2014 by VRS  |  Email |Print

U.S. oil prices fell below $75 a barrel Thursday as U.S. production soared to its highest in decades. U.S. oil production rose above 9 million barrels a day in the week ended Nov. 7, the U.S. Energy Information Administration said Thursday. On a monthly basis, average production last exceeded 9 million barrels a day in 1986.
“If you asked if this were possible 10 years ago, people would have said you were crazy,” said Phil Flynn , analyst at the Price Futures Group in Chicago. “The market’s starting to believe that [the U.S. is] on tap to be the world’s largest producer.”………………………………..Full Article: Source

Andurand Seeing Rational Iran Bets on Oil Price Dropping

Posted on 14 November 2014 by VRS  |  Email |Print

Pierre Andurand, the oil trader who predicted the top of the market in 2008 and the plunge last month, expects prices to drop about $15 over the next six months. Andurand, whose hedge fund gained 5.4 percent last month and 20 percent in 2013, sees Brent crude declining to $65 to $70 a barrel, according to a letter sent to investors on Nov. 11.
He’s betting Iran will increase production after reaching agreement with the U.S. and European Union over sanctions tied to its nuclear program, and that a Nov. 27 meeting of the Organization of Petroleum Exporting Countries that will decide whether to reduce production won’t go far enough, he wrote…………………………………Full Article: Source

Geopolitical pressure and physical demand buoy gold prices

Posted on 14 November 2014 by VRS  |  Email |Print

The gold price remained range-trading, consolidating its recent gains amid a lack of directional cues due to a quiet data calendar. Elsewhere, news that Russian tanks and military vehicles are pouring into Ukraine may aid safe haven support in the near term, as well as sporadic physical buying providing buoy to prices.
The political conflict between Russia and Ukraine which had gone quiet in recent months threatened to flare as NATO accused Russia of sending troops and military equipment into Ukraine in the past week. General-Major Igor Konashenkov, a Russian Defense Ministry official, dismissed the comments as anti-Russian “hot air” and said “there was and is no evidence” behind the NATO accusations…………………………………Full Article: Source

EIA Slashes Oil-Price Forecasts for 2015

Posted on 13 November 2014 by VRS  |  Email |Print

Government forecasters sharply lowered their projections for oil prices this year and next, reflecting higher global supply expectations. The U.S. Energy Information Administration, in its monthly short-term energy outlook released Wednesday, called for benchmark U.S. crude-oil prices to average $95 a barrel this year and $77.75 a barrel next year, below its previous forecasts of $97.72 a barrel this year and $94.58 a barrel next year.
For Brent, the global benchmark, the EIA expects prices to average $101.04 a barrel in 2014 and $83.42 a barrel in 2015. In October, the agency called for price averages of $104.42 a barrel this year and $101.67 a barrel next year………………………………………..Full Article: Source

Do something about gas prices? Why?

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices are plunging. Gasoline is now cheaper than milk. Why doesn’t Washington do something already? Since peaking in June, the price of oil has tumbled by 25 percent. Texas light sweet crude futures have fallen to around $77.40 a barrel, a three-year low, while Brent oil, the global benchmark, sank on Monday to its lowest price in four years.
With cheaper oil has come cheaper gasoline. The national average price for a gallon of regular is now just $2.926. Drivers haven’t seen pump prices this low since December 2010. Nor have they seen such a sustained decline — the price has dropped for 46 days in a row — since 2008. According to AAA, “the national average could fall another 5-15 cents in the coming weeks, which could make for the cheapest Thanksgiving gas in half a decade.”……………………………………….Full Article: Source

Here’s What A Sustained $20 Drop In Oil Prices Does To The World’s Major Economies

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices have been tumbling in recent weeks. The price of brent crude fell below $80 per barrel today for the first time in since September 2010. That’s down from around $115 earlier this summer.
A research note from Societe Generale’s Michala Marcussen takes a look at the possible effects of a drop in oil prices on the world economy. She plugged a sustained $20/barrel drop in oil prices into Britain’s National Institute of Economic and Social Research’s NiGEM software, a sophisticated global macroeconomic model, and saw what would happen to global GDP in the following years………………………………………..Full Article: Source

Low oil prices to bite into 2015 US shale growth: IEA

Posted on 13 November 2014 by VRS  |  Email |Print

Falling oil prices may cut investment in U.S. shale oil by 10 percent next year, the International Energy Agency (IEA) said on Wednesday, slowing growth in a sector that has turned the U.S. into a major global producer.
“A well-supplied oil market in the short-term should not disguise the challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries,” Fatih Birol, the IEA’s chief economist, stated in the agency’s 2014 “World Energy Outlook” published on Wednesday………………………………………..Full Article: Source

Analysts sceptical Opec will halt fall in oil prices

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices will continue to fall even if Opec countries agree to cut production later this month, according to one of the market’s most influential analysts. Gary Ross, chief executive of Pira Energy Group, said there was an “imbalance” between supply and demand that would force prices down next year regardless of any output cuts that could be announced by the oil exporters’ group at its meeting in Vienna on November 27.
“Opec cannot and will not take the pain necessary to correct the imbalance,” he said. Other market watchers are also predicting further falls in prices, including Philip Verleger, an energy economist who wrote at the weekend that he expected the cash price of internationally-traded Brent crude to drop to about $70 a barrel or lower………………………………………..Full Article: Source

Here’s why gold could be headed to $800

Posted on 13 November 2014 by VRS  |  Email |Print

Over the last several years, gold has been simultaneously regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge. Gold’s beauty, it seemed, was in the eye of the holder. But in the absence of a full-scale geopolitical crisis, economic collapse, or other “black swan” event, there is no good reason to hold gold — at least here in the U.S.
Since 2011, gold topped out and has fallen almost 40 percent from its all-time highs, failing to meet the bulls most aggressive targets. Silver, too, has crashed, as have many base metals, used in manufacturing around the world, reflecting much slower than expected growth in both developed, and developing, economies………………………………………..Full Article: Source

Gold Price Seen Flat in 12 Months by LBMA Conference

Posted on 13 November 2014 by VRS  |  Email |Print

Gold Prices held around $1167 per ounce in London on Wednesday, trading near the upper-end of the last week’s 4% range as Western stock markets slipped after regulators imposed heavy fines on 5 global banks for manipulating currency-market benchmarks.
The UK’s FCA and United States’ CFTC settled with Citibank, Royal Bank of Scotland, J.P.Morgan , HSBC and UBS – the last three of whom are also bullion market makers – for a total of $3.4 billion “for failing to control business practices” in their foreign exchange (FX) operations………………………………………..Full Article: Source

Oil at $80 Is No Bar for BP, Total to Look for More Crude

Posted on 12 November 2014 by VRS  |  Email |Print

Oil at $80 a barrel won’t stop BP Plc (BP/) or Total SA (FP) from exploring and developing crude deposits. Oil has dropped into a bear market this year, with prices falling almost 30 percent since June amid a global glut.
OPEC won’t cut its collective output when it meets this month and global oil prices will stabilize once the surplus is absorbed, Kuwait Oil Minister Ali Al-Omair said at an oil conference in Abu Dhabi, the capital of United Arab Emirates………………………………………..Full Article: Source

Oil price plummet won’t help U.S. with Iran or Russia

Posted on 12 November 2014 by VRS  |  Email |Print

Plummeting oil prices — down more than 25 percent since June to three-year lows — should relieve pressure on consumers at the pump. But is it pushing oil-exporting regimes past the breaking point?
The answer is no. Despite their reliance on oil revenue, the governments of Russia, Iran, Saudi Arabia, and Venezuela are not teetering. This is no “oil Arab Spring,” where cratering prices topple governments, spreading like wildfire from one dependent authoritarian state to another. In fact, the price drop won’t even change their stances on the geopolitical issues Washington cares most about………………………………………..Full Article: Source

Gold price could fall to $800/oz: Metals merchant

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices could tumble towards $800 to $900 an ounce, not seen since the 2008/2009 financial crisis, as the metal is no longer seen as a decent portfolio diversifier, metals merchant and hedge fund Red Kite said on Monday.
Analysts and traders surveyed by Reuters last week predicted that prices could fall to $1,000 by the end of the year, revisiting that level for the first time since 2009. In the physical markets, buying in China – the top consumer – remained steady but at subdued levels on Tuesday. Local prices were about $1-$2 an ounce higher than the global benchmark, unchanged from the previous session………………………………………..Full Article: Source

Gold Prices Flat Near 4.5-Year Lows

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices rallied $10 per ounce in London trade Tuesday, hitting $1156 – a new 4.5-year low when first reached last week – as world stock markets ticked higher but crude oil fell again. “The gold price has continued to trend lower,” says a new note from US investment bank Goldman Sachs, “on the back of the strong US Dollar, rising real interest rates and better-than-expected US economic data.”
Looking 12 months ahead, “we should see prices stabilise” says the London market-making bank. But gold prices could first fall to $800 per ounce, reckons Michael Sheehan, a portfolio manager at Redkite Capital, as disappointment grows with gold as a “diversifier” he told the London Bullion Market Association’s 2014 conference in Lima, Peru………………………………………..Full Article: Source

Gold prices to fall further over next 5-7 yrs: Morningstar

Posted on 12 November 2014 by VRS  |  Email |Print

According to Michael Coop, , head of Multi Asset Strategies, Morningstar gold is going for further slowdown as people still have significant component of the gold that they purchased 5-10 years ago. And the risk of them to divest that as they have become a bit pessimistic about the outlook and are seeing losses.
There are three things investors need to remember when they decide whether to hold gold in their portfolios. First is that over the long-term gold has been a reliable store of value and has kept its purchasing power and so, you could buy the same quantity of goods with gold now which you could 50-200 years ago. People tend to hold gold like an insurance against inflation. ……………………………………….Full Article: Source

Iron Ore Seen by Citigroup Below $60 as 2015 Forecast Cut

Posted on 12 November 2014 by VRS  |  Email |Print

Iron ore prices will plummet to less than $60 a metric ton next year as global supply increases and demand remains weak, according to Citigroup Inc., which slashed its quarterly forecasts for 2015 by as much as 23 percent.
The raw material will average $72 a ton in the first three months of 2015, down from an earlier forecast of $82, Ivan Szpakowski, an analyst in Hong Kong, wrote in a report dated today. The second-quarter forecast was cut to $65 from $80, while the third was reduced to $60 from $78 and the figure for the final three months was put at $62 from $78, he wrote………………………………………..Full Article: Source

Six reasons why the crash in oil prices is nothing to worry about

Posted on 11 November 2014 by VRS  |  Email |Print

Oil prices are falling! Oil prices are falling! But don’t run into that bunker just yet. Oil prices are plummeting. The US price for a barrel of crude has fallen to less than $78 a barrel, the lowest level in years. That comes hard on the heels of a summer-long 25% dip in prices that pushed gas at the pump below $3 a gallon – the lowest level since 2010.
It’s not a real crash: the world doesn’t really need more oil. Much of the drop is Saudi Arabia’s latest pricing shenanigans in negotiating with Opec. A crash in oil prices looks dire. But this may make less difference than you might imagine to your day-to-day finances………………………………………..Full Article: Source

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