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Why Goldman thinks its $50 oil forecast could be wrong

Posted on 01 July 2016 by VRS  |  Email |Print

Most oil market pundits will tell you how hard it is to predict where the black stuff is heading. And while Goldman Sachs is the most influential commodities bank, like pretty much every forecaster, it has been known to get things wrong.
Now it’s said that crude could trade below its $50 forecast in the second half of 2016 due to higher-than-expected output from Organisation of Petroleum Exporting Countries (Opec) member Nigeria, Bloomberg reported………………………………………..Full Article: Source

Gold Logs Best Two Quarters Since 2007

Posted on 01 July 2016 by VRS  |  Email |Print

Gold prices settled lower on the day Thursday but logged its biggest two-quarter percentage increase since 2007, as investors piled into the metal amid global economic uncertainty and the U.K.’s vote to leave the European Union.
Gold futures rose some 24% over the last two quarters, the best two-quarter performance since the fourth quarter of 2007, and advanced nearly 7% in the second quarter. The strong gains come even as futures for August delivery, the most actively traded contract on Thursday, settled down nearly 0.5% on the day, to $1,320.60 a troy ounce on the New York Mercantile Exchange………………………………………..Full Article: Source

Gold Prices Steady as ‘Brexit = Lehmans’, Worst ‘Yet to Come’, Chaotic UK Parliament Debates Lindsay Lohan Tweets

Posted on 01 July 2016 by VRS  |  Email |Print

Gold Prices held tight at this week’s opening level on Thursday in London, trading at $1317 per ounce as the rebound in Western stock markets stalled and the leadership race for both the UK’s ruling and opposition political parties grew yet more fractious. The US Dollar and Japanese Yen eased further back however from last week’s ’safe haven’ surge following the UK’s shock Brexit vote.
Major government bond prices also eased, edging 10-year US Treasury yields up to 1.50% per annum from this week’s new 4-year lows. The British Pound meantime continued to edge higher on the FX market, but held 10% down from this time last week………………………………………..Full Article: Source

Iron ore seen boxed below $50 in H2 as glut persists

Posted on 01 July 2016 by VRS  |  Email |Print

After an unexpected rally in the first months of 2016, iron ore should fall back below $50 a tonne in the second half of the year as more of the bulk commodity hits an oversupplied market, a Reuters poll showed.
But prices should still be up on the year, analysts say, thanks to an early-year rally in Chinese steel futures that spread to iron ore and helped the raw material recover from a three-year slide. Iron ore emerged largely unscathed from the selloff that hit financial markets last week after Britain voted to exit the European Union………………………………………..Full Article: Source

The Oil Price Rebound Will Be Brief - Goldman Sachs

Posted on 30 June 2016 by VRS  |  Email |Print

Goldman Sachs has rejected analysts’ opinions that the global oil market is recovering, noting that while it expects a “modest” deficit in the coming months based on the slight rebound in oil prices, the market will again be in a state of surplus by early next year.
It may seem as if oil is recovering on the back of supply disruptions that have helped to chip away at the global glut and push prices close to $50, but Goldman says that in the best-case scenario this isn’t a rebound—it’s just the first signs of one……………………………………….Full Article: Source

Oil Is Still Heading to $10 a Barrel

Posted on 29 June 2016 by VRS  |  Email |Print

Back in February 2015, the price of West Texas Intermediate stood at about $52 per barrel, half of its 2014 peak. I argued then that a renewed decline was coming that could drive it below $20, a scenario regarded by oil bulls as unthinkable.
But prices did fall further, dropping all the way to a low of $26 in February. Since then, crude rallied to spend several weeks flirting with $50 per barrel, a level not seen since last year. But it won’t last; I’m sticking to my call for prices to decline anew to $10 to $20 per barrel………………………………………..Full Article: Source

Oil prices rebound in post-Brexit bargain hunting

Posted on 29 June 2016 by VRS  |  Email |Print

Oil prices rose above $48 a barrel on Tuesday as investors took advantage of a two-day slide in crude following Britain’s vote to leave the European Union to lock in lower prices.
The vote result sent global stocks and currencies spiralling down, though oil price losses were relatively limited due to expectations of strong summer demand in Asia and the United States, as well as tightening supplies after a two-year rout. A looming strike at several Norwegian oil and gas fields threatened to cut output in western Europe’s biggest producer, also helped support prices on Tuesday………………………………………..Full Article: Source

Gold price could rise on another big post-Brexit shock, Stifel says

Posted on 29 June 2016 by VRS  |  Email |Print

There may be some more upside for safe-haven gold after the Brexit shock, but the upside is likely to be limited, said experts. “To buy gold at these levels, you’d have to be betting that a lot more goes wrong and I’m really not sure that’s going to be the case,” Hans Olsen, Stifel’s global head of investment strategy, said.
Olsen said his firm made a “fair amount of money” from gold’s recent rally but the “big disruptions” were already over………………………………………..Full Article: Source

10 reasons why gold price will go up in the future

Posted on 28 June 2016 by VRS  |  Email |Print

The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011. Globally, too, following the UK votes favouring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon.
After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce. There are several factors that suggest gold will be a preferred asset for all kind of investors — retail, institutional or even central banks………………………………………..Full Article: Source

Has the Oil Market Finally Bottomed?

Posted on 27 June 2016 by VRS  |  Email |Print

Ever since oil prices started tumbling in late 2014, oil executives, analysts, and investors have been wondering when the market will finally hit rock bottom. While there have been many guesses over the past two years, the data is starting to suggest that the market could have bottomed out during the second quarter. At least that is the view of oil-field services giant Schlumberger.
At a recent industry conference, Patrick Schorn, Schlumberger’s president of 0perations, detailed what the company is seeing in the oil market. He started off by noting that market conditions during the second quarter were as bad as it expected………………………………………..Full Article: Source

What next for gold after Brexit?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold prices surprised investors with a sharp rally on Friday (up 4.7 per cent at close), hitting a high of $1,358.5/ounce. Prices finally ended at $1,315/ounce, up 1.3 per cent for the week.
Demand for the yellow metal in the spot market in London has been surging through the week, say reports. The Royal Mint was reported saying that the number of visitors on its bullion trading platform had surged by over 500 per cent since Thursday, while new account openings had trebled………………………………………..Full Article: Source

Brexit’s impact on gold: Will prices hit $1,400?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold’s massive rally following the Brexit vote over the weekend has created a new range for the precious metal but analysts are split on whether or not the $1,400 level will be breached anytime soon.
The bullion surged to a two-year high on Friday, trading as much as $1,362.60 an ounce, after the majority of British voters chose to leave the European Union (EU). The outcome of the Brexit polls had caught the financial markets off- guard and sent investors running toward the precious metal………………………………………..Full Article: Source

Why Substantially Weaker Commodity Prices Are Here to Stay

Posted on 24 June 2016 by VRS  |  Email |Print

The outlook for commodities–steel-making or coking coal as well as copper in particular–remains bleak, and this certainly doesn’t bode well for struggling coal and base metals miner Teck Resources Ltd.
Nonetheless, it–like a number of other miners, including First Quantum Minerals Ltd. has experienced a massive rally in its share price since the start of 2016 on the back of growing optimism surrounding commodities. However, there are signs that this optimism is unfounded. A range of factors highlight that substantially weaker commodity prices are here to stay. ……………………………………….Full Article: Source

Will oil price surge if Remain wins the EU referendum?

Posted on 24 June 2016 by VRS  |  Email |Print

Oil futures, like most risk assets, has been doing better in recent days as traders take heart from a late polls shift to Remain ahead of the EU referendum. Having fallen for six consecutive sessions from a 2016 high of $53 two weeks ago, international benchmark Brent crude returned to $50 earlier this week. It has been held back from further gains by supply concerns – so would a Remain victory send it soaring?
No, says investment bank BNP Paribas. It outlines a lose-lose scenario for oil: either a Leave vote sends the price spiralling lower in response to a demand-dampening surge for the dollar against the pound, or a Remain victory focuses attention back on supply and demand fundamentals that do not support higher prices………………………………………..Full Article: Source

Molybdenum price is on tear

Posted on 24 June 2016 by VRS  |  Email |Print

While base metals have enjoyed a good 2016 so far with only lead (-5%) in negative territory for the year and the likes of zinc (+27%) and tin (+18%) entering bull markets, molybdenum is making a star turn.
A metric tonne of molybdenum on the London Metal Exchange fetched $16,500 on Thursday after customs data from China showed imports of concentrate and oxides surged 131% in May. Over the first five months of the year, China imported 8,851 tonnes of molybdenum concentrates and oxide, up 89% year on year………………………………………..Full Article: Source

Leading index reveals commodity price burden is easing, says Westpac

Posted on 23 June 2016 by VRS  |  Email |Print

While the Australian economy still appears set for more sub-trend growth, a survey has found that sentiment improved in May as the commodity price burden began to ease.
The monthly Westpac-Melbourne Institute leading index showed that the expected six-month annualised growth rate, which assesses likely growth against the long-term trend, had improved from 1.19 per cent below trend in April to minus 0.42 per cent in May — the best reading since October. The index had bottomed in March at -1.53 per cent — its weakest print in five years — but has improved in ensuing months as commodity prices regained their footing………………………………………..Full Article: Source

Oil price fall tips OPEC current account into deficit in 2015, first since 1998

Posted on 23 June 2016 by VRS  |  Email |Print

OPEC’s 2015 oil export revenues slumped 46 percent to a 10-year low, the group said in a report published on Wednesday, underlining the impact on producers’ income from a collapse in prices.
Oil prices at about $50 a barrel are half their level in mid-2014, pressured by oversupply. OPEC’s decision in November 2014 to not cut supply, hoping a drop in prices would curb supply from competitors, deepened the decline. With income falling, the 13 members of the Organization of the Petroleum Exporting Countries (OPEC) posted a combined current account deficit of $99.60 billion in 2015, compared with a surplus of $238.10 billion in 2014………………………………………..Full Article: Source

Commodities prices could remain low for the next decade

Posted on 22 June 2016 by VRS  |  Email |Print

A glut in a number of commodities could see prices stay at these levels for the next 10 years – that’s according to BHP Billiton Limited CEO Andrew Mackenzie. Mackenzie says the supply of crude oil and copper would decline naturally, but the huge investments by miners around the world since 2008 in other bulk commodities like iron ore, could see the effects of oversupply last for years.
“The reality is we’ve settled down now to a price that we would say is more realistic on the basis of fundamentals of supply and demand. We’ve had such a long boom. To walk that through in my view may take another 10 years,” he said………………………………………..Full Article: Source

Oil Prices Fall on Supply Overhang, ‘Brexit’ Uncertainty

Posted on 22 June 2016 by VRS  |  Email |Print

Oil prices fell Tuesday but pared a lot of their losses late in the day as investors try to navigate an array of volatile influences on the market. Many expect supply outages to end in Nigeria and Canada, but others claim it will have little influence. New polls have caused quick-changing expectations on the U.K.’s referendum on European Union membership.
Analysts are predicting a drain from U.S. crude stockpiles, but they are still near record highs. And U.S. crude’s front-month contract expired with much bigger losses than later-month contracts………………………………………..Full Article: Source

Era of Cheap Oil Coming to an End - IEA

Posted on 22 June 2016 by VRS  |  Email |Print

The era of cheap oil may soon come to an end, if the prediction of the International Energy Agency, IEA, is anything to go by. The IEA said that there will be rise in oil price due mainly to unplanned outages and disruptions in places like Canada, Nigeria, and Libya.
According to the Agency, it is expected that the oil market will be balanced for the rest of the year, meaning the world will pump roughly as much oil as it consumes. That should nudge prices higher. Oil is currently trading around $50 a barrel, double the nadir reached earlier this year………………………………………..Full Article: Source

Gold prices could rise almost 10% on Brexit

Posted on 22 June 2016 by VRS  |  Email |Print

Gold prices could swing both ways, depending on whether Britain votes to leave or remain with the European Union (EU). With fears of Britain’s exit (Brexit) receding in the past few days, gold prices have fallen and stock markets have rallied. However, should Brexit happen, gold prices could hit as high as $1,400 per ounce from Tuesday’s $1,283, according to an analyst.
“While it (Brexit) may also support the dollar thereby creating some headwind giving the negative correlation we see an increased risk that gold could be propelled towards $1400, the 2014 high,” the Khaleej Times quoted Ole Hansen, head of Commodity Strategy at Saxo Bank, as saying………………………………………..Full Article: Source

Will Trump or Hillary Be Good for Precious Metals Prices?

Posted on 22 June 2016 by VRS  |  Email |Print

This year’s presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.
There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we can’t even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country………………………………………..Full Article: Source

Is $50 the new $100 for crude oil?

Posted on 21 June 2016 by VRS  |  Email |Print

The near 80 per cent rebound in oil prices from their February lows has finally started to fizzle and we believe more corrections are on the cards in the near-term as some of the pillars of the price rally start to give away.
Investors were reluctant to buy at higher levels and prices could not sustain above $50 for much longer. One of the biggest factors driving the recent rally was unexpected supply outages, which pushed around 2.5-3 million barrels per day (bpd) of crude oil out of the global market. Adding to that, the slowdown in US oil output and a weaker dollar exacerbated the price strength………………………………………..Full Article: Source

Oil price could hit $80 in 2017

Posted on 21 June 2016 by VRS  |  Email |Print

Rebounding after a two-year collapse, it’s only this month that oil prices have pushed up past US$50 a barrel, but Raymond James & Associates says this is just the beginning for higher prices.
In a note to clients, analysts led by J. Marshall Adkins say West Texas Intermediate will average $80 per barrel by the end of next year — that’s higher than all but one of the 31 analysts surveyed by Bloomberg. “Over the past few months, we’ve gained even more confidence that tightening global oil supply/demand dynamics will support a much higher level of oil prices in 2017,” the team says………………………………………..Full Article: Source

Oil Price: Next Stop $20? Or $70?

Posted on 21 June 2016 by VRS  |  Email |Print

Since the beginning of 2016, the oil price has been on a tear and is up by around 100% from the lows of $26 a barrel printed just a few months ago, and all the “expert” pundits seemed really bearish right as Oil hit its low.
Indeed, at time of writing both Brent and WTI are trading around the key $50 a barrel level and some analysts are now projecting that the price of black gold could head back to $70 a barrel by the end of the year. In a research report sent to clients on Monday, analysts at Raymond James laid out their case for oil to hit $70 a barrel by the end of 2016, and $80 a barrel by 2017………………………………………..Full Article: Source

With oil price near $50, resilient U.S. shale producers eye new chapter

Posted on 21 June 2016 by VRS  |  Email |Print

Two years into the worst oil price rout in a generation, large and mid-sized U.S. independent producers are surviving and eyeing growth again as oil nears $50 a barrel, confounding OPEC and Saudi Arabia with their resiliency.
That shale giants Hess Corp, Apache Corp and more than 25 other companies have beaten back OPEC’s attempt to sideline them would have been unthinkable just months ago, when oil plumbed $26 a barrel and collapses were feared. To regain market share, the Organization of the Petroleum Exporting Countries in late 2014 pumped more oil despite growing global oversupply………………………………………..Full Article: Source

Oil prices push back above $50 a barrel as traders bet on Remain

Posted on 21 June 2016 by VRS  |  Email |Print

Oil prices pushed back above the $50 a barrel mark this morning after the US dollar fell against the pound in line with speculation that Britain will remain a member of the European Union when it votes later this week. The market price for Brent crude on Friday was slightly above $49 a barrel but on Monday the market opened at $49.50 and quickly climbed to above $50 by mid morning.
The price of crude oil broke through the $50 mark for the first time this year a month ago, but fell back last week as market confidence slumped amid growing uncertainty over Brexit………………………………………..Full Article: Source

How Brexit vote will shape the price of gold

Posted on 21 June 2016 by VRS  |  Email |Print

Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.
Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16………………………………………..Full Article: Source

Brexit Fears Boost Gold Price

Posted on 21 June 2016 by VRS  |  Email |Print

As the world awaits Britain’s referendum vote to the leave the European Union, investors are flocking to safe havens. Gold jumped to a month-high last week with uncertainty over the coming election leaving investors anxious. Additionally, the much anticipated Federal Reserve meeting this month is adding to the uncertainty.
British voters will decide on the 23rd of this month whether the UK should stay in the EU. The debate over the consequences of a Brexit has raged over the past several months………………………………………..Full Article: Source

Moody’s ups oil price forecast to $40 for 2016

Posted on 20 June 2016 by VRS  |  Email |Print

Moody’s Investors Service today revised upwards its price forecast for oil this year on the back of recent uptick in rates. “Moody’s assumes a medium-term oil price band of $40 to $60 per barrel for both WTI and Brent crude and upwardly revised its shorter-term oil price estimates for these crudes to $40 in 2016, $45 in 2017 and $50 per barrel in 2018,” the rating agency said today.
In March, Moody’s estimated oil prices to be around $33 per barrel in 2016, which will rise to $38 next year and to $43 in 2018. In a release titled ‘Moody’s: Challenging conditions for oil-related entities remain unchanged despite near-term price rebound’, the rating agency said its medium-term outlook for the sector remains unchanged………………………………………..Full Article: Source

Beware Goldman Sachs Oil Price Prophecy

Posted on 20 June 2016 by VRS  |  Email |Print

Oil prices have recovered somewhat from the lows we saw in 2015 and early 2016. Still, the price is down by more than half as compared to its high of a couple of years ago. The price of crude oil currently sits just below $50 per barrel as of this writing.
The oil bubble, and its subsequent bust, is one of the few examples we have seen of a bubble/ bust scenario since 2008/ 2009. The Fed has pumped in a lot of money since 2008, and interest rates have remained near historic lows………………………………………..Full Article: Source

Following Saudi Arabia, Iran Hikes Crude Oil Prices For Now

Posted on 20 June 2016 by VRS  |  Email |Print

Iran has been selling more oil at higher prices in recent weeks. The country sold light crude oil at $47.58 per barrel in the week ended on June 10, a $1.93 higher from the previous week, according to the Teheran Times.
Iran’s price hike comes as the country expands output to reach its pre-sanction market share; and as Saudi Arabia has been raising its own crude oil prices. It was only a few months ago that Saudi Arabia and Iran were rushing to sign contracts with Asian customers, undercutting each other, pushing prices lower, towards the $20s………………………………………..Full Article: Source

Iron ore inches higher

Posted on 20 June 2016 by VRS  |  Email |Print

The iron ore price has edged higher despite another projection that the commodity could fall sharply over the second half of the year and remain at depressed levels until 2020. Iron ore rose 1 per cent to $US50.70 a tonne in the most recent session, according to The Steel Index.
Credit Suisse analysts have joined the latest chorus of commentators predicting the price will head lower as the market remains well oversupplied. The bank reaffirmed its forecast that prices fall to $US40 a tonne in the second half of calendar 2016, holding at that level until the end of 2020………………………………………..Full Article: Source

Oil Prices Fall to One-Month Low

Posted on 17 June 2016 by VRS  |  Email |Print

Concerns about the U.K. referendum and possible rise in U.S. oil production trigger largest one-day price loss since April. U.S. oil prices on Thursday posted their largest one-day loss since April, dragged down by market jitters over the looming U.K referendum.
Crude prices have fallen for six straight days, as traders assessed global economic uncertainty and the prospect that U.S. oil production could start rising again. Oil has fallen alongside global stocks, which have sold off in recent days amid fears that a British vote to exit the European Union will disrupt financial markets and the economy………………………………………..Full Article: Source

Gold price nears two-year high

Posted on 17 June 2016 by VRS  |  Email |Print

Gold prices soared to their highest level in nearly two years Thursday, a day after the Federal Reserve lowered projections for how much they expect to tighten monetary policy in the next few years. Gold for August delivery closed up 0.8 per cent at $US1,298.40 a troy ounce on the Comex division of the New York Mercantile Exchange.
Prices hit $US1,318.90 a troy ounce earlier in the session, the highest level since August 2014. An uneven recovery in the US and slow growth abroad appear to have eroded the Fed’s hawkishness, with a greater number of officials now seeing scope for just a single rate increase this year, rather than two………………………………………..Full Article: Source

Oil price retreats from $50 - and will stay lower ‘for months’

Posted on 16 June 2016 by VRS  |  Email |Print

The oil market has reversed its fragile gains over the past two weeks to fall back below the $50 a barrel mark, as Goldman Sachs warned that the price is unlikely to return to its 2016 highs “for months”.
The oil price reached $52.60 a barrel last week, its highest point since October, before market confidence plummeted ahead of the UK’s EU referendum vote and rising US oil stocks forced a 7pc retreat to below $49 a barrel on Wednesday………………………………………..Full Article: Source

Goldman Sachs says oil price gains set to stall

Posted on 16 June 2016 by VRS  |  Email |Print

Oil production disruptions may be hitting multi-year highs, but Goldman Sachs predicts the resulting price recovery is likely to stall. “On aggregate, we view the price recovery as fragile,” Goldman Sachs said in a commodities research note published Wednesday.
The bank explained that the restart of Canadian production, prospects of a solution to Nigerian outages, larger-than-expected output from OPEC members, and the risk of smaller-than-expected production declines as result of higher crude prices are likely to temper price gains going forward………………………………………..Full Article: Source

HSBC: Gold will explode if Britain votes for a Brexit

Posted on 16 June 2016 by VRS  |  Email |Print

Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time.
Gold is seen as a haven for cash. It does not pay a coupon like a bond, and it does not pay a dividend from a stock, but it does mean you own ounces in a physical precious metal that you can hold onto………………………………………..Full Article: Source

The Brexit Vote Could Push the Price of Gold to $1,400

Posted on 16 June 2016 by VRS  |  Email |Print

Ahead of the June 23 Brexit vote, analysts at the Australia and New Zealand Banking Group (ANZ) have said the price of gold could reach as high as $1,400 an ounce. From today’s opening gold price of $1,288.10, that’s an 8.6% increase. And hitting that mark would be a gain of 31% from when the bull run started at the end of 2015.
We know that investors are going to be flooded with Brexit news over the next few days. But we also know the mainstream media won’t analyze the impact of a Brexit on gold prices………………………………………..Full Article: Source

Fitch: Gold Price Assumptions Raised amid Global Uncertainty

Posted on 16 June 2016 by VRS  |  Email |Print

Fitch Ratings raised its gold price assumption to $1,100/oz from $1,000/oz as uncertainty, driven by negative interest rates in parts of Europe and elsewhere, combined with reduced US rate hike expectations, have driven investment sentiment for gold in first-half 2016.
Our updated global gold price assumptions incorporate upward revisions for all forecast years, reflecting the current market price environment and evidence of price support during the forecast period. Gold prices are expected to continue to be supported by strong retail investment demand, continued central bank purchasing and global financial turmoil. (Press Release)

Rising Prices Are the Last Thing Metals, Other Commodity Markets Need

Posted on 16 June 2016 by VRS  |  Email |Print

Sounds counter intuitive, doesn’t it? Well, not really when the you look at the reality of the situation as the Financial Times has done in a recent article based on research and commentary by Australia’s Macquarie Bank.
2016 marked a turning point for most commodities. After 18 months of declines, prices have surged this year in a manner not seen since the 2009-10 Chinese stimulus. Plentiful Chinese liquidity has boosted sentiment and order books, the FT points out, across a range of industrial metals and oil, in spite of an underlying backdrop of excess production capacity and inventory overhang………………………………………..Full Article: Source

Oil price rally will stall at $50, IEA says

Posted on 15 June 2016 by VRS  |  Email |Print

The price of oil is unlikely to rise much further after rallying almost 90 per cent since January, as the global market shows signs of stabilizing, the International Energy Agency said Tuesday.
The Paris-based agency, which advises the world’s top oil consuming nations, nudged up its estimate for global oil demand this year in its monthly report. It noted, however, that supply and past inventories remain high. “At halfway in 2016 the oil market looks to be balancing,” said the IEA in its monthly market report………………………………………..Full Article: Source

How gold prices can top $1,300 an ounce for good

Posted on 15 June 2016 by VRS  |  Email |Print

Gold’s narrow trading range — already four months old and counting — is likely to continue for awhile. That’s because current sentiment conditions don’t support a rally that will take gold significantly above the upper end of that range, currently around $1,300 per ounce.
To be sure, gold-market enthusiasm has risen steadily over the last two weeks as gold bullion has rallied $75 per ounce and gathered momentum that, in some eager gold bugs’ eyes, is enough to propel it above the $1,300 level for good………………………………………..Full Article: Source

Uranium Prices Set To Double By 2018

Posted on 15 June 2016 by VRS  |  Email |Print

With prices set to double by 2018, we’ve seen the bottom of the uranium market, and the negative sentiment that has followed this resource around despite strong fundamentals, is starting to change.
Billionaire investors sense it, and they’re always the first to anticipate change and take advantage of the rally before it becomes a reality. The turning point is where all the money is made, and there are plenty of indications that the uranium recovery is already underway………………………………………..Full Article: Source

Copper Prices Slide: LME Inventory Levels Surge

Posted on 15 June 2016 by VRS  |  Email |Print

A stronger dollar in May caused most base metals to weaken. However, in June, the dollar has pulled back, as expectations for rate increases recede. That helped to lift most base metals, so far, this month. But that wasn’t the case for copper, which continues to struggle on the upside.
The red metal has held its value well this year, but it has found strong resistance near $7,500 per metric ton. Unlike other metals like zinc and steels for which we recommended buying forward earlier this year, we’ve kept recommending buying only small quantities of copper for quite some time now………………………………………..Full Article: Source

ECB Says Oil-Price Slump Not the Global Boon It Might Have Been

Posted on 14 June 2016 by VRS  |  Email |Print

Cheaper oil prices since 2014 have probably been of little net benefit to the global economy and may even have been a drag on growth, according to the European Central Bank. “While most of the oil-price decline in 2014 could be explained by the significant increase in the supply of oil, more recently the lower price has reflected weaker global demand,” the ECB said.
“Although the low oil price may still support domestic demand through rising real incomes in net oil-importing countries, it would not necessarily offset the broader effects of weaker global demand.”……………………………………….Full Article: Source

Rothman: Oil Prices to Surge To Over $85 By End of 2016

Posted on 14 June 2016 by VRS  |  Email |Print

Oil prices could surge above $85 a barrel by the end of this year, according to analysis by Michael Rothman, considered to be one of the most astute oil experts on Wall Street, CNBC reports.
Rothman heads the research firm Cornerstone Analytics, through which he advises governments from all over the world, the oil-rich Saudi royal family and its affiliates, and energy firms. Barrel prices hit a 13-year low on the 11th February this year. Last week, they surged to above $50—the first time they have done so since July last year………………………………………..Full Article: Source

Gold price: Hedge funds pile back in

Posted on 14 June 2016 by VRS  |  Email |Print

On Monday, upward momentum in the gold price continued to build, supported by weakness in the US dollar, a negative interest rate environment and worries over event-risk such as Britain leaving the EU.
In brisk early afternoon trading on Monday gold futures in New York for delivery in August, the most active contract, jumped to a high of $1,290.30 an ounce, up just over 1% from Friday’s close and the highest in nearly a month………………………………………..Full Article: Source

FAO sees stable commodity prices amid abundant production

Posted on 13 June 2016 by VRS  |  Email |Print

The global food commodity markets are on a stable path for the year ahead, with solid production prospects and abundant stocks pointing to a broadly stable outcome for prices and supplies, the Food and Agriculture Organisation says.
In its biannual Food Outlook, FAO says lower food prices than last year means that the world’s food import bill are on course to fall to $986 billion this year — below $1 trillion for the first time since 2009 — even as traded volumes increase………………………………………..Full Article: Source

Why the Oil Price Rally Might Falter

Posted on 13 June 2016 by VRS  |  Email |Print

Last year’s oil price rally ran out of steam in early May after 112 days. This year’s has already lasted longer (140 days so far) and prices have risen further, but there are worries that, it, too, may be running ahead of market fundamentals. While prices seem unlikely to collapse again, there are good reasons to expect a pause in their upward march.
Crude prices have nearly doubled from the lows reached in mid-January. Brent rose above $50 a barrel last Monday and stayed there all week. West Texas Intermediate crude narrowly failed to do the same after breaking through the psychological barrier on Tuesday………………………………………..Full Article: Source

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