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Oil Prices Rebound Above $30—Is a Rally Finally Here?

Posted on 26 January 2016 by VRS  |  Email |Print

Oil prices plumbed new lows last week, dropping below $28 per barrel. But oil also closed out the week on a positive note, with huge gains on Thursday and Friday, rallying back above $30 per barrel. The price increase could be a sign that the markets think that oil has been far oversold, that trading this low has been “irrational,” as the head of Saudi Aramco put it last week.
Adding to the upsurge was growing speculation that central banks around the world will take additional action to provide some monetary stimulus amid worrying signs of faltering growth. EU central bank chief Mario Draghi provided the clearest indication yet that his institution may act as soon as March………………………………………..Full Article: Source

Oil price: recovery predicted - but it’s still ‘one for the brave’

Posted on 26 January 2016 by VRS  |  Email |Print

Friday’s oil price rally recommenced overnight in Asia, buoying hopes of a more sustained recovery. International benchmark Brent crude had risen strongly to above $30 a barrel at the end of last week, amid a broader-based market rally prompted by hopes of European Central Bank stimulus.
The worsening cold weather in the US, which saw violent blizzards across the east coast, added to the upward momentum, fuelling the sense that demand for heating oil would increase and pushing the price towards $33………………………………………..Full Article: Source

Gold Prices ‘Target $1200′ Ahead of Fed

Posted on 26 January 2016 by VRS  |  Email |Print

Gold prices edged higher on Monday morning in London, writes Steffen Grosshauser at BullionVault, holding close to a 7-session high at $1107 per ounce as a rebound in Asian stockmarkets faded in European and pre-US trade ahead of this week’s decision on Dollar interest rates from the Federal Reserve.
“If gold can stay above $1100 in the coming days,” reckons Mark To, head of research at Hong Kong’s Wing Fung Financial Group, “it may signal a further rebound, maybe even to $1200 in the coming months.” “We believe the key reason for gold’s weakness is the near-record short [speculative] position in paper markets,” says a note from London bullion bank HSBC, “overriding robust physical demand and an outlook for declining supply………………………………………..Full Article: Source

Copper’s crash to see average price hit lowest since 2005

Posted on 26 January 2016 by VRS  |  Email |Print

Copper prices are expected to see their lowest average in more than a decade this year due to weak demand growth in top consumer China and a supply overhang, a Reuters survey of metal analysts showed.
But 2016 is also likely to see losses come to an end as cuts in mine supply help balance the market. The survey of 32 metal analysts showed the median forecast for prices of the metal used in power and construction at $4,858 a ton this year, the lowest since 2005 when the number was around $3,600 and the commodities “super-cycle” was in its ascendancy………………………………………..Full Article: Source

Oil price swings expected to continue as market sends mixed messages

Posted on 25 January 2016 by VRS  |  Email |Print

The oil price is expected to remain volatile throughout trading this week after recording massive swings over the last week. Supplies remain high around the world as analysts continue to slash their outlook on the oil price, though industry leaders have remained bullish on a price rise.
The oil price staged its biggest two day rally in over seven years at the end of last week, topping off a week of volatility that saw the price of a barrel of Brent crude slip to 12 year lows of just $27.14………………………………………..Full Article: Source

Russia Can ‘Cope With Oil Price Under 20 Dollar Better Than US’

Posted on 25 January 2016 by VRS  |  Email |Print

The chief analyst at Bremer Landesbank, Folker Hellmeyer, published an analysis, according to which Russia and Saudi Arabia will be able to avoid crisis even if the oil price drops up to 20 dollars per barrel.
At the same time, Western countries will find it difficult to cope with such low prices and are likely to find themselves facing certain hardships, German newspaper Deutsche Wirtschafts Nachrichten wrote, citing the expert………………………………………..Full Article: Source

China faces deepening impact from world economy, commodity prices

Posted on 22 January 2016 by VRS  |  Email |Print

The impact on China from the global economy and lower commodity prices is deepening, but the country’s economic fundamentals are good and Beijing will make sure the economy runs within a reasonable range, the cabinet said on Thursday.
The State Council reiterated that the government would tackle over-capacity in the steel and coal sectors first in its campaign to reduce supply gluts, according to a statement on its website. It also said that China should price in risks and challenges from the world economy and commodity values………………………………………..Full Article: Source

The world economy: Who’s afraid of cheap oil?

Posted on 22 January 2016 by VRS  |  Email |Print

Low energy prices ought to be a shot in the arm for the economy. Think again. The world is drowning in oil. Saudi Arabia is pumping at almost full tilt. It is widely thought that the Saudis want to drive out higher-cost producers from the industry, including some of the fracking firms that have boosted oil output in the United States from 5m barrels a day (b/d) in 2008 to over 9m b/d now.
Saudi Arabia will also be prepared to suffer a lot of pain to thwart Iran, its bitter rival, which this week was poised to rejoin oil markets as nuclear sanctions were lifted, with potential output of 3m-4m b/d………………………………………..Full Article: Source

Oil price: fall to $10 a barrel ‘not impossible’, admits BP boss

Posted on 22 January 2016 by VRS  |  Email |Print

Independent analysts predicting the oil price could fall to painful lows is one thing, but when an oil major admits an ultra-bearish forecast is likely, people sit up and take notice. zzzzthe boss of BP, Bob Dudley, told the BBC’s Kamal Ahmed it was “not impossible” the price of oil could fall to $10 a barrel - a forecast made earlier this month by emerging-markets lender Standard Chartered.
In fact, he has predicted “a price $30 to $40 by the middle of the year” and eventually “towards the end of the year, it could be into the $50s”………………………………………..Full Article: Source

Gold price: Four reasons it hasn’t risen more

Posted on 22 January 2016 by VRS  |  Email |Print

While the gold price is having a decent year and optimism is building over its future projection, it has yet to really break free from established price parameters and a ceiling of around $1,100.
The precious metal has risen about three per cent this year, despite December’s rise in US interest rates, which is typically a negative signal. But this “safe-haven” rally comes at a time when equity markets are enduring their worst start to a year ever, with the UK’s benchmark the FTSE-100 ploughing a three-year low. So why hasn’t gold soared?……………………………………….Full Article: Source

Why Gold Prices Will Soar in 2016

Posted on 22 January 2016 by VRS  |  Email |Print

Gold prices were slightly lower today (Thursday) as markets calmed, but we still see gold prices soaring in 2016. In fact, investing in gold is one of the smartest decisions investors can make during this extreme market volatility. But first, here’s what caused gold prices to dip today…
European Central Bank President Mario Draghi kept interest rates unchanged Thursday and didn’t implement any new monetary measures. But he did signal the bank might offer more stimulus at its meeting in March. That stabilized European markets today………………………………………..Full Article: Source

Gold price rise hits buying in China, blunts India demand

Posted on 22 January 2016 by VRS  |  Email |Print

Physical gold demand in Asia slowed this week as prices rose, curbing seasonal buying in China ahead of the Lunar New Year holiday and moving Indian offers to a discount. Spot gold touched a 1-1/2-week high of $1,109.20 an ounce on Wednesday as tumbling equities and oil prices burnished bullion’s safe-haven draw.
“There’s a bit of speculative demand. Some Chinese people are buying with stock markets collapsing, but not huge,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd in Hong Kong………………………………………..Full Article: Source

Miners, stung by commodity price cash, cut costs and debt

Posted on 22 January 2016 by VRS  |  Email |Print

London-listed mining companies have been hit by plummeting commodity prices, forcing them to slash jobs, costs, capital expenditure and dividends.
BHP Billiton shares are at their lowest since January 2005, while Rio Tinto stocks hit levels last seen in March 2009. Shares in Glencore and Anglo American plunged to repeated record lows. Below is a summary of the steps miners have taken so far to improve balance sheets and what they have committed to do………………………………………..Full Article: Source

Oil prices are at the mercy of geopolitics

Posted on 21 January 2016 by VRS  |  Email |Print

Geopolitics and geoeconomics are pounding down on the oil market, and the price seems to have no place to hide. The latest barrage comes this week from the re-entry of sanctioned Iranian oil to the world market, triggered by Tehran’s compliance with the nuclear agreement.
The lifting of sanctions, originally expected to happen in March or April, was sped up to bolster support for President Rouhani in Iran’s upcoming parliamentary elections. As a result, the returning oil will arrive in an already glutted market at a time of maximum seasonal weakness — and when geoeconomic pressures are mounting………………………………………..Full Article: Source

Can the gold price continue to shine?

Posted on 21 January 2016 by VRS  |  Email |Print

After spending the past few years disappointing investors, gold is regaining some shine. The precious metal is the best-performing non-agricultural commodities of 2016, thanks to a number of trends aligning in its favour.
Gold has bounced up many times temporarily during its long-term downward trend that began after the price peaked in 2011. Still, it is undeniable that the gold bugs are gathering………………………………………..Full Article: Source

Oil price to fall further as market could drown in over-supply: IEA

Posted on 20 January 2016 by VRS  |  Email |Print

The oil price is set to fall further this year as supply vastly exceeds demand, with major oil exporter Iran’s return to the market offsetting any production cuts from other countries, the IEA said on Tuesday.
“Can it go any lower?” the International Energy Agency asked in its monthly oil market report. “Unless something changes, the oil market could drown in over-supply. So the answer to our question is an emphatic yes. It could go lower.” The oil price this week hit lows not seen in 12 years, and is currently trading at or below 29 dollars per barrel………………………………………..Full Article: Source

Oil price falls below $28 a barrel - less than cost of an actual barrel

Posted on 20 January 2016 by VRS  |  Email |Print

The use of oil in every part of our daily lives means consumers are dependent on the market. Oil prices affect our daily lives, as consumers, drivers and commuters - but the new 12-year low in the cost of a barrel is an unusual situation.
With the lifting of sanctions against Iran, the market, already oversupplied, is expected to be flooded. It’s the anticipation of this which pushed the price of Brent crude down below $28 - or £19.60 - on Monday………………………………………..Full Article: Source

Why Are Oil Prices So Hard To Forecast?

Posted on 20 January 2016 by VRS  |  Email |Print

For the oil forecasting community, the most recent collapse in oil prices marks one more failure. The long trail of forecast errors includes the market implosions of 1982 and 1986, not seeing the run-up in commodity prices after 2004 and now missing the end of the same commodity boom. For those of us who depend on oil price forecasts, this is a big problem.
Try to forecast the economic outlook for Houston or the Gulf Coast, for example, without a good handle on oil prices. Right now, I am coping with oil price uncertainty by preparing several scenarios for Houston’s economic outlook, mostly conditioned by guessing when and how fast oil prices might recover………………………………………..Full Article: Source

Crude oil could rally more than 35% from here: Societe Generale

Posted on 20 January 2016 by VRS  |  Email |Print

The International Energy Agency renewed concerns about a global oil glut after it said crude oversupply should continue through the end of 2016. The announcement follows the lifting of U.S. sanctions on Iran over the weekend, which experts project will add more crude to the market. Oil prices fell more than 3 percent Tuesday, settling at their lowest level since September 2003.
Despite the overwhelmingly bearish picture for the energy space, one expert maintains his view that we will see oil back above $40 by the end of the year………………………………………..Full Article: Source

Oil price could still be as low as $25 in a year’s time

Posted on 19 January 2016 by VRS  |  Email |Print

Oil prices fell sharply overnight and touched a near 13-year low as the US and EU prepared to lift international sanctions on dormant oil power Iran earlier than expected.
In a market already flooded with excess supply that has pushed onshore reserves to record levels and driven prices ever lower, Iranian exports ramping up – it has pledged to add 500,000 barrels a day immediately and a million within six months – is seen as an extremely bearish signal. International benchmark Brent crude fell to $27.70 overnight, its lowest level since 2003………………………………………..Full Article: Source

Falling oil prices: How are countries being affected?

Posted on 19 January 2016 by VRS  |  Email |Print

Oil prices have fallen to their lowest level since 2003, sinking below $28 a barrel before recovering slightly on Monday. Analysts say the drop has been driven by oversupply, coupled with a fall in demand because of a slowdown in economic growth in China and Europe.
There are fears that the lifting of Western sanctions on Iran could worsen the existing problem, as the country prepares to pump more oil into the market. The effects of falling prices are being felt by economies around the world………………………………………..Full Article: Source

Oil market will take time to stabilize, says Al-Naimi

Posted on 19 January 2016 by VRS  |  Email |Print

S. Arabian Minister of Petroleum and Mineral Resources Ali Al-Naimi said on Sunday it would take “some time” to restore stability to the global oil market in the midst of a glut, but he remained optimistic about the future.
Al-Naimi’s comments come at a time when OPEC member Iran is preparing to raise oil exports after international sanctions were lifted on Saturday. Brent plunged to $28.94 a barrel on Friday, its lowest in 12 years, on the prospect of additional Iranian barrels………………………………………..Full Article: Source

Price of Gold in 2016: Will It Break Out or Melt Down?

Posted on 19 January 2016 by VRS  |  Email |Print

The yellow metal still hasn’t bounced back, but some expect better times this year. Gold suffered another bad year in 2015, falling another 12% to close the year at about $1,060 per ounce. That put the price of the yellow metal at its worst year-end level since 2008 and extended a three-year streak of falling prices for gold.
Looking forward, investors want to know if tough times will continue for gold or whether it will finally post a substantial rebound. Let’s look at some of the things the gold market has gone through lately and what impact it will have on prices in 2016 and beyond………………………………………..Full Article: Source

Why the falling oil price may not lead to boom

Posted on 18 January 2016 by VRS  |  Email |Print

An economic boom usually follows a big drop in the oil price but this time maybe different – indicative not of oversupply but weakness in demand. There was a time when Blue Monday meant a song by New Order. These days it is the third Monday in January, allegedly the most depressing day of the year.
Whether there is any scientific basis for this claim is debatable, but for what it’s worth the argument is that people feel miserable because Christmas is over, the credit card bills are arriving, it’s dark when you go to work in the morning and it’s dark when you head home………………………………………..Full Article: Source

Oil at $30 a barrel

Posted on 18 January 2016 by VRS  |  Email |Print

Don’t thank Obama, the man who makes war against fossil fuels. The big fall off your chair moment during President Obama’s State of the Union address came when he proclaimed: “We’ve cut our imports of foreign oil by nearly sixty percent, and cut carbon pollution more than any other country on Earth. Gas under two bucks a gallon ain’t bad, either.”
Sure, Mr. President. Take a bow for the smashing success of the very domestic oil and gas industry that you have tried to destroy. Even Mr. Obama couldn’t carry this off. The smirk on his face as he sang the praises of an oil and gas industry was unmistakable………………………………………..Full Article: Source

Don’t Blame China For Commodity Price Drops

Posted on 15 January 2016 by VRS  |  Email |Print

Commodity producers worldwide had a long and profitable run of high prices thanks to strong worldwide demand which was largely driven by China. In the past few years prices have fallen as China’s economy slows at the same time as new production hit the markets.
Falling demand and rising supply is a bad combination for producers but it can happen when producers scramble to chase high price and arrive late to the party. Producers and investors should not blame China’s economic weakness for their problems; they are to blame for their current predicament………………………………………..Full Article: Source

Oil price plunge: Risks and rewards

Posted on 15 January 2016 by VRS  |  Email |Print

Just over four years ago, the United States and Europe sanctioned the sale of Iranian oil in an effort to curb Tehran’s nuclear program. Oil was trading at $110 per barrel, and Obama administration officials fretted about how to curb Iran’s exports without causing a price spike.
How quickly things change. This week, crude dropped below $30 per barrel for the first time in 12 years, thanks largely to a boom in U.S. production. Sanctions against Iran will likely be lifted soon, unleashing more oil that will further depress an already glutted market………………………………………..Full Article: Source

Oil Below $10 Already A Reality Canada, With Bitumen At $8.50

Posted on 15 January 2016 by VRS  |  Email |Print

Many analysts predicted that crude oil prices could decline further from $30 per barrel — prices which has not been seen since for over a decade. Canadian oil sand producers are feeling the pain from the continues decline of crude oil prices, with prices there even lower than current crude prices.
Standard Chartered Bank has the most bearish oil outlook among the major banks. The British Bank forecasts the possibility that crude oil prices could crash to as low as $10—which is now happening in Canada. The last time crude oil prices reached as low as $10 a barrel was during the height of the financial crisis in Asia in 1998………………………………………..Full Article: Source

Oil flirting with the $20s gives Opec cause to cut production

Posted on 15 January 2016 by VRS  |  Email |Print

Oil at $20 per barrel is a stark prediction. Continued global oversupply and China’s increasingly unpredictable economy could make it a reality unless members of the Organisation of the Petroleum Exporting Countries can put aside their differences and agree to deep production cuts. It could happen, if major producers outside the cartel such as Russia co-operate.
Brent crude has tumbled by 15 per cent since the beginning of 2016 to around $32 per barrel on January 12 and a number of major international banks have slashed their price forecasts. Morgan Stanley now predicts that crude could crash to $20 per barrel due to the depreciation of the yuan and fresh supplies of crude from Iran. Goldman Sachs foresaw something similar in November. Opec’s smaller members are worried………………………………………..Full Article: Source

2016 Gold Price to Fall 14% Says 2015’s Top Forecaster

Posted on 15 January 2016 by VRS  |  Email |Print

Gold Prices again fell below $1090 per ounce in London trade Thursday, heading for a 1.7% loss from last Friday’s 10-week closing high as European stock markets fell hard and crude oil whipped around $30 per barrel – its lowest price since April 2004.
2016 gold prices will average $970 per ounce, says Bernard Dahdah at French investment and bullion bank Natixis – winner of the 2015 gold forecast competition held by trade association the LBMA – ranging between $900 and $1300. That would mark a 14% drop from last year’s average, and the fourth drop in a row since gold’s annual average peaked in 2012 at $1669 after 11 consecutive gains………………………………………..Full Article: Source

Barclays hacks its 2016 oil price forecast to $37 and says everything supporting a rally has disappeared

Posted on 14 January 2016 by VRS  |  Email |Print

Barclays analysts have slashed their oil-price forecast for 2016 as nothing seems to suggest prices will jump soon. With oil now trading at levels that seemed inconceivable not too long ago, Barclays’ Kevin Norrish and Michael Cohen revised their prior expectations in a note to clients on Monday.
They lowered their forecast for the average price of Brent and West Texas Intermediate crude oil - the international and US benchmarks, respectively - to $37 per barrel this year, down from $60 and $56 previously………………………………………..Full Article: Source

When OPEC cuts output, oil prices will begin to climb

Posted on 14 January 2016 by VRS  |  Email |Print

While the consensus view is the the oil price will go even lower yet, once production is reduced it will start rising again. There’s a very good reason why the price of oil keeps falling – there’s no real need to buy it. For now.
Until the Organisation of the Petroleum Exporting Countries unwinds its current policy of flooding the market with supply, in an attempt to squeeze everybody else out, the price of oil will remain under pressure. Hedge funds will either stick with their current short positions or keep adding to them, emboldened by the fears of deflation – which is also helping to push down bond yields – and a slowdown in China that all feeds neatly into their grand trade………………………………………..Full Article: Source

Russia starts to feel the pain of $30 oil

Posted on 14 January 2016 by VRS  |  Email |Print

Russia should consider selling state banking assets as plunging oil prices continue to batter the recession-hit country’s government budget, Russian Economy Minister Alexei Ulyukayev said on Wednesday.
Speaking to an audience at the Gaidar economic forum in Moscow, the minister said Russian authorities should consider the idea of cutting the state’s holdings in the country’s two largest banks, Sberbank and VTB, Reuters reported on Wednesday………………………………………..Full Article: Source

China Sets Oil Price Floor at $40 to Protect Domestic Supply

Posted on 14 January 2016 by VRS  |  Email |Print

China won’t let fuel prices fall in line with crude below $40 a barrel as the the world’s second-biggest oil consumer seeks to curb pollution and shield domestic producers from oil’s collapse.
The price of fuels such as gasoline and diesel won’t be adjusted as long as crude is below $40 a barrel, the National Development and Reform Commission, the country’s top economic planner, said in a statement Wednesday. Profits from fuel sales below the $40 level will go to a fund to promote energy conservation and security and improve fuel quality, according to the NDRC………………………………………..Full Article: Source

Gold prices will spike 30%

Posted on 14 January 2016 by VRS  |  Email |Print

One of America’s top money managers predicts gold prices will soon spike. Gold will shoot up to $1,400 an ounce, according to Jeff Gundlach, the CEO of big bond house DoubleLine Capital. That would be a gain of about 30% from gold’s current price of $1,090.
Gundlach thinks gold recently hit a bottom. It’s been rallying since the beginning of the year as investors look for safe havens in the stock market sell-off. Lately, his predictions have been spot on. He was one of the first to predict the sharp oil price crash in the fall of 2014 and then the junk bond turbulence of 2015. He has been dubbed the “new bond king.”……………………………………….Full Article: Source

Gold price: does two-day drop mean rally is over?

Posted on 14 January 2016 by VRS  |  Email |Print

Gold prices fell for a second consecutive day yesterday – and are lower again on Wednesday morning – as improved sentiment on equity markets undermined a “safe-haven” rally. Amid a sharp drop on indices around the world since the start of the year, caused by brittle sentiment in China, turmoil in the Middle East and the latest slump in oil, the precious metal had rallied strongly.
After hitting a six-year low of $1,045 an ounce in December, it rose to a high of $1,113 earlier this week and remained at or around $1,100 for four sessions. But traders have gained some confidence as Chinese markets recovered ground on Tuesday and again overnight, triggered by official data revealing exports unexpectedly rose in December………………………………………..Full Article: Source

Commodity Rout Spreading Pain Beyond Energy, Citigroup Says

Posted on 13 January 2016 by VRS  |  Email |Print

Low commodities prices are hurting the very companies that you’d think would benefit from them. The rise in volatility that has accompanied lower prices of materials from oil to copper to corn is making it harder for management of companies across Standard & Poor’s 500 Index sectors to forecast future cash flows, according to Citigroup Inc.
That uncertainty can lead even companies that aren’t commodity producers to decrease investing and expansion, which subsequently crimps sales growth, Citigroup’s Financial Strategy and Solutions Group wrote in a note distributed to clients Tuesday………………………………………..Full Article: Source

Risks point to potential for oil falling to $US10, says StanChart

Posted on 13 January 2016 by VRS  |  Email |Print

Oil prices have become detached from the fundamentals of supply and demand, making a plunge to $US10 a barrel possible, according to Standard Chartered. In afternoon trade in New York on Tuesday, US oil futures plunged as much as 4.7 per cent, falling below $US30 ($42.90) a barrel for the first time since December 2003.
West Texas Intermediate for February delivery fell 97 US cents, or 3.1 per cent, to close at $US30.44 a barrel on the New York Mercantile Exchange. It was the lowest settlement since December 1, 2003. The contract touched $US29.93, the lowest intraday price since December 2, 2003. Total volume traded was 43 per cent above the 100-day average at 2.59pm………………………………………..Full Article: Source

Oil price: predictions of fall to $16 - and even $10

Posted on 13 January 2016 by VRS  |  Email |Print

Oil prices have fallen sharply again – and the latest range of investment bank forecasts has them dropping as low as $10 a barrel before finally bouncing back. Turmoil on the Chinese markets, a strong dollar and more evidence of global supply remaining high despite an already heavily overstocked market prompted oil to fall sharply yesterday to a 12-year low.
International benchmark Brent crude touched a low of $30.43 a barrel before steadying - and it had pared losses to a little below $30.90 this morning in London. At its nadir, overnight oil fell close to 8 per cent from where it had been in London earlier in the day………………………………………..Full Article: Source

No Bottom in Sight for Oil Prices

Posted on 13 January 2016 by VRS  |  Email |Print

The collapse in commodity prices pushed oil futures even lower on Monday and analysts predicted that the slide was far from over, Jad Mouawad reports in The New York Times. Oil prices were at a 12-year low on Tuesday, with West Texas Intermediate near $30 a barrel after a decline of more than 5 percent overnight.
Brent crude was just under $31 a barrel by the Asian afternoon, as The Wall Street Journal reports. The drop in commodities prices is being felt throughout the energy sector and beyond. Saudi Arabia said it was considering selling shares in its state-run oil company………………………………………..Full Article: Source

Why Gold Prices Could Rocket in 2016

Posted on 13 January 2016 by VRS  |  Email |Print

The chaos of the first trading week of 2016 was unprecedented in modern history. There hasn’t been an opening week like that since 1928. Panic is starting to creep in as all U.S. indexes hurtle towards a “classic” 10% correction.
Millions of investors are looking for the exits and a reliable safe haven. And with Middle East tensions flaring and perpetual uncertainty over Chinese markets, millions more are sure to follow. But… all that bad news on the markets is terrific news for gold – and everyone holding it. As those reactions intensify, I think we’ll see gold hit these levels in 2016………………………………………….Full Article: Source

Precious Metals To Retreat in Short Term; Platinum Could See Pop — Mitsubishi

Posted on 13 January 2016 by VRS  |  Email |Print

Gold saw some relief last week on safe-haven demand, hitting a two-month high, while the other precious metals suffered; however, Mitsubishi says the outlook doesn’t look too positive for the precious metals.
“An unusual divergence between gold and the PGMs took place last week as bullion was buoyed by risk-averse mentality as global equities, led by China, plunged lower and geopolitical concerns…came to the fore. Platinum and palladium reverted to their pro-cyclical industrial roles while gold and silver both benefitted from safe-haven buying,” said Jonathan Butler, precious-metals strategist for the company, in a research note Monday afternoon………………………………………..Full Article: Source

Palladium Drops to 5-Year Low as China Demand Concerns Deepen

Posted on 13 January 2016 by VRS  |  Email |Print

Palladium slumped to a five-year low as Chinese car sales increased at the slowest pace in three years, adding to concerns about weaker demand in one of the world’s biggest buyers of the metal. Gold also fell.
With a faltering economy and turmoil in the stock market hurting consumer confidence, China’s vehicle sales rose 4.7 percent last year, the smallest gain since 2012, China Association of Automobile Manufacturers data show. Palladium futures fell as much as 4.8 percent, while platinum, which is also mainly used in catalytic converters that cut harmful emissions, traded near a seven-year low………………………………………..Full Article: Source

Oil price forecast to fall to $20 a barrel, predicts Morgan Stanley

Posted on 12 January 2016 by VRS  |  Email |Print

Leading Wall Street bank says price will keep falling if China’s currency continues its plunge against US dollar. The price of crude oil could tumble to $20 a barrel in the coming months if China’s currency continues to decline against the US dollar, one of Wall Street’s leading investment banks has predicted.
On a day when the cost of crude hit a new 12-year low and edge closer to the $30 a barrel level, Morgan Stanley posted a forecast on Monday of $20-25 a barrel for oil based on movements in currencies………………………………………..Full Article: Source

BofA cuts forecasts for crude oil price in 2016, 2017

Posted on 12 January 2016 by VRS  |  Email |Print

Bank of America Merrill Lynch on Monday lowered its forecasts for crude oil prices for this year and next, amid a global glut in supply that looked poised to continue and a likely swift yuan depreciation in China.
The investment bank cut its 2016 Brent price forecast to $46 per barrel from $50, and lowered its price view for West Texas Intermediate (WTI) to $45 per barrel from $48. BofA said impending Iranian supplies that are about to hit the market, coupled with yuan depreciation, could push oil prices down to the mid-$20s, given the extremely high inventories already………………………………………..Full Article: Source

Crude reckoning: what will oil price slump mean for the global economy?

Posted on 12 January 2016 by VRS  |  Email |Print

Oil hits new low of less than $32 per barrel and could plunge further, increasing pressure on US and Middle East producers. The current oil rout is now worse than any since 1970, with the price of Brent crude slumping from $115 a barrel in the summer of 2014 to an 11-year low below $32.
The slump has roiled global financial markets and oil exporters. But for many of us, cheaper oil is a good thing. However, the strain of cheap crude is beginning to mount. Who will the winners and losers be if oil prices stay low?……………………………………….Full Article: Source

Copper sinks to lowest since 2009 amid China gloom

Posted on 12 January 2016 by VRS  |  Email |Print

Copper prices plummeted on Monday to their lowest in 6-1/2 years as large losses on Chinese equity markets reinforced tarnished prospects for growth and demand in the world’s biggest consumer of industrial metals.
Benchmark copper on the London Metal Exchange traded down 1.6 percent at $4,412 a tonne in official rings. The metal used in power and construction earlier touched $4,381, its lowest since May 2009. Chinese markets have had a rough start to the year, buffeted by the falling yuan, two days of stock exchange suspensions last week and weak factory and service sector activity surveys………………………………………..Full Article: Source

Commodity prices slip anew after worst year since financial crisis

Posted on 11 January 2016 by VRS  |  Email |Print

The commodities hangover after an end to China’s once-voracious appetite for metals, crops and fuels may be here for a while. Iron ore last traded down 1.2 per cent and crude oil is trading at $US33 a barrel.
Still, Chile is expanding its largest open-pit copper mine to dig up 1.7 billion tons of minerals, even as metal prices plummet, India is building railroad lines that crisscross the country to connect underused coal mines with growing urban populations, and here in Australian producers are boosting natural gas production by roughly 150 per cent in the next four years as energy companies are building export terminals to serve dwindling demand………………………………………..Full Article: Source

Pain to gain: Crude prices to triple?

Posted on 11 January 2016 by VRS  |  Email |Print

Oil investors are trying to survive a brutal start to the year. They’re coping with crude prices sinking to 12-year lows as Chinese demand falls and ballooning U.S. stockpiles fuel fear. Relief, however, may be on the way. One top analyst expects prices to triple back into the $90 a barrel range by 2018. At present, few analysts expect crude prices to recover that sharply.
But before the markets get there, the pain could intensify. “It looks like a rough year,” Wolfe Research managing director and senior oil and gas analyst Paul Sankey told CNBC’s “Fast Money” recently. “Our base-case scenario is not for a full-blown recession,” but the firm is “pretty negative” on the year………………………………………..Full Article: Source

The Odd Consequences of the Oil Price Crash

Posted on 11 January 2016 by VRS  |  Email |Print

In the middle of 2014, oil traded for more than $100 a barrel. Today, it is below $35. Traditionally, there would be numerous positives from low oil prices, but many of these have yet to materialize or may no longer be relevant at all. The U.S. shale boom, one of the great American growth stories, appears to be rolling over, and the jobs are drying up.
China, as it is with the vast majority of commodities, is both a dominant force behind growth, and a significant participant in its decline. And for the traditional energy power brokers in the Middle East, the harsh reality of low oil has already begun to destabilize the region………………………………………..Full Article: Source

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