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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

Oil price outlook cut as doubts grow over output freeze: Reuters poll

Posted on 01 September 2016 by VRS  |  Email |Print

Oil analysts have cut their price forecasts for the first time since February, as the prospect of the world’s largest producers agreeing to freeze output dims and U.S. production shows signs of gradually picking up.
After five consecutive months of upward revisions, the 34 analysts and economists polled by Reuters forecast Brent would average $45.44 a barrel in 2016, slightly lower than last month’s forecast of $45.51. The North Sea benchmark has averaged $42.59 so far this year, having ricocheted from a near-13-year low of $27.10 in January to an eight-month high of $52.86 in June this year………………………………………..Full Article: Source

Saudi Arabia Burns Through Foreign Reserves As Oil Prices Tank

Posted on 01 September 2016 by VRS  |  Email |Print

The Saudis are also running budget deficits attributed to the prolonged oil price down turn. Saudi investors monitor stocks at the newly opened exchange market department at the National Commercial Bank (NCB) in Riyadh on November 12, 2014. The Saudi stock market rebounded last week as markets in the rest of the region fell.
However, the real problem for Saudi Arabia is the more than two year free-fall in global oil prices and a massive loss of revenue. You have to hand it to Saudi Arabia. The Kingdom ruled global oil markets for nearly 40 years, increasing or decreasing production as it willed, playing the role of global oil markets swing producer………………………………………..Full Article: Source

Here are the 3 reasons why gold isn’t $2,000 an ounce

Posted on 01 September 2016 by VRS  |  Email |Print

Gold has surged in 2016, against a backdrop of political uncertainty and consistently low interest rates, but it has not broken past its 2011 high. Gold is up 24% year-to-date, a performance only bettered in the past 12 years in 2011 at the height of the Eurozone sovereign debt crisis.
But, as analysts at Macquarie note, the gold price of around $1,300/oz is still 30% below its all-time high of $1,895. And the real gap is even bigger. Adjusting for US inflation, “that 2011 high is worth over $2,000/oz in today’s money,” Macquarie said in a note to clients………………………………………..Full Article: Source

Gold hits two-month low, but portfolio manager sees a rebound ahead

Posted on 01 September 2016 by VRS  |  Email |Print

Gold has struggled to maintain its levels during the summer as the market has remained flat, but one portfolio manager has a way to play the yellow metal in today’s market environment. Chad Morganlander, portfolio manager at Stifel Nicolaus, encourages investors to look at the gold-tracking ETF (GLD).
“We believe that it will continue to go higher and for the short run,” he said Wednesday on CNBC’S “Power Lunch.” GLD is up 23 percent year-to-date, rallying as gold surged throughout the year………………………………………..Full Article: Source

Iron ore is hovering just below $60 a tonne

Posted on 01 September 2016 by VRS  |  Email |Print

Iron ore markets finished mixed on Tuesday with spot prices for higher grade ore pushing higher while lower grade ore tumbled. According to Metal Bulletin, the price for benchmark 62% fines rose by 0.29% to $59.31 a tonne, taking it’s year to date gain to 36.1%.
At the other end of the spectrum, the price for 58% fines slid by another 1.44% to $46.47 a tonne. It’s now fallen 3.83% since Friday, trimming its 2016 gain to 20.63%. Activity levels picked up on Tuesday, noted Metal Bulletin………………………………………..Full Article: Source

CEO of global energy firm is not ruling out an oil price surge to $100

Posted on 31 August 2016 by VRS  |  Email |Print

Global oil markets could see an increased risk of another major jolt if prices continue to remain at current levels, Tom Albanese, the chief executive of Vedanta Resources told CNBC Tuesday. Recent reports show that discoveries of new oil reserves have dropped to their lowest level for more than 60 years.
The chief of one of the world’s largest diversified natural resources companies implied that this could potentially cause supply shortages. “People are saying there’s no such thing as $100 oil coming again but the longer the prices stay low for this period of time you could see increased risk of a price shock coming in the future,” Albanese said……………………………………….Full Article: Source

Why Oil Market Bulls May Be Misguided

Posted on 31 August 2016 by VRS  |  Email |Print

The dollar strengthened and stocks in Europe and Asia mostly gained as investors continued to digest recent comments from Federal Reserve officials on the prospects for a U.S. interest rate increase this year.
The WSJ Dollar Index, which measures the greenback against a basket of 16 currencies, rose 0.2% Tuesday, putting it on track for its third consecutive session of gains. Higher interest rates tend to make a currency more attractive to investors seeking returns……………………………………….Full Article: Source

Oil prices are poised for a 2010-style rally, says BofA Merrill Lynch analyst

Posted on 30 August 2016 by VRS  |  Email |Print

Crude prices could rise to as much at $70 a barrel during the peak summer driving season next year as the oil market swings from a surplus to a significant deficit, said Francisco Blanch, head of global commodities and derivatives research at Bank of America Merrill Lynch.
In recent weeks traders have been hanging on every word from ministers of petro-states after officials confirmed earlier this month they would speak on the sidelines of the International Energy Forum next month about taking measures to prop up oil prices………………………………………..Full Article: Source

Gold ‘should be $US1,700 an ounce’: Deutsche Bank

Posted on 30 August 2016 by VRS  |  Email |Print

Gold has seen a sell-off in recent days, heading for the longest run of declines since May, trading at $US1319 an ounce. Federal Reserve chairwoman Janet Yellen’s speech at Jackson Hole over the weekend contributed to gold’s latest decline.
Yellen said the case for a US rate increase has strengthened, without specifying whether we would see one in September or ­December. The odds of a September rate rise have risen to 42 per cent, from 22 per cent a week ago, and the odds of a December rate hike soared to 65 per cent, according to Bloomberg………………………………………..Full Article: Source

Price of Silver Soars 45% in H1 2016

Posted on 30 August 2016 by VRS  |  Email |Print

Silver’s price performance soared in the first half of 2016, fueled by increased investor interest in silver as a safe haven asset and as leveraged exposure to gold’s price rally. Between January 4 to July 11, the price of silver increased 44.7%, according to a report by the Silver Institute.
Exchange traded product holdings rose by 44.3 million ounces (Moz), or 7.2%, to a record high of 662.2 Moz. Silver coin sales increased in the first quarter of 2016 by 29% globally, according to the GFMS Thomson Reuters Quarterly Coin Sales Survey………………………………………..Full Article: Source

Manganese ore CIF China price halts uptrend after silicomanganese slides

Posted on 30 August 2016 by VRS  |  Email |Print

CIF China manganese ore prices for the first time in weeks halted an uptrend, after the rally in domestic silicomanganese ended and prices took a downturn. The S&P Global Platts weekly assessment for 44% ores was stable week on week last Friday, at $4.4/dmtu CIF Tianjin, while 37% manganese ores was also unchanged over the same period at $3.7/dmtu CIF Tianjin.
Trading activity was thin last week, according to market participants. “It’s quiet, most people are sold out for the month of September by now, and it’s too early for October prices,” a producer said, adding that offers for October would likely be announced in the first week of September………………………………………..Full Article: Source

Iran and Venezuela cooperate to boost oil prices

Posted on 29 August 2016 by VRS  |  Email |Print

Venezuela’s president said he expects new measures to stabalise oil markets and strengthen OPEC to be announced soon. Nicolas Maduro was meeting with Iran’s foreign minister and said the two nations agreed to cooperate to boost oil prices.
“We continue to build common ground and a new consensus on stabilising oil markets, strengthening industries, strengthening OPEC, to strengthen the closeness and alliance with the production countries of OPEC,” said Maduro in a televised address………………………………………..Full Article: Source

Higher gold price will add 10m annual ounces by 2020

Posted on 29 August 2016 by VRS  |  Email |Print

BMI Research, a division of Fitch, predicts in a new report that gold miners will add 10 million ounces or more than 280 tonnes to global production with average annual growth of 2.7% for a total of 110 million ounces or 3,118 tonnes yearly output by 2020. This represents a slight deceleration in growth rate compared the previous five-year average of 3.2%.
Projects expected to add substantial ounces to global gold production before the end of the decade include Endeavour Mining’s Hounde project in Burkina Faso, Goldcorp and Teck’s Corridor JV in Chile and Torex Gold Resources giant El-Limon-Guajes ramp up to full production………………………………………..Full Article: Source

Gold price drops, but market watchers remain bullish

Posted on 29 August 2016 by VRS  |  Email |Print

The gold price is heading for its first monthly drop since May as the spotlight refocuses on the next United States interest rate hike. But market watchers are still bullish on the precious metal given its safe-haven qualities amid continuing global economic uncertainty.
The gold price - about US$1,325 an ounce as at last Friday - is down 0.8 per cent this month, as the commodity retreats from its high this year of US$1,373 in early July following Britain’s shock vote to leave the European Union………………………………………..Full Article: Source

What next for gold prices?

Posted on 29 August 2016 by VRS  |  Email |Print

Gold was a disaster after it peaked at $1,930 an ounce in September 2011 and then dropped to $1050 in a savage bear market that mauled the gnomes and goldbugs of the Gulf.
However, the yellow metal endeared a bull market in 2016 as gold bullion has risen 24 per cent while the gold miners index fund (GDX) I had recommended in this column has been one of the most profitable investments of 2016, up a fabulous 100 per cent. Gold is $1,325 spot as I write. What next?……………………………………….Full Article: Source

Zinc lifts to 15-month high

Posted on 29 August 2016 by VRS  |  Email |Print

Zinc has hit its highest in 15 months as bearish speculators scrambled to close out positions, though some investors doubt that the hefty gains are entirely justified. Volumes were huge, with zinc turnover on the London Metal Exchange (LME) of more than 17,000 lots, more than double the activity in aluminium, one of the most active contracts.
“Shorts had been building up recently because people were expecting a setback lower, but when stops were triggered, that forced the shorts to cover,” said Gianclaudio Torlizzi, Partner at the T-Commodity consultancy in Milan………………………………………..Full Article: Source

Wheat Prices Fall To Lowest In A Decade

Posted on 29 August 2016 by VRS  |  Email |Print

Fed chair, Janet Yellen’s speech on Friday night failed to rattle commodity markets - even as it helped to push the value of the US dollar higher. In fact she was aided by a speech from Fed deputy chair, Stanley Fischer, who is anything was a bit more certain that the case was there for an increase in US rates - but there were not hints on when that case might become clearer.
As a result commodities were mostly steady to a touch weaker (but not zinc which jumped sharply in London), or wheat which fell to decade lows in Chicago. US oil futures managed to hold on to a modest gain on Friday night, our time, but finished well off the session’s highs as the greenback moved sharply higher………………………………………..Full Article: Source

Iran more willing for Opec action to boost oil price

Posted on 26 August 2016 by VRS  |  Email |Print

Iran is sending positive signals that it may support joint action to prop up the oil market, sources in Opec and the oil industry said. Opec’s third-largest producer has been boosting output after the lifting of Western sanctions in January.
Tehran refused to join a previous attempt this year by Opec plus non-members such as Russia to stabilise production, and talks collapsed in April. Though Iran has not yet decided whether to join a new effort, Tehran appears to be more willing to reach an understanding with other oil producers, the sources said………………………………………..Full Article: Source

Gold to hit $1,600, then $1,800: Scotia

Posted on 26 August 2016 by VRS  |  Email |Print

Gold is having a comparatively torpid summer. The price has hovered around the $1,300 level since late June. This is quite a comedown from the best first-half performance since the 1980s. Still, gold is up about 30% for the year. And there’s no shortage of analysis suggesting that it has more to give.
The fundamental backdrop is well worn. Maybe bond yields are low, or negative, and central banks are printing money. Why not buy precious metals? But the long-term technical backdrop also looks pretty good. In fact, it looks rock solid to Elliot Fishman. He’s Scotia Wealth’s director of US and international trading………………………………………..Full Article: Source

Nickel hits six-week low as Philippines concerns ebb

Posted on 26 August 2016 by VRS  |  Email |Print

Nickel slumped to the lowest in over six weeks on Thursday after worries eased that an environmental crackdown on mines in the Philippines would create shortages of metal. Nickel had surged 32 percent from the beginning of June until it hit a one-year peak in early August as authorities in the Philippines launched a campaign to close mining operations that failed to meet environmental regulations.
“It did feel that the market got ahead of itself looking further ahead than it perhaps needed to,” said Caroline Bain, senior commodities economist at Capital Economics………………………………………..Full Article: Source

Copper Prices Fall to a 2-Month Low, Demand Still Stagnant

Posted on 26 August 2016 by VRS  |  Email |Print

Copper prices fell to their lowest level in two months on the London Metal Exchange Wednesday. Copper started the year bullish, but ever since prices have struggled near $5,000 per metric ton as investors seem unwilling to chase prices higher.
Weaker Chinese imports over the past few months and the bearish calls of some major banks have contributed to the recent price fall. Unlike other base metals, sentiment on copper is still sort of bearish, making this metal the worst performer among its peers this year………………………………………..Full Article: Source

Don’t set too high a hope of $60 for oil

Posted on 25 August 2016 by VRS  |  Email |Print

The pendulum in the oil market has clearly swung in favour of the producers. Opec members have never pumped so much crude — ditto for Russia — but prices zoomed to a two-month high crossing $50 again.
There are a few forces at play here: demand in China and other Asian import stalwarts like Japan and South Korea is holding up, money is starting to flow back into emerging markets as investors look for a higher return on their money. And there is a wider belief Opec and non-Opec countries may actually do something at their informal meeting at the end of September………………………………………..Full Article: Source

Russia Sees Oil At US$50 Till Late 2017

Posted on 25 August 2016 by VRS  |  Email |Print

The Russian Economy Ministry said in a statement it expected crude oil prices to remain stable at their current range of US$45-50 over the next two years, with a sustainable improvement beginning in late 2017.
The latest rally in prices, according to the ministry’s statement, has “a speculative nature” and will not last long. This was proven yesterday when the American Petroleum Institute released its weekly report on inventories, stunning the market with a 4.46-million-barrel buildup, when almost all analysts expected a draw and the only group – polled by S&P – that forecast an increase was much more modest in its expectations, at a build of 200,000 barrels………………………………………..Full Article: Source

Why gold prices soared over 20% in 2016 so far

Posted on 25 August 2016 by VRS  |  Email |Print

Gold has witnessed a spectacular first half this year with a mammoth gain of almost 25 per cent. Global economic concerns, political and economic uncertainty caused by Brexit and loose monetary policy stance of major central banks are some of the factors which have helped pushed gold price to the highest level since 2014.
However, gold price have turned rangebound in last few days as market players await fresh triggers to extend the gains. Gold has been trading in a narrow range above $1300/oz since start of August indicating lack of direction………………………………………..Full Article: Source

Gold price drop triggers mining stocks bloodbath

Posted on 25 August 2016 by VRS  |  Email |Print

Gold struggled on Wednesday losing more than 1% to exchange hands for $1,327 in late afternoon trade in New York. Gold is coming off two-year highs hit early this month and year to date the metal is still up more than 25% or nearly $270 an ounce.
Some of the biggest drivers of 2016 gold price surge have begun to lose steam in recent weeks. Large scale gold futures and options speculators or “managed money” investors such as hedge funds have been scaling back bullish bets recently and the frenzied buying of physically-backed gold ETFs have also moderated……………………………………….Full Article: Source

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

Posted on 24 August 2016 by VRS  |  Email |Print

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

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

Posted on 24 August 2016 by VRS  |  Email |Print

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

Iran signals more willingness for OPEC action to boost oil price

Posted on 24 August 2016 by VRS  |  Email |Print

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

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

Posted on 24 August 2016 by VRS  |  Email |Print

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

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

Posted on 24 August 2016 by VRS  |  Email |Print

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

Oil price retreats as speculative shake-out eases

Posted on 23 August 2016 by VRS  |  Email |Print

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

Gold price must improve to incentivise industry recovery: Holland

Posted on 23 August 2016 by VRS  |  Email |Print

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

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

Posted on 23 August 2016 by VRS  |  Email |Print

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

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

Posted on 22 August 2016 by VRS  |  Email |Print

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

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

Posted on 22 August 2016 by VRS  |  Email |Print

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

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

Posted on 22 August 2016 by VRS  |  Email |Print

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

Gold Price Likely To Go Much Higher On Safe Haven Demand

Posted on 22 August 2016 by VRS  |  Email |Print

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

Iron ore price continues to defy naysayers

Posted on 22 August 2016 by VRS  |  Email |Print

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

Why oil prices just stampeded into bull-market territory

Posted on 19 August 2016 by VRS  |  Email |Print

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

Oil prices break back above $50 a barrel

Posted on 19 August 2016 by VRS  |  Email |Print

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

Oil Price Recovery Likely to Continue

Posted on 19 August 2016 by VRS  |  Email |Print

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

Iron ore price hovers above $US60 a tonne

Posted on 19 August 2016 by VRS  |  Email |Print

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

Copper price is going nowhere

Posted on 19 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

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

Posted on 18 August 2016 by VRS  |  Email |Print

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

Gold prices have nowhere to go but up: Jim Rickards

Posted on 16 August 2016 by VRS  |  Email |Print

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

Gold headed to $1,500

Posted on 16 August 2016 by VRS  |  Email |Print

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

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