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Royal Dutch Shell boss predicts rebound in oil price

Posted on 05 February 2016 by VRS  |  Email |Print

The global oil market will rebalance later this year, paving the way for a recovery in crude prices from their lowest level in more than a decade, according to Royal Dutch Shell’s chief executive.
Striking a bullish stance as the Anglo-Dutch oil company reported an 80 per cent slide in profits last year, Ben van Beurden argued on Thursday that the “unprecedented” volatility in oil prices did not reflect fundamental supply and demand………………………………………..Full Article: Source

You won’t see $70 oil until 2018: Morgan Stanley

Posted on 05 February 2016 by VRS  |  Email |Print

Morgan Stanley has downgraded its outlook for oil prices, expecting low prices to persist for longer than previously thought as the supply and demand imbalance looks set to continue for at least another two years.
The bank lowered its average 2016 Brent price forecast to $30 per barrel, down from $49 previously. Morgan Stanley now expects an average price of $40 per barrel in 2017 as oversupply persists, before climbing past $50 by the end the year to average $70 by 2018………………………………………..Full Article: Source

Saudi Arabia Cuts Prices

Posted on 05 February 2016 by VRS  |  Email |Print

Saudi Arabia on Thursday cut prices for its best-quality crude oil destined for customers in Europe and Asia amid uncertainty about whether the Organization of the Petroleum Exporting Countries will meet to discuss action to raise oil prices.
The move to lower prices would help the world’s largest exporter of crude defend its most lucrative markets against encroachment from rival producers such as Iran, which is ramping up its output now that Western sanctions have been lifted………………………………………..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

The Trade: Gold prices surging to start 2016

Posted on 05 February 2016 by VRS  |  Email |Print

Amid the market volatility in 2016, gold futures prices are already up nearly 8 percent this year. After posting three consecutive years of losses and falling to the lowest level in six years back in November, gold prices are once again on the rise as investors seek shelter from the global volatility in the commodity known for its safe haven appeal.
On Wednesday, bullion hit an intraday high of $1,146 per ounce, the highest level since October. What if prices keep rising over the next one month?……………………………………….Full Article: Source

Australian producers welcome back A$1600 an ounce gold price

Posted on 05 February 2016 by VRS  |  Email |Print

The price of an ounce of gold climbed again overnight in New York, adding 1.3% to US$1,156.20 an ounce. A falling U.S. Dollar did take the shine off a touch based in the local money, but the FX rate of AUD / USD 0.7196 has Aussie Dollar Gold back over A$1600 an ounce.
Not only are domestic Australian gold producers benefiting from higher gold prices in Australian Dollar terms, but they are also reducing costs from lower fuel bills and a greater access to labour………………………………………..Full Article: Source

Could current oil prices be the new normal?

Posted on 04 February 2016 by VRS  |  Email |Print

True to form, no sooner have sanctions been lifted then Tehran has moved to decisively ramp up energy production, the lifeblood of its struggling economy.
While it will take some months for the Islamic Republic to meet its ambitious goal of increasing oil production by 500,000 barrels per day (bpd), there is little doubt that it will eventually get there, further exacerbating the present over-supply of energy that has so dramatically driven world-wide prices down………………………………………..Full Article: Source

Why gold price will rise further ?

Posted on 04 February 2016 by VRS  |  Email |Print

Gold’s rally this year has been driven mainly by what may be termed Western factors, namely buying on the back of worries over the state of the global economy and the subsequent desire for safe haven assets.
Spot gold has jumped 6.3 per cent to around $1,127 an ounce since the start of year, bringing out bullish views that the yellow metal’s dark years since the peak near $2,000 in September 2011 are finally over. Falling equity markets, both in developed and developing markets, credit and currency worries in China and monetary easing from major central banks other than the U.S. Federal Reserve have made gold look more attractive………………………………………..Full Article: Source

Oil price crash: Markets slump as Opec resists Russian calls for emergency meeting

Posted on 03 February 2016 by VRS  |  Email |Print

Moscow’s foreign minister says Russia is ready to talk as country’s oil production reaches post-Cold War era high. Divisions between the world’s major oil producers were laid bare on Tuesday as markets dismissed the prospect of an emergency Opec meeting to cut production levels.
Forward contracts for Brent crude fell by as much as 4.5pc to $32.70 a barrel, despite comments from Russia’s foreign minister that Moscow was ready to “cooperate” with its rivals to halt an 18-month price rout………………………………………..Full Article: Source

Gold to average $1,103 this year — LBMA

Posted on 03 February 2016 by VRS  |  Email |Print

Gold is unlikely to hold its gains this year, with a survey of 31 analysts predicting an average price of $1,103 a troy ounce, according to the London Bullion Market Association. That’s $57 below the average price in 2015 and just 1.1 per cent higher than the price in the first half of this year, commodities correspondent Henry Sanderson reports.
Joni Teves of UBS was the most bullish analyst surveyed, predicting an average gold price of $1,225 a troy ounce. The lowest forecast was $960, by Martin Squires at BNP Paribas………………………………………..Full Article: Source

Yuan Devaluation Will Lower Commodity Prices

Posted on 02 February 2016 by VRS  |  Email |Print

A depreciation of 1 per cent in the Chinese yuan leads to a decline of 0.6 per cent in commodity prices, according to Bank of America. This relationship with the currency is the strongest for commodities such as copper and platinum, of which China is the world’s dominant consumer, the US bank’s strategists wrote in a report dated January 25.
A cheaper yuan will erode the purchasing power of the Chinese, pushing prices down and outweighing any benefit from easier financial conditions that a devaluation may bring, they said. Bank of America analysts compared the moves on the Bloomberg Commodity Index with the yuan’s changes against the US dollar and a basket of other currencies to calculate the so-called beta, which measures one security’s sensitivity to another……………………………………….Full Article: Source

The Science (Or Art) Of Forecasting Oil Prices

Posted on 02 February 2016 by VRS  |  Email |Print

The past few years have greatly encouraged those who consider oil price forecasters to be little more than astrologers (on a good day), but there are some basic lessons that tend to be overlooked amidst all the noise and confusion.
It doesn’t help that today’s news cycle requires constant commentary on oil price movements, as well as predictions short- and long-term, nor that free publicity is available, particularly to those willing to make the most extreme predictions. In fact, a most reasonable forecast can garner attention if the possibility of an extreme movement is included—and it will get the attention………………………………………..Full Article: Source

Oil Prices Drop as Chances Fade for Output Cuts

Posted on 02 February 2016 by VRS  |  Email |Print

Oil prices gave back a big chunk of last week’s gains, with traders losing hope that the world’s big producers will cut their output and that Asia’s economies can help drive demand. The market had shot to a three-week high late last week on speculation of increasing economic stimulus, and cooperation on output cuts between Russia and OPEC.
But many leaders of the Organization of the Petroleum Exporting Countries are actively damping expectations for cuts. New data also suggests U.S. output is still resilient and the Chinese manufacturing sector is still contracting………………………………………..Full Article: Source

Cramer: Keep an eye on oil prices

Posted on 02 February 2016 by VRS  |  Email |Print

Oil prices are pushing stocks lower as investors looked to move on from a dismal January, CNBC’s Jim Cramer said Monday. “The inventory numbers are still too large. I don’t see any real demand at the $34-$35 level,” Cramer said on “Squawk on the Street.”
U.S. oil inventories increased by 8.4 million barrels from Jan 18. to Jan. 22, according to the latest data from the Energy Information Administration. U.S. crude futures fell nearly 5 percent during the first trading session of February. U.S. stocks followed suit, with the Dow Jones industrial average falling more than 75 points in midmorning trading………………………………………..Full Article: Source

Gold Has The Potential To Hit $1,200/oz: RBC Capital Markets

Posted on 02 February 2016 by VRS  |  Email |Print

Gold’s rally so far this year has the potential to move to the metal back up to $1,200, but it remains in an overall downtrend, notes one analyst. “The trend on gold tends to trade in trends that can last years, and is currently in a bearish trend that started four years ago, and is now approaching some long-term support around $1000 where it may level off for a few years in a bottoming range,” said Bob Dickey, technical analyst for RBC Capital Markets.
“The current bounce has the potential to reach the $1150 to $1200 area, but that would likely be another short-term peak within the overall downtrend. A true long-term buy point for gold could still be years away.”……………………………………….Full Article: Source

Oil-Price Poker: Why the Saudis Won’t Fold ‘Em

Posted on 01 February 2016 by VRS  |  Email |Print

The game being played in the global oil market today bears more than a passing resemblance to poker. Nobody wants to quit while they’re losing. That is important for investors to keep in mind as they ponder what have become almost daily spikes and drops in the price of crude. So, too, is the role of Saudi Arabia in the game.
It remains within Saudi Arabia’s ability to foster at least a partial recovery in crude prices on its own. A sharp rally in prices last Thursday morning was based on comments from Russia’s energy minister that the Saudis might get the ball rolling on 5% output cuts. That was quickly refuted and oil gave up much of the gains………………………………………..Full Article: Source

The ugly side of slumping oil prices

Posted on 01 February 2016 by VRS  |  Email |Print

For a long time, a no-brainer strategy to beat the market was to simply track how the US dollar was doing. Stock prices would shoot up whenever the greenback wobbled, and turn weak at the knees if the US dollar strengthened.
While that relationship continues to hold true to some extent - at least superficially - it has been superseded by another even more powerful correlation: the influence which oil prices seem to be wielding over the world’s financial markets right now………………………………………..Full Article: Source

Gold price continued dip in December, down 1.6% on month

Posted on 01 February 2016 by VRS  |  Email |Print

The average price of gold in December fell 1.6% to $1,068.25/troy oz, from a November average of $1,085.70/oz, the London Bullion Market Association said Friday. The volume of ounces transferred increased by 36.8 % to 23.6 million, its highest level since June 2013, with the corresponding value of gold transferred up nearly 35% to $25.2 billion.
This could signal buying interest at the lower price levels. “The number of transfers was broadly flat at 2,702 while the number of ounces per transfer increased significantly to 8,732, to its highest ratio since January 2012,” the LBMA said………………………………………..Full Article: Source

LBMA Silver Price: Trouble in Paradise?

Posted on 01 February 2016 by VRS  |  Email |Print

After being named “Exchange of the Year” by Risk Magazine Awards, the CME was rattled as the company saw its benchmark silver price disconnected from the actual price of the metal. According to media reports, the LBMA Silver Price — a benchmark used by producers and traders to settle silver products and derivatives contracts – was off by 84 cents compared to Comex March silver futures Thursday morning.
By the end of the online auction process, silver futures traded around $14.415 an ounce, while the LBMA Silver Price was set 6% under than price tag at $13.58 an ounce. Some media reports noted that it took about 14 minutes to finally settle the price………………………………………..Full Article: Source

Silver Price Breaks Higher on Rising Anxiety

Posted on 01 February 2016 by VRS  |  Email |Print

Echoing the perilous financial market volatility of late, silver prices have gradually moved to the highest levels since December as growing risk aversion and shifting sentiment see safety bids gain momentum. While not necessarily indicative of a resumption of the trend higher that began in the depths of the last financial crisis, several factors are pointing to increased potential gains in the precious metal as investors are forced to pivot from yield to quality in an effort to hedge against ongoing turmoil.
While inflation may remain low, dragging on prices over the medium-term, tightness in the physical supply chain alongside increased interest in hedging against uncertainty of monetary policy and central banking continue to contribute to upside in silver………………………………………..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

Iran says low oil prices will not last long

Posted on 29 January 2016 by VRS  |  Email |Print

Iranian President Hassan Rouhani said on Thursday that oil prices would not stay low for long as producers restore market balance. “The price of oil is at a low level … I don’t think it will last in the long term … The pressure on oil-producing nations means balance will be restored in the short term,” Rouhani, whose country is the third-largest producer in OPEC, said at the French Institute of International Relations.
Pragmatist Rouhani arrived in France on Wednesday on the second leg of a state visit to Europe after three days in Italy. Iran is pushing to boost oil exports now that international sanctions against it have been lifted………………………………………..Full Article: Source

Hopes For An Oil Price Recovery Appear Exaggerated

Posted on 29 January 2016 by VRS  |  Email |Print

The new debate in petroleum markets appears to be over when prices will recover and to what level. When the price was $100 a barrel, many argued that any drop would be only temporary because higher costs had put a new, higher floor under prices.
And before that, the argument was that the market had entered a “new paradigm” where strong demand in countries like China would be bumping up against the “end of easy/cheap oil” and keep pressure on prices to rise. These arguments were all very appealing and eventually became widespread, as persistently high prices quieted most of the voices that argued for caution………………………………………..Full Article: Source

Gold price unmoved as Fed masters the mixed message

Posted on 29 January 2016 by VRS  |  Email |Print

The gold price had been expected to settle markedly either up or down yesterday, after the US Federal Reserve issued its latest eagerly anticipated policy announcement on interest rates. In the event, it was all something of a damp squib.
Initially, the spot price of the yellow metal jumped to $1,127 an ounce, but it quickly retreated from that high and this morning was steady at $1,118 - a virtually identical level to where it has spent most of this week. This reflected the steadier sentiment that has taken hold across Europe’s equity markets in the wake of the Fed’s statement………………………………………..Full Article: Source

Global Scenario Gathers Support for Precious Metals Prices

Posted on 29 January 2016 by VRS  |  Email |Print

The upheaval in the Chinese markets during the start of the new year and the continued currency devaluation in China have hurt the world markets and sparked the appeal of gold as a haven asset.
The Federal Reserve is also likely acknowledging the current economic slump. It refrained from raising interest rates on January 27, 2016. Both the delay in the rate rise and the economic downturn are beneficial for precious metals. Gold and silver have risen 2.1% and 2.5%, respectively, on a five-day-trailing basis………………………………………..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

Crude oil price to surpass $100 US by 2040, National Energy Board says

Posted on 28 January 2016 by VRS  |  Email |Print

The National Energy Board says crude oil prices are projected to rise to more than $100 US a barrel by 2040. Peter Watson, the board’s chairman and CEO, says in a prepared text of a speech that the regulator is taking a long-term view of the country’s energy future in a report.
Watson, who is set to speak before the Toronto Region Board of Trade, says the outlook is a challenging undertaking given the current, uncertain economic environment. Since mid-2014, the global price of crude has fallen about $80 US a barrel down to about $30 US a barrel………………………………………..Full Article: Source

World Bank and Credit Suisse slash oil price forecast for 2016

Posted on 28 January 2016 by VRS  |  Email |Print

Both the World Bank and Credit Suisse recently reduced its oil price forecast for 2016. This is amid increasing supply of oil and low demand prospects from emerging markets.
While the Washington-based institution forecast crude oil prices at $37 (£26, €34) a barrel for 2016 by using an average of Brent, Dubai and West Texas Intermediate (WTI) oil prices equally weighted, Credit Suisse projected that Brent will average $36.25 a barrel and WTI Crude will trade at a premium of $1.50 to Brent in 2016………………………………………..Full Article: Source

World Bank slashes outlook for 80% of commodity prices

Posted on 27 January 2016 by VRS  |  Email |Print

The World Bank has cut its price forecast for 80 percent of the world’s major commodities as oversupply and weaker emerging market growth prospects weigh on demand. In its latest report, out Tuesday, the bank has cut its 2016 forecast for crude oil prices to $37 per barrel, down from $51 per barrel in its October report, citing the sooner-than-anticipated resumption of exports by the Islamic Republic of Iran and greater resilience in U.S. production.
Oil prices fell by 47 percent in 2015 and are expected to decline, on an annual average, by another 27 percent in 2016, according to the World Bank………………………………………..Full Article: Source

Oil prices to stay near current level throughout 2016, World Bank says

Posted on 27 January 2016 by VRS  |  Email |Print

Bank forecast plays down likelihood of further collapse with average price of oil expected to stabilise below $40 a barrel. The World Bank has slashed its forecast for oil prices this year, saying the cost of a barrel of crude will stay near its current lows for the rest of 2016.
The Washington-based institution said a glut of oil that sent prices crashing by almost half last year and another 27% this month will continue to dominate the market for the next year………………………………………..Full Article: Source

World Bank slashes oil price forecast to $37 a barrel

Posted on 27 January 2016 by VRS  |  Email |Print

The World Bank on Tuesday dramatically revised down its forecast for crude oil prices, predicting they would average just $37 a barrel this year and warning commodity markets to brace themselves for the possibility of a much sharper than expected slowdown in emerging economies.
The new forecast — down from a predicted $52 average for 2016 just three months ago — underlines how rapid the recent fall in oil prices has been and the growing concerns at the World Bank and elsewhere over the link between tumbling oil and the health of emerging economies………………………………………..Full Article: Source

Global oil prices to remain low throughout 2016: analyst

Posted on 27 January 2016 by VRS  |  Email |Print

Global oil prices are expected to remain low in the near future according to analysts, even though the price has lately climbed to about 30 U.S. dollars a barrel. On Monday, the West Texas Intermediate for March delivery moved down 1.85 U.S. dollars to settle at 30.34 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery decreased 1.68 dollars to close at 30.5 dollars a barrel on the London ICE Futures Exchange.
Crude oil prices began to recover when the United States faced a patch of extreme cold weather last week, while Europe raised hopes of more economic stimulus measures………………………………………..Full Article: Source

More bad news from investor who called $30 oil a year ago

Posted on 27 January 2016 by VRS  |  Email |Print

Early last year, Mark Yusko, founder and CEO of Morgan Creek Capital Management, predicted crude oil would approach $30 a barrel and deflation would become the main economic headwind for the developed world, rather than the inflation with which the market had been obsessing.
Yusko, whose dour market views were prescient, doesn’t have any brighter view of economic or market conditions now. The easing of sanctions on Iran and Saudi Arabia’s reluctance to cut production are among the factors that will continue to crush energy prices………………………………………..Full Article: Source

Gold price likely to rise above $1 200/oz by year-end – GFMS

Posted on 27 January 2016 by VRS  |  Email |Print

The gold price is set for a gradual recovery this year, particularly in the second half, driven by improving fundamentals, Thomson Reuters GFMS said in its latest gold survey. The ‘Gold Survey 2015 Q4 Update & Outlook’ report, released on Tuesday, noted that the gold price would trade above $1 200/oz towards year-end and would average $1 164/oz.
“Once it becomes clear that the gold price is on the road to recovery, we are likely to see a rebound in investor interest from key Asian markets, particularly if concerns about the emerging market slowdown and weakening currencies persist,” the report noted………………………………………..Full Article: Source

Weaker Gold Price On Tempered Dovish Fed Statement

Posted on 27 January 2016 by VRS  |  Email |Print

The gold market — expecting extremely dovish comments from the Federal Reserve Wednesday, following its monetary policy meeting, could be disappointed, creating some selling pressure according to some analysts.
Comex February gold futures pushed to nearly a three-month high Tuesday as the U.S. central bank started the first day of its two-day meeting and last traded at $1,118.3 an ounce. According to some analysts, gold prices are benefiting in part because of shifting interest rate expectations. In December, the Fed indicated that they expected to raise interest rates four times in 2016 with the next rate hike scheduled for March………………………………………..Full Article: Source

Price of Silver in 2016: Could It Bounce Higher?

Posted on 27 January 2016 by VRS  |  Email |Print

Silver lost ground in 2015, continuing a three-year losing streak that cut another 12% off the price of the metal to around $14.45 per ounce. The question going forward is whether silver can finally manage to bounce back in 2016, or whether the ongoing slide in commodities will keep its grip on the silver market.
The bullish argument for silver going forward hinges on the metal’s unusual combination of characteristics. On one hand, silver trades somewhat in line with gold and the rest of the precious metals complex, despite its obviously cheaper price compared to its peers………………………………………..Full Article: Source

Oil Prices Rebound Above $30—Is a Rally Finally Here?

Posted on 26 January 2016 by VRS  |  Email |Print

Oil prices plumbed new lows last week, dropping below $28 per barrel. But oil also closed out the week on a positive note, with huge gains on Thursday and Friday, rallying back above $30 per barrel. The price increase could be a sign that the markets think that oil has been far oversold, that trading this low has been “irrational,” as the head of Saudi Aramco put it last week.
Adding to the upsurge was growing speculation that central banks around the world will take additional action to provide some monetary stimulus amid worrying signs of faltering growth. EU central bank chief Mario Draghi provided the clearest indication yet that his institution may act as soon as March………………………………………..Full Article: Source

Oil price: recovery predicted - but it’s still ‘one for the brave’

Posted on 26 January 2016 by VRS  |  Email |Print

Friday’s oil price rally recommenced overnight in Asia, buoying hopes of a more sustained recovery. International benchmark Brent crude had risen strongly to above $30 a barrel at the end of last week, amid a broader-based market rally prompted by hopes of European Central Bank stimulus.
The worsening cold weather in the US, which saw violent blizzards across the east coast, added to the upward momentum, fuelling the sense that demand for heating oil would increase and pushing the price towards $33………………………………………..Full Article: Source

Gold Prices ‘Target $1200′ Ahead of Fed

Posted on 26 January 2016 by VRS  |  Email |Print

Gold prices edged higher on Monday morning in London, writes Steffen Grosshauser at BullionVault, holding close to a 7-session high at $1107 per ounce as a rebound in Asian stockmarkets faded in European and pre-US trade ahead of this week’s decision on Dollar interest rates from the Federal Reserve.
“If gold can stay above $1100 in the coming days,” reckons Mark To, head of research at Hong Kong’s Wing Fung Financial Group, “it may signal a further rebound, maybe even to $1200 in the coming months.” “We believe the key reason for gold’s weakness is the near-record short [speculative] position in paper markets,” says a note from London bullion bank HSBC, “overriding robust physical demand and an outlook for declining supply………………………………………..Full Article: Source

Copper’s crash to see average price hit lowest since 2005

Posted on 26 January 2016 by VRS  |  Email |Print

Copper prices are expected to see their lowest average in more than a decade this year due to weak demand growth in top consumer China and a supply overhang, a Reuters survey of metal analysts showed.
But 2016 is also likely to see losses come to an end as cuts in mine supply help balance the market. The survey of 32 metal analysts showed the median forecast for prices of the metal used in power and construction at $4,858 a ton this year, the lowest since 2005 when the number was around $3,600 and the commodities “super-cycle” was in its ascendancy………………………………………..Full Article: Source

Oil price swings expected to continue as market sends mixed messages

Posted on 25 January 2016 by VRS  |  Email |Print

The oil price is expected to remain volatile throughout trading this week after recording massive swings over the last week. Supplies remain high around the world as analysts continue to slash their outlook on the oil price, though industry leaders have remained bullish on a price rise.
The oil price staged its biggest two day rally in over seven years at the end of last week, topping off a week of volatility that saw the price of a barrel of Brent crude slip to 12 year lows of just $27.14………………………………………..Full Article: Source

Russia Can ‘Cope With Oil Price Under 20 Dollar Better Than US’

Posted on 25 January 2016 by VRS  |  Email |Print

The chief analyst at Bremer Landesbank, Folker Hellmeyer, published an analysis, according to which Russia and Saudi Arabia will be able to avoid crisis even if the oil price drops up to 20 dollars per barrel.
At the same time, Western countries will find it difficult to cope with such low prices and are likely to find themselves facing certain hardships, German newspaper Deutsche Wirtschafts Nachrichten wrote, citing the expert………………………………………..Full Article: Source

China faces deepening impact from world economy, commodity prices

Posted on 22 January 2016 by VRS  |  Email |Print

The impact on China from the global economy and lower commodity prices is deepening, but the country’s economic fundamentals are good and Beijing will make sure the economy runs within a reasonable range, the cabinet said on Thursday.
The State Council reiterated that the government would tackle over-capacity in the steel and coal sectors first in its campaign to reduce supply gluts, according to a statement on its website. It also said that China should price in risks and challenges from the world economy and commodity values………………………………………..Full Article: Source

The world economy: Who’s afraid of cheap oil?

Posted on 22 January 2016 by VRS  |  Email |Print

Low energy prices ought to be a shot in the arm for the economy. Think again. The world is drowning in oil. Saudi Arabia is pumping at almost full tilt. It is widely thought that the Saudis want to drive out higher-cost producers from the industry, including some of the fracking firms that have boosted oil output in the United States from 5m barrels a day (b/d) in 2008 to over 9m b/d now.
Saudi Arabia will also be prepared to suffer a lot of pain to thwart Iran, its bitter rival, which this week was poised to rejoin oil markets as nuclear sanctions were lifted, with potential output of 3m-4m b/d………………………………………..Full Article: Source

Oil price: fall to $10 a barrel ‘not impossible’, admits BP boss

Posted on 22 January 2016 by VRS  |  Email |Print

Independent analysts predicting the oil price could fall to painful lows is one thing, but when an oil major admits an ultra-bearish forecast is likely, people sit up and take notice. zzzzthe boss of BP, Bob Dudley, told the BBC’s Kamal Ahmed it was “not impossible” the price of oil could fall to $10 a barrel - a forecast made earlier this month by emerging-markets lender Standard Chartered.
In fact, he has predicted “a price $30 to $40 by the middle of the year” and eventually “towards the end of the year, it could be into the $50s”………………………………………..Full Article: Source

Gold price: Four reasons it hasn’t risen more

Posted on 22 January 2016 by VRS  |  Email |Print

While the gold price is having a decent year and optimism is building over its future projection, it has yet to really break free from established price parameters and a ceiling of around $1,100.
The precious metal has risen about three per cent this year, despite December’s rise in US interest rates, which is typically a negative signal. But this “safe-haven” rally comes at a time when equity markets are enduring their worst start to a year ever, with the UK’s benchmark the FTSE-100 ploughing a three-year low. So why hasn’t gold soared?……………………………………….Full Article: Source

Why Gold Prices Will Soar in 2016

Posted on 22 January 2016 by VRS  |  Email |Print

Gold prices were slightly lower today (Thursday) as markets calmed, but we still see gold prices soaring in 2016. In fact, investing in gold is one of the smartest decisions investors can make during this extreme market volatility. But first, here’s what caused gold prices to dip today…
European Central Bank President Mario Draghi kept interest rates unchanged Thursday and didn’t implement any new monetary measures. But he did signal the bank might offer more stimulus at its meeting in March. That stabilized European markets today………………………………………..Full Article: Source

Gold price rise hits buying in China, blunts India demand

Posted on 22 January 2016 by VRS  |  Email |Print

Physical gold demand in Asia slowed this week as prices rose, curbing seasonal buying in China ahead of the Lunar New Year holiday and moving Indian offers to a discount. Spot gold touched a 1-1/2-week high of $1,109.20 an ounce on Wednesday as tumbling equities and oil prices burnished bullion’s safe-haven draw.
“There’s a bit of speculative demand. Some Chinese people are buying with stock markets collapsing, but not huge,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd in Hong Kong………………………………………..Full Article: Source

Miners, stung by commodity price cash, cut costs and debt

Posted on 22 January 2016 by VRS  |  Email |Print

London-listed mining companies have been hit by plummeting commodity prices, forcing them to slash jobs, costs, capital expenditure and dividends.
BHP Billiton shares are at their lowest since January 2005, while Rio Tinto stocks hit levels last seen in March 2009. Shares in Glencore and Anglo American plunged to repeated record lows. Below is a summary of the steps miners have taken so far to improve balance sheets and what they have committed to do………………………………………..Full Article: Source

Oil prices are at the mercy of geopolitics

Posted on 21 January 2016 by VRS  |  Email |Print

Geopolitics and geoeconomics are pounding down on the oil market, and the price seems to have no place to hide. The latest barrage comes this week from the re-entry of sanctioned Iranian oil to the world market, triggered by Tehran’s compliance with the nuclear agreement.
The lifting of sanctions, originally expected to happen in March or April, was sped up to bolster support for President Rouhani in Iran’s upcoming parliamentary elections. As a result, the returning oil will arrive in an already glutted market at a time of maximum seasonal weakness — and when geoeconomic pressures are mounting………………………………………..Full Article: Source

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