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Do something about gas prices? Why?

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices are plunging. Gasoline is now cheaper than milk. Why doesn’t Washington do something already? Since peaking in June, the price of oil has tumbled by 25 percent. Texas light sweet crude futures have fallen to around $77.40 a barrel, a three-year low, while Brent oil, the global benchmark, sank on Monday to its lowest price in four years.
With cheaper oil has come cheaper gasoline. The national average price for a gallon of regular is now just $2.926. Drivers haven’t seen pump prices this low since December 2010. Nor have they seen such a sustained decline — the price has dropped for 46 days in a row — since 2008. According to AAA, “the national average could fall another 5-15 cents in the coming weeks, which could make for the cheapest Thanksgiving gas in half a decade.”……………………………………….Full Article: Source

Here’s What A Sustained $20 Drop In Oil Prices Does To The World’s Major Economies

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices have been tumbling in recent weeks. The price of brent crude fell below $80 per barrel today for the first time in since September 2010. That’s down from around $115 earlier this summer.
A research note from Societe Generale’s Michala Marcussen takes a look at the possible effects of a drop in oil prices on the world economy. She plugged a sustained $20/barrel drop in oil prices into Britain’s National Institute of Economic and Social Research’s NiGEM software, a sophisticated global macroeconomic model, and saw what would happen to global GDP in the following years………………………………………..Full Article: Source

Low oil prices to bite into 2015 US shale growth: IEA

Posted on 13 November 2014 by VRS  |  Email |Print

Falling oil prices may cut investment in U.S. shale oil by 10 percent next year, the International Energy Agency (IEA) said on Wednesday, slowing growth in a sector that has turned the U.S. into a major global producer.
“A well-supplied oil market in the short-term should not disguise the challenges that lie ahead, as the world is set to rely more heavily on a relatively small number of producing countries,” Fatih Birol, the IEA’s chief economist, stated in the agency’s 2014 “World Energy Outlook” published on Wednesday………………………………………..Full Article: Source

Analysts sceptical Opec will halt fall in oil prices

Posted on 13 November 2014 by VRS  |  Email |Print

Oil prices will continue to fall even if Opec countries agree to cut production later this month, according to one of the market’s most influential analysts. Gary Ross, chief executive of Pira Energy Group, said there was an “imbalance” between supply and demand that would force prices down next year regardless of any output cuts that could be announced by the oil exporters’ group at its meeting in Vienna on November 27.
“Opec cannot and will not take the pain necessary to correct the imbalance,” he said. Other market watchers are also predicting further falls in prices, including Philip Verleger, an energy economist who wrote at the weekend that he expected the cash price of internationally-traded Brent crude to drop to about $70 a barrel or lower………………………………………..Full Article: Source

Here’s why gold could be headed to $800

Posted on 13 November 2014 by VRS  |  Email |Print

Over the last several years, gold has been simultaneously regarded as a crisis hedge, a currency hedge, an inflation hedge and a deflation hedge. Gold’s beauty, it seemed, was in the eye of the holder. But in the absence of a full-scale geopolitical crisis, economic collapse, or other “black swan” event, there is no good reason to hold gold — at least here in the U.S.
Since 2011, gold topped out and has fallen almost 40 percent from its all-time highs, failing to meet the bulls most aggressive targets. Silver, too, has crashed, as have many base metals, used in manufacturing around the world, reflecting much slower than expected growth in both developed, and developing, economies………………………………………..Full Article: Source

Gold Price Seen Flat in 12 Months by LBMA Conference

Posted on 13 November 2014 by VRS  |  Email |Print

Gold Prices held around $1167 per ounce in London on Wednesday, trading near the upper-end of the last week’s 4% range as Western stock markets slipped after regulators imposed heavy fines on 5 global banks for manipulating currency-market benchmarks.
The UK’s FCA and United States’ CFTC settled with Citibank, Royal Bank of Scotland, J.P.Morgan , HSBC and UBS – the last three of whom are also bullion market makers – for a total of $3.4 billion “for failing to control business practices” in their foreign exchange (FX) operations………………………………………..Full Article: Source

Oil at $80 Is No Bar for BP, Total to Look for More Crude

Posted on 12 November 2014 by VRS  |  Email |Print

Oil at $80 a barrel won’t stop BP Plc (BP/) or Total SA (FP) from exploring and developing crude deposits. Oil has dropped into a bear market this year, with prices falling almost 30 percent since June amid a global glut.
OPEC won’t cut its collective output when it meets this month and global oil prices will stabilize once the surplus is absorbed, Kuwait Oil Minister Ali Al-Omair said at an oil conference in Abu Dhabi, the capital of United Arab Emirates………………………………………..Full Article: Source

Oil price plummet won’t help U.S. with Iran or Russia

Posted on 12 November 2014 by VRS  |  Email |Print

Plummeting oil prices — down more than 25 percent since June to three-year lows — should relieve pressure on consumers at the pump. But is it pushing oil-exporting regimes past the breaking point?
The answer is no. Despite their reliance on oil revenue, the governments of Russia, Iran, Saudi Arabia, and Venezuela are not teetering. This is no “oil Arab Spring,” where cratering prices topple governments, spreading like wildfire from one dependent authoritarian state to another. In fact, the price drop won’t even change their stances on the geopolitical issues Washington cares most about………………………………………..Full Article: Source

Gold price could fall to $800/oz: Metals merchant

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices could tumble towards $800 to $900 an ounce, not seen since the 2008/2009 financial crisis, as the metal is no longer seen as a decent portfolio diversifier, metals merchant and hedge fund Red Kite said on Monday.
Analysts and traders surveyed by Reuters last week predicted that prices could fall to $1,000 by the end of the year, revisiting that level for the first time since 2009. In the physical markets, buying in China – the top consumer – remained steady but at subdued levels on Tuesday. Local prices were about $1-$2 an ounce higher than the global benchmark, unchanged from the previous session………………………………………..Full Article: Source

Gold Prices Flat Near 4.5-Year Lows

Posted on 12 November 2014 by VRS  |  Email |Print

Gold prices rallied $10 per ounce in London trade Tuesday, hitting $1156 – a new 4.5-year low when first reached last week – as world stock markets ticked higher but crude oil fell again. “The gold price has continued to trend lower,” says a new note from US investment bank Goldman Sachs, “on the back of the strong US Dollar, rising real interest rates and better-than-expected US economic data.”
Looking 12 months ahead, “we should see prices stabilise” says the London market-making bank. But gold prices could first fall to $800 per ounce, reckons Michael Sheehan, a portfolio manager at Redkite Capital, as disappointment grows with gold as a “diversifier” he told the London Bullion Market Association’s 2014 conference in Lima, Peru………………………………………..Full Article: Source

Gold prices to fall further over next 5-7 yrs: Morningstar

Posted on 12 November 2014 by VRS  |  Email |Print

According to Michael Coop, , head of Multi Asset Strategies, Morningstar gold is going for further slowdown as people still have significant component of the gold that they purchased 5-10 years ago. And the risk of them to divest that as they have become a bit pessimistic about the outlook and are seeing losses.
There are three things investors need to remember when they decide whether to hold gold in their portfolios. First is that over the long-term gold has been a reliable store of value and has kept its purchasing power and so, you could buy the same quantity of goods with gold now which you could 50-200 years ago. People tend to hold gold like an insurance against inflation. ……………………………………….Full Article: Source

Iron Ore Seen by Citigroup Below $60 as 2015 Forecast Cut

Posted on 12 November 2014 by VRS  |  Email |Print

Iron ore prices will plummet to less than $60 a metric ton next year as global supply increases and demand remains weak, according to Citigroup Inc., which slashed its quarterly forecasts for 2015 by as much as 23 percent.
The raw material will average $72 a ton in the first three months of 2015, down from an earlier forecast of $82, Ivan Szpakowski, an analyst in Hong Kong, wrote in a report dated today. The second-quarter forecast was cut to $65 from $80, while the third was reduced to $60 from $78 and the figure for the final three months was put at $62 from $78, he wrote………………………………………..Full Article: Source

Six reasons why the crash in oil prices is nothing to worry about

Posted on 11 November 2014 by VRS  |  Email |Print

Oil prices are falling! Oil prices are falling! But don’t run into that bunker just yet. Oil prices are plummeting. The US price for a barrel of crude has fallen to less than $78 a barrel, the lowest level in years. That comes hard on the heels of a summer-long 25% dip in prices that pushed gas at the pump below $3 a gallon – the lowest level since 2010.
It’s not a real crash: the world doesn’t really need more oil. Much of the drop is Saudi Arabia’s latest pricing shenanigans in negotiating with Opec. A crash in oil prices looks dire. But this may make less difference than you might imagine to your day-to-day finances………………………………………..Full Article: Source

An Oil Price ‘Cold War’ With Saudi Arabia? Experts Disagree

Posted on 11 November 2014 by VRS  |  Email |Print

Some analysts contend that Saudi Arabia’s latest price cut targets U.S. producers. Others argue it’s aimed at other exporters. It’s an oil-wrestling match – but it might only be as real as the WWE. Last week, Saudi Arabia slashed its crude oil prices for the second month in a row – and unlike the last discount, this was exclusively for the U.S. market.
Some experts declared it the start of a “cold war” with Saudi Arabia, as described by two University of Texas professors in an op-ed in the Dallas Morning News. Other analysts, however, contend that the Saudis are merely trying to defend against other exporters to the U.S………………………………………..Full Article: Source

What plummeting oil prices mean for renewable energy

Posted on 11 November 2014 by VRS  |  Email |Print

Oil’s slippery price slope could get even slipperier as winter approaches. It’s simple supply-and-demand economics: a worldwide slowdown in demand for oil, combined with the ongoing expansion of global production, thanks largely to aggressive extraction from US shale-rock formations, has sent the price of crude oil tumbling like a stone.
Where the bottom is and when it will be reached, nobody really knows. Goldman Sachs, which last week raised the specter of oil market oversupply in a report, slashed its price forecast for next year to $70 per barrel. Research analysts at the investment bank said they expect prices to recover to $80 per barrel in 2016 and beyond – which would remain well below west Texas prices over the last five years………………………………………..Full Article: Source

Gold Prices Fall on Profit-Taking

Posted on 11 November 2014 by VRS  |  Email |Print

Gold prices fell Monday, as a rising dollar prompted traders to lock in profits after last week’s sharp rally. Some analysts believe Friday’s rally was only a brief respite for gold prices. With the Federal Reserve set to raise rates next year while the Bank of Japan and European Central Bank remain on an easing path, the dollar is likely to continue its ascent, pushing gold down further, said Suki Cooper, an analyst at Barclays.
“The strength of the dollar appears to be an insurmountable hurdle for gold,” Ms. Cooper said in a note to investors. “Gold is taking its cue from currency movements and rates expectations, suggesting further downside pressure.”……………………………………….Full Article: Source

UBS lowers gold price forecast but recent decline ‘overdone’

Posted on 11 November 2014 by VRS  |  Email |Print

UBS has revised its short-term gold price forecast lower but said that recent declines in the metal are overdone. Spot gold dropped to four-year lows last week at $1,131.70 but rebounded strongly on Friday. It was last at $1,171/1,172.80 per ounce, down $6.80 loss on Friday’s close.
The bank has altered its one-month price target on the metal to $1,180 per ounce from $1,250 previously but kept its three-month forecast unchanged at $1,200. It lowered its average price forecast for the full year to $1,230 from $1,270 but left its 2015 average forecast at $1,200. “Although our new one-month price is lower than our previous forecast, it reflects a recovery from an overdone move to the downside,” UBS said in a note on Monday………………………………………..Full Article: Source

$1,100 gold price needed for Chinese physical demand spur

Posted on 11 November 2014 by VRS  |  Email |Print

The physical gold market in China has completely dried up, with local sources telling FastMarkets that prices will have to fall another $40-50 to spur buying. With spot gold on international markets bottoming out at $1,145.50/1,146.20 per ounce, its lowest since April 2010 and down significantly from its 2014 peak of $1,388, many had expected China, the world’s largest consumer of gold last year, to return to the market in force to pick up metal at bargain prices.
In April 2013, when prices sank to $1,350 per ounce from nearer $1,600, Chinese buyers were fundamental to its recovery back to $1,500. But spot premiums on the Shanghai Gold Exchange are now at par, having fallen from as much as $6 over spot for 1kg bars at the start of October, highlighting the lack of demand for metal………………………………………..Full Article: Source

HSBC: $1,131/Oz Key Technical-Chart Support Area For Gold

Posted on 11 November 2014 by VRS  |  Email |Print

Gold’s strong reversal upward late last week resulted in a “hammer bottom Japanese candlestick pattern” and leaves the area around $1,131 a pivotal support level, say HSBC technical analysts.
This type of pattern “occurs when, after a downtrend, the market makes a strong move down during the week but closes back up towards the open and highs of the week. It is a sign that the bears could be losing control of the market,” HSBC says………………………………………..Full Article: Source

Iron Ore Seen at Less Than $60 by Citigroup as Forecasts Cut

Posted on 11 November 2014 by VRS  |  Email |Print

Iron ore prices will plummet to less than $60 a metric ton next year as global supply increases and demand remains weak, according to Citigroup Inc., which slashed its quarterly forecasts for 2015 by as much as 23 percent.
The raw material will average $72 a ton in the first three months of 2015, down from an earlier forecast of $82, Ivan Szpakowski, an analyst in Hong Kong, wrote in a report dated today. The second-quarter forecast was cut to $65 from $80, while the third was reduced to $60 from $78 and the figure for the final three months was put at $62 from $78, he wrote. The full-year forecast for 2015 was cut to $65 a ton from $80………………………………………..Full Article: Source

OPEC Concerned, Not Panicking About Oil Price – Badri

Posted on 10 November 2014 by VRS  |  Email |Print

Fundamental factors do not justify the sharp drop in oil prices, OPEC Secretary-General Abdullah al-Badri said on Thursday, forecasting a price rebound by the second half of 2015. “We are concerned but we are not panicking,” he told reporters at a news conference on the group’s 2014 World Oil Outlook.
“We don’t see that much of change in fundamentals. The decline is 28 per cent, it’s a little bit too much,” he said, adding the group was evaluating the situation to gauge how events might develop. OPEC meets on Nov 27 and Badri said OPEC had not invited any other producers to attend………………………………………..Full Article: Source

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Oil price falls? Why you should relax: OPEC head

Posted on 10 November 2014 by VRS  |  Email |Print

Those panicked by the recent plunge in oil prices should “sit and relax,” according to the head of the Organization of the Petroleum Exporting Countries (OPEC) - the group of the world’s biggest oil exporters.
“The media is really panicking and the market is panicking, the consumer is panicking and the producers are panicking. We really should sit and relax and look into the situation,” Abdalla Salem el-Badri, secretary general of OPEC, told CNBC………………………………………..Full Article: Source

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A Major Low in Gold Price?

Posted on 10 November 2014 by VRS  |  Email |Print

It’s been a while since I have written an article on Gold, but the recent price action could well be the very clue we have been looking for. I have been very bearish Gold for a number of years/months, month by month the market has slowly moved towards the $1150 target we have been looking for.
You can clearly see its not hearsay, the result speaks for itself, our target was hit this past week, whilst many Gold pundits have been trying to pick a low, we are wavepatterntraders.com stuck to our guns and kept looking lower, one by one the Gold bulls seem to be capitulating, as the market moved towards our long standing target………………………………………..Full Article: Source

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Vladimir Putin: oil price decline has been engineered by political forces

Posted on 07 November 2014 by VRS  |  Email |Print

As slumping oil prices dampen Russia’s economic outlook, the country’s President has said that “at some moments of crisis it starts to feel like it is the politics that prevails in the pricing of energy resources”. Recent tumbles in the value of oil on global markets have been the creation of politicians, Vladimir Putin, President of Russia, suggested on Thursday.
The Russian state has been heavily exposed to slumping oil values, widely viewed to be the result of a supply glut. “The obvious reason for the decline in global oil prices is the slowdown in the rate of [global] economic growth which means consumption is being reduced in a whole range of countries”, Mr Putin said………………………………………..Full Article: Source

Oil Price at $70 a Barrel Would Likely Trigger Cut in OPEC Output Ceiling

Posted on 07 November 2014 by VRS  |  Email |Print

As oil prices slid further downward Thursday, OPEC signaled that it isn’t ready to hit the panic button—yet. Oil’s more-than-25% decline since the summer has led to speculation that the Organization of the Petroleum Exporting Countries—whose crude accounts for around a third of global oil supply—would cut its output to try to support prices, especially as some of the group’s members grow fearful of the likely hit to their government budgets.
At a news conference in Vienna on Thursday, OPEC secretary-general Abdalla Salem el-Badri said the group is “concerned, but we are not panicking.” Mr. el-Badri blamed market speculators for the sharp oil price drop, saying “fundamentals don’t deserve this price decline.”……………………………………….Full Article: Source

OPEC cuts oil price forecasts as ‘price war’ bites

Posted on 07 November 2014 by VRS  |  Email |Print

The group of the world’s biggest global oil exporters has cut its forecasts for the price growth and global demand for oil. In its annual World Oil Outlook, published Thursday afternoon, the Organization of the Petroleum Exporting Countries (OPEC) said there would be a “small decline in real values” over this decade together with a “constant nominal price” of $110 per barrel between now and 2020.
Economic forecasts for the U.S. were raised, while predictions for the “BRIC” countries (Brazil, Russia, India and China) were cut in the medium term. The group added that there was a danger of “substantial over-capacity in the sector.”……………………………………….Full Article: Source

Oil at $70? ‘Panic in OPEC’

Posted on 07 November 2014 by VRS  |  Email |Print

OPEC would likely lower the ceiling on its collective production if oil prices fall to $70 a barrel, a level most of the group’s members don’t expect to see this year, according to several of the group’s officials.
“At $70 a barrel, there will be panic in OPEC. We have become used to living with $100 a barrel,” said one OPEC official, speaking on the sidelines of a meeting of governors and other officials from the 12 members of the Organization of the Petroleum Exporting Countries………………………………………..Full Article: Source

A price battle in the oil market

Posted on 07 November 2014 by VRS  |  Email |Print

Brent crude, the benchmark oil future, slumped to a four-year low around $80 a barrel this week; US futures fell to a three-year trough of $77. This was due to Saudi Arabia, the key producer in the oil-exporting cartel Opec, reducing the price it charges US customers. It also raised prices slightly for Europe and Asia.
Brent has now fallen by almost 30% since June. Conflict in the Middle East did not, as initially feared, disrupt Iraqi exports. Libyan production has recovered, US shale output has soared, and demand has slowed amid sluggish growth in Europe and Asia………………………………………..Full Article: Source

Gold price bears take charge of bullion

Posted on 07 November 2014 by VRS  |  Email |Print

When the price of gold collapsed in the summer of 2013 Chinese buyers stepped in sensing a bargain, in the process putting China ahead of India as the world’s largest consumer of the precious metal.
This year, however, Chinese buyers have been conspicuous by their absence – and gold prices this week have hit a four-year low. Retail consumption fell by a fifth to 754.8 tonnes in the first nine months of the year compared with the same period last year, according to the China Gold Association, and few analysts believe it will rebound in the coming months even though bullion is at a five-year low in local currency terms………………………………………..Full Article: Source

Swiss yes vote could lift gold price 18%

Posted on 07 November 2014 by VRS  |  Email |Print

Gold was trending lower for a sixth straight session on Thursday hitting fresh four-year lows, but a market desperate for bullish news could find it in Switzerland at the end of the month. The Swiss go to the polls on November 30 in a referendum that will lay down new rules for the country’s central bank concerning its gold reserves.
Surveys are divided about support for the “Save Our Gold” camp that would force the Swiss National Bank to hold 20% of its reserves in gold, repatriate bullion held outside its borders and halt all sales, but a yes vote would be just what investors who nursing a 30%-plus drop in the price over the past two years need………………………………………..Full Article: Source

ABN Calls Gold a Falling Knife With Prices at $800 Next Year

Posted on 07 November 2014 by VRS  |  Email |Print

The selloff in gold is set to deepen as the dollar will probably extend gains, according to ABN Amro NV, which forecast that the precious metal may end this year at $1,100 an ounce and finish 2015 at $800.
“Don’t try to catch a falling knife,” analyst Georgette Boele wrote in an e-mailed report received today. “The U.S. dollar rally has further to run, especially if the Fed turns more hawkish this year.” Bullion retreated to the lowest level since April 2010 yesterday as the dollar advanced and holdings in the largest bullion-backed exchange-traded product contracted………………………………………..Full Article: Source

Gold Prices Could Fall Below $1,100 But Floor Is Approaching - Natixis

Posted on 07 November 2014 by VRS  |  Email |Print

Gold prices still have room to fall further and could end up dropping below $1,100 an ounce, but analysts at Natixis said that could signal a floor in prices as supply drops and demand increases.
However, because of persistent weakness in the yellow metal, the French bank is also lowering its 2015 average price target to $1,140 an ounce, down about $30 from their previous average price of around $1,170 an ounce. Looking out to 2016, Natixis expects gold prices to average about $1,180 an ounce………………………………………..Full Article: Source

Seven Commodities With Collapsing Prices

Posted on 06 November 2014 by VRS  |  Email |Print

Earlier this year, the International Energy Administration (IEA) and Bank of America both said that the United States has become the world’s largest oil producer, passing Saudi Arabia and Russia. American oil production growth and a rallying dollar have not only increased oil supplies, but have also led to dramatic price drops.
In addition to oil, the United States is also among the world’s largest producers of corn, soybeans, cotton, and wheat. However, the prices of these commodities — which are all traded on the futures market — have dropped noticeably in the last year………………………………………..Full Article: Source

Saudi oil price cut likely to stimulate world economy

Posted on 06 November 2014 by VRS  |  Email |Print

Oil prices slumped to multiyear lows on Tuesday after Saudi Arabia cut the price of oil sold to the U.S., a move that is shaking an already volatile market but is likely to give the world economy an unexpected stimulus. The 25 percent or so slide in oil prices since the summer could boost consumer spending and business investment in economies around the world as fuel bills fall.
But not everyone’s a winner. Oil-producing countries such as Russia and Venezuela, which have high extraction costs and whose budgets rely on assumptions of relatively high energy prices, stand to lose out. And lower prices could eventually slow booming production in the United States, offsetting the benefit of lower energy costs for consumers and businesses………………………………………..Full Article: Source

Falling Oil Prices Hurt Some, Help Others in Canada

Posted on 06 November 2014 by VRS  |  Email |Print

The falling price of oil threatens to thump parts of Canada, whose fortunes are the most tied to oil of any Group of Seven country. But oil’s swoon isn’t all bad news for a country that has the world’s third-biggest oil reserve, underscoring the complex role the resource can play in a modern economy.
An estimated 7.5% of Canada’s gross domestic product is directly tied up in the oil sector. A sustained fall in the commodity’s price would hit government coffers, corporate profits and investment spending. A pullback in the country’s oil patch would cost jobs and could knock a housing market that some analysts say is overvalued………………………………………..Full Article: Source

Gold rout sends price to 4-year low, $1,000/oz exposed

Posted on 06 November 2014 by VRS  |  Email |Print

Gold sunk below $1,150 per ounce on Wednesday to its lowest since mid-2010, opening the way for a fall to $1,000 as a surging dollar and stronger share prices weaken the investment case for non-yielding bullion. Silver fell even harder to hit its cheapest since February 2010 at just above $15 an ounce.
Spot gold, which skidded to its lowest since April 2010 at $1,143.66 an ounce, was trading down 2 percent at $1,145.05 by 1122 GMT………………………………………..Full Article: Source

Gold, Silver Prices Slide to 4½-Year Lows

Posted on 06 November 2014 by VRS  |  Email |Print

Gold and silver prices sank to 4½-year lows Wednesday, weighed by a soaring dollar and expectations of more stimulus from the world’s largest economies.
Gold for December delivery, the most actively traded contract, closed down 1.9% to $1145.70 a troy ounce, its lowest level since April 22, 2010. December silver fell 3.2% to $15.439 a troy ounce, after earlier touching $15.120, its lowest level since Feb. 10, 2010………………………………………..Full Article: Source

Silver price tumble triggers global scramble for coins, bars

Posted on 06 November 2014 by VRS  |  Email |Print

A tumble in silver prices to four-year lows has triggered a global scramble by consumers to purchase silver coins and bars as the metal has reached its cheapest level relative to gold in more than five years.
Retailers and distributors in Asia and the United States said they were struggling to get supplies of items such as Canadian Maple Leaf silver coins. Demand for silver has been strong over the past few months, but retailers say buying interest has soared in recent days as the metal has slid towards its lowest since 2010………………………………………..Full Article: Source

Saudi oil-price cut takes market by surprise

Posted on 05 November 2014 by VRS  |  Email |Print

Oil prices tumbled to their lowest point in more than two years after Saudi Arabia unexpectedly cut prices for crude sold to the U.S., likely paving the way for further declines and adding to pressure on American energy producers. The decision by the world’s largest oil exporter sent the Dow industrials DJIA, +0.10% into negative territory for the day amid concerns about the pace of global growth.
The move heightened worries over the resilience of the U.S. oil industry, which has expanded rapidly in recent years. But that growth, driven largely by new production technology used to extract oil from shale-rock formations, has never been tested by a prolonged slump in prices……………………………………….Full Article: Source

Crude oil at four-year low after Saudi Arabia price cut

Posted on 05 November 2014 by VRS  |  Email |Print

Crude oil prices have hit a four-year low after Saudi Arabia unexpectedly cut the price of oil sold to the US. Brent crude fell to near $82 (£51.24) a barrel as worries about global growth also spooked investors.
Earlier, the European Commission reduced its growth forecasts for the eurozone. Investors are concerned about the US oil industry in the face of slowing growth and lower prices. Some worry that low oil prices could hurt domestic US producers dependent on high prices for profitability………………………………………..Full Article: Source

Gold Prices End Mixed, Hovering Near 4-Year Low

Posted on 05 November 2014 by VRS  |  Email |Print

Gold prices ended the U.S. day session narrowly mixed Tuesday—cash (spot) gold slightly higher while Comex futures prices were modestly lower. The gold bears remain in firm technical control as prices trade not far above the recent four-year low.
The key “outside markets” remain in overall bearish postures for the precious metals—a stronger U.S. dollar and slumping crude oil prices. December Comex gold was last down $2.50 at $1,167.30 an ounce. Spot gold was last quoted up $1.80 at $1,167.50. December Comex silver last traded down $0.206 at $15.995 an ounce………………………………………..Full Article: Source

Gold price could fall below $US1,000

Posted on 05 November 2014 by VRS  |  Email |Print

Something worth its weight in gold could soon be worth a lot less. An American economic recovery could sink gold below $US1,000 per fine ounce by the end of 2015. The precious metal hit a four-and-a-half year low of $US1,165 per on Monday night.
Its value is expected to fall deeper as speculators turn to the greenback. “We’re in the phases of a multi-year cyclical bull run for the US dollar,” IG chief market strategist Chris Weston said………………………………………..Full Article: Source

What is pushing oil and gas prices lower?

Posted on 04 November 2014 by VRS  |  Email |Print

When it comes to lower gas and oil prices, should American consumers believe the hype? AAA reports the national average of a gallon of gasoline dropped below $3.00 per gallon for the first time in nearly four years.
“The steep decline in gas prices has helped to make driving less expensive for the vast majority of Americans who use their car every day,” Bob Darbelnet, CEO of AAA, said in a press statement on Friday. “Many Americans are spending $10-$20 less to fill up the cars on every trip to the gas station compared to what they paid during the summer driving season.”……………………………………….Full Article: Source

Saudi raises prices for crude customers

Posted on 04 November 2014 by VRS  |  Email |Print

Saudi Arabia has increased the price it charges customers for its crude oil for the first time in five months, undermining the argument that the kingdom has launched a price war with fellow members of the Opec oil cartel.
Saudi Aramco, the state-owned oil company, said it would sell its benchmark Arab light to customers in Asia at a discount of 10 cents a barrel to the Dubai/Oman contract in December, up from a discount of $1.05 in November………………………………………..Full Article: Source

Oil Skids as Saudis Adjust Prices

Posted on 04 November 2014 by VRS  |  Email |Print

U.S. oil prices tumbled to a fresh two-year low Monday on news that Saudi Arabia cut its selling price for oil to the U.S., suggesting that the kingdom is trying to compete with U.S. shale oil. Saudi Arabia raised the prices for its oil in other locations, including Asia, where the country has cut its prices for four straight months.
When the Saudis sharply cut their November selling prices at the beginning of October, oil prices weakened, as the market interpreted the lower prices as a signal that Saudi Arabia was more concerned with maintaining market share than with cutting production to keep prices high………………………………………..Full Article: Source

US oil ends below $79 after brief spike amid supply fears

Posted on 04 November 2014 by VRS  |  Email |Print

Global oil prices reversed a rally on Monday, with benchmark Brent returning to the red after a big hike in Saudi Arabia’s monthly export prices was viewed as a signal OPEC’s largest producer may be seeking to curb output.
State oil firm Saudi Aramco said it would raise the price of its flagship Arab light crude in December for customers in Asia and Europe, reversing some price cuts the previous month. It will cut prices for U.S. buyers………………………………………..Full Article: Source

Chinese Unmoved by Gold Price Drop, See it Cheaper Still

Posted on 04 November 2014 by VRS  |  Email |Print

Even with gold prices dropping to near four-year lows, buyers in China - the world’s leading market - are not tempted, suggesting prices have further to fall.
When gold prices are in a slump, Chinese buyers, eyeing a bargain, traditionally move in and stop the rot. But that doesn’t seem to be happening this time around. The current market decline has seen the price of gold lose more than a third of its value in two years, to around $1,170 an ounce………………………………………..Full Article: Source

Gold Prices at 4-Year Lows: Should You Buy Now?

Posted on 04 November 2014 by VRS  |  Email |Print

Gold prices have dropped to 26,350 levels in India - the lowest in nearly four years. And some analysts say that gold prices could be heading even lower. A weak trend in global markets, strong US economic data and a stronger dollar have been cited for their weak outlook on the precious metal.
Here is why analysts expect gold prices to fall: Dollar’s rise against major currencies: The rise of the greenback has been one of the big factors behind the plunge in global gold prices. The gains in the greenback negatively impact the price of commodities priced in dollars such as gold, silver and oil………………………………………..Full Article: Source

Gold price: ETF investors, speculators continue to exit

Posted on 04 November 2014 by VRS  |  Email |Print

The gold market was catching a breather on Monday with futures trading sideways after a brutal week which ended with gold falling through key support levels to a more than four-year low. In early afternoon trade on the Comex division of the New York Mercantile Exchange gold for December delivery was changing hands for $1,170.90 an ounce, down $0.60 from Friday’s close.
The gold price was battered on Friday by a quadruple shot – the end of US economic stimulus, a record-setting surge in equities, further falls in the crude oil price and a rampant dollar – falling to levels last seen July 2010………………………………………..Full Article: Source

WGC says low gold price not sustainable

Posted on 04 November 2014 by VRS  |  Email |Print

Having fallen to $1,160 an ounce, a four-year low, the yellow metal stares at a bear phase in the medium term. But the World Gold Council (WGC) maintains that the current price level is unsustainable due to higher cost of production for the metal. It also says the US interest rate trajectory will not be the key driver of gold price.
The average all-in cost of production of gold stands at $1,350 an ounce as per GFMS-Thomson Reuters, WGC said in a report. The sharp drop in price may lead to a contraction in gold mining over the next few years. “While gold prices can fall below production cost for various reasons, prices below this level are not sustainable for an extended period, unless there is a widespread reduction in production cost or readily available new deposits are found. Both are unlikely,” the market development organisation for the gold industry said………………………………………..Full Article: Source

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