Thu, Oct 2, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Category | Research more

Energy Economist: The shifting fundamentals of commodity demand

Posted on 24 September 2014 by VRS  |  Email |Print

Economic growth in emerging markets has driven energy commodity demand over the last decade, but that growth is now slowing. According to the IMF, GDP growth in emerging markets fell from 7% a year on average in 2003-2008 to 6% in 2010-13.
The Fund forecasts that emerging market growth will dip further to 5% from 2014-2018. The medium-term outlook is no better. The IMF writes: “In the past, we expected growth to bounce back (and it did). This time seems different.” One of the expected spillover effects is lower commodity prices. Despite ongoing conflicts in the Middle East and North Africa, the supply/demand balance in the oil market continues to look increasingly bearish………………………………………..Full Article: Source

Great American Group Analysts See Prices Rise for Many Base Metals

Posted on 24 September 2014 by VRS  |  Email |Print

Analysts with GA Advisory and Valuation Services, LLC, a division of Great American Group, Inc. report that pricing has increased for a number of non-ferrous metals in recent months amid tight physical supplies, despite lackluster demand in certain segments. In particular, pricing for aluminum, zinc, and lead climbed higher than expected.
“Stockpiles are dwindling and supply deficits are expected for these metals,” noted Michael Petruski, Executive Vice President of Great American Group’s Advisory and Valuation Services division. “Zinc prices have jumped nearly 25% over the year, as zinc production is slated to fall short of demand for the first time in seven years.” (Press Release)

Moody’s cuts price assumptions for natural gas, oil through 2015

Posted on 23 September 2014 by VRS  |  Email |Print

Moody’s Investors Service last week reduced its assumptions for average spot prices for North American natural gas after a mild summer cut demand for gas-powered electricity. Moody’s also cut its assumption for the spot prices for the two benchmark barrels of crude, European Brent and West Texas Intermediate (WTI). Oil prices dropped this past summer due in part to slower economic growth in some of the world’s major economies, a strengthened U.S. dollar, and growing non-OPEC supply, Moody’s said.
The rating agency lowered its price assumption for North American benchmark Henry Hub natural gas to $3.75 per million British thermal units (MMBtu) through 2015, a 50-cent decrease from its earlier assumption of $4.25/MMBtu set in June. However, its assumptions for 2016 and beyond are unchanged at $4/MMBtu………………………………………..Full Article: Source

Gold-silver price ratio may fall as gold cools faster

Posted on 23 September 2014 by VRS  |  Email |Print

The price of gold might fall more than that of silver this year, taking the price ratio between the two precious metals back towards its five-year average. Gold has been on a downtrend as pickup in global economies has reduced demand for this safe asset. This may offer music to the ears of Indian consumers, as they begin to purchase jewellery for the festival and marriage seasons.
ET data show the gold-silver ratio averaged 55.71 in the five years through end-2013. This means 55.71 kg of silver is needed to purchase a kilogram of gold. But, year-to-date, this ratio has climbed to 65.26, as silver has become more undervalued. The ratio was calculated based on average annual prices of front month gold and silver contracts on Multi Commodity Exchange………………………………………..Full Article: Source

The U.S. Oil And Gas Industry By The Numbers

Posted on 18 September 2014 by VRS  |  Email |Print

Have you ever wondered about the impressive numbers behind the U.S. oil and gas industry? The following infographic has all the answers. Even though oil production reached nearly 9,000,000 barrels per day in 2012, most people in the US are talking about “fracking”, slang for hydraulic fracturing, the controversial method for extracting shale gas.
There were about 45,000 fracking wells in the US in 2012 and the production of shale gas is skyrocketing as a result. Back in 2004, US shale gas production amounted to 0.6 trillion cubic feet and nearly 10 years on, that number has soared to 8.6 trillion…………………………………….Full Article: Source

Commodity price slump is a matter of perspective

Posted on 12 September 2014 by VRS  |  Email |Print

Commodity prices may have come under pressure this year, but they are still 115 per cent above their 1990s average, with iron ore and oil up over 500 per cent, according to a long-term analysis of commodity prices by HSBC.
But taking an even long-term view back to the 19th century, commodity prices are actually about normal, HSBC found. In the future, sugar and meat prices will increase sharply, oil will go up further, and metal prices will remain strong, the bank’s economists predict………………………………………..Full Article: Source

IEA Cuts 2015 Oil Demand Forecasts

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency Thursday trimmed its forecast for the rise in oil demand this year for the third month in a row, calling the recent slowdown in demand “nothing short of remarkable.” In its closely watched monthly oil market report, the Paris-based energy watchdog said it expects global oil demand to grow by 0.9 million barrels a day in 2014, a decrease of 65,000 barrels a day compared with last month’s forecast and down by 300,000 barrels a day since July.
According to the IEA, oil demand growth in the second quarter was at its lowest in 2½ years, dented by economic weakness in Europe and China, a trend the agency expects will continue to weigh on demand………………………………………..Full Article: Source

IEA Cuts Demand Estimate as Saudi Exports Drop to 2011 Low

Posted on 12 September 2014 by VRS  |  Email |Print

The International Energy Agency cut its global oil demand forecasts for 2015 and said Saudi Arabia exported the least in almost three years as purchases slowed from China and Europe.
Global demand will increase by 1.2 million barrels a day, or 1.3 percent, to 93.8 million barrels a day next year, the Paris-based adviser to 29 nations said in a report today. The expansion is 165,000 barrels a day less than it predicted a month ago. Second-quarter growth in consumption slid to a 2 1/2-year low, spurring Saudi Arabia’s shipments to the lowest since September 2011………………………………………..Full Article: Source

August Sees Further Consolidation in Commodity Markets

Posted on 11 September 2014 by VRS  |  Email |Print

August was a mixed period for commodities as the market saw further consolidation, according to Credit Suisse Asset Management. The Bloomberg Commodity Index Total Return performance was negative for the month, with 13 out of 22 Index constituents trading lower. Credit Suisse Asset Management observed the following: Livestock was the worst performing sector, down 4.18%, led by Lean Hogs. A decrease in demand expectations due to Russia’s ban on US pork, coupled with reduced cases of PED Virus continued to add to downward pricing pressure.
Agriculture decreased 2.25%, led lower by Soybean Oil. Wheat was the only grain to end the month in positive territory amid concerns that supplies from the Black Sea region might be disrupted due to escalating tensions between Russia and Ukraine. Precious Metals declined 1.00%, led lower by Silver. While Gold was supported by geopolitical uncertainty, the strengthening US Dollar and slowing physical demand weighed on Silver. (Press Release)

HSBC Global Research Commodity prices snapshot

Posted on 03 September 2014 by VRS  |  Email |Print

Global commodity prices fell in August, with declines across a broad range of commodity types. Our indicator suggests the IMF commodity price index is likely to have fallen by -4.0% in August, to be -4.2% lower than a year earlier. For the second month in a row, oil prices fell noticeably despite on-going geopolitical tensions.
Meanwhile, the prospect of a good harvest in the northern hemisphere continued to weigh on a broad range of agricultural commodity prices, particularly grains and vegetable oils. Metals prices were more mixed, with aluminium continuing its recent price gains, while copper and nickel prices fell. (Press Release)

HSBC Sees Gold Ranging From $1,150 To $1,350 For Rest Of 2014

Posted on 03 September 2014 by VRS  |  Email |Print

HSBC said Tuesday it sees gold trading in a range of $1,150 to $1,350 an ounce during the remainder of 2014 in a market “searching for a new equilibrium” with a number of offsetting factors. The bank left its 2014 average price forecast at $1,292 an ounce and listed 2015 and 2016 forecasts of $1,310 and $1,345.
“Gold is searching for a new equilibrium after last year’s price plunge, which ended the more than decade-long bull run,” HSBC said. “The massive gold-exchange-traded funds (ETFs) outflows of 2013 –which were instrumental in driving prices lower – have largely abated. Another positive is that net long positions on the Comex are rebuilding. Other factors supporting prices are that mine production gains are plateauing, scrap supplies are down and central bank demand is steady.”……………………………………….Full Article: Source

IEA predicts slowdown in global renewable energy expansion through 2020

Posted on 02 September 2014 by VRS  |  Email |Print

A new report from International Energy Agency (IEA) has revealed that the annual growth in new renewable power will slow and stabilize after 2014 due to policy uncertainty and the absence of grid integration measures. The agency warns that it may fall short of delivering the generation required to meet global climate change objectives.
Wind, solar and hydro and other renewables will account for approximately 26% of global electricity generation by the end of 2020 from about 22% in 2013. The report said the expansion will slow in the next five years unless policy uncertainty is diminished………………………………………..Full Article: Source

Global recovery continues at varying speeds, equity the best bet: Bank J Safra Sarasin

Posted on 01 September 2014 by VRS  |  Email |Print

As the global economic recovery is continuing at varying speeds equities remain the most attractive asset class mid-term, a report by Bank J. Safra Sarasin said. The US leads the global cycle with growth significantly higher than in Euroland.
Euroland is hampered by high debt levels, ongoing economic imbalances, adverse geopolitical headwinds like the crisis in Ukraine and the urgent need for structural reforms, the report said.Inflation remains low globally, preventing a premature increase of policy rates and a bond market crash. The spectre of deflation is particularly strong in Euroland and needs to be addressed by demand and supply side policies………………………………………..Full Article: Source

Global oil and gas transaction activity by sector

Posted on 20 August 2014 by VRS  |  Email |Print

In 2013, the total disclosed oil and gas transaction value was US$ 337 billion. This total was significantly lower (down 21%) than the record high of US$ 423 billion posted in 2012. EY notes that in 2013, there was a reduced willingness to commit to larger transactions. In 2012, 98 oil and gas transactions exceeded US$ 1 billion, compared with just 70 in 2013. In 2012, there were four ‘mega-deals’, with reported values over US$ 10 billion, but in 2013 there were only three.
Transaction activity in the oilfield services (OFC) sector declined in 2013, with 185 deals announced compared with 243 in 2012 and 201 in 2011. According to EY, the average disclosed deal value fell from US$ 244 million to US$ 179 million, marking a continuous decline from the 2011 peak of US$ 416 million………………………………………..Full Article: Source

U.S. Cuts 2014 Oil Price Forecast as Production Surges

Posted on 13 August 2014 by VRS  |  Email |Print

The Energy Information Administration decreased its 2014 price forecast for West Texas Intermediate crudes after the U.S. reached its highest monthly production in 27 years.
WTI will average $100.45 a barrel this year versus the July projection of $100.98, the EIA, the Energy Department’s statistical unit, said today in its monthly Short-Term Energy Outlook. Brent will average $108.11, down from $109.55. Oil output was 8.5 million barrels a day in July, the most since April 1987, the EIA said………………………………..Full Article: Source

IEA raises call on OPEC crude oil for rest of 2014, 2015

Posted on 13 August 2014 by VRS  |  Email |Print

The International Energy Agency said Tuesday it sees a need for more OPEC crude on the global market for the remainder of 2014 and in 2015 than it previously forecast despite global demand growth being curtailed.
In its latest monthly oil report, the IEA raised the “call” on OPEC by a combined 400,000 b/d for the third and fourth quarters to 30.8 million b/d. This compares to previous forecasts of 30.7 and 30.5 million b/d, respectively. For 2015, the call has been raised by 100,000 b/d to 29.9 million b/d………………………………..Full Article: Source

Geopolitical tensions to affect Agri, Energy; Gold to lose resilience: Deutsche Bank

Posted on 12 August 2014 by VRS  |  Email |Print

The current quarter witnessed the worst performance from agriculture and energy and a bright spot in industrial metals. The decline in long time yields shown by precious metals is unlikely to sustain over the medium term, indicating that Gold’s resilience is likely to fade, according to a Deutsche Bank report.
The Russian ban on European and US food is only likely to have a limited impact globally as its direct result will be domestic inflation. The real issue for agriculture will be the excessive rains in France, Germany and Ukraine and their impact on this year’s harvest. The rains have already affected Wheat prices……………………………………Full Article: Source

Broad commodity ETPs attract strong inflows in July -BlackRock

Posted on 11 August 2014 by VRS  |  Email |Print

Diversified commodity exchange-traded products (ETPs) attracted strong inflows in July as a pick-up in economic growth in China and the United States encouraged investors to return to the unloved asset class. Investors injected $936 million into broad-basket commodity ETPs last month - the biggest inflow for this segment in three years, data from asset manager BlackRock showed.
That compared with the high watermark for the category in February 2011 of $1.5 billion in inflows, according to Ursula Marchioni, head of ETP Research EMEA at BlackRock’s iShares. Industrial metals ETPs also attracted a robust $117 million as the tide began to turn for the more cyclical commodities……………………………………..Full Article: Source

HSBC expects gold’s recent price decline to boost demand

Posted on 07 August 2014 by VRS  |  Email |Print

Australian Perth Mint gold and silver sales declined during July this year, as per latest figures from Perth Mint. Perth Mint gold bullion coins and bars sales for July down to 25,103 ounces from sales of 39,405 in July last year. For silver, July sales totaled 577,988 ounces, down from 586,358 sold in the same month last year.
According to HSBC, Perth Mint July data show a decline in sales of gold bullion coins and bars, but lower prices lately may help revive demand. US Mint data last week showed a 49% year-on-year decline in gold coin sales to 35,500 ounces………………………………………..Full Article: Source

Commodities May Continue Slump Into August, But Buying Opportunities Possible

Posted on 06 August 2014 by VRS  |  Email |Print

July was the worst month for commodities overall since May 2012, and the weak performance is likely to continue into August, market watchers said. But weaker markets can offer buying opportunities for savvy traders, they added.
The S&P GSCI lost 5.3% in July, giving up almost its entire gain for the year, and as of Monday has roughly a flat return year-to-date. According to data released by S&P Dow Jones Indices, one of the worst performers in their indexes was unleaded gasoline, which fell 8.1% in July. This is the fifth-worst July on record since 1988 and is also the worst July since July 2008. The agriculture sector lost 8.7% in the S&P GSCI index, falling to its lowest level since July 2010………………………………………..Full Article: Source

Global economy to expand above trend in H2 2014: PIRA Energy

Posted on 31 July 2014 by VRS  |  Email |Print

NYC-based PIRA Energy Group believes that the global economy will expand at above trend pace in the second half of 2014. In the U.S., products increased and crude stock declined. In Japan, crude stocks built as imports rebounded from storm impacts. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
World Oil market forecast: After a sub-par first half, the global economy will expand at above trend pace in the second half of 2014, led by manufacturing. First half weakness in the economy undermined global oil balances with inventories building back to year ago levels………………………………………..Full Article: Source

Goldman Sees Nickel Rising With Palladium to Beat Soy

Posted on 30 July 2014 by VRS  |  Email |Print

Nickel and palladium are set to outperform iron ore and soybeans as supply outlooks for commodities diverge amid a tentative acceleration in global economic growth, according to Goldman Sachs Group Inc.
The bank kept its 12-month recommendation for commodities at neutral, analysts including Jeffrey Currie wrote in a report dated yesterday. They expect the total return for the Standard & Poor’s GSCI Enhanced Commodity Index to be 0.1 percent in 12 months helped by positive roll yields………………………………………..Full Article: Source

Saudi Arabia oil and gas market to 2023

Posted on 30 July 2014 by VRS  |  Email |Print

Business Monitor International has released a new report, ‘Saudi Arabia Oil & Gas Report Q3 2014’, in which it indicates the view that crude production in the country will remain elevated by historical standards in 2014 and 2014.
This view is based on continued OPEC outages, a mediocre global supply picture, a continued increase of domestic consumption from the power generation and transport sectors, strong demand from the refining sector and a recovering global demand picture………………………………………..Full Article: Source

IMF cuts global growth outlook, warns of stagnation risk in rich nations

Posted on 25 July 2014 by VRS  |  Email |Print

The International Monetary Fund on Thursday chopped its 2014 forecast for global economic growth to take into account weakness early in the year in the United States and China, the world’s two biggest economies. The IMF warned that only some of the factors leading to the reduction were temporary, and richer nations in particular faced the risk of economic stagnation unless they took steps to foster sustainable growth.
In an update to its World Economic Outlook report, the IMF said the global economy should expand 3.4 percent this year, 0.3 percentage points below what it predicted in April. Growth should still speed up to 4 percent next year, it said, unchanged from what it predicted earlier this year………………………………………..Full Article: Source

Goldman Sachs says copper to underperform other base metals

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs said it expects copper to underperform other base metal prices over the next 12 months, citing the red metal’s heavy exposure to China’s property sector, which it expects to remain bearish this year and next.
The bank also said copper has entered a once-in-20-year supply cycle, which started in the second half of 2012 and is set to last through to 2016/17, following a decade of high capital expenditure investment in the industry, raising trend supply growth to about 4-5 percent from about 2 percent over the past decade………………………………………..Full Article: Source

Goldman Raises Nickel Price Forecast as Deficit Looms Amid Ban

Posted on 25 July 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc. raised its price forecast for nickel as the market is swinging to a deficit next year following an ore-export ban in Indonesia. The bank’s 12-month estimate is now $22,000 a metric ton, up 38 percent from the previous projection of $16,000, analysts led by Max Layton wrote in a report.
They increased zinc and aluminum by at least 11 percent to $2,500 a ton and $2,100 a ton, respectively, saying iron ore, gold and copper have “the greatest downside” among the mining commodities………………………………………..Full Article: Source

How the second half will be for commodities this year

Posted on 24 July 2014 by VRS  |  Email |Print

Commodity markets are generally perceived to be fraught with risk given the volatility commodity prices demonstrate. And 2014 has been a year of contrasts. The year began with an extremely bullish situation in the grain and oilseed markets, pushing prices to new highs. In addition, the weather premium was built into prices of fears of El Niño striking later this year. Low inventories of some commodities such as soyabeans exacerbated conditions.
Mid-year, everything has turned around. The weather has been extraordinarily good in the North American continent. The dry and hot conditions expected in South America that could have pushed the sugar prices higher has not turned out as bad as feared. Rainfall from the Indian monsoon isn’t great, but it isn’t that bad either. Overall, the weather premium has now been taken out of the market. ……………………………………….Full Article: Source

Commodity prices will dip as super-cycle ends: Goldman Sachs

Posted on 18 July 2014 by VRS  |  Email |Print

Commodities from iron ore to copper and Brent crude will drop over the next five years as global supplies climb, according to Goldman Sachs Group, which highlighted oil’s recent losses as a sign of increased output. There will be substantial declines in some metals, energy and bulk commodities, analysts including Chief Currency Strategist Robin Brooks wrote in a report.
The period of continued year-on-year price rises for most commodities is over, they said in the report, which was dated July 15. Banks from Citigroup to Deutsche Bank AG have called an end to the commodities super-cycle, when China’s surging demand combined with supply constraints to more than double prices in the 12 years through 2010………………………………………..Full Article: Source

BofA-ML raises 2014 gold price forecast citing a lack of mine supply growth

Posted on 14 July 2014 by VRS  |  Email |Print

Bank of America Merrill Lynch has raised its 2014 gold price forecast, citing a lack of mine supply growth and steady demand for the yellow metal from emerging markets. The bank lifted its gold price forecast for this year by 0.8 per cent to $1,308 per ounce from $1,298, and kept its 2015 price outlook unchanged at $1,375 an ounce.
“We believe the continued monetary easing, accompanied by asset price inflation in many countries causes some apprehension that should bring investors back into the market,” BofA analyst Michael Widmer said………………………………………..Full Article: Source

India: Survey gives a boost to commodity futures

Posted on 10 July 2014 by VRS  |  Email |Print

Economic Survey 2013-14 has given a thumbs-up to commodity futures, saying, “Commodity futures trading is essential for a modern food sector, as it generates forecasts about future prices that shape sowing and storage decisions across the country.” This comes as relief for market participants, as most feared harsh action related to essential commodities. A 2011 report by a committee headed by then Gujarat chief minister Narendra Modi had opposed futures trade in essential commodities.
The survey, recommended, “Procurement agencies can use this platform to their benefit by hedging their future requirements on a regular basis, according to the provisions of the NFSA (food security Act)”……………………………………….Full Article: Source

ETF Securities: PGM Demand Leads Second-Quarter Inflows For Commodity ETPs

Posted on 09 July 2014 by VRS  |  Email |Print

Global commodity exchange-traded products posted a second straight quarter of investment inflows during the April-June period, with the biggest gains coming from the platinum group metals, ETF Securities said Tuesday.
Overall, commodity ETP flows were helped by increasing confidence in China’s economic outlook and the global economic recovery, said the firm, which provides a number of metals ETFs……………………………………Full Article: Source

EIA bumps up oil, gasoline and natural gas price predictions

Posted on 09 July 2014 by VRS  |  Email |Print

The U.S. Energy Information Administration raised its 2014 and 2015 average price estimates for crude oil, gasoline and natural gas, according to a monthly report released Tuesday. “The escalating conflict in Iraq, continued record-high levels of Chinese crude oil imports in 2014, and ongoing delays to Libyan oil exports have contributed to upward price pressure,” the government agency said.
For 2014, the EIA forecast average prices of $100.98 a barrel for West Texas Intermediate crude oil , up from an estimate of $98.67 in the previous monthly report. It estimates an average 2015 price of $95.17, up from $90.92……………………………………Full Article: Source

Emerging markets output growth strongest since March 2013 - survey

Posted on 07 July 2014 by VRS  |  Email |Print

Business activity in emerging markets expanded last month at its fastest rate since March 2013, boosted by strong growth in China and India, a survey showed on Monday.
HSBC’s composite emerging markets index of manufacturing and services purchasing managers’ surveys jumped to 52.3 in June - well above the 50 threshold that indicates expansion - from 50.6 in May. Services activity growth hit a 15-month high and manufacturing output also rose, HSBC said………………………………………..Full Article: Source

TDS Raises Commodity Forecasts, Sees Average 2014 Gold Price At $1,273/Oz

Posted on 02 July 2014 by VRS  |  Email |Print

TD Securities raised second-half 2014 forecasts for a host of commodities, including gold, silver, base metals and some energy markets. In a research report released late Monday, TDS now forecast average 2014 gold prices at $1,273 an ounce, up $25 from their previous view, and silver at $19.87, up 55 cents. For the third quarter, their average gold price forecast is $1,260, up $60, and the fourth-quarter forecast is up $25 to $1,250. For silver, the third-quarter forecast is up $1.20 to $19.80 and the fourth-quarter forecast is up 64 cents to $19.64.
For 2015, however, the firm lowered its gold forecast for the first half of the year, leaving its second-half 2015 forecast unchanged. It lowered its 2015 average price forecast by $10 to $1,271. For silver, TDS upped its second-quarter 2015 forecast and lifted its 2015 average forecast by 6 cents to $19.88………………………………………..Full Article: Source

Goldman Sees Commodities Dropping 5.5% After Iraq-Driven Rally

Posted on 25 June 2014 by VRS  |  Email |Print

Commodities are poised to decline 5.5 percent over the next 12 months after climbing amid tensions in Iraq, Goldman Sachs Group Inc. said. Energy prices will be 5 percent lower a year from now, precious metals will drop 15 percent and agricultural products will retreat 10 percent, the bank said in an asset-allocation report dated yesterday. Commodities will decline 4 percent in the next three months, according to the report.
“Despite the negative return we forecast after the recent rally driven by events in Iraq, we stay neutral commodities due to the hedging benefits they offer against these risks,” Goldman analyst Jeffrey Currie in New York said in the report………………………………………..Full Article: Source

CPM predicts largest-ever platinum market deficit in 2014

Posted on 25 June 2014 by VRS  |  Email |Print

Regardless of Monday’s announced end of the South African platinum strike, New York-based commodities research firm, CPM Group, forecasts that the platinum market is expected to record the largest deficit ever this year, as the shortfall of total supply of newly-refined platinum relative to fabrication demand is estimated at 818,823 ounces this year.
In the CPM Group Platinum Group Metals Yearbook 2014 made public Tuesday morning, CPM estimated that total refined platinum supply rose 2.6% to 7.2 million ounces last year. Most of the supply increase was from higher mine supplies, which rose 4.8%………………………………………..Full Article: Source

Barings survey shows uptick in commodity demand

Posted on 19 June 2014 by VRS  |  Email |Print

Advisers are increasingly willing to recommend natural resources and commodities funds to their clients, according to a survey by Baring Asset Management. Nearly two in five (38 per cent) of intermediaries suggested they would recommend an increase in their exposure to the sectors, up from a quarter in the previous Barometer survey and the highest for nearly three years.
The research found one in six (16 per cent) were ‘very favourable’ towards natural resources/commodities from just 6 per cent in the previous Barometer. More than half (53 per cent) said they were currently ‘favourable’ towards global resources and commodities…………………………………..Full Article: Source

Iraq’s Impact On Global Oil In Four Easy Charts

Posted on 19 June 2014 by VRS  |  Email |Print

In less than a week, al Qaeda splinter group Islamic State of Iraq and Syria (ISIS) has seized several key cities in the north and center of Iraq, the world’s seventh-largest oil-producing country, causing Iraq’s largest oil refinery to shut down Tuesday and bumping up international oil prices as traders fear the escalating violence could inhibit oil production.
Energy industry watchdogs have expected Iraq to expand its oil production considerably in the next decade, which would help keep global oil prices stable and meet rising global oil demand, particularly in China…………………………………..Full Article: Source

IEA outlook: ‘Golden Age’ of gas to extend to China

Posted on 11 June 2014 by VRS  |  Email |Print

The “Golden Age” of natural gas that has taken such a strong foothold in North America will extend to China over the next 5 years, driven by booming demand, according to the latest 5-year gas market outlook from the Paris-based International Energy Agency.
In its Medium-Term Gas Market Report 2014, IEA noted that a near-doubling of Chinese gas demand by 2019 will offset a slowdown in demand in other regions. The annual report sees global demand rising 2.2%/year by the end of the forecast period compared with the 2.4%/year rate projected in last year’s outlook………………………………………..Full Article: Source

Citi Research Sees Gold Averaging $1,337/Oz In Second Half

Posted on 30 May 2014 by VRS  |  Email |Print

Citi Research looks for gold prices to improve from current levels in the second half of 2014 but overall appears to be more pessimistic toward the outlook for gold-mining equities. The bank issued a pair of research reports on gold and silver Thursday.
Citi said it looks for the gold price to average $1,337 an ounce in the second half of the year, then rising to $1,365 in 2015. In particular, Russia-Ukraine tensions may help provide a lift, Citi said………………………………………..Full Article: Source

Natural Gas to remain bullish on lower storage forecast: Deutsche Bank

Posted on 26 May 2014 by VRS  |  Email |Print

Natural Gas prices are likely to remain bullish on deficit in stored gas is a more pressing issue than ever, according to Deutsche Bank. The bank said gas injected to underground storage over the course of summer plays an instrumental role in satisfying seasonal demand variations primarily in the residential and commercial sector.
In the winter of 2013-14, withdrawal of gas from storage accounted for 18% of supply.This winter, supplies will be 12% lower amidst lower rig counts but higher productivity………………………………………..Full Article: Source

Gold Has Worst Outlook by Credit Suisse as Crude Favored

Posted on 23 May 2014 by VRS  |  Email |Print

Gold has the worst prospects among commodities over the next 12 months and crude oil has the best, according to an investor poll by Credit Suisse Group AG. (CSGN).
Seventy-one percent of respondents said gold has the worst outlook, and 16 percent said copper will be the biggest loser, the bank said in an e-mailed report today. Forty-nine percent expect crude oil to be the best performer, followed by a 27 percent vote for corn, according to a survey of about 160 participants conducted this week……………………………………..Full Article: Source

Want to shift economy away from volatile commodities? Look at Singapore: ICAEW

Posted on 22 May 2014 by VRS  |  Email |Print

The three large Asean economies of Indonesia, the Philippines and Thailand, which are striving to shift from significant commodity dependence to high value-added exports, could do worse than to look at Singapore and Malaysia’s experience, said ICAEW’s latest Economic Insight report.
For instance, in 2012, 33 per cent of Indonesian exports consisted of fuels and related materials, and 12 per cent consisted of animal and vegetable oils, fats and waxes. In comparison, 19 per cent and 0.1 per cent of total Singaporean exports consisted of these two commodities respectively. Even then, many of these exports are simply passing through rather than produced by Singapore………………………………………Full Article: Source

China reins supreme in world commodities

Posted on 21 May 2014 by VRS  |  Email |Print

Grains, metals, meat - these are just three of the commodities being sucked in by the voracious Chinese economy set to be the key driver on raw materials markets this year. French commodity research specialist Cyclope argues that “in the coming months, global markets will feel even the slightest sneeze from China”.
World commodity prices have surged in recent years, driven by rising demand from increasingly affluent shoppers in emerging markets and particularly China. China has also amassed huge reserves of US dollars and has the financial firepower to buy and outbid, since many commodities are traded in US dollars…………………………………..Full Article: Source

China to rein supreme in world commodities in 2014

Posted on 19 May 2014 by VRS  |  Email |Print

Grains, metals, meat: these are just three of the commodities being sucked in by the voracious Chinese economy which is set to be the key driver on raw materials markets this year. French commodity research specialist Cyclope in a report published this week argues that “in the coming months, global markets will feel even the slightest sneeze from China”.
World commodity prices have surged in recent years, driven by rising demand from increasingly affluent shoppers in emerging markets and particularly China. China has also amassed huge reserves of dollars and has the financial fire-power to buy and outbid, since many commodities are traded in dollars…………………………………….Full Article: Source

Goldman Says Commodities Appeal as World Economy Recovers

Posted on 15 May 2014 by VRS  |  Email |Print

Commodities as an asset class remain appealing as the global economic recovery extends into 2015, according to Goldman Sachs Group Inc.
The bank raised its 12-month allocation for commodities to neutral from underweight, analysts led by Jeffrey Currie and Damien Courvalin wrote in a report dated yesterday. They increased their three and six-month price forecasts for nickel and rolled the 12-month predictions for aluminum and zinc forward to higher levels………………………………………..Full Article: Source

IEA terms India’s plan to become energy independent as ambitious

Posted on 12 May 2014 by VRS  |  Email |Print

The International Energy Agency (IEA) has termed India’s plan to become energy independent by 2030 as a “very ambitious” and an “idealistic challenge”. This comes in the backdrop of oil minister M. Veerappa Moily’s plan of achieving the target by 2030, even as India, the world’s fourth largest energy-consuming nation, imports 80% of its crude oil and 25% of its natural gas requirements.
“Where 300 million Indians are lacking access to electricity and where per-capita electricity consumption is one-fourth of the world’s average, this is a very, very ambitious and huge challenge. It is not easy………………………………………..Full Article: Source

World top 10 gold producers - countries and companies

Posted on 08 May 2014 by VRS  |  Email |Print

The new Gold and Silver Mining focus report from Metals Focus notes that the Russian Federation surpassed the U.S. as the world’s No. 3 gold producer in 2013, while South Africa regained the No.5 slot from Peru as it increased output marginally by 1% over strike hit 2012, while Peru’s output fell back by 3%. The No.1 and No.2 slots were retained by China and Australia respectively.
World gold production grew by around 5% compared with 2012 and Metals Focus anticipates a smaller further rise in global gold output in the current year, although the effects of the lower gold prices of the past two years may start to kick in in 2015 and we could start to see a period of secular decline in new mined gold output from 2015: Even if the gold price recovers as it will take time to re-implement deferred mining projects, or re-open shuttered operations………………………………………..Full Article: Source

OECD cuts global growth forecast for 2014

Posted on 07 May 2014 by VRS  |  Email |Print

The global economy will grow by less than expected this year as growth in developing economies slows, The Organisation for Economic Co-operation and Development predicts. It expects 3.4% world growth this year, down from its 3.6% November forecast. In 2015, however, it still expects growth of 3.9%.
It cut forecasts for China and the US. “We are still not out of the woods yet,” said OECD Secretary General Angel Gurria………………………………………..Full Article: Source

Rare Earths: US hopes soar on Ucore’s Bokan Deposit

Posted on 02 May 2014 by VRS  |  Email |Print

Attention must be paid to the heavy rare earth sectors which is dominated by the Chinese. Tensions are increasing between the West (US, Europe and Japan) and the East (China and Russia) over trade, territories and natural resources.
No where is this more apparent than in the rare earth metals. These metals are critical for our high tech military applications, permanent magnets and green energy. The U.S. imports close to 100% of this material from China………………………………………..Full Article: Source

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031