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China Wants to Set Prices for the World’s Commodities

Posted on 26 May 2016 by VRS  |  Email |Print

China has put the world’s traditional financial centers on notice that it wants to develop its raw material markets as hubs for setting prices, seeking to marry the country’s commercial heft with a much greater say in determining how much commodities cost.
“We’re facing a chance of a lifetime to become a global pricing center for commodities,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange’s annual conference in the city on Wednesday. “On the way to realize this goal, we’ll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent.”……………………………………….Full Article: Source

Oil price nears seven-month high – will it break $50?

Posted on 26 May 2016 by VRS  |  Email |Print

The oil price broke out of a four-session mini-slump overnight and was hovering close to seven-month highs this morning after a positive report on supply boosted sentiment. US benchmark West Texas Intermediate jumped 2.5 per cent to $49.27 a barrel in afternoon trading in New York yesterday, a new 2016 peak and the highest price since October.
It was holding within 10 cents of this at around 9.45am in London this morning. International benchmark Brent crude peaked last night at around $49.24, around 25 cents below its six-month high of last Monday, and was similarly steady in early London trading………………………………………..Full Article: Source

Get into gold now! Prices could hit $1,900

Posted on 26 May 2016 by VRS  |  Email |Print

Gold’s losing streak continued on Tuesday as the precious metal tumbled to its lowest level in more than five weeks. However, one of Wall Street’s most closely followed analysts says the dip presents a prime buying opportunity and that bears are reading the market incorrectly.
“This is just the beginning of a new bull market in the metals,” the Lindsey Group’s chief market analyst Peter Boockvar told CNBC’s “Futures Now” on Tuesday. Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as reasoned that bull markets historically exceed the previous bull market peak at some point………………………………………..Full Article: Source

Gold price setback temporary: ABN Amro

Posted on 26 May 2016 by VRS  |  Email |Print

Gold is enduring some rare price weakness thanks to dollar strength, but this should prove transient, according to Dutch bank ABN Amro. Prices fell again on Tuesday, coming under pressure from a stronger dollar amid rising expectations of an interest-rate rise this year in the US.
However, Georgette Boele, ABN’s coordinator of precious metals and FX strategy writes that there are a “wide variety of drivers” for prices, and not the dollar alone. “We think that the recent set-back in gold prices is temporary… and drivers will turn more positive again… leading to higher gold prices later this year and next year,” she says………………………………………..Full Article: Source

$65 oil price ‘badly needed’ for investment says Qatar

Posted on 25 May 2016 by VRS  |  Email |Print

Oil markets are rebalancing but crude is not at a fair price yet, Qatar’s energy minister and current Opec president told the Associated Press in an interview published on Tuesday, saying a minimum price of $65 a barrel was “badly needed at the moment”.
“The oil market is recovering slowly but steadily. Luckily, the fundamentals show it is heading in the right direction,” Mohammed Al-Sada was quoted as saying. “I don’t think we are yet at a fair price. We need to have a fairer price so that we can have the ability to invest more in order to secure the energy supply to the world and avoid any price shock,” he said………………………………………..Full Article: Source

Where Are Silver Prices Headed?

Posted on 25 May 2016 by VRS  |  Email |Print

Investors keeping up with today’s silver prices had a rare down week last week, as the price of the iShares Silver Trust (NYSE Arca: SLV), a proxy for the price of silver, slid from $16.41 on May 17 to close at $15.69 on May 20. So where are silver prices headed next in 2016?
The slide marks a rare set of consecutive down days this year, as the white metal has enjoyed a major bull market in 2016. The price of silver rose 27% from January to April, beating gold’s climb by 7%. ……………………………………….Full Article: Source

Japan’s spot aluminum premiums continue to fall amid thin trade

Posted on 25 May 2016 by VRS  |  Email |Print

Japan’s spot aluminum import premium was assessed at $90-$92/mt plus London Metal Exchange cash, CIF Japan, Tuesday, down from $90-$100/mt plus LME cash CIF as low buying interest put pressure on sellers.
A deal at $85/mt plus LME cash CIF Japan was reported closing this week between an international trader and a Japanese trader for 500 mt of primary aluminum for loading in Australia in June. The deal, however, was not taken into account as it was an extremely prompt cargo………………………………………..Full Article: Source

Falling Commodity Prices Weigh on Asia Resources Stocks

Posted on 24 May 2016 by VRS  |  Email |Print

Declining commodity prices weighed on Asia’s resource stocks Monday, while the Japanese share market slipped amid a lack of major consensus from the Group of Seven meetings between finance ministers and central bankers.
Energy stocks led losses in much of the region, after crude oil prices fell Friday in the U.S. and continued to slip during Asian trading hours Monday. Tokyo-listed Inpex Corp. finished down 2.2% while Australia’s energy sector was down 2%. Brent crude prices were last down 0.9% at $48.28 a barrel………………………………………..Full Article: Source

Commodities Prices Will Remain Low For Some Time, Here’s Why

Posted on 24 May 2016 by VRS  |  Email |Print

The oil price is recovering. As I wrote in previous pieces, low oil prices are a cure for low oil prices. This is because energy is the foundation of economic activity. Cheap energy is great, but the principle of the ‘greedy algorithm’ where grabbing as much as you can is the way to prosper means it can’t stay extremely cheap for very long.
The read through is that this rally in oil should mean a rally in other natural resources. You might look at gold and say, oil up means gold up means other commodities to follow………………………………………..Full Article: Source

Oil will soon stage a ‘fundamental price recovery’: Analyst

Posted on 24 May 2016 by VRS  |  Email |Print

Supply outages and growing demand from China mean crude prices will come into “much better balance” in the next few months, an energy analyst told CNBC. Jefferies’ Jason Gammel told CNBC on Monday the oil market had swung from oversupply to undersupply in April thanks to disruptions in production in Nigeria and Alberta, Canada, taking around 2 million barrels per day out of the market.
“I think with continued demand growth over the course of this year and continued declines in non-OPEC supply that we are already seeing in places like the United States, the market actually comes into much better balance by the end of the third quarter and that’s the stage for fundamental price recovery,” he told CNBC television in London………………………………………..Full Article: Source

This could send gold tumbling below $1,000 again, Citi says

Posted on 24 May 2016 by VRS  |  Email |Print

Investors could be forgiven for not being able to recall the last time gold prices traded below $1,000-an-ounce, considering they’d have to scroll back to September 2009 before running into that level. But don’t think gold is so far removed from that sub-$1,000 level that it can’t revisit that nadir in short order, warned analysts at Citigroup in a note on Monday. And they said it’s all about the dollar.
“We see no reason why gold should not once more trade at $1,050/oz if US$-DXY rises back to the 100-level (now 95.3). Nor do we see anything to prevent gold falling below $1,000/oz if US$-DXY rises above the 100-level,” said the analysts………………………………………..Full Article: Source

Are Weak Commodities Prices the New Normal?

Posted on 23 May 2016 by VRS  |  Email |Print

Along with an increasingly optimistic outlook for commodities, especially for coal and base metals, this has led to some analysts claiming that both stocks will continue to rally. In fact, some analysts have gone as far as to claim that Teck’s price could even double over the course of 2016, making now the optimal time to invest. While there have been some positive developments for both companies and other mining stocks, the outlook is not as rosy as some analysts would have you believe.
The key driver for both of these companies’ recent rally and improving outlook is the price of commodities. Teck is highly dependent on the prices of metallurgical coal and copper to drive its financial performance. It obtains two-thirds of its revenue from those products………………………………………..Full Article: Source

Energy Expert Says Oil Prices Won’t Top $100 a Barrel

Posted on 23 May 2016 by VRS  |  Email |Print

Following a stunning decline, oil prices have clawed back near the $50 level this year. Production boomed in the U.S. but is now slumping. Globally, OPEC is in disarray and major producers can’t agree on steps to boost prices. Daniel Yergin is the vice chairman of research firm IHS Inc. He has written two books on energy, including the Pulitzer-winning opus “The Prize: The Epic Quest for Oil, Money and Power,” which is essential reading for anyone interested in the subject.
Prices where they are today (around $48) are not going to provide a signal for the investment that will be needed to meet demand by 2020, so I think we will see higher prices. But unless there is some big surprise or disruption they wouldn’t go back to $100 a barrel………………………………………..Full Article: Source

Tom Ward: The ‘dirty little secret’ about $50 oil

Posted on 23 May 2016 by VRS  |  Email |Print

Chesapeake Energy co-founder Tom Ward said Friday that oil prices need to recover to about $75 a barrel in order for most drillers to ramp up production. Crude futures have recently approached $50 a barrel after rebounding more than 80 percent from this year’s lows in the mid-$20 range.
Some worry those prices will incentivize high-cost U.S. oil producers to put more rigs to work, worsening a global supply glut and putting off a sustainable price recovery. U.S. oil production has fallen from a high of nearly 9.7 million barrels per day last year to about 8.8 million barrels per day………………………………………..Full Article: Source

Oil could easily be headed back to $35 a barrel

Posted on 20 May 2016 by VRS  |  Email |Print

After a long and eventful decline in prices, the crude-oil market has suddenly been experiencing the other side of the supply-demand coin, something that it has not had to deal with in a while: a bull run cobbled together from a series of unplanned supply outages.
It started last month, with the Kuwait oil workers’ strike, and those lost barrels were added to lost production from seemingly everywhere, ranging from the North Sea to Libya and Nigeria. The ongoing wildfire in the tar sands region of Canada was another outlier event, knocking out over 1 million barrels of production per day………………………………………..Full Article: Source

Oil prices have probably bottomed: Woodside

Posted on 20 May 2016 by VRS  |  Email |Print

Woodside Petroleum chief Peter Coleman says oil prices have probably bottomed and are likely to firm, but he doesn’t think a strong rebound is on the cards, warning prices will remain “rangebound” as gains inspire more production.
Coleman is fronting investors in Sydney this morning in the company’s annual investor briefing day. “We think there will be a firming over the next 18 months,” Mr Coleman said. “We’re not going to see any real increase in prices … but we’ve probably bottomed out in a range.”……………………………………….Full Article: Source

Will oil at $50/barrel worry India?

Posted on 20 May 2016 by VRS  |  Email |Print

While oil that plunged below $30 a few months ago helped India contain inflation and shrink its trade deficit, a rebound to $50 has other advantages for the world’s fastest-growing importer of crude. More cash for fuel exporters could boost global growth, lure commodity-dependent sovereign wealth funds back to emerging markets and increase demand for Indian-made goods, including petroleum products.
“The environment might be better rather than worse for India,” said Sonal Varma, an economist at Nomura Holdings in Mumbai. Oil at “$60, $65, $70 — that’s when the problem starts, but right now I think it’s fine.”……………………………………….Full Article: Source

Positive on precious metals, see gold at $1370 by 2017 end: ABN

Posted on 20 May 2016 by VRS  |  Email |Print

Financial markets had not anticipated a rate hike in June and the US dollar has moved high while some of the commodity prices have been under pressure on the back of this news, says Georgette Boele of ABN AMRO Group.
Global equity and commodity indices witnessed volatile trade today after US Federal Reserve officials hinted at a possible rate hike in June if economic growth and other data signals continue to strengthen in the second quarter. Financial markets had not anticipated a rate hike in June and the US dollar inched higher while some commodity prices have been under pressure on the back of this news, says Georgette Boele of ABN AMRO Group………………………………………..Full Article: Source

Silver Prices Rising in 2016 – and Will Continue

Posted on 20 May 2016 by VRS  |  Email |Print

Silver may not be as scarce as gold, but its attractiveness to investors has been gaining momentum in 2016. Many are asking why are silver prices rising, and the answer is twofold.
Silver prices are up after several years of declines due to a host of economic factors combined with a surge in demand for the product. Here is a more in-depth discussion of those elements that answers the question: “why are silver prices rising?”……………………………………….Full Article: Source

Commodities indebted to the past

Posted on 19 May 2016 by VRS  |  Email |Print

Commodity prices have been on a tear of late. Last year’s dogs, such as oil and iron ore, have soared. With oil approaching $50 a barrel this week, Goldman Sachs has turned more bullish on its prospects, and Chinese speculators have pushed up the price of iron ore by as much as 50 per cent.
This rebound has led to strong gains in related stock market sectors. Energy and mining share indices have risen fastest, after trailing the entire market in 2015. What has lured in the buyers? For one thing, some very depressed valuations made the decision to dive back into commodity stocks a lot easier………………………………………..Full Article: Source

Kuwait Says Oil Near $50 Shows OPEC’s Strategy Is Working

Posted on 19 May 2016 by VRS  |  Email |Print

OPEC’s strategy to defend market share over prices is working as oil approaches $50 a barrel amid rising demand and declining output from producers including U.S. shale companies, Kuwait’s acting oil minister said.
Oil will end the year at $50 a barrel and the market will rebalance in the third or fourth quarter of the year, Anas Al-Saleh, the acting oil minister, said in an interview Wednesday in Kuwait City. Demand is growing and about 3 million barrels a day of crude supply have been lost due to a drop in global production, he said………………………………………..Full Article: Source

Five things to watch for as oil nears $50 a barrel

Posted on 19 May 2016 by VRS  |  Email |Print

There are key factors that can fuel crude beyond $50 or stall the near 80% price rally. As the price of crude oil nears $50 a barrel for the first time this year, traders are split over whether the near 80 per cent rally since prices bottomed in January can keep going.
Here are five things to watch that could dictate the next move in the price of Brent crude, currently trading near $49 a barrel, and US benchmark West Texas Intermediate which is more than $48. 1. Nigeria and other troubled Opec producers: The latest leg up in prices comes as output in what was Africa’s largest producer has fallen to the lowest level in more than 20 years………………………………………..Full Article: Source

Gold price volatility to continue as investor interest rises

Posted on 19 May 2016 by VRS  |  Email |Print

Gold ’s safe-haven allure continues to attract more investors, but one veteran precious metals strategist warns that the higher interest makes the metal subject to price volatility. “Large open interest may add to volatile moves as headlines may influence prices and as many open orders are held back for now,” said George Gero, managing director for RBC Wealth Management.
He also commented on billionaire investor George Soros’ latest Securities Exchange Commission filings, which showed that the hedge fund manager held SPDR Gold Trust shares worth $123 million as of the end of Q1. “Today’s figures were helping gold traders somewhat and more fund managers like Soros are allocating to gold again,” Gero added………………………………………..Full Article: Source

Gold’s Glow Could Continue To $2,000 - Gerald Celente

Posted on 19 May 2016 by VRS  |  Email |Print

Gold continues to shine, up some 20% year-to-date, and one famed trends forecaster remains positive on the metal. “We maintain our forecast that should gold stabilize above $1,400 per ounce, we anticipate a sharp gold spike toward $2,000,” says Gerald Celente in a research note Wednesday.
”With gold demand up some 21 percent this year, according to the World Gold Council, and gold prices up over 20 percent since the start of the year, even the banksters see gold glowing.” After hitting $1,300 an ounce earlier this month, gold futures have struggled to breach above that level with June gold last trading at $1,274 an ounce, down $2.90 on the day………………………………………..Full Article: Source

Commodity price slump creates opportunities for resource cooperation

Posted on 18 May 2016 by VRS  |  Email |Print

Weaker global commodity prices were creating opportunities for resource-rich nations to find shared solutions, Western Australia’s Mines and Energy Minister Sean L’Estrange said. L’Estrange noted that an agreement announced between iron-ore majors Fortescue Metals and Vale earlier this year, demonstrated how competitors could work together to find innovative solutions to common challenges.
Western Australia’s Fortescue and Brazil’s Vale in March inked a memorandum of understanding under which the two companies would form joint ventures to blend iron-ore products. The new blended product would be developed to suit the long-term needs of Chinese steel customers, and improve the efficiency of the supply chain to the steel industry………………………………………..Full Article: Source

How To Play The Oil Price Rebound

Posted on 18 May 2016 by VRS  |  Email |Print

It’s not surprising that skepticism persists about signs of an oil industry rebound. After all, the sharp decline in oil prices since mid-2014 brought huge damage to a lot of industries and the stock market — particularly to investors in energy stocks. Indeed, the surprise 75% decline in oil has been a tough headwind to global growth.
So how real is the oil reversal? “Our assumption is that the recent price rebound is durable and mostly grounded in fundamentals,” says Lisa Shalett, chief of investment and portfolio strategies at Morgan Stanley Wealth Management, in a note to clients………………………………………..Full Article: Source

Oil nears $50 mark

Posted on 18 May 2016 by VRS  |  Email |Print

What oil glut? Oil Futures continued to advance early Tuesday amid concern over the impact week-long wildfires in Canada have had on that country’s output as well as security fears in producers Nigeria, Libya and the Middle East.
International Benchmark Brent crude appeared to be stroking the $50 mark on Tuesday rising 0.71 per cent to $49.32. US Benchmark West Texas intermediate was trading at $48.28, up 1.17 per cent from Monday’s close. Meanwhile, global banker Goldman Sachs has revised its forecast for oil futures in 2016 and 2017 saying that the price of a barrel of oil will likely be around $50 this year and reach $60 by the end of 2017………………………………………..Full Article: Source

Moody’s predicts gold price will remain volatile, despite recent rally

Posted on 18 May 2016 by VRS  |  Email |Print

Following Moody’s large-scale review of the global mining sector in January, the ratings agency expected the price of gold to remain volatile. In a report released on Tuesday, Moody’s anticipated capital spending for gold miners – which fell to $8-billion in 2015 from $23-billion in 2012 – to remain at diminished levels.
With the steady decline of gold prices since a peak at nearly $1 900/oz in 2011, producers adjusted their strategies to address debt levels and spending in an effort to respond to the new gold price environment………………………………………..Full Article: Source

Goldman cuts 2017 oil price forecasts, raises short term view

Posted on 17 May 2016 by VRS  |  Email |Print

Goldman Sachs says “the oil market has gone from nearing storage saturation to being in deficit much earlier than we expected and we are pulling forward our price forecast, with second quarter/second half of 2016 WTI now $45/bbl and $50/bbl.”
Goldman says forecasts a more gradual decline in inventories in second half than previously and a return into surplus in first quarter 2017, with low-cost production continuing to grow in the new oil order. Goldman Sachs says lowering its 2017 forecast from $57.5/bbl to $52.5/bbl, with a first quarter 2017 decline back to $45/bbl and a recovery to $60/bbl by fourth quarter 2017………………………………………..Full Article: Source

‘Big Oil Worry’: Nigeria’s Chaos Adds to Increasing Fuel Prices

Posted on 17 May 2016 by VRS  |  Email |Print

The ongoing crisis in Nigeria adds significantly to the current increase in global oil prices, according to Bloomberg. Bloomberg’s Julian Lee believes that the political standoff in Nigeria has added greatly to upward pressure on global oil prices.
In his article ‘Forget the Saudis, Nigeria’s the Big Oil Worry’, Lee said that apart from “Saudi Arabia’s oil market machinations,” policymakers should also be concerned about what is now “happening 3,000 miles away in the Niger River delta.” ……………………………………….Full Article: Source

Funds rushed back into gold as prices surged in Q1 - 13F filings

Posted on 17 May 2016 by VRS  |  Email |Print

Billionaire financier George Soros and other big investors have returned to gold for the first time in years, U.S. Securities and Exchange Commission filings showed on Monday, a move which spurred a rally to 12 month highs.
Institutional and retail buying has propelled prices to fresh one-year highs of $1,303 an ounce this month. In the first quarter, Soros, who once called gold “the ultimate bubble,” returned to gold after three years, with 1.05 million shares in SPDR Gold Trust, the world’s biggest gold exchanged-traded fund (ETF), valued at about $123.5 million………………………………………..Full Article: Source

Gold Price Trades Up to 2016 Highs

Posted on 17 May 2016 by VRS  |  Email |Print

Gold Prices rose to 1-week highs in London bullion trade Monday, touching $1288 per ounce as China’s stock markets held flat overall but New York equities pointed lower with UK shares as half of Europe stayed shut for the Whit Monday holiday.
Silver just outpaced the rise in gold prices, gaining 1.2% from the close of Friday’s US trade but only to two-session highs of $17.38 per ounce. Recovering 2.4% from last week’s lows versus the Dollar, the gold price also rose against all other major currencies, reaching the highest level against the Euro at €1135 since March’s retreat from 13-month highs………………………………………..Full Article: Source

Silver Prices per Ounce Will Be Determined by These Three Factors in 2016

Posted on 17 May 2016 by VRS  |  Email |Print

Over the past trading week, silver prices per ounce have been in an ongoing battle with the U.S. Dollar Index (DXY). Late last month, we saw the silver price flirt with the $18 level. It has since backed down but has continued to trade in a relatively narrow range between $16.80 and $17.50.
But we’ve recently witnessed some strength in the U.S. Dollar Index (DXY), which arguably became somewhat oversold in early May. It’s bounced back 1.7% so far this month. That’s been the biggest headwind facing silver prices right now. And by many accounts, it may not be over yet………………………………………..Full Article: Source

Palladium and platinum to fall short of highs this year

Posted on 17 May 2016 by VRS  |  Email |Print

Prices of precious metals platinum and palladium are likely to peak this year, as the market lacks the support that gold draws from investors, a survey said on Monday at the start of London’s annual platinum week.
Both metals, which are used in auto catalysts as well as in jewellery, are likely to fall short of their 2014 highs, according to Metals Focus, a leading metals consultancy. “Ultimately, neither the fundamental market conditions nor the investor activity that would be needed to drive a more decisive bull market seem likely to emerge over the next few months,” Metals Focus said………………………………………..Full Article: Source

Fall in iron ore prices is a pointer to commodities market fragility

Posted on 17 May 2016 by VRS  |  Email |Print

What goes up on unrestrained speculation will inevitably be back on earth at some stage. We saw it when iron ore speculation defying fundamentals took the mineral’s price to a peak of $70.46 a tonne in the third week of April this year - a rise of 80 per cent since December 2015.
Buoyed by weather-related iron ore supply disruptions in Australia, fresh stimulus measures by Beijing and routine moves by China to start rebuilding inventories in the year’s beginning, speculators went on marking up prices. Ore stocks at Chinese ports at close to 100 million tonnes (mt), the highest since March 2015, signals the end of inventory build up linked imports for some time………………………………………..Full Article: Source

There’s more to China’s tumbling metals prices than spooked speculators

Posted on 17 May 2016 by VRS  |  Email |Print

A price retreat in Chinese markets for rough metals, including iron ore, steel, and reinforcing steel, or rebar, likely reflects deeper growth concerns for the world’s second-largest economy, not just short-term market machinations, said analysts. Similar indications emerged in a weekend release of Chinese economic data.
“China released a raft of data that reignites doubts about the nation’s economic stabilization. Fixed asset investment, retail sales and industrial production all missed expectations and slowed in April, suggesting that the upbeat March prints were not descriptive of the underlying trend in economic activity,” said Charalambos Pissouros, senior analyst at IronFX global………………………………………..Full Article: Source

Where Oil Prices Go From Here

Posted on 16 May 2016 by VRS  |  Email |Print

Leaders of major oil-exporting countries used to talk about “saving the oil” for their grandchildren. But now the grandchildren are in charge, and they want to monetize the oil.
That is certainly so in Saudi Arabia, where Deputy Crown Prince Mohammed bin Salman—a grandson of the country’s founder, Abdul Aziz ibn Saud—has launched an ambitious plan to reduce the country’s dependence on oil. Decrees issued this month announced far-reaching changes in Saudi ministers and government organization………………………………………..Full Article: Source

OPEC report predicts oil-price rise

Posted on 16 May 2016 by VRS  |  Email |Print

According to OPEC, prices are set to surge due to high exploration costs, while population and economic growth will also result in a spike in demand for oil A recent report released by the Organization of the Petroleum Exporting Countries (OPEC) has predicted that oil prices are set to recover to $70 a barrel by 2020.
Brent crude oil prices have fallen from more than $110 a barrel in 2014 to less than $28 a barrel in January 2016 (the lowest since 2004) due to oversupply and slowing demand………………………………………..Full Article: Source

Gold prices could hit $US1400 by year’s end

Posted on 16 May 2016 by VRS  |  Email |Print

US gold prices are up 17 per cent since the start of the year and if the pundits are right, prices could be knocking on the door of $US1400 ($1917) an ounce come the end of the year.
Canada’s BMO Capital is among those that reckon the charge from the current spot price of $US1272 an ounce to the $US1400 an ounce level is on the cards, saying it is predicated on uncertainty in the global economy persisting through the remainder of the year. That will drive incremental “safe haven’’ demand………………………………………..Full Article: Source

Goldman Sachs increases its gold price forward estimates

Posted on 16 May 2016 by VRS  |  Email |Print

Goldman Sachs has consistently predicted the price of gold is going lower. Last week, the broker raised its price target on the precious metal to trade at an average of US$1,200 per ounce in three months, up from its previous forecast of US$1,100 an ounce.
Looking further ahead, the broker now forecasts US$1,180 an ounce in six months (from US$1,050 an ounce), and then US$1,150 an ounce in 12 months’ time (from US$1,000 an ounce). Gold is up 20% so far in 2016………………………………………..Full Article: Source

Iron ore price slumps below $US54 a tonne

Posted on 16 May 2016 by VRS  |  Email |Print

The iron ore price has slumped to a one-month low as investors fret over the strength of Chinese demand. The commodity weakened 1.7 per cent to $US53.50 a tonne at the end of last week, it’s lowest price since April 11. It’s the commodity’s seventh red session in the past eight and the price has now dropped to below the government’s recent budget forecast of $US55 a tonne.
News of infrastructure stimulus out of Beijing gave iron ore miners some brief respite near the end of last week, but investors are sceptical it will have much impact on demand in the coming months………………………………………..Full Article: Source

Ag prices soar: Commodities get mojo back

Posted on 13 May 2016 by VRS  |  Email |Print

Investors have been harvesting big gains in the past month from agricultural commodities, and some of the futures, such as sugar and soybeans, were near levels this week not seen in 18 months or more.
Latin America weather woes and the Brazilian government turmoil are playing a major role in the month-long ag rally. Brazil’s real has strengthened against the dollar, encouraging producers of traditional export products, such as coffee and sugar, to sell supplies at home………………………………………..Full Article: Source

Oil Prices Rise After IEA Report

Posted on 13 May 2016 by VRS  |  Email |Print

U.S. oil prices rose to a fresh six-month high in topsy-turvy action with traders divided about whether the oil market is balancing faster than expected or on its way to another major retreat. A report from the International Energy Agency was the one clear new catalyst in the market Thursday, but even it drew mixed interpretations.
The Paris-based agency said global oil stocks will experience a “dramatic reduction” in the second half of the year, but also warned that they will continue to increase in the first half of the year as Iran ramps up its production, adding to the nearly two years of oversupply………………………………………..Full Article: Source

Gold price rally in Q1 best in 30 years: WGC

Posted on 13 May 2016 by VRS  |  Email |Print

The enthusiasm with which investors renewed their appetite for gold ETFs in Q1 saw prices of the yellow metal (in US dollar terms) rally 17 per cent in in the first quarter of calendar year 2016 (CY16), says the latest World Gold Council report. Gold closed the quarter at $1,237/oz, 17 per cent above the end-2015 price of $1,060/oz.
Gold demand, on the other hand, grew 21 per cent to 1,289.8 tonnes - the strongest Q1 on record. Inflow into gold exchange traded funds (ETFs) at 363.7 tonnes in the first quarter of calendar year 2016 (CY16) also hit a seven-year high………………………………………..Full Article: Source

Iran, Saudi in oil price war

Posted on 12 May 2016 by VRS  |  Email |Print

Iran on Wednesday blamed its biggest rival Saudi Arabia for the “collapse” of the recent Doha talks on capping oil output but the Kingdom appeared to shrug off the allegation and instead said it would boost production in 2016.
Iran, which did not attend the talks amid a diplomatic row and continuing Middle East proxy wars with Saudi Arabia, also said it would not curb its oil production. Earlier this week, Iran announced that it increased its output to pre-sanctions levels, fulfilling its 2015 pledge to boost production by as much as 1.1 million barrels a day. Iranian President Rouhani says his country is pumping as much as 2.5 million barrels a day………………………………………..Full Article: Source

EIA: Energy Consumption Set To Soar 48% by 2040

Posted on 12 May 2016 by VRS  |  Email |Print

Economic growth in China, India and other parts of Asia are expected to play a big part in driving the world’s energy consumption up by 48% within the next three decades. Growth toward 815 quadrillion Btu by 2040 is forecast to come as renewable energy’s slice of the energy supply pie gets bigger but not nearly enough to overtake fossil fuels, which will be the dominate energy source.
Petroleum and other liquids will lead the way, followed by natural gas, the fast-growing fossil fuel. Coal consumption is expected to fall just about everywhere, except India, amid continued efforts worldwide to reduce emissions………………………………………..Full Article: Source

Natural Gas, Oil Prices to Rise by 2017 - US Energy Info Administration

Posted on 12 May 2016 by VRS  |  Email |Print

Global oil prices plunged from $115 to less than $30 per barrel between June 2014 and January 2016, hitting their lowest levels since 2003 amid an ongoing glut in global oil supply. The prices have since recovered to around $40-45 per barrel for the Brent crude benchmark.
“We’ll see gas moving up toward the end of the year,” Sieminski stated on Wednesday. “It’s the winter time and you always get higher natural gas prices in the winter time, but we see natural gas prices moving back up overtime because there is more industrial demand, there is more demand for fertilizers and other products that are made from natural gas.”……………………………………….Full Article: Source

Oil price to be dragged down by more Saudi pumping

Posted on 12 May 2016 by VRS  |  Email |Print

The oil price remaining “lower for longer” is now “highly likely”, says CNBC, after Saudi Arabia ramped up its reform agenda. The kingdom has replaced its veteran oil minister, Ali al-Naimi, with Khalid al-Falih, the chairman of state-owned oil company Saudi Aramco, who is close to reforming Crown Prince Mohammad bin Salman and has already indicated the kingdom will continue to prioritise market share over prices.
Yesterday, Aramco itself, which has a monopoly on all Saudi oil reserves, announced it will expand its output ahead of a planned minority flotation that would make it the largest quoted company in the world, with a valuation of as much as £1.39trn………………………………………..Full Article: Source

OPEC oil production to rise - EIA

Posted on 12 May 2016 by VRS  |  Email |Print

OPEC oil production will rise reaching 32.43 million barrels per day in 2016 and 33.09 million barrels per day in 2017, according to the forecasts published in the US Energy Information Administration’s (EIA) Short-Term Energy Outlook.
In 2015, OPEC oil production amounted to 31.55 million barrels per day, according to the EIA’s estimates. The highest OPEC production is expected by the EIA in fourth quarter of 2017 - at 33.19 million barrels per day………………………………………..Full Article: Source

Gold has entered a new bull market: JPMorgan

Posted on 12 May 2016 by VRS  |  Email |Print

Gold prices are surging this year, and that has one of Wall Street’s largest banks flocking to the yellow metal. “We’re recommending our clients to position for a new and very long bull market for gold,” JPMorgan Private Bank’s Solita Marcelli said Tuesday on CNBC’s “Futures Now.”
After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that’s just the start of the next leg higher, according to Marcelli. “$1,400 is very much in the cards this year.”……………………………………….Full Article: Source

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