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Risk Appetite Deserts Wall Street As Commodity Rally Stalls

Posted on 10 June 2016 by VRS  |  Email |Print

Wall Street stocks look set to start Thursday’s session lower, as risk appetite is waning in the global markets. Asian stocks set the tone for the day, with the major averages in the region succumbing to selling pressure despite data showing inflation slowing in China. However, the central of New Zealand stood pat and Japanese machinery data was weak.
The European markets are also lower amid retreating commodity prices. The markets did not go overboard over positive German export data. The domestic markets may also keep an eye on the jobless claims data due ahead of the market open. As of 6:30 am ET, the Dow futures are down 52 points , the S&P 500 futures are slipping 8 points and the Nasdaq 100 futures are receding 8 points………………………………………..Full Article: Source

Are Low Crude Oil Prices Finally Hurting Saudi Arabia?

Posted on 10 June 2016 by VRS  |  Email |Print

Saudi Arabia held about 267 billion barrels of proven oil reserves at the end of 2014, which is the second largest oil reserves held by a single country. The founder member of the Organization of Petroleum Exporting Countries accounts for roughly 10% of the global oil production and plays a crucial role in the determination of crude oil prices.
The Middle East country also contributes a notable portion of the global oil exports and has a sizeable amount of spare capacity, which it can use to maneuver the dynamics of the oil markets. Thus, the country is being viewed as a game changer in the ongoing oil slump………………………………………..Full Article: Source

Zinc may remain shining star among base metals

Posted on 10 June 2016 by VRS  |  Email |Print

Zinc prices has surged as much as 25 percent in 2016 to the highest since July as miners supply less of the ore concentrate that’s refined to produce the metal, just as demand rebounds in China, the biggest user. It has emerged as the best performing metal this year.
Prices for the metal rose past Rs 135 per kg on June 3, their highest level in almost 10 months. This defies a slump in commodities from copper to iron ore and nickel, which have continued to fall over the past month amid concerns about growth in China………………………………………..Full Article: Source

Crude prices: Chart says oil could hit $60 — and fast

Posted on 09 June 2016 by VRS  |  Email |Print

Oil’s chart is sizzling, even if its fundamentals are not. West Texas Intermediate crude futures for July were trading above $51 per barrel for the first time since July 2015. Crude was higher on the weaker dollar, continued supply disruptions and as U.S. government data showed a drawdown in the nation’s inventories.
Some of the factors driving the price higher may be fleeting, and oil is widely expected to come off current levels. But strategists say the charts are telling another story………………………………………..Full Article: Source

How Are Gold Miners Placed in a Volatile Gold Price Environment?

Posted on 09 June 2016 by VRS  |  Email |Print

Gold investors became worried after the release of the Federal Reserve’s April minutes, which were more hawkish than expected. This put the summer rate hike back on the table, causing gold to lose some of its sheen. Gold lost 5.1% in 11 trading sessions after the minutes were released.
The Market was also awaiting the May jobs data to get a sense of the direction of Fed’s monetary policy. The data came in markedly below expectations, lowering the chances of a Fed rate hike in June………………………………………..Full Article: Source

EIA raises oil price forecasts for this year and next

Posted on 08 June 2016 by VRS  |  Email |Print

The U.S. Energy Information Administration on Tuesday raised its 2016 and 2017 forecasts for West Texas Intermediate and Brent crude prices. In its monthly energy outlook report, the government agency forecast an average price of $42.83 a barrel for WTI this year, up from a previous estimate of $40.32. Brent crude is seen averaging $43.03 this year, up from the $40.52 May forecast.
The EIA left its U.S. oil production estimates for 2016 and 2017 unchanged at 8.6 million barrels a day and 8.19 million barrels a day, respectively. July WTI crude CLN6, +0.10% was trading at $50.03 a barrel Tuesday, up 34 cents, or 0.7%………………………………………..Full Article: Source

Oil hits 2016 high on U.S. draw forecasts, Nigeria woes

Posted on 08 June 2016 by VRS  |  Email |Print

Oil prices jumped more than 1 percent on Tuesday, hitting 2016 highs, with U.S. crude settling above $50 a barrel the first time in almost a year, on expectations of domestic stockpile draws and worries about global supply shortfalls from attacks on Nigeria’s oil industry.
U.S. crude stockpiles likely fell by 2.7 million barrels last week to mark a third straight week of declines, an updated Reuters poll showed. A report by trade group American Petroleum Institute (API), released after prices settled, showed a higher-than-expected crude draw of 3.6 million barrels………………………………………..Full Article: Source

Outlook for Silver Prices in 2016

Posted on 08 June 2016 by VRS  |  Email |Print

Projected silver prices will reach $20 per ounce by year’s end, according to Money Morning  Resource Specialist Peter Krauth. That’s a rise of more than 28% from current levels for projected silver prices. His forecast, then, is still very bullish for projected silver prices. However, he also believes that investors should expect softness and pullbacks in the near term.
Silver prices historically have some seasonality. Krauth believes the low point will be hit in June, with a rise to $18 per ounce by autumn. Then, by year-end, projected silver prices have more to go – to $20 per ounce………………………………………..Full Article: Source

Saudi Aramco curbs oil price hikes as it seeks to defend market share

Posted on 07 June 2016 by VRS  |  Email |Print

Saudi Arabia has lifted the price of its crude exports to the US and Asia by less than expected, and deepened cuts for European buyers, in a bid to balance the Kingdom’s need to boost oil revenue while keeping a grip on its dominant market share.
The world’s largest crude exporter more than doubled the price it charges Asian customers on top of the regional oil market price, lifting exports by 35 cents a barrel to 60 cents, in its second consecutive monthly price increase………………………………………..Full Article: Source

Shale producers eye comeback with oil @ $50 sweet spot

Posted on 07 June 2016 by VRS  |  Email |Print

Range of $50-$60/b marks sweet spot for global economy – good for consumers, industry, oil producers alike. Global oil prices slipped more than 1 per cent from above $50 to below that psychological mark as US drillers reopened some oil rigs last week – only the second time they’ve done so this year.
According to Baker Hughes data, US added 9 oil rigs last week, taking the number of active oil rigs in the country to 325 from 316 in the previous week. While the number still remains almost half of what it stood a year earlier (642 oil rigs in the US), it does suggest that the current oil prices are encouraging for shale oil producers to remain in business………………………………………..Full Article: Source

A Brexit Could Send The Gold Price Beyond $1,400

Posted on 07 June 2016 by VRS  |  Email |Print

According to a recent poll, the leave campaign has edged ahead with the vote just over two weeks away. Economists predicted that gold could rise to as high as $2,000 if the Grexit had occurred, we feel similar could be likely in the event of a Brexit.
With US rate hikes looking unlikely in June or July we feel nothing can stop gold’s ascent. Additionally, the British pound could have ~20% downside on an exit………………………………………..Full Article: Source

Non-Event for Gold Price to Move Up/Down 20% in Year: Frank Holmes

Posted on 07 June 2016 by VRS  |  Email |Print

After gold ’s recent correction, Frank Holmes, chief executive officer for U.S. Global Investors, says that the yellow metal is coming back toward its mean. “Seventy percent of the time, an asset class can move up or down a specific amount over various time periods,” Holmes said.
He added that it is a non-event for gold to go up or down about 20% in a year. Gold ended slightly lower Thursday after the European Central Bank monetary policy meeting concluded with no change in interest rates. The lack of fresh news failed to significantly move the precious metals markets………………………………………..Full Article: Source

What’s the price of the metal of the future? It’s confusing

Posted on 07 June 2016 by VRS  |  Email |Print

Lithium is shaping up to be The Next Big Thing. Prices are going stratospheric, junior miners are rushing to stake claims on future supply and investment websites are glowing red hot with speculation about the metal’s prospects.
The Global X lithium fund, one of the very few ways to get in on the action, has gained 25 per cent over the past three months with assets under management leaping from $41-million to $68-million since the start of the year………………………………………..Full Article: Source

Black Sea pig iron prices lower over week

Posted on 07 June 2016 by VRS  |  Email |Print

Black Sea merchant pig iron prices continue to show more downside, market sourced told S&P Global Platts on Friday. Platts weekly Black Sea pig iron price assessment stood on Friday at $255-$265/mt FOB Black Sea, indicating the mid-point of $260/mt, $15/mt down on week.
Turkish steelmakers were said to be particular bearish on pig iron prices on the back of strong pressure on the finished steel prices and anticipated corrections in scrap settlements………………………………………..Full Article: Source

Sluggish Chinese manufacturing data weigh on commodity prices

Posted on 06 June 2016 by VRS  |  Email |Print

Sluggish manufacturing data from China as well as renewed weakness of the renminbi weighed on commodity prices, fuelling concerns over the country’s demand for raw materials. Further evidence of slowing growth in China’s manufacturing sector unnerved investors, who have been hoping that the latest stimulus measures would help reboot activity in the second quarter.
The unofficial Caixin purchasing managers’ index, which provides a snapshot of operating conditions in the country’s industrial sector, fell 49.2 in May, slightly lower than the previous month, and below the neutral 50 level for the 15th successive month………………………………………..Full Article: Source

The Oil Rally Could Make You Think Twice About Ordering Dessert

Posted on 06 June 2016 by VRS  |  Email |Print

This year’s rebound for oil prices has an unlikely victim: the dessert plate. To understand why, look no further than Usina Batatais SA, a sugar-cane processor in Sao Paulo. Enticing fuel margins mean the company is using a bigger cane crop to produce more ethanol, while keeping its raw sugar output unchanged.
Even after sugar prices surged recently, “there’s no time and cane anymore” to make a switch, said Bernardo Biagi, Batatais’ president. It’s a story that’s being played out across Brazil, the world’s biggest sugar producer and exporter………………………………………..Full Article: Source

Saudi Arabia Cuts Oil Prices in Europe as Iran Ramps Up Exports

Posted on 06 June 2016 by VRS  |  Email |Print

Saudi Arabia on Sunday cut its oil prices to Europe, signaling mounting competition after OPEC failed to cap its output amid Iran’s exports ramp up. In an email sent to customers, state oil company Saudi Aramco said it had cut its light crude prices by 35 cents a barrel to northwest Europe and by 10 cents a barrel to the Mediterranean for July deliveries.
The price reduction is surprising, as demand typically grows in the second half of the year as refineries return from maintenance. In addition, markets have recently been buoyed by outages in countries like Nigeria………………………………………..Full Article: Source

Dollar gold price jumps on poor jobs data, physical demand remains dire

Posted on 06 June 2016 by VRS  |  Email |Print

The dollar gold price posted a significant jump Friday afternoon following the release of much weaker-than-expected US employment data, pushing the paper market even further from physical fundamentals.
In total 38,000 new jobs where created, according to US non-farm payroll data, falling far short of market expectations of 160,000 and easing the possibility of an interest rate hike by the Federal Reserve at its next meeting mid-June. The London Bullion Market Association Gold Price posted a $29.5 increase between the morning and afternoon settlements, jumping from $1,211/troy oz to $1,240.50/tr oz………………………………………..Full Article: Source

Iron ore price surges towards $US50

Posted on 06 June 2016 by VRS  |  Email |Print

The price of iron ore has jumped back towards $US50 a tonne, ending a four-day losing run. At the end of the latest session, iron ore for delivery to the Port of Tianjin in China traded at $US49.50 a tonne, up 3.2 per cent from its prior price of $US47.90. The previous mark represented the commodity’s lowest mark since February 19.
The key Australian export remains almost 30 per cent off its year-to-date high near $US70, which was reached just seven weeks ago, with investors since fretting about rising supply. Iron ore endured a horror 2015 as the supply-demand balance was called into question as Chinese demand growth waned at a time the majors were ramping up low-cost production………………………………………..Full Article: Source

Saudi Arabia Says Oil at $50 Won’t Hinder Market Recovery

Posted on 03 June 2016 by VRS  |  Email |Print

Oil prices at $50 won’t allow shale oil and other higher-cost producers to lift supply to levels that hinder market recovery, Saudi Arabia’s oil minister said. Prices need to be at level above $50 a barrel for more crude supplies to come back to the market following a slump over the past two years, Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources, said.
“I talk to a lot of industry executives and board members. I don’t think you are going to see a rush back into investments at $50,” he said………………………………………..Full Article: Source

Anatole Kaletsky: US$60 is the oil price for foreseeable future

Posted on 03 June 2016 by VRS  |  Email |Print

For the first time since last October, the oil price has nudged or broken the $US50 a barrel barrier. Back then, I argued that $US50 or thereabouts would turn out to be a long-term ceiling for the oil price. At the time, with crude prices still above $US60, almost everyone believed that $US50 would be the rock-bottom floor.
After all, futures markets predicted prices of $US75 or higher; the Saudi and Russian governments needed $US100 to balance their budgets; and any price much below $US50 was considered unsustainable, because it would put the US shale-oil industry out of business………………………………………..Full Article: Source

Opec resists output cap with oil near $50

Posted on 03 June 2016 by VRS  |  Email |Print

Saudi oil minister says it is ‘premature’ to restrict production, as demanded by some exporters. Saudi Arabia’s new energy minister rallied Opec support for maintaining production on Thursday, as a near-doubling of crude prices since January eased tensions among oil exporters.
Khalid Al Falih said that the 13-member group should “encourage the rebalancing” of the market as prices recover from the worst crash in more than a decade. But he told reporters at the Opec meeting in Vienna that it was “premature” to try and restrict output, as demanded by some of the hardest hit exporters, when production growth was already declining and demand was responding to lower prices………………………………………..Full Article: Source

Gold Prices Pull Back Amid Interest Rate Concerns

Posted on 03 June 2016 by VRS  |  Email |Print

Investors will be watching Friday’s U.S. jobs report for signs the economy is strong enough for the Fed to raise rates. Gold prices closed lower on Thursday, after swinging between gains and losses as investors weighed the possibility that the Federal Reserve will raise interest rates in June.
Gold for June delivery settled down 0.2% at $1,209.80 a troy ounce on the Comex division of the New York Mercantile Exchange, and traded as high as $1,214.90 earlier in the session………………………………………..Full Article: Source

2016 Silver Prices ‘Will Rise Further on Ultra-Loose’ Rates

Posted on 03 June 2016 by VRS  |  Email |Print

Silver Prices will hold firm and rise further in 2016 according to the leading analysts behind a new report, with fresh gains driven by new investor and speculative demand, led in turn by low-to-negative interest rates worldwide.
After the 30% price surge to $18 per ounce from new 6-year lows between December and this spring, “Further, albeit modest, gains are likely for silver in 2016,” says specialist consultancy Metals Focus, today launching its first annual Silver Focus report. “A major change in market expectations regarding the number of US interest rate rises this year…spurred a sizeable flow of funds into precious metals,” says director Philip Newman………………………………………..Full Article: Source

Be careful wishing for a higher oil price

Posted on 02 June 2016 by VRS  |  Email |Print

Financial markets are happier with oil at $50, but further advances will pose problems. Financial markets have been breathing more easily since late January, when the oil price began a rebound that last week took it beyond the $50 a barrel mark for the first time since November.
Financial conditions in the US are looser, emerging markets are perkier and US energy stocks have staged a recovery so sharp they are now the S&P 500’s third-best performing sector this year………………………………………..Full Article: Source

15 Reasons Why Gold Prices Could Hit $5,000 an Ounce

Posted on 02 June 2016 by VRS  |  Email |Print

Gold prices over the past several weeks have taken a hit. They are down roughly seven percent from their highs made in early May. Should this be a sign of worry? No; more upside could be ahead.
In fact, there are 15 reasons why gold prices are undervalued and big gains could be ahead. Central banks around the world continue to buy the precious metal despite gold prices being well below the highs made in 2011. Know this: they are not buying it for speculative purposes. They are buying to hedge their reserves and they will need more………………………………………..Full Article: Source

Silver Price Forecast: Silver Could Hit $1,000 Per Ounce, Insider Says

Posted on 02 June 2016 by VRS  |  Email |Print

Silver prices had a solid bull run in the beginning of this year. From January to the end of April, the spot price of silver shot up nearly 30% from $13.82 to $17.89 an ounce. But according to the latest silver price forecast from one industry insider, this could just be the beginning for silver prices.
Keith Neumeyer is the founder, president, and chief executive officer of First Majestic Silver Corp. In an interview with Future Money Trends, Neumeyer explained why he believes the silver price is about to shoot through the roof………………………………………..Full Article: Source

Why $US50 is the new normal price ceiling for global oil prices

Posted on 01 June 2016 by VRS  |  Email |Print

For the first time since last October, the price of a barrel of oil has broken through $US50. So it seems a good time to update the analysis I presented in January 2015. Back then, I argued that $50 or thereabouts would turn out to be a long-term ceiling for the oil price. At the time, with crude prices still above $US60, almost everyone believed that $US50 would be the rock-bottom floor.
After all, futures markets predicted prices of $US75 or higher; the Saudi and Russian governments needed $US100 to balance their budgets; and any price much below $US50 was considered unsustainable, because it would put the US shale-oil industry out of business………………………………………..Full Article: Source

Gold price dips below $1,200 - is the rally now over?

Posted on 01 June 2016 by VRS  |  Email |Print

Gold’s prolonged winning streak came to an abrupt end this month. The yellow metal has been by far the standout performer in a volatile four months for markets. By the end of April, it was up 21 per cent to above $1,260 an ounce, says the Daily Telegraph, and as recently as 2 May, it hit an intraday high in excess of $1,300.
But things have changed markedly over the past ten or so days. In its ninth consecutive losing session, gold dipped below $1,200 overnight for the first time since mid-February, before recovering slightly………………………………………..Full Article: Source

Expectations for 2016 Silver Prices

Posted on 01 June 2016 by VRS  |  Email |Print

The precious metals markets have a close eye on them now as investors try to predict where 2016 silver prices are going. After climbing for weeks, silver has pulled back a bit since mid-May. While the silver market is volatile by nature, there are some elements to gold and silver prices that make them predictable to a point.
In fact, Money Morning Resource Specialist Peter Krauth anticipates a coming surge for silver prices, stating that “silver is now primed to outpace gold’s gains and soar much higher from current levels.” He does see some weakness ahead first, but then the silver price climb will resume………………………………………..Full Article: Source

The Price of Silver Will Head Lower Before Rising Again in 2016

Posted on 01 June 2016 by VRS  |  Email |Print

The silver price correction I’ve been cautioning readers to expect is finally upon us, as the price of silver has not been able to escape the broader sell-off in precious metals recently. Silver peaked right along with gold prices in late April and has followed a similar decline ever since. As expected, the U.S. Dollar Index (DXY) bottomed right around the same time.
Then, silver prices consolidated between $17 and $17.50 until mid-May. The DXY had already been rebounding, and then it got a second wind and kept climbing higher………………………………………..Full Article: Source

Is the worst now over for commodity prices?

Posted on 31 May 2016 by VRS  |  Email |Print

The last couple of years have been truly horrific for investors in a number of resources companies. Profits have tumbled, share prices have plunged and investor sentiment towards mining and oil and gas companies in particular has weakened significantly.
However, in recent months the outlook for a number of commodities has improved dramatically. For example, since the turn of the year gold has risen by around 18% while the price of oil is now almost 80% higher than it was earlier in the year. For many investors, such figures may mean that commodities as a whole are worth investing in. But in reality, it depends on which commodity is being discussed. In other words, some commodities may perform well, while others see their prices come under pressure………………………………………..Full Article: Source

Crude oil price at $60 per barrel gains more backers

Posted on 31 May 2016 by VRS  |  Email |Print

The United Arab Emirates’s economy minister joined forecasters looking for $60 crude this year with demand and production moving more in line. “It’s possible for oil prices to reach $60 or more during this summer” as demand increases in the US, UAE Economy Minister Sultan Bin Saeed Al Mansoori said at a conference in Abu Dhabi on Monday. Crude will end the year higher than $60 a barrel, Mario Maratheftis, global chief economist at Standard Chartered, said.
SEB Bank forecast last week that Brent would touch $60 at times in 2016. Oil futures jumped 31 per cent this year, climbing above $50 a barrel last week, as US crude stockpiles declined, trimming a glut. Robust demand in India and other emerging nations led the International Energy Agency in May to reduce its estimate of the global oil surplus for the first half. Brent last traded above $60 in July………………………………………..Full Article: Source

Sberbank CEO: Oil price of $45 per barrel to boost Russian economy

Posted on 31 May 2016 by VRS  |  Email |Print

Russia’s economy may grow next year if oil prices stay at around $45 per barrel, Sberbank CEO Herman Gref said. “If the curernt trend continues, and the oil price will be around $45 per barrel,… next year, most likely, we will be a small growth of the Russian economy,” he said.
Gref added that oil price in 2020 could reach $60 per barrel, and by 2024 could increase to $80 per barrel. On May 26 the price of Brent crude oil exceeded the mark of $50 per barrel for the first time since November 4, 2015. The maximum price for July Brent crude oil futures contract reached $50.08 per barrel, according to the London’s ICE Futures Europe………………………………………..Full Article: Source

Gold will not fall below $1,200/oz for long – Commerzbank

Posted on 31 May 2016 by VRS  |  Email |Print

There is the short-term potential for the gold price to fall below $1,200 per troy ounce due to the high level of speculative interest and renewed Fed rate hike speculation, said Commerzbank . But the price is not expected to fall lastingly below this threshold because such a price level is likely to be viewed by investors as an attractive opportunity to buy, it said.
“What is more, lower prices should cause physical buying interest to pick up in Asia, as the consumer restraint exercised there in recent months has generated pent-up demand,” it added. At present, there is also little to suggest that the interest in gold ETFs might wane abruptly or even switch to selling, it noted………………………………………..Full Article: Source

Mines can put gold price respite to good use

Posted on 31 May 2016 by VRS  |  Email |Print

Stakeholders need to address alternative job opportunities for mineworkers, but it can also be expected that mining posts will steadily become more skilled and better paid. A surging gold price and a weakening rand have been good to South African gold producers in the first half of 2016, but how can the much-needed financial respite be used to build more sustainable mines?
There is a danger of this windfall revenue simply being used to repay debt and issue dividends to expectant investors. Rather, these pressing demands should be tempered by considering where the business will be when the rand gold price weakens again. What is needed are bold strategic and technical efforts to improve productivity and drive these companies down the industry cost-curve in the medium to long term………………………………………..Full Article: Source

Increasingly bearish indicators weigh down lead price

Posted on 31 May 2016 by VRS  |  Email |Print

Last year lead was the best-performing base metal on the LME by virtue of dropping by the least over the duration of 2015. The lead price declined 2.8% last year compared to 20%-plus falls in zinc, tin, cobalt and copper and ever volatile nickel’s 42% drop (moly fared just as badly).
In 2015 lead was buoyed by expectations of a handful of significant mine closures, a reduction in Chinese stockpiles and firm demand from the country’s lead-acid battery industry. Things haven’t quite panned out this way and lead is now the base metals deepest in the red year-to-date trading at $1,698 a tonne on Friday down 5.7% in 2016. In contrast sister metal zinc has managed to hold onto 18% gains since January………………………………………..Full Article: Source

The only certain thing about oil’s price is its uncertainty

Posted on 30 May 2016 by VRS  |  Email |Print

A large number of clever people backed by deep-pocketed employers spend a great deal of time trying to work out where the oil price is heading. It’s rather surprising, therefore, how wrong most of their predictions are. Forecasts generally amount to extrapolating the recent past.
When the oil price hit $150 a barrel in 2008, many thought that it would reach $200; earlier this year when the price of Brent crude hit $26, experts (often the same ones who were warning of the price spike eight years ago) predicted further falls to $15………………………………………..Full Article: Source

Why oil prices will head back toward $20 next winter

Posted on 30 May 2016 by VRS  |  Email |Print

One of today’s more fascinating examples of a widespread misunderstandings of cause and effect is that of the relationship between the U.S. dollar and crude oil or, if you prefer, the larger definition of the same problem — the dollar vs. commodity prices.
Commodity prices are down over the last two years, but not because the dollar is strong. They are down because there is too much supply and not enough demand. That causes commodity-related currencies — such as the Brazilian real, Russian ruble, South African rand, and the Canadian and Australian dollars — to be weak against the U.S. dollar (from a long-term perspective, not a couple of months)………………………………………..Full Article: Source

High gold price prompts miners’ switch to lower grades

Posted on 30 May 2016 by VRS  |  Email |Print

With the price of gold continuing to hold at near record levels, Australia’s gold miners have switched to mining lower grades while also hedging their exposure to ensure ongoing access to the high price.
The latest quarterly survey by Surbiton Associates found a 2 per cent decline in March quarter gold production to 71 tonnes when compared with the previous quarter. March quarter output is usually weak due to the industry slowdown for summer holidays and the impact of the cyclone season, which slows output in mines in the country’s north………………………………………..Full Article: Source

There are signs of life in the iron ore price

Posted on 30 May 2016 by VRS  |  Email |Print

After falling below the $50 a tonne level for the first time since February 29 on Thursday, iron ore prices rebounded solidly on Friday, boosted by renewed strength in Chinese futures markets.
According to Metal Bulletin, the spot price for benchmark 62% fines rose by 3.38%, or $1.67, to $51.15 a tonne. It was the largest percentage gain recorded since April 29, and left the year to date gain at 17.4%………………………………………..Full Article: Source

Oil hits $50, global commodities dragged higher

Posted on 27 May 2016 by VRS  |  Email |Print

Oil’s advance through $50 a barrel in line with a softer dollar is energising the commodity sector, but bourses are otherwise under pressure as the latest global rally struggles to maintain momentum.
After a mixed Asia-Pacific session, the pan-European Stoxx 600 equity index is slipping 0.2 per cent while US futures point to the S&P 500 easing 0.1 per cent to 2,088, writes Jamie Chisholm. The cautious mood in stocks is encouraging buyers of government bonds, nudging down Treasury yields. The gold price is higher, and so is the yen………………………………………..Full Article: Source

Oil price rises above $50 a barrel

Posted on 27 May 2016 by VRS  |  Email |Print

Data suggests global glut is easing due to fall in US output and supply disruption in Canada, Libya and Nigeria. Oil prices have broken through the $50 per barrel mark for the first time in almost seven months after storage figures suggested that the glut in global crude supplies was easing.
Many analysts have predicted that the recovery, which will help the North Sea oil industry and could steady the global economy but hurt motorists through higher petrol costs, could be short-lived. The price of Brent crude edged up 0.9% to $50.2 a barrel, boosted by data from the US government showing a sharper than expected fall in crude stocks last week, and it later fell back slightly………………………………………..Full Article: Source

Oil Prices Poised to Hit Sweet Spot for Global Economy

Posted on 27 May 2016 by VRS  |  Email |Print

Oil prices, which have been on a jagged rise to near $50 a barrel, are poised to hit a sweet spot for global growth, traders, economists and investors say. On Thursday oil prices rose above $50 a barrel for the first time since November as a combination of supply disruption and declines in U.S. oil inventories raised hopes the oversupplied market was inching toward a better balance.
That puts crude back within a range between $50 and $60 in which almost everybody benefits, economists and investors say. In a so-called goldilocks scenario, oil is not too pricey for consumers and industry, which have benefited from cheap crude for almost two years. But it is priced well enough to help profits in the beleaguered oil industry………………………………………..Full Article: Source

Zinc Jumps as Industrial Metals Rally After Oil Pushes Above $50

Posted on 27 May 2016 by VRS  |  Email |Print

Zinc rose the most in two weeks and industrial metals rallied after oil climbed above $50 a barrel for the first time this year, helping buoy investor sentiment on the global economy.
Zinc is up 17 percent this year, the top performer among the six main metals on the London Metal Exchange, as supply cuts begin to take effect and inventories of the metal fall to the lowest since 2009. Zinc demand will benefit to the extent that China continues to rely on infrastructure growth for overall economic support, Goldman Sachs Group Inc. said in a May 19 report………………………………………..Full Article: Source

Once Bullish, Miners Turn Bearish on Metals Prices

Posted on 27 May 2016 by VRS  |  Email |Print

The rally in the price of metals is over and few see it coming back soon, including the miners themselves. Copper, iron ore and other metals and resources rallied through much of this year, but this month headed lower once more. Those declines will continue, given uncertainty over Chinese growth, the oversupply in many metals and resources, and a strengthening U.S. dollar, mining executives say.
That will put further pressure on the share prices of miners, which rebounded with metals. Analysts are also bearish, but the negative call from once bullish miners underscores just how poor sentiment is in metals markets, even after five years of declines………………………………………..Full Article: Source

China Wants to Set Prices for the World’s Commodities

Posted on 26 May 2016 by VRS  |  Email |Print

China has put the world’s traditional financial centers on notice that it wants to develop its raw material markets as hubs for setting prices, seeking to marry the country’s commercial heft with a much greater say in determining how much commodities cost.
“We’re facing a chance of a lifetime to become a global pricing center for commodities,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange’s annual conference in the city on Wednesday. “On the way to realize this goal, we’ll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent.”……………………………………….Full Article: Source

Oil price nears seven-month high – will it break $50?

Posted on 26 May 2016 by VRS  |  Email |Print

The oil price broke out of a four-session mini-slump overnight and was hovering close to seven-month highs this morning after a positive report on supply boosted sentiment. US benchmark West Texas Intermediate jumped 2.5 per cent to $49.27 a barrel in afternoon trading in New York yesterday, a new 2016 peak and the highest price since October.
It was holding within 10 cents of this at around 9.45am in London this morning. International benchmark Brent crude peaked last night at around $49.24, around 25 cents below its six-month high of last Monday, and was similarly steady in early London trading………………………………………..Full Article: Source

Get into gold now! Prices could hit $1,900

Posted on 26 May 2016 by VRS  |  Email |Print

Gold’s losing streak continued on Tuesday as the precious metal tumbled to its lowest level in more than five weeks. However, one of Wall Street’s most closely followed analysts says the dip presents a prime buying opportunity and that bears are reading the market incorrectly.
“This is just the beginning of a new bull market in the metals,” the Lindsey Group’s chief market analyst Peter Boockvar told CNBC’s “Futures Now” on Tuesday. Ultimately, Boockvar believes that the 2011 highs of around $1,900 for gold are not only reachable, but surpassable, as reasoned that bull markets historically exceed the previous bull market peak at some point………………………………………..Full Article: Source

Gold price setback temporary: ABN Amro

Posted on 26 May 2016 by VRS  |  Email |Print

Gold is enduring some rare price weakness thanks to dollar strength, but this should prove transient, according to Dutch bank ABN Amro. Prices fell again on Tuesday, coming under pressure from a stronger dollar amid rising expectations of an interest-rate rise this year in the US.
However, Georgette Boele, ABN’s coordinator of precious metals and FX strategy writes that there are a “wide variety of drivers” for prices, and not the dollar alone. “We think that the recent set-back in gold prices is temporary… and drivers will turn more positive again… leading to higher gold prices later this year and next year,” she says………………………………………..Full Article: Source

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