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Oil prices will stall below $50 a barrel for another year, says Goldman Sachs

Posted on 24 August 2016 by VRS  |  Email |Print

Oil prices continued to fall on Tuesday and may struggle to climb back over $50 a barrel for another year, Goldman Sachs has warned. The price of Brent crude has tumbled more than 3pc so far this week to $48.58, reversing a rapid $10 ascent from around $41.60 a barrel in early August to highs of almost $52 a barrel last week.
The fall reflects growing concern that August’s rapid rise was overdone as oversupply continues to drag on the market. Goldman Sachs told investors that oil prices could remain at between $45 and $50 a barrel for the next year, and could even fall lower if supply from politically volatile countries ramps up faster than expected………………………………………..Full Article: Source

Iraq may base 2017 draft budget on $35/barrel oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iraq may base its public budget for 2017 on an oil price of $35 per barrel, about the same level as this year, Prime Minister Haider al-Abadi told a news conference on Tuesday in Baghdad. Iraq, which depends on oil sales for 95 percent of its public spending, lowered this year its crude price assumption to about $32 a barrel from an initial forecast of $45 a barrel.
The price assumption for 2017 could still change by parliament which has to approve it, a spokesman of Abadi said separately after the press conference. Iraq is OPEC’s second-largest producer after Saudi Arabia with an output of 4.6 million barrels per day………………………………………..Full Article: Source

Iran signals more willingness for OPEC action to boost oil price

Posted on 24 August 2016 by VRS  |  Email |Print

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in OPEC and the oil industry said, potentially aiding efforts to revive a global deal on freezing production levels at talks next month.
OPEC’s third-largest producer has been boosting output after the lifting of Western sanctions in January. Tehran refused to join a previous attempt this year by OPEC plus non-members such as Russia to stabilize production, and talks collapsed in April………………………………………..Full Article: Source

Gold price rally still to peak, as global economic worries continue

Posted on 24 August 2016 by VRS  |  Email |Print

Demand rises 15pc in second quarter, after price soars 26pc from a six-year low of US$1,060.2 per ounce at the start of the year. The current rise in the price of gold is yet to peak, according to analysts, after jumping 26 per cent in the first half.
The spot gold price surged from a six-year low of US$1,060.2 per ounce at the start of the year to US$1,320.6 by June 30, amid fears over Brexit, delays in interest rate rises in the United States and rate cuts by global central banks, amid the ongoing global economic slowdown………………………………………..Full Article: Source

BMO: ‘We Would Still Be Buyers’ On A Dip In Silver Prices

Posted on 24 August 2016 by VRS  |  Email |Print

Analysts at BMO Capital Markets say they would favor buying silver on price dips. Their base-case outlook is for silver prices to remain range-bound, although with a greater downside risk than upside risk in the near term.
Analysts say they are not revising their price forecasts for now, noting that silver and gold are not far from BMO’s second-half forecasts of $19.75 and $1,360 an ounce, respectively. For the metals to rise further, they would need a new structural catalyst, BMO says. Meanwhile, analysts continue, there is a downside risk from a potential Federal Reserve rate hike. “At this point, we would still be buyers on the dip given our global outlook,” BMO says………………………………………..Full Article: Source

Oil price retreats as speculative shake-out eases

Posted on 23 August 2016 by VRS  |  Email |Print

Analysts warn that much of the impetus for the rebound of the past 2 weeks has faded. Oil retreated 3 per cent on Monday to back below $50 a barrel, as reports Iraq is increasing exports and signs hedge funds have rapidly switched positions raise doubts about the strength of the recent rally.
Brent crude, the international benchmark, has surged by almost 15 per cent in the 10 days since Saudi Arabia said it would participate in talks aimed at securing a production freeze with other leading producers………………………………………..Full Article: Source

Gold price must improve to incentivise industry recovery: Holland

Posted on 23 August 2016 by VRS  |  Email |Print

The world’s gold industry will need the price of its metal to improve further in order to support investment in fresh resources, said Gold Fields CEO, Nick Holland. Making a return to the Melbourne Mining Club some four years after first addressing it, Holland said cost savings as well as currency and oil price weakness had served as tailwinds to the industry.
The average net cash flows of some of the industry’s biggest gold miners, including Barrick Gold, Newcrest Mining, AngloGold Ashanti and Gold Fields itself, had fallen to about $4bn in 2013………………………………………..Full Article: Source

Gold Mining Industry Needs the Dollar Gold Price at $3,000 per ounce

Posted on 23 August 2016 by VRS  |  Email |Print

In our paper from March 23, 2016 we concluded that JPM [J. P. Morgan] in cooperation with the BIS [Bank of International Settlements] controls the dollar gold price by using their very dominant position in gold derivatives in the US Banking System.
JPM held during 1999 – 2014 an average of 3.262 paper metric tons gold (derivatives) available for interventions on the development of the dollar gold price with the BIS as counterparty. Furthermore we concluded that the paper volume sets the dollar gold price and that there is almost no influence on the dollar gold price from the physical supply and demand. Overall the conclusion is that there is no free market for gold………………………………………..Full Article: Source

Moody’s calls bottom on commodity price collapse – but the pain isn’t over

Posted on 22 August 2016 by VRS  |  Email |Print

The dizzying price falls in metals such as aluminium, zinc, copper and nickel have bottomed out, ratings agency Moody’s has declared – but the mining industry will still feel the pain of low prices. Moody’s has upgraded its outlook for the global base metals industry from negative to stable, but warned prices will stay low for longer.
“We view prices for base metals as having likely bottomed following the sharp decline beginning late last year, and consequently we have revised our price sensitivity assumptions,” said Carol Cowan, a Moody’s senior vice president………………………………………..Full Article: Source

Oil Companies Need Prices to Keep Rising Past $50 a Barrel

Posted on 22 August 2016 by VRS  |  Email |Print

A rally that pushed international crude-oil prices above $50 a barrel Thursday is a welcome sign for many energy companies but not enough to kick-start an industry in the midst of a two-year slump, executives said.
“We’re in a little bit of an upswing at the moment and everybody’s got a smile on their face because we might be at $50 a barrel,” said Tony Durrant, chief executive of Premier Oil PLC, a British oil company with operations from the North Sea to the Falkland Islands………………………………………..Full Article: Source

Arabian Gulf markets remain quiet amid oil’s return to $50 mark

Posted on 22 August 2016 by VRS  |  Email |Print

Arabian Gulf shares began the week in quiet fashion on Sunday, with a return to US$50 oil proving little stimulus for investors. Brent crude futures closed the week at above $50 per barrel despite drifting lower on Friday, ahead of Opec talks next month to discuss production levels.
Analysts are sceptical about the chances of such talks producing a cut in production, with further significant price gains unlikely in the short term. “We see the upside as being limited from here and expect Brent crude will find resistance in the $50 to $52 [per barrel] area before correcting lower back into our preferred third-quarter range between $45 and $50 [ per barrel],” wrote Ole Hanson, the head of commodity strategy at Saxo Bank………………………………………..Full Article: Source

Gold Price Likely To Go Much Higher On Safe Haven Demand

Posted on 22 August 2016 by VRS  |  Email |Print

Gold has been climbing in the market throughout the year…and for good reason. Global economic conditions, central bank experiments and volatility in the market is all leading to strong safe haven demand. The big question is whether or not this will continue. The experts argue that the price of gold is going to continue climbing in value.
This opinion surrounds the safe haven qualities of the precious metal. Today, we’ll talk about what we’ve seen recently from investor demand, why experts believe that demand will continue to rise, and what I’m expecting to see from the price of gold moving forward………………………………………..Full Article: Source

Iron ore price continues to defy naysayers

Posted on 22 August 2016 by VRS  |  Email |Print

The iron ore price has inched higher as the commodity continues to defy warnings that the effect of Chinese stimulus spending so far this year may not last. Iron ore added 0.3 per cent to $US61 a tonne in the most recent session, according to The Steel Index, from $US60.80 the previous day.
The commodity’s strength over the course of 2016 is surprising many analysts, raising hopes that the market may have bottomed after prices dropped below $US40 a tonne in December 2015………………………………………..Full Article: Source

Why oil prices just stampeded into bull-market territory

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices officially charged into a bull market Thursday as the prospect of an output freeze by major producers, data showing the first weekly fall in U.S. crude supplies in a month, and a decline in the dollar boosted prices.
Crude-oil prices have advanced more than 20% from their Aug. 2 low over the past several sessions, signifying a bull-market run. September West Texas Intermediate crude climbed by $1.43, or 3.1%, to settle at $48.22 a barrel on the New York Mercantile Exchange………………………………………..Full Article: Source

Oil prices break back above $50 a barrel

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices broke above $50 a barrel for the first time in five weeks as hope that the world’s largest suppliers may act to cut the glut in global supply continues to drive prices higher for a sixth consecutive day.
Brent crude moved above $50 a barrel for the first time since early July on Thursday morning before dipping back to $49.70 later in the day. But by the afternoon the market surged well above the key earlier highs to around $50.80 a barrel………………………………………..Full Article: Source

Oil Price Recovery Likely to Continue

Posted on 19 August 2016 by VRS  |  Email |Print

Oil prices, which earlier Thursday broke through a key psychological level of $50 a barrel, are likely to continue recovering into next year as supplies tighten, but that recovery is still fragile and the path ahead is rocky, the chief executive of Premier Oil PLC said.
“We’re in a little bit of an upswing at the moment and everybody’s got a smile on their face because we might be at $50 a barrel. But two weeks ago we were at $40 and falling. It’s not a very helpful backdrop to plan a long-term business,” Tony Durrant said……………………………………….Full Article: Source

Iron ore price hovers above $US60 a tonne

Posted on 19 August 2016 by VRS  |  Email |Print

The iron ore price has slipped further but continues to hold above the $US60 a tonne threshold, despite a fresh prediction from ratings agency Moody’s that the commodity is set to fall from its current elevated level.
Iron ore lost 0.5 per cent to $US60.80 a tonne overnight, according to The Steel Index, from $US61.10 the previous day. Moody’s noted the recent volatility in iron ore prices, after the commodity fell to a trough in the high $US30s in late 2015 before bouncing off its lows and remaining stronger during 2016. ……………………………………….Full Article: Source

Copper price is going nowhere

Posted on 19 August 2016 by VRS  |  Email |Print

New report says base metal prices have bottomed, but there’s hardly any upside – and that includes the zinc price. Credit ratings agency Moody’s warned at the beginning of the year that the current downturn in raw materials was like no other and that defaults among mining and metals companies could reach levels last seen during the height of the financial crisis.
As a result, Moody’s embarked on a sector-wide review of the 87 global mining majors that it covers. The review started off with a bang in January when the agency dropped the world’s biggest listed copper mining company Freeport-McMoRan deep into junk territory………………………………………..Full Article: Source

Crude prices may stay near $50/bbl on supply worries: JP Morgan

Posted on 18 August 2016 by VRS  |  Email |Print

Ian Hui of JP Morgan Asset Management says there is talk of the Organization of the Petroleum Exporting Countries (OPEC) considering a production freeze which might weigh down crude supply numbers. Expectations of changes in supply are more likely to be driving crude prices higher right now feels Ian Hui of JP Morgan Asset Management.
Hui says there is talk of the Organization of the Petroleum Exporting Countries (OPEC) considering a production freeze which might improve oil balances and weigh down supply numbers. Hui expects crude prices to float around the USD 50 per barrel mark by the end of the calendar year. ……………………………………….Full Article: Source

Here’s One Reason Why Gold Could Soon Skyrocket by 48.15%

Posted on 18 August 2016 by VRS  |  Email |Print

If you are looking for the next big trade, look at gold prices. The yellow precious metal is trading at severely low prices, and it may be set to provide massive gains. As it stands, there’s a gold rush in play, and no one is talking about it. We see consumers, investors, and central banks running to buy the precious metal. In the process, they could send gold prices through the roof.
Consider this: in the second quarter of 2016, central banks purchased 77 tonnes of gold. This amount is down year-over-year, but keep in mind that they have been net buyers of the precious metal for a very long time………………………………………..Full Article: Source

Premium of zinc over lead retreats after hitting 9-year peak

Posted on 18 August 2016 by VRS  |  Email |Print

The premium of the zinc price over sister metal lead is due to extend its decline in coming weeks after touching a high of close to $500 last week, the strongest since 2007. Zinc is expected to struggle to hit fresh peaks as investors worry about possible restarts of closed mines at the same time lead moves into its strongest seasonal period for demand.
Prices of the two metals, usually found in the same mines, are often used as the basis for trading strategies using either the spread or the ratio………………………………………..Full Article: Source

The Crash in Iron Prices is Just Weeks Away, Metals Bear Says

Posted on 18 August 2016 by VRS  |  Email |Print

Axiom Capital’s Gordon Johnson, a noted bear on iron ore and steel–and the stocks of companies like U.S. Steel (X) and Cliffs Natural Resources (CLF) that produce them–sees a crash in iron-ore prices coming as soon as the next four to eight weeks.
He explains why: With: (a) more iron ore supply coming in 2H16 and 2017, (b) speculation in China’s iron ore futures trading market (via the Dalian stock exchange) at a record high (and likely to end soon), (c) what appears to be a peak in China’s port stocks (which has been a crucial harbinger of price pressure over the past several years), and (d) demand for iron ore on the decline (measured by China crude steel output), we see the next crash in iron ore prices as 4-to-8 weeks out………………………………………..Full Article: Source

Gold prices have nowhere to go but up: Jim Rickards

Posted on 16 August 2016 by VRS  |  Email |Print

Gold prices can go nowhere but up as central banks around the world try their utmost to spur inflation, author and gold market expert Jim Rickards said.
“Every central bank in the world says they want inflation…they’ve come nowhere close…but that just means they are going to keep on trying; central banks cannot allow deflation because it increases the real value of debt… they are not going to rest until they get it,” The James Rickards Project director said………………………………………..Full Article: Source

Gold headed to $1,500

Posted on 16 August 2016 by VRS  |  Email |Print

The gold price is trading slightly higher today as another major bank joined calls that the precious metal is heading higher in the nearest future. In a report published earlier in the week, analysts at RBC Capital Markets said they are increasing their forecast for gold next year, and expect the price to reach US$1,500 which is well up from their previous prediction of US$1300, although they see prices pulling back to US$1,300 by 2020.
They noted that global fears surrounding Brexit as well as expectations that the US Federal Reserve will hold off lifting interest rates this year, putting pressure on the US dollar will see the Gold price move higher………………………………………..Full Article: Source

Commodity Prices Boost Miners’ Efforts to Unload Mountain of Debt

Posted on 16 August 2016 by VRS  |  Email |Print

Global mining companies have pushed hard to ditch their debts: They have sold pits, laid off workers and pruned expenses from every part of their businesses. This year, an extra tailwind from improving commodity prices is helping miners’ repay borrowings more quickly than expected.
The signs of improving balance sheets haven’t come a moment too soon for investors who have seen dividends cut recently as mining companies have prioritized reducing their debt loads………………………………………..Full Article: Source

RBC adds $200 to its gold price forecast

Posted on 15 August 2016 by VRS  |  Email |Print

Gold has been treading water above the $1,340 an ounce level recently, coming off two-year highs hit earlier in August. Year to date the metal has gained almost 26% or more than $280 an ounce. It’s been gold best first half run since 1980 when the price hit an all-time high on an inflation adjust basis.
The rally has surprised many analysts and at the start of the year the vast majority of investment and institutional analysts predicted gold would dip below $1,000 during the course of the year and average below last year’s uninspiring $1,160 an ounce………………………………………..Full Article: Source

Credit Suisse Reiterates Forecast Of $1,475 Gold In 4Q

Posted on 15 August 2016 by VRS  |  Email |Print

Credit Suisse has reiterated its late-June outlook that gold will rise to $1,475 in the fourth quarter. The view was included in a research note citing highlights from the World Gold Council’s report this week on quarterly demand trends, which showed that second-quarter demand rose from a year ago.
Credit Suisse says its outlook is “primarily due to continued investment demand through ETF (exchange-traded-fund) purchases and bar/coin hoarding on prolonged macro uncertainty and negative real interest rates – (with) 39% of sovereign debt traded with a negative rate on July 27th — along with our view for declining mine supply.”……………………………………….Full Article: Source

IEA: ‘Massive’ stock overhang is capping oil price

Posted on 12 August 2016 by VRS  |  Email |Print

The International Energy Agency on Thursday trimmed its forecast for the rise in global oil demand next year on a dimmer economic outlook, warning that the “massive” stock overhang is keeping a lid on crude oil prices.
In its closely watched monthly oil market report, the Paris-based energy watchdog said it expects global oil demand to grow by 1.2 million barrels a day in 2017, a decrease of 100,000 barrels a day compared with last month’s forecast and down by 200,000 barrels a day from this year. “Some momentum will be lost in 2017 due to downgrades in economic growth projections, but the forecast expansion of 1.2 million b/d is still above-trend,” it said in the report………………………………………..Full Article: Source

Here’s proof that Saudi Arabia doesn’t care about killing oil prices - only the competition

Posted on 12 August 2016 by VRS  |  Email |Print

There is proof that Saudi Arabia is more interested in trying to kill competition in the oil industry at the expense of cratering oil prices - its oil production just hit a record high.
The country said output increased by 123,000 barrels per day, which pushed overall production for July to 10.67 million barrels per day. This surpasses the previous record of 10.56 million per day from June last year. While Saudi does pump out more oil usually in the summer months to sate domestic demand, the record production level is likely to be scrutinised because oil prices are still around 55% lower than they were since June 2014………………………………………..Full Article: Source

Gold Price Surge Seen Cutting India’s Demand This Year, World Gold Council Says

Posted on 12 August 2016 by VRS  |  Email |Print

A rally in gold prices since the start of 2016 will reduce purchases in India, the world’s second-biggest consumer, trimming import prospects amid high inventories, according to the World Gold Council.
At current price levels, consumers are estimated to buy about 750 metric tons to 850 tons this year, lower than a May forecast of 850 tons-950 tons and the 864.3 tons bought in 2015, P.R. Somasundaram, the managing director of the council for India, said in an interview in Mumbai. While a continued uptrend in prices will weigh on volumes in this half, a good monsoon may see some of the increase being absorbed because of better incomes, he said………………………………………..Full Article: Source

What’s behind the gold price rally, and will it hold?

Posted on 12 August 2016 by VRS  |  Email |Print

High demand, stock market valuations, stingy bond yields and unorthodox monetary policy may be stoking the rally, which seems to have legs. There are seemingly endless theories to explain the stunning gold-price rally this year, and most of them support more of the same for the precious metal.
Global gold demand reached 2,336 tons through the first six months of the year, led by investment demand — representing a record 1,064 tons — according to the World Gold Council. That growing demand has driven the price of gold up 27% this year, marking the best first-half performance since 1980………………………………………..Full Article: Source

Nickel, tin retreat from highs as speculators book profits

Posted on 12 August 2016 by VRS  |  Email |Print

Nickel, zinc and tin fell on Thursday, retreating from fresh peaks hit in the previous session as speculators booked profits from strong rallies so far this year. All three metals on the London Metal Exchange rallied on Wednesday to their highest since 2015 as a weaker dollar and a greater risk appetite spurred buying in the metals that have the brightest fundamental outlooks for this year.
“It’s a relatively quiet day in terms of the macro side and the metals have had a very good run since the start of the year, so it’s not too surprising to see some of them off today,” said Sergey Raevskiy, analyst at boutique investment bank SP Angel………………………………………..Full Article: Source

Glencore’s Production Cuts Don’t Always Raise Commodities Prices

Posted on 12 August 2016 by VRS  |  Email |Print

Glencore PLC on Thursday reported lower production of copper, coal and zinc in the year’s second quarter as it continued to try to lift prices through output cuts, though results have been mixed.
The Swiss-based mining and trading giant is among the world’s largest producers of those metals, so with commodity prices and the company’s shares plumbing new depths last year, Glencore launched a plan to shut in production. That’s something Chief Executive Ivan Glasenberg had long urged other miners to do………………………………………..Full Article: Source

Oil markets are falling into a bear trap and it’s way overdone: RBC

Posted on 11 August 2016 by VRS  |  Email |Print

Oil markets have been prone to over-bearishness of late with fears over supply returning to the market largely “overdone,” according to the latest oil market analysis by RBC Capital Markets.
Oil prices are oscillating on hopes that a rebalancing is taking place in the markets and fears of a continuing global oversupply – and the potential for more oil to return to the market from the likes of Libya and Nigeria, producers which have seen supply disruptions. Helima Croft, RBC’s head of commodity strategy and commodity strategists Michael Tran and Christopher Louney said in a note on Wednesday that market caution was overdone, however………………………………………..Full Article: Source

Here’s One Reason for Optimism on Oil Prices

Posted on 11 August 2016 by VRS  |  Email |Print

Hedge funds are betting that swelling inventories will help push the price of oil lower, but this glut still looks milder than past bearish cycles in crude. The price of oil has fallen roughly 14% since its most recent peak in June, as investors worry that large stocks of gasoline and crude, coupled with the continued strength of global production, will put pressure on this market.
The gasoline glut could hurt profits at refineries, pushing them to buy less oil, some investors say. More than 40% of the bets made by “managed money,” mostly hedge funds, are for the price of the U.S. benchmark—West Texas Intermediate—and petroleum products to fall, according to data from the U.S. Commodity Futures Trading Commission………………………………………..Full Article: Source

OPEC upbeat on demand as oil basket posts first fall in five months

Posted on 11 August 2016 by VRS  |  Email |Print

OPEC upgraded its forecast for 2016 oil demand growth on Wednesday, in a report that may dampen hopes for a deal on a production freeze at its meeting next month. In its August report, OPEC forecast demand growth of 1.22 million barrels a day (mb/d) year on year, which was 30,000 barrels higher than forecast in July.
The new forecast would put global oil demand across 2016 at 94.26 mb/d. OPEC, which represents 14 major oil-producing countries, attributed the upgrade to better-than-expected economic performance in advanced European economies and some Asian ones, including India, in the first half of the year………………………………………..Full Article: Source

Oil: Watch $35 A Barrel, Morgan Stanley Says

Posted on 10 August 2016 by VRS  |  Email |Print

Oil prices have risen in four out of the past five sessions since dipping under $40 a barrel last week. Morgan Stanley’s research team led by energy strategist Adam Longson says not to get too comfortable. “Fundamental oil issues have not been addressed,” he says. “Physical oil markets likely need to get worse before they get better.”
“Physical market stress due to fundamental headwinds is still ahead. A profit-taking and short-covering bounce in oil late in the week (partly on a US gasoline draw driven by lower imports) has led some to declare that the troubles in oil are behind us………………………………………..Full Article: Source

This oil bear says prices are headed back below $30

Posted on 10 August 2016 by VRS  |  Email |Print

Oil bulls were relieved when Brent crude rallied in recent days after having fallen nearly 20% from its recent peak above $52. But those who expect oil to retake those highs may be sadly disappointed, and indeed oil prices fell modestly on Tuesday. One prominent industry observer, who has been consistently bearish on oil for the last two years, says crude prices have only one way to go — down, way down.
Stephen Schork, editor of The Schork Report, based in Radnor, Pa., attributes the recent rally, in which crude prices doubled from their mid-$20s lows in January and February, to a massive short squeeze………………………………………..Full Article: Source

Bullish prediction put gold price at US$1,500 by year end

Posted on 10 August 2016 by VRS  |  Email |Print

Despite the global mining industry witnessing three continuous years of slump arising mainly from the plummeting commodity prices, especially gold, latest bullish prediction has it that gold is likely to hit US$1,500 by close of the year.
According to General Secretary of the Mineworkers’ Union, Prince William Ankrah, the upward surge is certainly good news for the industry even though bearish commentary ascribes the recent jump to two factors, namely; the British exit from the EU, and the quantitative easing by the US Federal Reserves, which they posit could be short-lived………………………………………..Full Article: Source

Why Silver Prices Could Crash Soon if They Don’t Break Out of This Range

Posted on 10 August 2016 by VRS  |  Email |Print

From Taki Tsaklanos: with silver prices at a critical juncture, we’ll soon get confirmation of whether the metal is in a cyclical bull market or a secular bear market. Silver has acted very strong in 2016. However, silver miners have been the real deal.
We observe some potentially concerning facts when it comes to the metals. First and foremost, the whole world is favoring precious metals, which is, from a sentiment point of view, a red flag. From a chart perspective, we see that silver has reached an incredibly important area right. It is no surprise that three trendlines of secular importance coincide within that area………………………………………..Full Article: Source

Goldman and Barclays Warn Of Long-Term Bear Market in Copper

Posted on 10 August 2016 by VRS  |  Email |Print

Goldman Sachs Group Inc. (GS) forecasts that copper prices may slump to $4,000 a metric ton over the next 12 months, as supplies from mines is picking up at rapid pace. Compared to the present day price of around $4,800 per metric ton, Goldman predicts that prices will progressively drop to $4,500 in three months, then to $4,200 in six months before finally settling at around $4,000 in a year’s time.
This would translate to a steep decline of around 17% over the next 12 months. While prices of other base metals like nickel and zinc have appreciated based on forecasts of global shortage, an increased supply has been reported in copper during the first half of 2016. Nickel and zinc prices surged by around 20% and 40%, respectively, while copper’s stagnated at around 2%………………………………………..Full Article: Source

Oil prices: OPEC may finally take action if crude’s slide continues

Posted on 09 August 2016 by VRS  |  Email |Print

Oil’s recent dip back into the $30s per barrel may be enough to get some OPEC members to curb their bickering and consider joint action — especially if oil plummets again. Considering a deal and agreeing to one are two different things, but talk that the cartel would discuss its options sparked a rally in oil prices Monday.
“All of a sudden, the price narrative was divergent from the OPEC message. They see the wisdom of changing the rhetoric … It’s no surprise they’d go back to the playbook that worked successfully,” said RBC’s head of commodity strategy Helima Croft………………………………………..Full Article: Source

Here’s Why Oil Prices Just Rose

Posted on 09 August 2016 by VRS  |  Email |Print

The price rise came on the back of renewed calls by some OPEC members to freeze production.Oil prices rose in early trading on Monday, lifted by reports of renewed talks by some members of the Organization of the Petroleum Exporting Countries (OPEC) to restrain output.
“OPEC members including Venezuela, Ecuador and Kuwait are said to be behind this latest reincarnation. But just like previous endeavors, it seems doomed to fail, given key OPEC members (think: Saudi Arabia, Iraq, and Iran) persist in their battle for market share, ramping up exports apace,” said Matt Smith of ClipperData in a note………………………………………..Full Article: Source

Silver Prices Could Soar to $22 If This Happens in September

Posted on 09 August 2016 by VRS  |  Email |Print

Since the start of 2016, silver prices have seen a huge rally. Silver is the best-performing precious metal, returning 47% so far this year. That outpaces gold prices, which are up about 26% over the same period. Since the gold/silver ratio was in silver’s favor going back about five months, I told you the ratio would see a correction that would let the silver price outpace the gold price. We saw that happen over the last two weeks.
But the price of silver may have gotten a little ahead of itself relative to gold. I highlighted that idea for you two weeks ago, and silver has seen violent swings since then………………………………………..Full Article: Source

Oil prices to stabilise at $55/barrel in 2017, says QNB

Posted on 08 August 2016 by VRS  |  Email |Print

Qatar National Bank (QNB) has revised its oil price forecast to average $44.7 per barrel in 2016, up from its previous forecast of $40.8/barrel, state news agency QNA said. In its monthly market update, QNB said rebalancing in the oil market has been “stronger than expected”.
Continued rebalancing is expected to lift prices to an average of $55/barrel in 2017, up from a previous forecast of $51.3 in 2017 and $57.9 in 2018. The revised forecast is based on rising demand growth – the International Energy Agency (IEA) expects global demand growth to reach 1.4 million barrels per day (bpd) this year, up from a previous forecast of 1.2 million bpd, QNB said………………………………………..Full Article: Source

Gold Price Will be ‘Twitchy’ for Next Quarter (Video)

Posted on 08 August 2016 by VRS  |  Email |Print

Randgold Resources Ltd. reported an 8.5 percent drop in second-quarter profit after operational problems at two of its African mines led to a decline in gold output. Net income fell to $49 million from $53.6 million a year earlier, The Jersey, Channel Islands-based company said in a statement on Thursday.
Gold production slid 6.2 percent to 281,494 ounces. Randgold said full-year output will be in the lower half of its 1.25 million to 1.3 million-ounce target range. Production dropped after a milling circuit breakdown at its Tongon mine in Ivory Coast and technical challenges at its Kibali mine in the Democratic Republic of Congo. “We had a difficult quarter,” Chief Executive Officer Mark Bristow discusses with Bloomberg’s Anna Edwards and Manus Cranny on “Countdown.”……………………………………….Full Article: Source

Good US jobs news hits gold price

Posted on 08 August 2016 by VRS  |  Email |Print

Gold prices extended losses on Friday after a better-than-expected jobs report dented safe-haven demand and increased concerns that the Federal Reserve could raise interest rates in coming months.
Gold for December delivery settled down 1.7 per cent at $US1344.40 a troy ounce on the Comex division of the New York Mercantile Exchange, its biggest one-day loss since May 24. The US economy added 255,000 jobs in July, beating economists’ expectations of 179,000 and signalling that the labour market is on strong footing………………………………………..Full Article: Source

Gold price rally sparks $50 billion of commodity investments

Posted on 08 August 2016 by VRS  |  Email |Print

Investors poured just under $51 billion into commodity markets during the first seven months of the year according to new research from UK investment bank Barclays Capital. That was the largest inflows since 2009.
The rise in commodity values combined with the new money invested in the sector saw a $74 billion spike in the value of commodity assets under management since the start of the year. The positive investment flows in 2016 came largely on the back of gold investments with precious metals representing almost $30 billion of total inflows in the first seven months………………………………………..Full Article: Source

International food commodity prices fall

Posted on 05 August 2016 by VRS  |  Email |Print

The international prices for major food commodities saw a modest decline in July, following five consecutive months of increases. The United Nation’s FAO Food Price Index (FPI) averaged 161.9 points in July 2016, slipping 0.8 percent (1.3 points) below its level in June and 1.4 percent below its level of July 2015.
The overall decline of the Index was largely caused by drops in international quotations of grains and vegetable oils, more than offsetting firmer dairy, meat and sugar prices. The FAO Food Price Index is a trade-weighted index tracking international market prices for five major food commodity groups………………………………………..Full Article: Source

Oil could hit $70 next year but expect another plunge soon, says BoA analyst

Posted on 05 August 2016 by VRS  |  Email |Print

Oil may be wobbling around the $40 a barrel mark, but one strategist has said that crude is only heading higher in the near term but in the years to come, there’ll be wild swings. “We’re seeing a bottom right now for the second half of the year,” said Francisco Blanch, the head of global commodities and derivatives research at Bank of America Merrill Lynch, the corporate and investing arm of the American bank.
“We think what’s happening in the market is very seasonal. Supply is actually going down pretty quickly, demand is moving higher, and this is going to move the market into a deficit.”……………………………………….Full Article: Source

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