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Oil price to average above $50 a barrel in 2017, ratings agency says

Posted on 23 September 2016 by VRS  |  Email |Print

Oil prices are likely to average more than $50 (US) a barrel next year after reaching a low point last winter, according to a report released Wednesday by DBRS. The cost per barrel of West Texas Intermediate (WTI) has risen to roughly $43 (US) from $26 (US) since January and is likely to stay in that range for the next few months as global supply continues to exceed demand, the credit rating agency says.
Although OPEC countries and Russia are planning to meet before the end of the month to discuss freezing production at current levels, DBRS feels there’s little likelihood they’ll reach an agreement………………………………………Full Article: Source

What Happens to Energy Investments if Oil Prices Don’t Recover?

Posted on 23 September 2016 by VRS  |  Email |Print

A rebound in crude oil prices lifted energy investments this year, with names of super-major oil producers like Exxon Mobil Corp. and Chevron Corp. (CVX) sporting double-digit gains so far in 2016 after sharp losses in 2015.
That also goes for the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG), which many crude-oil market watchers use as a proxy for energy-debt investments since many energy companies operating in the shale-oil boom areas used high-yield debt for funding………………………………………Full Article: Source

Oil Price Likely to Rally in 2018

Posted on 23 September 2016 by VRS  |  Email |Print

Morningstar analysts have raised their price forecast for oil to $65 a barrel as fundamentals post 2017 are looking particularly bullish for prices. Strong demand growth and supply issues have pulled forward the oil price recovery by about a year relative to our previous outlook. Fundamentals after 2017 are looking particularly bullish for prices, and an oil price rally in 2018 is looking more and more likely. We’ve raised our 2018 forecast to $65 per barrel.
Even so, the strength of U.S. shale is lurking beneath the surface. Our analysis shows that the recent uptick in rigs and falling shale decline rates together are enough to stabilise U.S. crude production within six months. If activity isn’t scaled back, U.S. production will begin growing in 2017, albeit barely………………………………………Full Article: Source

Analyst: Gold Could Fall Below $1,000 in 2017

Posted on 23 September 2016 by VRS  |  Email |Print

Most investors vividly remember the frenzy about gold during the Brexit. Everyone and his uncle was talking about gold, and mainstream media were excessively optimistic. We warned our readers at that time, as sentiment was extreme right at a time when the secular bear market trend was being tested.
Now we start seeing the confirmation of our observations. Gold’s chart is looking increasingly weak, buyers ran out of steam, and our ‘fear’ (given that we, somehow, are gold bulls) is that gold is pointing south. We do not exclude the scenario of gold testing $1000 an ounce in 2017………………………………………Full Article: Source

Is this the most undervalued commodity in the world?

Posted on 21 September 2016 by VRS  |  Email |Print

This year has seen solid gains posted by precious metals. Gold has been one of the best performing assets in the world this year posting a 23% rise. However, silver has vastly outperformed gold and has gained over 38% year-to-date. I’m a precious metals bull and I think that silver may be the most undervalued asset in the world.
It’s well known that precious metals outperform in recessions and periods of economic uncertainty. This year gold and silver prices have been spurred on by the Chinese economic slowdown, the Federal Reserve delaying interest rate hikes in the USA and Brexit to name a few factors………………………………………Full Article: Source

Oil price slump is a good thing for explorers, says report

Posted on 21 September 2016 by VRS  |  Email |Print

The oil price slump will make major explorers more profitable as they are forced to focus on lower-cost, better-quality prospects, industry experts Wood Mackenzie have forecast.
Energy giants have ditched “high-cost, high-risk” exploration plays such as “elephant hunting in the Arctic” as the economics of lower oil prices make them concentrate on their best drilling prospects, Dr Andrew Latham, Wood Mackenzie’s vice-president of exploration research, said. Oil majors’ profits have been hammered by the collapse in prices since summer 2014 amid global oversupply………………………………………Full Article: Source

Oil Rebounds on Talk of Russia-Iran-OPEC Cooperation

Posted on 21 September 2016 by VRS  |  Email |Print

Oil prices rebounded from a new one-month low Tuesday after further talk of cooperation to cap output among the world’s largest oil exporters. Russia supports a deal that would stabilize oil markets for a year, Russia’s permanent representative to the Organization of the Petroleum Exporting Countries told Interfax news agency Tuesday.
“A year-long agreement would satisfy this criteria,” said Vladimir Voronkov. OPEC Secretary-General Mohammed Barkindo also said that Iranian officials have told him they are committed to negotiating, according to a Bloomberg report. ……………………………………..Full Article: Source

Gold Bull McEwen Sees Prices as High as $1,900 by End of Year

Posted on 21 September 2016 by VRS  |  Email |Print

Robert McEwen, one of the gold’s industry’s most unabashed bulls, is predicting prices could surge as much as 44 percent by the end of the year as confidence in the economy buckles. The metal could trade in a range of $1,700 an ounce to $1,900 by the end of 2016 as uncertainty builds around the stability of global currencies and sovereign debt, said McEwen, who’s so enamored by bullion that he’s founded two producers: McEwen Mining Inc. and Goldcorp Inc.
Record-low global interest rates will cause a “huge amount of anxiety” for investors, who will turn to gold as a store of value and an alternative asset, he said………………………………………Full Article: Source

Is the gold price set to crash?

Posted on 21 September 2016 by VRS  |  Email |Print

Shareholders of gold producers such as Newcrest Mining Limited, St Barbara Ltd, Northern Star Resources Ltd, and OceanaGold Corporation are likely to have a nervous day ahead of them.
Following the conclusion of its comprehensive assessment of monetary policy the Bank of Japan will announce its next move later today. To begin with the central bank will announce its latest interest rate decision at lunch, then later in the afternoon Governor Kuroda is expected to advise on its review of monetary policy in his press conference………………………………………Full Article: Source

Why gold won’t hit US$1,900 an ounce

Posted on 21 September 2016 by VRS  |  Email |Print

It must be a full moon. That’s when the crazy predictions seem to come out. A spot gold price as high as US$1,900 an ounce is just one of those. That’s the prediction from renowned gold bull Robert McEwen.
Speaking at a gold conference yesterday, McEwen says that record low global interest rates will cause a huge amount of anxiety for investors and they will be forced to turn to gold as a store of value and an alternative asset. Unfortunately, that’s exactly why the gold price is currently trading at around US$1,318 an ounce………………………………………Full Article: Source

China’s iron ore imports stay robust, may delay price retreat: Russell

Posted on 20 September 2016 by VRS  |  Email |Print

There is an almost universal expectation that iron ore prices will start to retreat soon, reversing some of the 29 percent surge this year that has seen the steel-making ingredient become one of the unexpected commodity top performers.Much of iron ore’s gains in 2016 have been driven by strong demand from China, with imports up 9.3 percent to 669.65 million tonnes in the first eight months of the year from a year ago.
And as yet, there is no sign that China’s appetite for imported iron ore is waning, with vessel-tracking and port data suggesting September will be another strong month for the buyer of about two-thirds of global seaborne cargoes………………………………………..Full Article: Source

Goldman Sachs Crushes Hopes Of Oil Price Recovery

Posted on 16 September 2016 by VRS  |  Email |Print

Goldman Sachs has been extremely pessimistic about the oil market over the last year and a half, and the latest from their head of commodity research, Jeff Currie, is no exception. According to Currie, crude will continue to trade within the US$45-50 band over the next 12 months. Any improvement above US$50 is highly unlikely.
The analyst noted that the primary reason for the gloomy forecast is the simple lack of any upside potential for oil at present. He also suggested that the market may have already balanced itself at the current price levels, comparing the overall environment to that in the early 1990s when a barrel of crude sold for US$20………………………………………..Full Article: Source

Oil’s price slide creates slippery slope for Russia

Posted on 16 September 2016 by VRS  |  Email |Print

There were some happy campers in Moscow recently when the price of crude oil pushed past $50 a barrel. The Kremlin seems to have successfully talked up the market by signaling it was ready for a production ceiling deal with OPEC. You could hear the collective sigh of relief from those controlling the Russian federal budget.
But that euphoria ebbed once again as American shale producers picked up the slack to boost production and reduce prices. Brent crude is now back down to the mid-$40s because of a supply glut of oil and natural gas………………………………………..Full Article: Source

Brexit drives up gold prices

Posted on 16 September 2016 by VRS  |  Email |Print

The trajectory of gold prices in the months after Brexit improved what was already an accommodating climate for the precious metal. Lest we forget, on one Thursday in late June, most journalists were poised around midnight with articles half at the ready about the victory for a Remain vote in the UK referendum. The result caught almost everyone off guard, after it emerged a small majority wanted out.
The pound crashed, panic ensued, and yet few were surprised to hear gold prices had soared. As unexpected as the referendum result was, the sudden spike is largely in keeping with a rally going back to before the start of the year………………………………………..Full Article: Source

Gold Prices Hit Two-Week Low

Posted on 16 September 2016 by VRS  |  Email |Print

Gold prices fell to a two-week low on Thursday, as lower safe haven demand and uncertainty surrounding Federal Reserve policy led investors to sell positions.
Gold for December delivery settled down 0.6% at $1,318.00 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as low as $1,312.10 earlier in the session. Prices closed at the lowest level since Sept. 1. The release of lackluster economic data, including weak retail sales, helped boost gold prices briefly Thursday morning………………………………………..Full Article: Source

Oil Glut Bomb: New Data Suggests Global Economy Too Weak To Hold Up Oil Prices

Posted on 15 September 2016 by VRS  |  Email |Print

IEA and EIA dropped an oil-glut bomb this month. Their September monthly reports indicate that the world continues to have a glut of oil with little hope of a balanced market in the near future.
IEA’s Oil Market Report focused on weakening demand growth for oil. Their quarterly data shows that year-over-year demand growth has decreased consistently from 2.3 mmb/day in the third quarter of 2015 to 1.4 mmb/day for the second quarter of 2016 (Figure 1). The forecast for the third quarter is only 1.2 mmb/day………………………………………..Full Article: Source

OPEC and IEA say prices will stay lower for longer

Posted on 15 September 2016 by VRS  |  Email |Print

The International Energy Agency (IEA) has said that the pace of global oil demand growth is dropping more quickly than initially predicted. In its latest monthly outlook, the agency lowered its forecast for oil demand growth in 2016 by 100,000 barrels per day, to 1.3 million b/d. It forecast the growth rate would be even lower in 2017, at 1.2 million b/d.
With OPEC producers pumping at close to record-high levels, the stock overhang that has stymied oil price rallies in recent months looks set to continue. Non-OPEC production has been dropping because of low prices, but not by enough to eat into bloated inventories. The IEA estimated that oil inventories in OECD countries hit a new record high in July, of 3.1 billion barrels, a rise of 32.5 million bbl from the previous month………………………………………..Full Article: Source

How to trade the oil market right now

Posted on 15 September 2016 by VRS  |  Email |Print

Oil prices dropped 36 percent during the fourth quarter of 2015 and the first quarter of 2016, only to rebound back to roughly $53 just six months later. More recently, oil dropped 23 percent only to rebound back to nearly $50 again. With all the up and down volatility, traders have been eyeing the $45 mark as fair value for oil where supply meets demand.
With oil above $45, traders begin to focus on the Federal Reserve tightening, a stronger dollar, potential weaker demand globally and oil producers turning on the spigots - all the things that would be a reason to sell oil. With oil below $45, the reasons to buy oil surround the talks about OPEC production cuts and Chinese demand picking up………………………………………..Full Article: Source

Where to next for the iron ore price?

Posted on 15 September 2016 by VRS  |  Email |Print

The direction the iron ore price takes has become a hot topic today following comments from the chief executive officer of US-based iron ore producer Cliffs Natural Resources. In a recent phone interview Lourenco Goncalves has said that bearish forecasts that predict iron ore prices dropping to $US40 or $US30 a tonne have been made by people that “don’t know anything” according to the Australian Financial Review.
Instead Mr Goncalves expects prices between US$50 and US$60 a tonne will be sustained thanks to stable demand from China and lower than forecast levels of new supply………………………………………..Full Article: Source

RBI sets up working group on hedging of commodity price risk

Posted on 15 September 2016 by VRS  |  Email |Print

Reserve Bank has set up a working group to review the guidelines for hedging of commodity price risk by residents in the overseas market amid rising volumes of cross-border trade. The working group, RBI today said, will review guidelines for hedging of commodity price risk by residents in overseas markets during the development phase of our domestic commodity derivative market.
The eight member group headed by RBI Executive Director Chandan Sinha will assess the risks faced by resident entities and their hedging requirements and also identify gaps in the existing regulatory framework in relation to the hedging requirements of commodities, participants and products………………………………………..Full Article: Source

Food Commodities Trader Olam Sees Low Grain Prices Into 2017

Posted on 13 September 2016 by VRS  |  Email |Print

Olam International Ltd., one of the world’s largest food commodities traders, forecasts that grain prices will remain low into 2017 as oversupply and softening Chinese demand weigh on crops.
“Prices will stay low for the next six months,” Olam’s chief executive officer, Sunny Verghese, said in an interview in Singapore last week. “We have very burdensome balance-sheets across the entire grain complex.”……………………………………….Full Article: Source

Why $50 Is The Right Price For Oil

Posted on 13 September 2016 by VRS  |  Email |Print

Crude oil prices: time spent above and below $50 – chart: EnerCom Analytics. The current price of oil may feel low given the fading memories of $100 per barrel oil back in 2014. But in a longer term historical context, we are on the high end of the curve at today’s prices.
EnerCom Analytics looked at historical monthly crude oil prices between 1974 and August 2016. The chart shows the histogram of prices for three time periods—1974 to 2016, 1990 to 2016 and 2008 to 2016, with the closing West Texas Intermediate crude oil (WTI) price on September 8, 2016 of $47.32 marked for comparison………………………………………..Full Article: Source

Gold price: Hedge fund bears in about turn

Posted on 13 September 2016 by VRS  |  Email |Print

Gold touched a two-year high in July around $1,380 an ounce and year to date the metal is up 25% or $270 an ounce, one of its best annual performances since 1980.
Large scale gold futures and options speculators or “managed money” investors such as hedge funds were wrong-footed by the negative employment and ISM numbers and had been positioning themselves for further declines in the gold price in the run-up to Federal Reserve rate hikes later this year………………………………………..Full Article: Source

Commodities: Rising fortunes

Posted on 12 September 2016 by VRS  |  Email |Print

Gold could reach US$1 500/oz by the end of this year and $1 650/oz by 2021 as global political and economic fears show no signs of abating and US interest rate hikes are likely to be “slow and low”, Afriforesight chief energy economist and CEO Charles Kieck says.
Gold is one of the commodities that Afriforesight is most bullish about over the next five years, though its economists are also forecasting steady and gradually improving prices for some steel-making materials and platinum group metals (PGMs)………………………………………..Full Article: Source

New Reality for Oil: Steadier Prices Reflecting Role of Shale Producers

Posted on 12 September 2016 by VRS  |  Email |Print

Investors shift to shorter-term bets on crude, as price range of roughly $40 to $50 a barrel has held for months. After a long period of boom or bust, the new reality for oil prices is a narrower trading range that is frustrating many longer-term investors but has eased some pressure on big oil companies.
U.S. oil prices are entering their sixth month of trading roughly between $40 and $50 a barrel. Many investors are betting the market may be choppy but will remain in that range through year’s end………………………………………..Full Article: Source

Oil prices surge as US burns through crude supply at record rate

Posted on 09 September 2016 by VRS  |  Email |Print

Tropical storms and Hurricane Hermine combined to slow the movement of oil tankers and shut in offshore drilling, forcing the U.S. oil industry to dip into its massive oversupply at the highest rate for this time of year.
In the past week, the industry used 14.5 million barrels in storage, largely from the East Coast and Gulf Coast, according to government data. Analysts blamed wind and rough seas resulting from Gaston, Hermine and other storms that have impeded ships with cargoes headed for U.S. refineries………………………………………..Full Article: Source

Gold Prices Reverse Course as Dollar Gains

Posted on 09 September 2016 by VRS  |  Email |Print

Gold prices fell on Thursday after the U.S. dollar strengthened and the European Central Bank left interest rates unchanged. Gold for December delivery settled down 0.6% at $1,341.60 a troy ounce on the Comex division of the New York Mercantile Exchange, reversing course after trading as high as $1,352.50 earlier in the session.
The drop marked the second consecutive day of losses for the precious metal. The ECB’s decision to keep rates unchanged sparked selling in government bonds and a rise in yields, which put pressure on gold prices, said Tai Wong, head of base and precious metals trading at BMO Capital Markets………………………………………..Full Article: Source

ABN Amro rethinks gold prices after tepid summer

Posted on 09 September 2016 by VRS  |  Email |Print

Gold has risen just 0.8% in 2016’s third quarter so far. That’s a far cry from the 30% rise seen in the year’s first half- the metal’s strongest first half since the 1980s. As a result, ANB Amro’s metal strategy team has had a little rethink.
Third-quarter performance has been “disappointing,” its coordinator Georgette Boele wrote. “We had expected a stronger rally for several reasons,” she went on. Like many other market watchers the Dutch bank had expected more immediate fallout from June’s Brexit vote………………………………………..Full Article: Source

China’s ferrosilicon prices stay high while offers move down in Japan

Posted on 09 September 2016 by VRS  |  Email |Print

While Chinese ferrosilicon offers remained high from rising Chinese semi-coke prices, offers heard have moved lower in Japan on thin trade, sources said. The Chinese 75% Si ferrosilicon price assessment was unchanged week on week at $1,000-$1,040/mt FOB China Thursday.
Meanwhile, Platts assessed spot Japanese import price of 75%-Si ferrosilicon at $950-$990/mt CIF Japan Thursday, down from $950-$1,050/mt last week………………………………………..Full Article: Source

Gold ETF Impact on Price ‘Intuitive’ Says SocGen as Euro Gains Before ECB News

Posted on 09 September 2016 by VRS  |  Email |Print

Gold prices held shy of 3-week highs in London on Thursday, trading at $1347 per ounce as the US Dollar fell near 2-week lows against the Euro ahead of today’s European Central Bank decision on interest rates – now negative for commercial banks using the ECB’s deposit facility – and quantitative easing.
Silver retreated from yesterday’s near 4-week highs at $20.13 per ounce, recovering half of an overnight 40 cents drop. Wednesday’s new all-time high global stockmarkets saw the giant SPDR Gold Trust shrink by half-a-tonne to just less than 952 tonnes as stockholders liquidated shares………………………………………..Full Article: Source

Here’s what could lead to an oil price spike

Posted on 08 September 2016 by VRS  |  Email |Print

Oil prices have continued to languish below $50 per barrel as a glut of crude oil and gasoline persist even as global demand continues to rise. The IEA still predicts that oil consumption will expand by another 1.4 million barrels per day in 2016, while production stagnates.
That dynamic suggests that the market is converging towards some sort of balance, although the speed with which that takes place is hotly debated. But in the short-term the record levels of crude oil and refined products sitting in storage have prevented oil prices from rebounding………………………………………..Full Article: Source

Iraq needs to review upstream contracts in line with oil prices: Oil minister

Posted on 08 September 2016 by VRS  |  Email |Print

As Iraq continues to pump record crude oil levels, oil minister Jabbar al-Luaibi, stressed Wednesday the need to review its upstream contracts with international oil companies to account for changes in the oil price.
Luaibi met a delegation from Italian oil company Eni led by head of exploration, Antonio Villa, in Baghdad, to discuss his plans for the sector in 2016 and 2017, which he said would focus on the small undeveloped fields in the south of the country. He emphasized that his office is working to overcome the obstacles and difficulties faced by oil companies operating in Iraq, adding that it “will open a new page in the development of the oil sector” in a statement released Wednesday………………………………………..Full Article: Source

Top forecaster lowers gold price predictions

Posted on 08 September 2016 by VRS  |  Email |Print

Underlying trend is still in tact but there’s little upside for gold from current levels. Georgette Boele of ABN Amro in a new research note dated September 6 says the last couple of days notwithstanding the gold rally is running out of steam and that gold has underperformed despite the many factors working towards its advantage:
First, we had expected a larger Brexit fallout on financial markets reflected in negative investor sentiment. As a result, investors would move into gold (and to a lesser extent silver) for safe haven reasons. In fact, this did not materialise as investor sentiment on financial markets improved also helped by the recent stronger-than-expected UK data………………………………………..Full Article: Source

Gold price to reach new heights on increased global stimulus, negative rates

Posted on 08 September 2016 by VRS  |  Email |Print

Gold’s rebound from three month lows this week demonstrates the increased disdain for sovereign debt that charges lenders a fee instead of the other way around. That, combined with the prospect of further stimulus, which in reality is just the fabrication of more cash and credit from thin air for the exclusive benefit of the world’s financial institutions, is causing a massive downward valuation in purchasing power in all currencies in the future.
The argument against gold by advocates of government debt has always been that “gold offers no yield.”……………………………………….Full Article: Source

Ignore the Fed Hype, Gold Prices To Rise – Gerald Celente

Posted on 08 September 2016 by VRS  |  Email |Print

The way market participants are pricing in U.S. rate hikes seems to be following a similar pattern as it did in June, according to one longtime trend forecaster, and if history repeats itself, gold stands to gain.
“[J]ust as we had forecast back in June that there would be no interest-rate hike despite Yellen’s statement to expect one ‘in the coming months,’ so too we forecast no rate hike until after the U.S. presidential election… if at all this year,” notes Gerald Celente, publisher of the Trends Journal. Gold continues to be sensitive to shifting rate-hike expectations, however, since the weak jobs data from last Friday, prices have recovered………………………………………..Full Article: Source

Report shows low commodity prices weighing on U.S. producers

Posted on 07 September 2016 by VRS  |  Email |Print

Declining commodity prices weighed on U.S. farmer sentiment during August, according to the Purdue University/CME Group Ag Economy Barometer. Producer sentiment fell 17 points between July and August to 95, the largest one-month decline since November 2015.
The Purdue University/CME Group Ag Economy Barometer is a nationwide measure of the health of the U.S. agricultural economy. On the first Tuesday of each month, the Ag Economy Barometer provides a sense of the agricultural economy’s health with an index value. The index is based on a survey of 400 agricultural producers on economic sentiment each month………………………………………..Full Article: Source

Are Oil Prices Poised to Go Higher Next Year? (Video)

Posted on 07 September 2016 by VRS  |  Email |Print

Jason Schenker, Prestige Economics president and chief economist, discusses the outlook for OPEC output and oil prices with Bloomberg’s David Gura and Vonnie Quinn on “Bloomberg Markets.”.………………………………………Full Article: Source

Silver Surge Continues For Fifth Day; Settles 4% Higher

Posted on 07 September 2016 by VRS  |  Email |Print

Silver is continuing its winning streak with the metal is up 4%, surging back towards $20 an ounce on Tuesday. December silver futures were up $0.772 at $20.19 an ounce. In contrast, gold was up 2% on the day with December Comex gold last up $28.80 an ounce at $1,355.60.
Frank Holmes, chief executive officer of U.S. Global Investors, says he is liking silver, a lot. He said it is his play pick this week, as silver has outperformed gold in the last two weeks, erasing the shift after the latest Federal Reserve minutes. Both gold and silver ended the U.S. day session sharply higher and hit three-week highs………………………………………..Full Article: Source

China ‘must open up further’ to become commodity price-setter

Posted on 06 September 2016 by VRS  |  Email |Print

China’s influence on the commodities market have grown in recent years but it must do more to open up its economy before it can become a price-setter, panellists at the FT Commodities Asia Summit said here.
Chinese demand has driven commodity prices for several years and this trend will continue, Craig Pirrong, professor of finance and energy markets director of the Global Energy Management Institute at the Baur College of Business – part of the University of Houston – said on Monday………………………………………..Full Article: Source

Iron ore prices dip as G20 agrees to work on cutting back steel glut

Posted on 06 September 2016 by VRS  |  Email |Print

The iron ore price has dipped as China agreed to work on reducing steel exports after the G20 meeting in Hangzhou. Iron ore lost 0.3 per cent to $US58.80 overnight, according to The Steel Index, from $US59 the previous day. The commodity has risen only twice in the past nine trading sessions.
Global leaders at the G20 summit reached an agreement acknowledging that overcapacity in the steel industry is a global issue, although some nations continue to blame China for the bulk of the problem………………………………………..Full Article: Source

OPEC’s Indonesia is ‘comfortable’ with crude oil prices at $40-45 per barrel

Posted on 05 September 2016 by VRS  |  Email |Print

Indonesia’s finance minister Sri Mulyani Indrawati told CNBC she was optimistic her country could receive a ratings upgrade this year — despite oil being pinned below $50, levels at which she said her country is generally “comfortable.”
Despite the low price of crude walloping other OPEC nations, Indonesia, which is part of the G-20 group of the world’s biggest economies, is managing to ride out the crisis. It has a coveted investment grade credit rating from Moody’s Investors Service and Fitch Ratings, but not yet from Standard & Poor’s………………………………………..Full Article: Source

Here’s Why Oil Could Rally Back to $100 per Barrel

Posted on 05 September 2016 by VRS  |  Email |Print

A combination of waning oil discoveries, a decline in new projects, and a big spike in demand over the next ten years should fuel a massive bounce in oil prices. Don’t give up on crude oil.
I know black gold’s roller-coaster ride has been a frustrating one for many investors. Oil crept back toward $50 per barrel in mid-August only to tumble lower again at the close of the month, but cost-saving decisions made over the past couple years as the commodity languished well below its peak are going to send oil roaring back in a big way over the long term………………………………………..Full Article: Source

Saudi Arabia raises oil prices amid signs of growing demand

Posted on 05 September 2016 by VRS  |  Email |Print

Saudi Arabia, the world’s largest crude exporter, has raised pricing for October oil sales to Asia and the United States in a sign of strengthening demand.
The state-owned Aramco increased its official selling price for Arab Light crude to Asia by 90 cents a barrel, to 20 cents below the regional benchmark, it said on Sunday. The company had been expected to raise Arab Light prices by 50 cents a barrel, to 60 cents less than the benchmark for Asian buyers, according to the median estimate in a Bloomberg survey of seven refiners and traders in the region………………………………………..Full Article: Source

The Gold Price Hinges on this Federal Reserve Decision

Posted on 05 September 2016 by VRS  |  Email |Print

Up one day. Down the next. Financial markets have been crazy this year. The volatility has been difficult to swallow. The uncertainty has benefited none other than, gold. The yellow metal is up about 26.3% from its December 2015 low.
Most gold stocks have outperformed the spot price. That’s because they were trading, on average, 95% below their 2011 highs. The average gold stock is up 110% this year. The best gold stocks have gone up three to five times already…or more. The question is, with gold having now pulled back 3.78% from the July high, what’s next?……………………………………….Full Article: Source

The Real Reason Gold Is Up 25% In 2016

Posted on 05 September 2016 by VRS  |  Email |Print

Precious metals are a top performing asset in 2016. Here is a quick snapshot of gold and silver performance versus other major asset classes around the globe year to date. Question: What is behind the massive outperformance in gold and silver in 2016? Answer: Uncertainty.
Uncertainty is the main driver for gold buyers this year, and that encompasses a great deal of macro-economic, monetary and political concerns. Here is a short list of factors that have unsettled global money managers worldwide in 2016………………………………………..Full Article: Source

The trouble with rising zinc prices

Posted on 05 September 2016 by VRS  |  Email |Print

Higher output and the increase in zinc prices are a good combination but rising output may also test the resilience shown by zinc prices. Hindustan Zinc Ltd’s investors may have mixed feelings about the increase in zinc prices. Since July, zinc’s spot price on the London Metal Exchange are up by 10%; in contrast, copper is down by 5.8% and aluminium is down by 4.8%.
A repeat of the June quarter may be underway, when zinc prices rose by 12.8%, doing much better than the other two metals. So why should Hindustan Zinc’s investors not be happy?……………………………………….Full Article: Source

Iron ore price lifts despite bearish forecasts

Posted on 05 September 2016 by VRS  |  Email |Print

The iron ore price has bounced back from a string of recent declines, despite a fresh warning that the commodity’s current level is unsustainable. Iron ore rose 1 per cent to $US59 in the most recent session, from $US58.40 the previous day, according to The Steel Index.
The increase marked only the second rise for the steelmaking ingredient in the last eight trading sessions, as it eases back from the recent three-and-a-half month peak of $US61.80 that it reached last month………………………………………..Full Article: Source

Commodity prices signal improved economy

Posted on 02 September 2016 by VRS  |  Email |Print

The financial services firm pointed to recent readings from the Reserve Bank of Australia’s (RBA) commodity price index, with Fiducian investment manager Conrad Burge saying this could cause a turnaround in the country’s terms of trade.
“The RBA index of commodity prices actually picked up somewhat in July and as a result, national income measures, which reflect ‘the real purchasing power of income generated by domestic production’ could also now be moving up once again after a long period of weakness,” he said………………………………………..Full Article: Source

Tired of cheap oil, Saudis eye price boost to drive Aramco IPO

Posted on 02 September 2016 by VRS  |  Email |Print

Two years after triggering an oil price war, Saudi Arabia has seemingly had enough of cheap crude amid budget pressures, fear of a future supply shortage, and as it seeks to offload a stake in state-owned producer Aramco.
The change in tone comes as OPEC and other producers such as Russia may resume talks on stabilizing output when they meet in Algeria later this month, after a similar effort to boost oil prices collapsed in April due to Saudi-Iranian tensions. “The Saudis are going to Algeria for a freeze,” said a source in the Organization of the Petroleum Exporting Countries who is familiar with the matter and declined to be identified………………………………………..Full Article: Source

Mexico Locks in Oil Price for 2017 at $42 Per Barrel

Posted on 02 September 2016 by VRS  |  Email |Print

Prescient hedge or foolish waste of money? Recent history has been on Mexico’s side on that one. As a significant oil producer, Mexico’s oil price hedging program has been the worst kept secret in the market recently, although it has been going on for a dozen years according to Reuters.
When it started, disclosure requirements were more lax and the volumes were lower making it easier to keep it under wraps, but the Dodd-Frank Act and success of the program has resulted in larger volumes that just can’t be kept under wraps. The 2015 hedge netted Mexico a record windfall of more than $6 billion last year as oil prices continued a three-year slide………………………………………..Full Article: Source

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September 2016
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