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Oil Prices Sink to Two-Month Low

Posted on 08 July 2016 by VRS  |  Email |Print

Crude-oil prices dropped Thursday on growing concerns that a glut of gasoline is due to persist despite strong summertime driving demand. U.S. oil for August delivery settled down $2.29, or 4.8%, to $45.14 a barrel on the New York Mercantile Exchange.
Brent, the global benchmark, declined $2.40, or 4.9%, to $46.40 a barrel on ICE Futures Europe. Both benchmarks fell to the lowest level since May 10. Gasoline demand usually peaks in the summer as people hit the road for vacation, prompting refineries to buy more crude oil to turn into gasoline………………………………………..Full Article: Source

These 4 Banks Are Bumping Their Gold Forecasts

Posted on 08 July 2016 by VRS  |  Email |Print

UBS has increased its short-term target to $1,400 an ounce. For this year, the Swiss bank has increased its yearly average to $1,280 an ounce, up from $1,225; for the second half of the year, gold analyst Joni Teves said in her note that she expects prices to average $1,340 an ounce.
Commodity analysts at Commerzbank do not see gold’s safe-haven appeal coming to end anytime soon as they increase their year-end forecast by $100 to $1,350 an ounce. The bank also sees more potential for gold as analysts expect the Federal Reserve will not be in a hurry to raise interest rates in these current market conditions………………………………………..Full Article: Source

Gold Prices Pull Back From Two-Year High

Posted on 08 July 2016 by VRS  |  Email |Print

Gold prices fell from a two-year high on Thursday as investors took profits ahead of the release of widely anticipated jobs data on Friday. Gold for August delivery settled down 0.4% at $1,362.10 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as low as $1,352.00 earlier in the session.
June nonfarm payrolls are expected Friday, which could give further clues on the strength of the U.S. economy and affect the likelihood that the Federal Reserve will raise rates this year. A rate increase could weigh on the price of gold, since the precious metal doesn’t bear interest and can struggle to compete against yield-bearing investments when interest rates rise………………………………………..Full Article: Source

Gold Headed For $1500 And This Time It Really Is Different

Posted on 08 July 2016 by VRS  |  Email |Print

Gold has made quite a run and some bears argue that it will correct at least 300 points because of a commodity bear super cycle. Despite the long-term double top pattern in gold, one should not automatically presume that crowd behavior will react in a similar manner.
This time it really is different as the underlying economic fundamentals support higher gold prices. Currently, gold is in the midst of a bullish Fibonacci retracement and its next target is $1500………………………………………..Full Article: Source

How High Is ‘Sky-High’ Silver Price?

Posted on 08 July 2016 by VRS  |  Email |Print

Now that the precious metals’ five-year cyclical bear market is acting like it’s been replaced by a vibrant bull run in the opposite direction (up!), many analysts who chided the ongoing rise in the mining stocks and metals that started in December 2015 are begrudgingly changing their “outlook” so they don’t get left behind.
Some veterans are holding to long-stated targets, while others are raising them as Mr. Market gives us new information. Perhaps the prediction laying claim to the most fascinating “sneaks up and gets you” was uttered by Franco Nevada Mining Corp………………………………………..Full Article: Source

Let’s Explore our Silver Price Forecast in 2016

Posted on 08 July 2016 by VRS  |  Email |Print

Silver prices have now climbed more than 40% in 2016, prompting investors to call for a silver price forecast for the remainder of the year and beyond. Today (Thursday), silver prices have pulled back slightly to $19.77, but we see this as only a short-term slide.
Several factors lead us to an encouraging silver price forecast for the rest of 2016. Let’s take a look. Investors snapped up silver throughout June for several reasons. Investors sought safe-haven assets, particularly precious metals, in the wake of the June Federal Open Market Committee Meeting (FOMC) amid fears that interest rates could be hiked………………………………………..Full Article: Source

Rare-earth prices fall as China postpones purchase plan

Posted on 08 July 2016 by VRS  |  Email |Print

International spot prices for rare-earth metals are declining. At China’s six major suppliers, production costs in mid-June began exceeding bid prices for these key materials that go into smartphones, hybrid vehicles and other high-tech products. At the same time, an upward price trend started losing steam.
The prices of some major rare-earth metals had spiked in May and early June, but even these have started to fall. The price of terbium — which is added to high-performance magnets to enhance heat resistance and is also a raw material in phosphor — has dropped 21% from a month earlier to around $450 per kilogram………………………………………..Full Article: Source

Oil slides but gold hits new 2-year high

Posted on 07 July 2016 by VRS  |  Email |Print

Oil prices continued to slide on Wednesday (6 July) spooked by Europe’s Brexit woes, concerns over the pace of market supply and demand rebalancing, and a relatively stronger dollar. Ole Hansen, head of commodity strategy at Saxo Bank, said Brent was edging closer to the technical price graph support level of $47 per barrel, and WTI crude was rapidly approaching its support level of $45.8.
In a note to clients, Joni Teves, a London-based precious metals strategist at UBS, wrote: “Gold has likely entered the early stages of the next bull run. This trend should now deepen, attracting more participants and encouraging those who have been hesitating to get more involved.”……………………………………….Full Article: Source

U.S. gasoline oversupply pushes crude oil prices lower: Kemp

Posted on 07 July 2016 by VRS  |  Email |Print

U.S. gasoline stocks remain stubbornly high despite record demand from motorists, a situation that will probably force refiners to cut crude processing over the next few months and prioritise production of diesel.
The prospect of reduced refinery processing rates has intensified the downward pressure on crude oil prices in recent days. U.S. gasoline stockpiles have been running above last year’s level since January but the year-on-year build-up has increased rather than lessened as the summer driving season arrived……………………………………….Full Article: Source

Two-Year High on Gold Prices Fueled by Brexit-Spooked Investors

Posted on 07 July 2016 by VRS  |  Email |Print

Gold rose to its highest price in more than two years on Wednesday, as investors piled back into the safe-haven asset after the benchmark U.S. government bond yields hit all-time lows amid renewed market jitters over Britain’s decision to leave the European Union.
Asian share markets turned tail as fears over instability in the European Union returned with a vengeance, sending the pound to three-decade lows and hammering risky assets of all stripes………………………………………..Full Article: Source

Forget gold, silver is on fire and could hit $25/oz. by the end of 2016

Posted on 07 July 2016 by VRS  |  Email |Print

Silver has outshined its sister metal since the U.K.’s decision to leave the European Union sparked turmoil in global equities markets, and the rally could lift the white metal to a three-year high.
Gold and silver futures have reached their highest levels in about 2 years. On Wednesday, gold futures settled at $1,367.10 an ounce, marking their highest finish since March 2014, while silver futures hit a 23-month high of $20.203 an ounce………………………………………..Full Article: Source

Oil price rally is over for 2016, says Vitol boss

Posted on 06 July 2016 by VRS  |  Email |Print

The six-month rally in global oil markets could grind to a halt at a price of $50 a barrel as a string of recent production outages comes to an end, according to the world’s biggest independent oil trading house.
Vitol’s chief executive Ian Taylor said the market may stall at the $50 mark for the rest of the year after a quicker-than-expected recovery, before creeping slowly up to around $60 by the end of next year………………………………………..Full Article: Source

Where Are Oil Prices Going? Watch the Pump

Posted on 06 July 2016 by VRS  |  Email |Print

To learn where oil prices are headed next, some analysts are saying, watch the refined-product markets. Gasoline is typically the star of the energy market in the summer, as consumers fill up their tanks for road trips. But this year, gasoline isn’t just cheap. It’s so cheap that it makes diesel, a fuel that typically sees more wintertime demand, look pricey.
Gasoline futures are recently trading down 5.6% at $1.4281 a gallon on the New York Mercantile Exchange, while diesel futures are down 4.3% at $1.4464 a gallon………………………………………..Full Article: Source

HSBC raises 2016, 2017 gold price forecasts

Posted on 06 July 2016 by VRS  |  Email |Print

HSBC has raised its 2016, 2017 average gold price forecasts to $1,275 per ounce and $1,310 an ounce respectively. And, forecast $1,270 an ounce for 2018. After three years on the backburner, investment demand is again setting the tone and direction for gold prices, it said.
HSBC said investment demand is driving prices and reflects the uncertain macro backdrop, dovish outlook for US interest rates, and appeal of gold in a negative rate environment. These factors will provide support, but the rally may be limited………………………………………..Full Article: Source

Brexit Sends Silver Prices Soaring

Posted on 06 July 2016 by VRS  |  Email |Print

All eyes have been on gold amid this year’s economic uncertainty, but the price of silver is rising even faster, Gazeta.ru reported. The result of the Brexit referendum in the UK has added to economic uncertainty and increased the value of precious metals.
On Wednesday gold futures for August delivery were trading at $1,350.70 per troy ounce, the highest level since mid-March 2014, according to data from Marketwatch. The threat of recession and already high gold price has also led investors to seek another safe haven – silver………………………………………..Full Article: Source

Iron ore price dips as bearish forecasts weigh on commodity

Posted on 06 July 2016 by VRS  |  Email |Print

The iron ore price has inched lower but remains above government forecasts, despite yet another analyst prediction that the commodity is set to fall over the second half of the year.
Iron ore slipped 0.2 per cent to $US55.80 a tonne overnight, according to The Steel Index, a whisker lower than the previous day’s close of $US55.90. Meanwhile, Metal Bulletin pegged the latest price at $US55.93 a tonne, a 0.5 per cent fall from the prior day………………………………………..Full Article: Source

Nickel price swings wildly as it records a nine-month peak

Posted on 06 July 2016 by VRS  |  Email |Print

Fears of lower output from the Philippines has given prices a further boost. The price of nickel swung wildly on Tuesday, rising to its highest level in nine months on worries about possible mines closures in the Philippines before it was hit by flurry of profit-taking and fell by more than 3 per cent.
The metal, which is used to make stainless steel, has been one of the worst-hit commodities during the recent price rout. Weakening demand in China and excess supply saw the price tumble 40 per cent last year and left most of the industry struggling to turn a profit………………………………………..Full Article: Source

Copper slides on producer hedging, rising stocks

Posted on 06 July 2016 by VRS  |  Email |Print

Copper slid on Tuesday after producer hedging, a firm dollar, profit-taking and rising inventories sparked a sharp sell-off, but further losses are likely to be limited due to funds waiting to buy at lower prices.
Benchmark copper on the London Metal Exchange ended down 1.5 percent at $4,817 a tonne. The metal used in power and construction hit a two-month high of $4,960 on Monday, a rise of seven percent since June 9. Traders said higher prices had encouraged producers to take the opportunity to sell future output………………………………………..Full Article: Source

Era of high agricultural prices ‘most likely over’ says OECD

Posted on 06 July 2016 by VRS  |  Email |Print

The recent period of high agricultural commodity prices is most likely over, say the OECD and FAO in their latest 10-year Outlook. But the two organisations warn of the need to be vigilant as the probability of a major price swing remains high.
The OECD-FAO Agricultural Outlook 2016-2025, published today, projects inflation-adjusted agricultural commodity prices will remain relatively flat overall in the coming decade. However, livestock prices are expected to rise, relative to those for crops………………………………………..Full Article: Source

Commodities soar. Silver’s up 50% this year!

Posted on 05 July 2016 by VRS  |  Email |Print

Gold soared to levels over USD 1350 an ounce while Silver moved to over USD 21 an ounce. This is a sharp move for the year, given they had closed 2015 at USD 1060 an ounce and USD 13.83 an ounce. That’s a return of over 50% for Silver in the current year.
The trend is visible across the Commodity space. As per Ole Hansen, Head of Commodity Strategy at Saxo Bank, ‘Apart from grains, all are back in demand following the Brexit vote on June 23. Record low bond yields on the back of raised speculation about renewed central bank action supported metals of all colors. Sugar and coffee found support in Brazil while oil settled down after the initial squeeze and natural gas surged on improved fundamentals.’……………………………………….Full Article: Source

Oil eases as weak demand tempers bullish Saudi energy minister comments

Posted on 05 July 2016 by VRS  |  Email |Print

Global oil prices eased on Monday after comments by Saudi Energy Minister Khaled Al-Faleh that the market was heading toward balance were tempered by slowing demand in Asia, pockets of gasoline oversupply and signs crude output could rise.
Brent crude futures LCOc1 settled down 25 cents to $50.10 per barrel. U.S. crude futures CLc1 were trading down 23 cents at $48.76 per barrel. U.S. markets are closed on Monday for the U.S. Independence Day holiday, so trading remained thin on the day………………………………………..Full Article: Source

$10 a Barrel Oil Coming Soon? Market Expert Warns the Worst is Yet to Come

Posted on 05 July 2016 by VRS  |  Email |Print

A top oil industry analyst issued an editorial this week suggesting that the recovery of the oil market will be short lived, but is he right? Probably not.
In an editorial this week, acclaimed oil market expert Gary Shilling stood by a prediction he made in August 2015 that oil prices would collapse to $10 per barrel citing higher than expected North American fracking outputs and OPEC’s refusal to limit production………………………………………..Full Article: Source

Has the oil price stabilised?

Posted on 05 July 2016 by VRS  |  Email |Print

Oil prices may have stabilised, according to Saudi Arabia and OPEC. The Brent crude benchmark price was US$49.68 a barrel on Friday, after falling 1.8%, but has been trading around US$50 a barrel since early May. Six weeks is a long time in oil land.
That was after prices rose strongly, following a sharp plunge from above US$50 a barrel in November 2015, to less than US$30 a barrel in January 2016. Since then, oil supply appear to be slowly retracting………………………………………..Full Article: Source

Gold prices will hit record high in next 18 months as global bond yields crash

Posted on 05 July 2016 by VRS  |  Email |Print

Gold prices may hit all-time highs in the next 18 months amid low to negative global bond yields, said a fund manager on Monday, joining a chorus of bullish calls on the safe haven commodity.
Despite being a non-interest bearing asset with holding costs, gold was attractive in the current climate where there was little trust in the establishment and its policies as demonstrated by the June 23 referendum in the U.K. when voters chose to leave the European Union, said Swiss Asia Capital’s Singapore managing director and chief investment officer, Juerg Kiener………………………………………..Full Article: Source

Silver Tops $21 for First Time Since ’14 as Investors Seek Haven

Posted on 05 July 2016 by VRS  |  Email |Print

Silver vaulted above $21 for the first time in two years and gold advanced for a fourth day on speculation of more central bank stimulus in the wake of the U.K.’s vote to leave the European Union. Mining shares surged.
Spot silver jumped as much as 7 percent to $21.1377 an ounce and settled at $20.3246 in New York on Monday, according to Bloomberg generic pricing. Spot gold rose as much as 1.2 percent to $1,357.63 an ounce, near a two-year high, and settled at $1,350.79………………………………………..Full Article: Source

Why oil is still headed as low as $10 a barrel

Posted on 04 July 2016 by VRS  |  Email |Print

Back in February 2015, the price of West Texas Intermediate stood at about $52 per barrel, half of its 2014 peak. I argued then that a renewed decline was coming that could drive it below $20, a scenario regarded by oil bulls as unthinkable. But prices did fall further, dropping all the way to a low of $26 in February.
Since then, crude rallied to spend several weeks flirting with $50 per barrel, a level not seen since last year. But it won’t last; I’m sticking to my call for prices to decline anew to $10 to $20 per barrel………………………………………..Full Article: Source

Oil prices likely to rise to US$60

Posted on 04 July 2016 by VRS  |  Email |Print

In the latest in our series featuring fund managers and leading market experts, Mr Tom Nelson, head of commodities and resources at Investec Asset Management, gives his outlook for the volatile oil and commodities market.
Investec is an investment management company that started in South Africa in 1991. It manages approximately US$109 billion (S$148 billion) for clients all over the world. Oil prices plunged to a 12-year low of US$27.88 per barrel in January this year before recovering to US$50 per barrel in June………………………………………..Full Article: Source

Gold prices likely to remain high in the current year due to Brexit

Posted on 04 July 2016 by VRS  |  Email |Print

Gold prices likely to move up further in the current calendar year owing to uncertainties in the global markets as U.K. voted to exit from the European Union. Gold prices shot up to its highest level in three years, in the aftermath of the Brexit referendum, on last Friday, as investors rushed to grab safer assets, leaving equities and other risk assets, which were already facing selling pressure.
The prices of gold hit a three-year peak at around $1,355 per ounce on June 23, and hovering between $1310 and 1,320 per ounce in the international market currently. Earlier the highest price recorded was at around $1,900 per ounce in 2012 which moved down to $1,100 per ounce in the subsequent period, mostly attributed to the sluggish purchase by the central banks……………………………………….Full Article: Source

There’s More To The Gold Price Rally Than Brexit

Posted on 04 July 2016 by VRS  |  Email |Print

Brexit has sparked a rush into safe haven assets, and one of the assets that has benefited most is gold. The price of gold spiked at the end of last week as investors rushed to buy the yellow metal seeking a safe haven while markets around the world collapsed. Over the past 30 days, the price of gold is up about 8.8%, around $106 per troy ounce.
And over the past six months, the price of the yellow metal is up by nearly a quarter, $258 per ounce. Analysts at Credit Suisse believe the gold’s gains this year have been driven by more than just Brexit………………………………………..Full Article: Source

Dubai gold prices forecast to move higher this week

Posted on 04 July 2016 by VRS  |  Email |Print

Gold has continued to gain support from Britain’s decision to leave the European Union, with the precious metal in Dubai currently trading at nearly 2 per cent higher than a week ago. The majority of Investors and other experts in the market expect the bullion’s prices to climb higher this week, as shockwaves from the Brexit vote have yet to settle down completely.
In the latest Kitco gold survey among analysts, traders and market professionals, about seven in ten (73 per cent) of the respondents from Wall Street, as well as 65 per cent from the “main street”, are bullish about gold’s performance this week………………………………………..Full Article: Source

Why Goldman thinks its $50 oil forecast could be wrong

Posted on 01 July 2016 by VRS  |  Email |Print

Most oil market pundits will tell you how hard it is to predict where the black stuff is heading. And while Goldman Sachs is the most influential commodities bank, like pretty much every forecaster, it has been known to get things wrong.
Now it’s said that crude could trade below its $50 forecast in the second half of 2016 due to higher-than-expected output from Organisation of Petroleum Exporting Countries (Opec) member Nigeria, Bloomberg reported………………………………………..Full Article: Source

Gold Logs Best Two Quarters Since 2007

Posted on 01 July 2016 by VRS  |  Email |Print

Gold prices settled lower on the day Thursday but logged its biggest two-quarter percentage increase since 2007, as investors piled into the metal amid global economic uncertainty and the U.K.’s vote to leave the European Union.
Gold futures rose some 24% over the last two quarters, the best two-quarter performance since the fourth quarter of 2007, and advanced nearly 7% in the second quarter. The strong gains come even as futures for August delivery, the most actively traded contract on Thursday, settled down nearly 0.5% on the day, to $1,320.60 a troy ounce on the New York Mercantile Exchange………………………………………..Full Article: Source

Gold Prices Steady as ‘Brexit = Lehmans’, Worst ‘Yet to Come’, Chaotic UK Parliament Debates Lindsay Lohan Tweets

Posted on 01 July 2016 by VRS  |  Email |Print

Gold Prices held tight at this week’s opening level on Thursday in London, trading at $1317 per ounce as the rebound in Western stock markets stalled and the leadership race for both the UK’s ruling and opposition political parties grew yet more fractious. The US Dollar and Japanese Yen eased further back however from last week’s ’safe haven’ surge following the UK’s shock Brexit vote.
Major government bond prices also eased, edging 10-year US Treasury yields up to 1.50% per annum from this week’s new 4-year lows. The British Pound meantime continued to edge higher on the FX market, but held 10% down from this time last week………………………………………..Full Article: Source

Iron ore seen boxed below $50 in H2 as glut persists

Posted on 01 July 2016 by VRS  |  Email |Print

After an unexpected rally in the first months of 2016, iron ore should fall back below $50 a tonne in the second half of the year as more of the bulk commodity hits an oversupplied market, a Reuters poll showed.
But prices should still be up on the year, analysts say, thanks to an early-year rally in Chinese steel futures that spread to iron ore and helped the raw material recover from a three-year slide. Iron ore emerged largely unscathed from the selloff that hit financial markets last week after Britain voted to exit the European Union………………………………………..Full Article: Source

The Oil Price Rebound Will Be Brief - Goldman Sachs

Posted on 30 June 2016 by VRS  |  Email |Print

Goldman Sachs has rejected analysts’ opinions that the global oil market is recovering, noting that while it expects a “modest” deficit in the coming months based on the slight rebound in oil prices, the market will again be in a state of surplus by early next year.
It may seem as if oil is recovering on the back of supply disruptions that have helped to chip away at the global glut and push prices close to $50, but Goldman says that in the best-case scenario this isn’t a rebound—it’s just the first signs of one……………………………………….Full Article: Source

Oil Is Still Heading to $10 a Barrel

Posted on 29 June 2016 by VRS  |  Email |Print

Back in February 2015, the price of West Texas Intermediate stood at about $52 per barrel, half of its 2014 peak. I argued then that a renewed decline was coming that could drive it below $20, a scenario regarded by oil bulls as unthinkable.
But prices did fall further, dropping all the way to a low of $26 in February. Since then, crude rallied to spend several weeks flirting with $50 per barrel, a level not seen since last year. But it won’t last; I’m sticking to my call for prices to decline anew to $10 to $20 per barrel………………………………………..Full Article: Source

Oil prices rebound in post-Brexit bargain hunting

Posted on 29 June 2016 by VRS  |  Email |Print

Oil prices rose above $48 a barrel on Tuesday as investors took advantage of a two-day slide in crude following Britain’s vote to leave the European Union to lock in lower prices.
The vote result sent global stocks and currencies spiralling down, though oil price losses were relatively limited due to expectations of strong summer demand in Asia and the United States, as well as tightening supplies after a two-year rout. A looming strike at several Norwegian oil and gas fields threatened to cut output in western Europe’s biggest producer, also helped support prices on Tuesday………………………………………..Full Article: Source

Gold price could rise on another big post-Brexit shock, Stifel says

Posted on 29 June 2016 by VRS  |  Email |Print

There may be some more upside for safe-haven gold after the Brexit shock, but the upside is likely to be limited, said experts. “To buy gold at these levels, you’d have to be betting that a lot more goes wrong and I’m really not sure that’s going to be the case,” Hans Olsen, Stifel’s global head of investment strategy, said.
Olsen said his firm made a “fair amount of money” from gold’s recent rally but the “big disruptions” were already over………………………………………..Full Article: Source

10 reasons why gold price will go up in the future

Posted on 28 June 2016 by VRS  |  Email |Print

The price of gold in India has seen a highest single day jump in the last five years, with the previous one being in August 2011. Globally, too, following the UK votes favouring exit from EU, which is an unprecedented event, has seen nearly $100 per ounce jump in gold prices, which was not a usual phenomenon.
After closing at $1313 on Friday, today it is trading 1% higher in early trade around $1325 per ounce. There are several factors that suggest gold will be a preferred asset for all kind of investors — retail, institutional or even central banks………………………………………..Full Article: Source

Has the Oil Market Finally Bottomed?

Posted on 27 June 2016 by VRS  |  Email |Print

Ever since oil prices started tumbling in late 2014, oil executives, analysts, and investors have been wondering when the market will finally hit rock bottom. While there have been many guesses over the past two years, the data is starting to suggest that the market could have bottomed out during the second quarter. At least that is the view of oil-field services giant Schlumberger.
At a recent industry conference, Patrick Schorn, Schlumberger’s president of 0perations, detailed what the company is seeing in the oil market. He started off by noting that market conditions during the second quarter were as bad as it expected………………………………………..Full Article: Source

What next for gold after Brexit?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold prices surprised investors with a sharp rally on Friday (up 4.7 per cent at close), hitting a high of $1,358.5/ounce. Prices finally ended at $1,315/ounce, up 1.3 per cent for the week.
Demand for the yellow metal in the spot market in London has been surging through the week, say reports. The Royal Mint was reported saying that the number of visitors on its bullion trading platform had surged by over 500 per cent since Thursday, while new account openings had trebled………………………………………..Full Article: Source

Brexit’s impact on gold: Will prices hit $1,400?

Posted on 27 June 2016 by VRS  |  Email |Print

Gold’s massive rally following the Brexit vote over the weekend has created a new range for the precious metal but analysts are split on whether or not the $1,400 level will be breached anytime soon.
The bullion surged to a two-year high on Friday, trading as much as $1,362.60 an ounce, after the majority of British voters chose to leave the European Union (EU). The outcome of the Brexit polls had caught the financial markets off- guard and sent investors running toward the precious metal………………………………………..Full Article: Source

Why Substantially Weaker Commodity Prices Are Here to Stay

Posted on 24 June 2016 by VRS  |  Email |Print

The outlook for commodities–steel-making or coking coal as well as copper in particular–remains bleak, and this certainly doesn’t bode well for struggling coal and base metals miner Teck Resources Ltd.
Nonetheless, it–like a number of other miners, including First Quantum Minerals Ltd. has experienced a massive rally in its share price since the start of 2016 on the back of growing optimism surrounding commodities. However, there are signs that this optimism is unfounded. A range of factors highlight that substantially weaker commodity prices are here to stay. ……………………………………….Full Article: Source

Will oil price surge if Remain wins the EU referendum?

Posted on 24 June 2016 by VRS  |  Email |Print

Oil futures, like most risk assets, has been doing better in recent days as traders take heart from a late polls shift to Remain ahead of the EU referendum. Having fallen for six consecutive sessions from a 2016 high of $53 two weeks ago, international benchmark Brent crude returned to $50 earlier this week. It has been held back from further gains by supply concerns – so would a Remain victory send it soaring?
No, says investment bank BNP Paribas. It outlines a lose-lose scenario for oil: either a Leave vote sends the price spiralling lower in response to a demand-dampening surge for the dollar against the pound, or a Remain victory focuses attention back on supply and demand fundamentals that do not support higher prices………………………………………..Full Article: Source

Molybdenum price is on tear

Posted on 24 June 2016 by VRS  |  Email |Print

While base metals have enjoyed a good 2016 so far with only lead (-5%) in negative territory for the year and the likes of zinc (+27%) and tin (+18%) entering bull markets, molybdenum is making a star turn.
A metric tonne of molybdenum on the London Metal Exchange fetched $16,500 on Thursday after customs data from China showed imports of concentrate and oxides surged 131% in May. Over the first five months of the year, China imported 8,851 tonnes of molybdenum concentrates and oxide, up 89% year on year………………………………………..Full Article: Source

Leading index reveals commodity price burden is easing, says Westpac

Posted on 23 June 2016 by VRS  |  Email |Print

While the Australian economy still appears set for more sub-trend growth, a survey has found that sentiment improved in May as the commodity price burden began to ease.
The monthly Westpac-Melbourne Institute leading index showed that the expected six-month annualised growth rate, which assesses likely growth against the long-term trend, had improved from 1.19 per cent below trend in April to minus 0.42 per cent in May — the best reading since October. The index had bottomed in March at -1.53 per cent — its weakest print in five years — but has improved in ensuing months as commodity prices regained their footing………………………………………..Full Article: Source

Oil price fall tips OPEC current account into deficit in 2015, first since 1998

Posted on 23 June 2016 by VRS  |  Email |Print

OPEC’s 2015 oil export revenues slumped 46 percent to a 10-year low, the group said in a report published on Wednesday, underlining the impact on producers’ income from a collapse in prices.
Oil prices at about $50 a barrel are half their level in mid-2014, pressured by oversupply. OPEC’s decision in November 2014 to not cut supply, hoping a drop in prices would curb supply from competitors, deepened the decline. With income falling, the 13 members of the Organization of the Petroleum Exporting Countries (OPEC) posted a combined current account deficit of $99.60 billion in 2015, compared with a surplus of $238.10 billion in 2014………………………………………..Full Article: Source

Commodities prices could remain low for the next decade

Posted on 22 June 2016 by VRS  |  Email |Print

A glut in a number of commodities could see prices stay at these levels for the next 10 years – that’s according to BHP Billiton Limited CEO Andrew Mackenzie. Mackenzie says the supply of crude oil and copper would decline naturally, but the huge investments by miners around the world since 2008 in other bulk commodities like iron ore, could see the effects of oversupply last for years.
“The reality is we’ve settled down now to a price that we would say is more realistic on the basis of fundamentals of supply and demand. We’ve had such a long boom. To walk that through in my view may take another 10 years,” he said………………………………………..Full Article: Source

Oil Prices Fall on Supply Overhang, ‘Brexit’ Uncertainty

Posted on 22 June 2016 by VRS  |  Email |Print

Oil prices fell Tuesday but pared a lot of their losses late in the day as investors try to navigate an array of volatile influences on the market. Many expect supply outages to end in Nigeria and Canada, but others claim it will have little influence. New polls have caused quick-changing expectations on the U.K.’s referendum on European Union membership.
Analysts are predicting a drain from U.S. crude stockpiles, but they are still near record highs. And U.S. crude’s front-month contract expired with much bigger losses than later-month contracts………………………………………..Full Article: Source

Era of Cheap Oil Coming to an End - IEA

Posted on 22 June 2016 by VRS  |  Email |Print

The era of cheap oil may soon come to an end, if the prediction of the International Energy Agency, IEA, is anything to go by. The IEA said that there will be rise in oil price due mainly to unplanned outages and disruptions in places like Canada, Nigeria, and Libya.
According to the Agency, it is expected that the oil market will be balanced for the rest of the year, meaning the world will pump roughly as much oil as it consumes. That should nudge prices higher. Oil is currently trading around $50 a barrel, double the nadir reached earlier this year………………………………………..Full Article: Source

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