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Platinum, Palladium Prices Surge On Supply Worries

Posted on 08 July 2014 by VRS  |  Email |Print

Platinum prices hit a 10-month high last week boosted by supply worries despite an end to the five-month strike in South Africa’s platinum belt. Palladium was trading at close to its highest level since early 2001.
Spot platinum was at its strongest since September at $1,511 an ounce in the pm fix on July 2 on London’s Platinum and Palladium Market although had inched down to $1,503 in the pm fix on July 4. On Nymex, the platinum contract for October delivery settled $32.10 higher at $1,515 an ounce before easing back to close at $1,507.70 on July 3……………………………………..Full Article: Source

Oil Price Stable as Iraq Conflict Continues

Posted on 08 July 2014 by VRS  |  Email |Print

Iraq is one of the world’s top oil exporters, so you would think that a recent attack by militants on its largest oil refinery amid a deteriorating security situation in the country would prompt global fears of oil shortages and spark a spike in prices.
Instead, ​prices are about where they were a year ago, although they have been creeping up in recent months. Why no panic? Iraq’s vast crude supplies are safe for the time being because the bulk of its oil production—about 2.5 million barrels a day—takes place in the south, far from the current insurgency, analysts say……………………………………..Full Article: Source

US is world’s biggest oil producer

Posted on 07 July 2014 by VRS  |  Email |Print

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.
U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report Friday. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids………………………………………..Full Article: Source

Oil Price Fall Shouldn’t Worry BP plc Or Royal Dutch Shell Plc

Posted on 07 July 2014 by VRS  |  Email |Print

Until recently, the price of oil had been making higher highs as unrest in the Middle East continued. However, in recent weeks there has been a sharp fall, with the price of Brent Crude falling from $115 per barrel to under $111 per barrel as Libya announced that it would be increasing its supply to the global energy market.
Of course, as producers of oil, a higher oil price generally means more profit for BP and Shell, as it does not impact upon costs but does help to boost revenue. However, a sharp fall in the oil price does not spell disaster for either company, with them both offering great long-term potential………………………………………..Full Article: Source

Weighing the Prospects for Gold Prices

Posted on 07 July 2014 by VRS  |  Email |Print

The gold bugs are stirring. A 10% gain by the yellow metal this year is rekindling hope among long-suffering bulls that the major bear market that began nearly three years ago finally might be over. They argue that gold will continue to rise because investors will be seeking a hedge against rising inflation, currency fluctuations and geopolitical uncertainty.
Yet according to Duke University finance professor Campbell Harvey —one of academia’s leading experts on gold prices—the odds are poor that the metal will return any time soon to its all-time high in August 2011. That month, the spot Comex gold contract reached an intraday high of $1,929.20, more than $600 above Thursday’s settle price of $1,320.40………………………………………..Full Article: Source

Gold price fixing under review

Posted on 07 July 2014 by VRS  |  Email |Print

London’s century-old gold price fixing, tainted by a rigging scandal and attacked by critics as old-fashioned, goes under the spotlight this week in key talks aimed at modernizing the process. Analysts said that the market price of gold, which is driven by investment and jewellery demand, could climb as a result of an overhaul.
Buyers and sellers of the precious metal will meet in London on Monday to discuss the setting of the global benchmark, which affects the flow of billions of dollars worldwide every day………………………………………..Full Article: Source

Crude oil prices dip as Iraq fears ebb

Posted on 04 July 2014 by VRS  |  Email |Print

The price of oil dropped below $104 a barrel Thursday as the risk of supply disruptions in Iraq continued to recede and two key export terminals in Libya were expected to reopen soon.
By early afternoon in Europe, benchmark U.S. crude for August delivery was down 68 cents to $103.80 a barrel in electronic trading on the New York Mercantile Exchange, its sixth day of declines. On Wednesday, the contract fell 86 cents to $104.48. Brent crude, a benchmark for international oils, was down 61 cents to $110.63 a barrel on the ICE Futures exchange in London………………………………………..Full Article: Source

Gold price to hit $10,000 by 2020-21

Posted on 04 July 2014 by VRS  |  Email |Print

US forecaster Bo Polny has predicted that the price of an ounce of gold will hit US$2000 by the year end, rising to $10,000 by the end of 2020-21. Polny found fame by predicting the top for the gold price at $1900 and the bottom at $1180. He is apparently a student of WD Gann, the legendary futures trader who became a self-made millionaire.
Polny reasons that gold is in a 21-year bull cycle, with three 7-year mini-cycles within that. According to Polny we’re entering the third cycle now. The interview was conducted by Kitco News and can be viewed below………………………………………..Full Article: Source

Kuwait expects oil price to ease

Posted on 03 July 2014 by VRS  |  Email |Print

Kuwait Oil Minister Ali Al-Omair said he expects oil prices to ease following a rise prompted by unrest in oil-producing OPEC members Iraq and Libya. “Markets have witnessed a slight increase recently, but this rise will not last for long as prices will stabilize.
They have already started to ease and return to normal levels,” said Omair, cited by the KUNA news agency. He attributed the prise rise to violence in Iraq and Libya, both key oil producers and exporters in the Organization of Petroleum Exporting Countries………………………………………..Full Article: Source

Gold industry bust at $1 300/oz, says Randgold’s Bristow

Posted on 03 July 2014 by VRS  |  Email |Print

The gold mining industry was fundamentally broke at a gold price of $1 300/oz, Randgold Resources CEO Dr Mark Bristow said. Bristow said the industry was unable to make returns at that low level of gold price range.
The consequences would be a reduction in the supply of gold, which would ultimately push the gold price higher, as physical demand was definitely present. The crystal ball that needed to be studied was the extent of damage the industry would need to experience to reduce supply to drive up the gold price and rescue the rest of the industry………………………………………..Full Article: Source

Signs of Economic Growth Drive Copper Prices Up

Posted on 03 July 2014 by VRS  |  Email |Print

Copper closed at its highest price in more than four months on Wednesday as more signs of economic growth pushed prices for the industrial metal up. Copper for September delivery gained 6 cents, or 1.9 percent, to settle at $3.27 a pound Wednesday. That’s the highest price for the metal since February, according to the data provider FactSet.
A report on hiring from ADP, a payroll processor, said private employers added 281,000 workers last month, another sign the US economy is shaking off a winter slump………………………………………..Full Article: Source

Iraq conflict gives a jolt to oil prices

Posted on 02 July 2014 by VRS  |  Email |Print

Oman crude oil on the Dubai Mercantile Exchange last month reached levels not achieved since last September on renewed tensions in Iraq and the potential threat to oil production.
The DME August-delivery Oman crude contract settled at US$109.44 per barrel, up $2.98 from the closing May price of $106.46 when the July contract settled. The monthly average of the DME, which is used by Oman and Dubai to set their official selling price, was $108.08 a barrel, up from $105.65 in May and also the highest since September. The $2.43 a barrel increase was the largest monthly rise since August, as crude oil prices finally broke out of the narrow trading ranges that had characterised the market this year………………………………………..Full Article: Source

Increase in oil prices over the years have spurred innovations that have led to efficient use of energy inputs

Posted on 02 July 2014 by VRS  |  Email |Print

Oil is a critical source of energy. In the past, a major oil price shock meant devastation for economic growth. “Our obsession with oil prices comes with good reason,” writes Morgan Stanley economist Ellen Zentner. “Abrupt and sharp increases in oil prices have played a key role in precipitating recessions in 1973-75, 1980-81, 1990-91, 2001 and 2008-09.”
Recent turmoil in Iraq has sent oil prices much higher. But economists aren’t ready to freak out just yet. “Over time, however, those shocks to the relative price of oil have spurred innovations that have led to a more efficient use of energy inputs,” continued Zentner………………………………………..Full Article: Source

Gold price set to average $1,290/oz in H2 – Heraeus

Posted on 02 July 2014 by VRS  |  Email |Print

Heraeus sees the gold price averaging $1,290 per ounce in the second half of the year, it said, with the various factors driving the market to keep it largely in balance.
The yellow metal has risen almost 10 percent since the start of the year but this positive development has not been enough to “draw it out of its continual downtrend”, the precious metals group said in a report on Tuesday. ……………………………………….Full Article: Source

SocGen: Iraq supply shock could drive oil price to $150

Posted on 01 July 2014 by VRS  |  Email |Print

The oil price could spike to $150 per barrel briefly if the conflict in Iraq hits operations in the country’s major southern oil fields, Société Générale (SocGen) has warned. A report by the bank noted that this kind of supply shock could affect up to 2.6 million barrels per day of Iraqi oil exports, CNBC reported.
A disruption of this scale could then spark a co-ordinated release of strategic oil reserves by member states of the International Energy Agency, although SocGen acknowledged this was an unlikely event. Meanwhile, Saudi Arabia could also put more oil onto the market to mitigate the impact on the global economy………………………………………..Full Article: Source

Gold price hits 3-month high on softer dollar, Iraq violence

Posted on 01 July 2014 by VRS  |  Email |Print

Gold climbed to a three-month high on Tuesday as a softer dollar and escalating violence in Iraq increased the metal`s appeal, boosting inflows into the top bullion-backed fund.
Spot gold climbed to USD 1,332.10 an ounce, its highest since March 24, and was flat at USD 1,327.41 by 0240 GMT. It gained nearly 1 percent in the previous session. The metal posted its second straight quarterly gain for the quarter that ended on Monday, and June was also its best month since February………………………………………..Full Article: Source

US Gold has possibility of slow return to $1370/85 per ounce: Barclays

Posted on 01 July 2014 by VRS  |  Email |Print

Gold remains elevated above $1300 per ounce and provides a selling opportunity as prices are unlikely to sustain over a longer time frame. Barclays noted that gold prices still have the possibility of a slow return to $1370/85 per ounce levels. Price forecasts: Q2 2014:$1250/oz, 2014: $1250/oz.
Macro environment remains bearish despite recent gains on geo-political tensions whether it be Russia-Ukraine or Iraq. Barclays expects a rise in US payrolls this week by 250,000 which is higher than 217,000 of May………………………………………..Full Article: Source

Commodities Prices: Why Do They Shoot Up And Then Collapse?

Posted on 27 June 2014 by VRS  |  Email |Print

Commodity prices are much more volatile than overall inflation, as I noted in an earlier post, “Commodity Prices: Basics For Businesses That Buy, Sell or Use Basic Materials.” In this article I explain why that is. The “why” will help you figure out other questions, such as “How high?” and “For how long?” and “How deep a collapse?”
Begin with a textbook example, shown on the left panel of the chart. (If you have no recollection of supply and demand charts, scroll down for the “Supply and Demand Chart Explanation.”)……………………………………….Full Article: Source

Rising Commodity Prices Could Hit Consumers’ Wallets

Posted on 27 June 2014 by VRS  |  Email |Print

Get ready to pay more for your Independence Day barbecues this year. Both hog and cattle prices were up this month, with hog futures closing in on an all-time high after paring back gains in April and May. Hog prices have skyrocketed more than 30% over the past year due to a virus that trimmed the U.S. herd by roughly 10%.
Cattle futures are set to close the month at an all-time high on reports of tight supplies heading into the Fourth of July holiday, the most popular day for Americans to grill outdoors, according to the Hearth, Patio and Barbecue Association………………………………………..Full Article: Source

Rising Oil Prices Loom Over World Economic Recovery

Posted on 27 June 2014 by VRS  |  Email |Print

The global economy faces a new threat from an old enemy: oil. A spike in the price of crude foreshadowed economic slumps in each of the last four decades. So economists are worrying because the price of Brent crude, considered the benchmark for the industry, recently reached its highest point in nine months—above $115 a barrel.
The jump in price came amid fresh violence in Iraq, the Organization of the Petroleum Exporting Countries’ second-biggest producer after Saudi Arabia. Brent started the year about $6 cheaper………………………………………..Full Article: Source

So, even gold prices are rigged

Posted on 27 June 2014 by VRS  |  Email |Print

Whether it’s Libor or gold, the story is the same, with Barclays once again at the centre of controversy. On June 28, 2012, the day after Barclays was fined £290 million by Britain’s market regulator for manipulating the benchmark lending rate, Libor, a Barclays customer raised concerns with the bank about the afternoon gold fix. This was set during one of the twice daily telephone gold auctions held by five London-based investment banks — Barclays included, which also acts as a benchmark for gold prices.
The ‘fix’ was declared at $1,558.50, and under an options contract the bank had entered into with the customer, the bank would not have to pay that customer the $3.9 million it would have owed him had the fix been above $1,588.96, boosting its own trading book by $1.75 million………………………………………..Full Article: Source

Two Key Issues That Will Determine Next Year’s Oil Prices

Posted on 26 June 2014 by VRS  |  Email |Print

Rising oil production in the US and slowing oil demand growth in the rest of the world were expected to bring Brent oil prices below $100 a barrel, but supply disruptions in the Middle East and North Africa have kept them from happening.
Now that ISIS is holding substantial territory in Iraq, Raymond James analysts have increased their estimates for 2014 and 2015, but they also warn that there is a huge range of possible prices depending on how Mideast conflicts and US politics play out………………………………………..Full Article: Source

What If the U.S. Set Oil Prices?

Posted on 26 June 2014 by VRS  |  Email |Print

For decades now, the U.S. has essentially had to accept the oil prices set by world markets. Starting in 1973 with the OPEC-driven oil shock, the major producers have been foreign countries. If the U.S. wanted the oil, we had to pay the price. But are things starting to change?
U.S. moves toward allowing exports: Federal policy currently prohibits the export of oil, but today we saw the first crack in that wall: two companies have reportedly received permission to export a specific type of unrefined oil. Although the rulings haven’t been officially announced, and the Commerce Department says there’s been “no change in policy on crude oil exports,” the implications are clear………………………………………..Full Article: Source

China, Singapore vie for Asia gold pricing alternative to London

Posted on 26 June 2014 by VRS  |  Email |Print

China and Singapore are vying to provide feasible gold price benchmarks in Asia, as calls grow in the top consuming region for more localized pricing of the precious metal at a time when the global benchmark is under regulatory scrutiny.
Singapore said at an industry conference on Wednesday it would launch a physical gold contract on an exchange to create a transparent form of pricing. China, at the same conference, said it wanted to have a bigger influence on the global gold market and would like to have its own price ‘fix’………………………………………..Full Article: Source

Major Global Oil Price Shock Unlikely Despite Iraq Violence, says Standard Life

Posted on 25 June 2014 by VRS  |  Email |Print

Global oil prices are unlikely to experience a major shock in the near future despite continuing violence in Iraq, says Standard Life. In a market briefing report for investors, the financial firm said that even if the political situation continues to diminish Iraqi oil production is unlikely to be damaged further.
“After a period of unusual calm in global oil markets, the benchmark ICE Brent oil spot price spiked to just under $116 per barrel (bbl) late last week, its highest level since September last year,” said analysts in a statement………………………………………..Full Article: Source

Rising Oil Price Hits Fragile Importers

Posted on 25 June 2014 by VRS  |  Email |Print

High oil prices are starting to burden emerging economies, sparking concerns that tensions in the Middle East may derail fragile recoveries.
The price of a barrel of Brent crude has risen by more than 5% since June 12, when militants attacked and then overran several cities in major oil producer Iraq, and speculative money is firmly backing yet-higher prices. For economies including India, Turkey and Indonesia, a higher oil price is particularly onerous because they have to import most of the oil used to fuel their economies………………………………………..Full Article: Source

Gold rebounds past $1,300/oz on Iraq crisis, weaker dollar

Posted on 25 June 2014 by VRS  |  Email |Print

After losing investor favor, gold has rebounded past $1,300/oz in recent days due partly to the Iraq crisis, but the market remains cautious about any long-term change in sentiment. ANZ said in a research note Tuesday that gold is also being lifted by a weaker US dollar.
“Gold continues to hold steady as the dollar extends its longest slump in seven weeks in response to the US Fed’s dovish statement, boosting demand for alternative investments,” the Australian bank said………………………………………..Full Article: Source

Gold Near Completion Of Major Pattern, Bullish Trend Emerging?

Posted on 25 June 2014 by VRS  |  Email |Print

Gold price is in the process of completing a large degree sideways triangle towards $1,330-$1,350. Gold price has bounced off $1,240 and as per our daily analysis our short-term target of $1,310 has been achieved.
Gold price short-term trend is bullish as long as it trades above $1,310. I expect a top to be made around $1,340-50 and a reversal to start tha will eventually bring Gold price below $1,000………………………………………..Full Article: Source

Oil Price Seen Rising Faster Than Market Shows on Iraq

Posted on 24 June 2014 by VRS  |  Email |Print

The worsening conflict in Iraq poses a bigger risk to long-term oil prices than traders anticipate, according to banks from Citigroup Inc. and Bank of America Corp.
Brent crude contracts for December 2018 cost $15.20 a barrel less than August, a spread that’s widened by 9.4 percent since the end of May. Violence in Iraq is the biggest risk to new supply this decade from any nation in the Organization of Petroleum Exporting Countries, the International Energy Agency said June 13………………………………………..Full Article: Source

7 Global Consequences Of Soaring Oil Prices

Posted on 24 June 2014 by VRS  |  Email |Print

Crude oil prices in the U.S. and around the world are hitting highs last seen in September amid the ongoing crisis in Iraq as terrorist group Islamic State in Iraq and Syria (ISIS) seizes cities and oil refineries in their march toward Baghdad. Here are seven ways that rising oil prices will impact global economies:
1. Growth in the euro zone, dragged down by France and Germany, is grinding to its slowest pace in six months, according to a June survey released Monday. About 5,000 companies across the currency area and in the manufacturing and services sectors reported higher input prices and specifically higher oil prices as “a key cause of rising costs,” according to survey compiler Markit………………………………………..Full Article: Source

Oil price risks put global inflation back in focus

Posted on 23 June 2014 by VRS  |  Email |Print

Iraq will be foremost in investors’ minds in the coming week as oil price risk has returned to markets, complicating the task for central banks, whose policies are beginning to diverge for the first time since the global financial crisis.
Oil prices neared nine-month highs late last week, touching $115 a barrel, and the advance of militants in Iraq – the second-largest OPEC producer – is destabilizing oil markets. That has implications for inflation in the United States and Europe, as well as Asia’s export-oriented economies that are large net importers of oil………………………………………..Full Article: Source

$50 jump in oil prices could stall U.S. economy

Posted on 23 June 2014 by VRS  |  Email |Print

The record levels reached by the stock market this week have been tainted by just how marginal the gains have been. The S&P 500 closed at all-time highs three times in a row this week, gaining just over 1% by Friday. The weekly gains now resemble daily gains of yesteryear. In fact, the benchmark index has not had a daily move of more than 1% for more than two months. Still, the stock market is on track for solid monthly and quarterly gains barring a catalyst that may result in a long-awaited pullback.
Several such catalysts, such as sectarian war erupting in Iraq and consequently a sharp rise in oil prices, continued tensions between Ukraine and Russia and the Federal Reserve policy meeting were brushed off by investors in equity markets in the past week………………………………………..Full Article: Source

Keep Eye On $1,300/Oz To See If Gold Rally Has Legs

Posted on 23 June 2014 by VRS  |  Email |Print

Gold prices rose to their highest level since mid-April this week and market participants are keeping a close eye on $1,300 an ounce to see if the metal can stay above this psychologically important level.
August gold futures rose Friday, settling at $1,316.60 an ounce on the Comex division of the New York Mercantile Exchange, up 3.3% on the week. July silver rose Friday, settling at $20.949 an ounce, up 6.6% on the week………………………………………..Full Article: Source

Analysts Question Whether Gold Prices Can Hold Above $1,300

Posted on 23 June 2014 by VRS  |  Email |Print

Analysts and commodity traders continue to keep an eye on gold’s psychologically important $1,300-an-ounce level and prices start the week on a relatively softer note. To start the week, electronic trading of Comex August gold futures opened the Sunday North American evening/Monday Asian session at $1,314.90 an ounce, down from Friday’s pit close of $1,316.60 an ounce.
Although activity has been light, gold prices have been under fairly consistent selling pressure since the opening of Asian markets. As of 8:00 p.m. EDT, August gold was trading at $1,314.20 an ounce, down $2.40 or 0.18% on the day……………………………………….Full Article: Source

Commodities Climb to Highest Since August as Oil Rallies on Iraq

Posted on 20 June 2014 by VRS  |  Email |Print

Commodities rose to a nine-month high as crude advanced after a government report showed U.S. inventories shrank and amid concern that violence in Iraq will disrupt supplies from OPEC’s second-largest producer.
The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 raw materials increased as much as 0.3 percent to 665.5475, the highest level since Aug. 29. The gauge added 2.4 percent this month and was at 665.3918 by 12:44 p.m. Singapore time today. West Texas Intermediate oil climbed as much as 0.5 percent in New York………………………………………..Full Article: Source

Will the Iraqi Siege Cause Oil and Gasoline Prices to Spike?

Posted on 20 June 2014 by VRS  |  Email |Print

Should we be worried about a major spike in oil prices—and summer gas prices—because of the sectarian conflict in Iraq? It’s an important question in the markets right now, because every $10 increase in the price of oil shaves 0.5 percent of global growth. I’m cautiously optimistic for the moment that the answer will be: no.
Oil, as I’ve written before, is amongst the most fear driven commodities. Supply and demand are supposed to rule markets, but every time there’s a major conflict in the oil rich Middle East—from the Iranian revolution to the Gulf War—prices go up about 30 percent higher than they should be, regardless of the facts on the ground………………………………………..Full Article: Source

4 Things To Consider When Oil Prices Rise

Posted on 20 June 2014 by VRS  |  Email |Print

Industrial commodities. The current increase in the price of oil is obviously related to the turmoil in Iraq, and concerns that ISIS will disrupt the country’s oil production. As a result, the CRB raw industrials commodity spot price index has been falling recently. The price of gold hasn’t budged much, suggesting that the risks of higher inflation attributable to the recent rise in oil prices are offset by the risks of a recession.
Stock prices. The S&P 500 was highly correlated with crude oil prices from 2008-2012. Since then, the two have decoupled, with stocks rising to new record highs since March 28, 2013, while the oil price has been moving sideways in a volatile range………………………………………..Full Article: Source

Oil And Gold Prices Surge As Tensions In Iraq Escalate

Posted on 20 June 2014 by VRS  |  Email |Print

With tensions in Iraq escalating to the point that President Obama said he would deploy up to 300 military advisers to the country, investors sent prices of gold and oil surging in Thursday trading. Gold, the classic safe-haven trade, reached its highest point in two months as oil, whose Iraqi production could see pressure if ISIS (Islamic State of Iraq and Syria) militants move the conflict to the south of Iraq, surged to its highest price of the year.
Bolstered by a drop in the dollar and the Federal Reserve’s reticence to raise interest rates — not to mention the situation in Iraq — gold gained 3.7% in Thursday trading and surged to its highest price in two months. Gold futures, which hit as high as $1,322 an ounce during its regular trading session, settled at $1,314.10 for the day, its highest level since April 14. Spot prices, too, closed at $1,314 an ounce………………………………………..Full Article: Source

World Gold Council to fix global gold pricing

Posted on 20 June 2014 by VRS  |  Email |Print

A discussion by gold buyers and sellers across the market on ways to reform or replace London’s global price benchmark, known as the “fix”, will be held next month by the World Gold Council. The discussion comes as gold and silver fixes, along with other commodity benchmarks, face increased scrutiny by regulators in Europe and the United States following the London Inter bank Offered Rate (Libor) manipulation case in 2012.
WGC, a gold mining industry group, said on Wednesday bullion banks, refiners, fund firms, central banks and mining companies had been invited to the forum, with a first meeting scheduled for July 7 in London. Britain’s financial conduct authority will attend the discussion forum as an observer………………………………………..Full Article: Source

If Iraqi oil goes off line, $200 oil is next

Posted on 19 June 2014 by VRS  |  Email |Print

The ISIS rebels have carved out an impressive swath of territory in northern Iraq. This has enormous implications and risks to the world’s oil supplies. Months before the ISIS rebels began their threatening move into Iraq’s southern regions, the International Energy Agency was imploring OEPC to produce and export an additional 1.2 million barrels per day (mbd) more oil by the end of 2014.
The sad fact is that out of 12 OPEC members, eight of them are collectively in decline. When summed together Algeria, Angola, Ecuador, Iran, Libya, Nigeria, Qatar and Venezuela were producing just over 14.5 million barrels per day in early 2005; but are now producing just 11.25 mbd…………………………………..Full Article: Source

Iraq Unrest May Lead to $15-20 Rise in Oil Price in 2 Months: Exporters Body

Posted on 19 June 2014 by VRS  |  Email |Print

The Federation of Indian Export Organisations (FIEO) on Wednesday said the unabated turmoil in Iraq may lead to a spike in oil prices by $15 to 20 a barrel in the next couple of months, adding to inflation woes and jacking up India’s oil import bill.
India imports about 25 million tonnes of oil from Iraq each year. Militants pressing a major offensive in Iraq attacked Iraq’s biggest oil refinery on Wednesday, pushing up Brent for August settlement to about $113.60 a barrel on the London-based ICE Futures Europe exchange…………………………………..Full Article: Source

Reform or die: Gold price fix under pressure

Posted on 19 June 2014 by VRS  |  Email |Print

The 117-year-old London Silver Fix is nearly dead. Is its younger but more illustrious sister going the same way? That was the question being asked in the gold sector on Wednesday. In a move that caught some off guard – not least the London Bullion Market Association, whose members oversee the benchmark price – the World Gold Council said it had convened a forum to discuss the future of the 95-year-old gold fix.
The meeting, which is expected to involve everyone from mining companies to exchange traded funds, will explore “modernisation” of the benchmark, which was “imperative to maintain trust across the industry”, the WGC said…………………………………..Full Article: Source

Commodities Prices Point To Bottoming Euro-Zone Inflation

Posted on 18 June 2014 by VRS  |  Email |Print

Fears that the euro zone could be sliding into deflation might be short lived, if commodity prices continue to rise as they have done so far this year.
That’s because, by European Central Bank President Mario Draghi‘s reckoning, some 80% of the decline in euro zone inflation since 2011 can be accounted for by falling commodity prices. But with commodity prices picking up, that deflationary pressure should start to fade………………………………………..Full Article: Source

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Gold holds above $1,270, eyes on Fed

Posted on 18 June 2014 by VRS  |  Email |Print

Gold was trading in a tight range on Wednesday as a firmer dollar and outflows from bullion funds sapped demand, with many investors waiting for the Federal Reserve to conclude its two-day policy meeting before placing big bets on the metal.
Spot gold was little changed at $1,270.94 an ounce by 0028 GMT, after ending flat in the previous session. The metal hit a three-week high of $1,284.85 on Monday due to violence in Iraq, but prices have since fallen back………………………………………..Full Article: Source

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Global trends for commodities prices is positive

Posted on 17 June 2014 by VRS  |  Email |Print

For the last fortnight, global market sentiments were largely positive in the start of fortnight owing to number of factors. Major factors like US unemployment rate been seen below the US Federal Reserve target of 6.5 percent along with European Central Bank (ECB) cutting the minimum bid rates to 0.15 per cent supported an upside in the markets.
The ECB became the first central bank in the world to charge banks if they holding money which acted as a positive factor. However, in the later part of the fortnight markets began to take correction after unrest in Iraq which threatened to oil supplies………………………………………..Full Article: Source

Where Does the Oil Price Goes From Here?

Posted on 17 June 2014 by VRS  |  Email |Print

The price of oil is trading near nine-month highs as the situation in Iraq remains febrile. Oil market analysts Monday described the situation as “more persistent than geopolitical scares in Syria and Ukraine,” and said continual headlines would “begin to change the market psychology.” Here are their views on where the price of oil goes from here:
Peter Helles, Commodities Strategist at Bank of American Merrill Lynch: The range of potential outcomes is broad. In our view, the two most likely scenarios are a stalemate or a limited retrenchment of ISIS as the Iraqi army fights back. In both instances, we see Brent in a $105-$115 a barrel range………………………………………..Full Article: Source

BP says oil price at its most stable since early 1970s

Posted on 17 June 2014 by VRS  |  Email |Print

The price of oil is at its most stable since 1970, as a huge increase in US oil production offsets disruption to supply from places such as Libya, according to BP. Christof Rühl, group chief economist, said the world had seen a cumulative 3m barrels a day of supply disruption since the start of the 2011 Arab uprising but that had been “cancelled out” by a similar extra amount of US production.
“There has been an almost perfect match between outages in north Africa and elsewhere and US production growth,” he said. The equilibrium had created an “eerie quiet” in global oil markets………………………………………..Full Article: Source

Why Gold’s Base Price Should Be North Of $2,000

Posted on 17 June 2014 by VRS  |  Email |Print

Even though present Geo-political events in Iraq have now pushed up the price of gold due to Brent Crude hitting a new high in 2014, the value of the yellow metal relative to oil is still way below its historical average. Currently, the price of Brent Crude is trading at $113.35, while gold is at $1,275. This is an embarrassing 11.2 to 1 ratio…. thanks to the manipulation by the Fed and member banks.
We can see the average Gold-Oil Ratios for the past 5+ decades. When the U.S. Dollar was backed by gold, the average gold-oil ratio during the 1961-1970 period was 20 to 1. Which means one ounce of gold could purchase 20 barrels of oil……………………………………….Full Article: Source

Oil Topping $116 Seen Possible as Iraq Conflict Widens

Posted on 16 June 2014 by VRS  |  Email |Print

Brent crude was projected by Wall Street analysts to average as much as $116 a barrel by the end of the year. Now, with violence escalating in Iraq, how far the price will rise has become anyone’s guess.
The international benchmark surged above $114 on June 13 for the first time in nine months as militants routed the Iraqi army in the north and advanced toward Baghdad, threatening to ignite a civil war. The Islamic State in Iraq and the Levant, known as ISIL, has halted repairs to the pipeline from the Kirkuk oil field to the Mediterranean port of Ceyhan in Turkey………………………………………..Full Article: Source

Without Iraq’s oil, prices could hit $150-$200: Pickens

Posted on 16 June 2014 by VRS  |  Email |Print

If Iraq’s oil supply goes offline, crude prices could hit $150-$200 a barrel, T. Boone Pickens, founder of BP Capital Management, said. “That’s where you have to kill demand with price. That’s the only way you can do it, because oil won’t be there,” Pickens said in an interview with “Street Signs.”
Crude hit a nine-month high Friday as fears intensified over the conflict in Iraq and its potential to disrupt country’s the oil supply. U.S. crude—West Texas Intermediate (WTI)—hit a session high of $107.68 a barrel early Friday. Brent rose to an intraday high of $114.69………………………………………..Full Article: Source

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