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Oil to rebound further this year: Opec’s Kuwait official

Posted on 20 May 2015 by VRS  |  Email |Print

Oil prices could continue to rebound in the second half of 2015 following signs of growth in demand and a drop in high-cost production, an Opec official said yesterday. “It is expected that a kind of a balance will exist in the oil market in the second half of 2015 which will support prices,” Kuwait’s governor at Opec Nawal Al Fuzai told reporters. “Prices are improving, growth in supplies from outside Opec - especially shale oil - is lower than before and demand is recovering.”
This has pushed both the Organisation of Petroleum Exporting Countries and the International Energy Agency to adjust upward their forecasts for crude demand, Fuzai said. She said it was too early to predict any decision by Opec at its meeting next month………………………………………..Full Article: Source

Iron ore price inquiry ‘good and normal’ says Andrew Forrest

Posted on 20 May 2015 by VRS  |  Email |Print

As most Australians know, the price of iron ore has fallen massively, losing more than 60 per cent in the past year and a half and blasting a hole in the nation’s finances. That’s because demand from China has fallen. But the market is still heavy with supply.
Andrew Forrest, the chairman of Fortescue Metals Group, is accusing the big miners, BHP and Rio Tinto, of taking advantage of the situation and flooding the market further to drive the price down so smaller competitors like him collapse. He’s calling for a parliamentary inquiry into the iron ore price, something the Government last week appeared to favour but from which it’s since stepped back………………………………………..Full Article: Source

Iran deputy oil minister says OPEC unlikely to cut output

Posted on 19 May 2015 by VRS  |  Email |Print

The Organisation of the Petroleum Exporting Countries (OPEC) is unlikely to implement a production cut at its next meeting in June, a senior Iranian official said on Monday. Asked if OPEC would cut output at the upcoming June 5 meeting, Iran’s Deputy Oil Minister Rokneddin Javadi told Reuters: “I don’t think so.”
Iran, along with Venezuela, has repeatedly called for OPEC to cut output to shore up low prices that have eaten into producers’ oil revenues. Javadi’s comments signal an admission that the group was unlikely to agree to a reduction, especially after its current strategy has succeeded in curbing non-OPEC output and allowed OPEC to regain market share………………………………………..Full Article: Source

Reports of demise of oil “exaggerated”: OPEC research chief

Posted on 11 May 2015 by VRS  |  Email |Print

Demand for oil will continue to rise for the next 25 years, driven by emerging economies, particularly those from Asia, according to Omar Abdul-Hamid, the director of OPEC’s Research Division. “News of the end of oil has been exaggerated,” Abdul-Hamid said in a recent interview with an in-house magazine published by Siemens. “We saw on average 91 million barrels of demand every single day in 2014. By 2040 we expect 111 million barrels of demand per day.”
“Demand growth mainly comes from emerging economies and developing countries, particularly in Asia, and from OPEC member states. Their demand more than compensates for shrinking use in highly developed countries,” he said. He added that OPEC saw that there remained sufficient global oil resources to satisfy the growing demand………………………………………..Full Article: Source

Ethiopian Commodity Exchange gets new CEO

Posted on 08 May 2015 by VRS  |  Email |Print

The Board of Directors Office of the Ethiopian Commodity Exchange today announced the appointment of Ato Ermias Eshetu as Chief Executive Officer of the ECX. Ato Ermias has held a range of leadership positions locally and abroad. Since 2007, he has served as an Executive Management Member at Zemen Bank, most recently as Vice President for Marketing & Corporate Services.
He received his Masters in International Business from Manchester School of Management and a Bachelor degree in Computation at UMIST, in the United Kingdom. Over the past 20 years, Ermias has worked at multi-national organization such as IBM, Alcatel, Orange and MicroStrategy………………………………………..Full Article: Source

Saudi Arabia’s oil minister Ali al-Naimi: ‘Only Allah can set the price of oil’

Posted on 06 May 2015 by VRS  |  Email |Print

Saudi Arabia’s oil minister has turned to divinity over the issue of slumping prices in oil, claiming that “it’s up to Allah”. Speaking to CNBC, oil minister Ali al-Naimi said that “no one can set the price of oil – it’s up to Allah”.
Saudi Arabia is the world’s biggest producer of oil and, while oil prices have been staying low on the market, the country has decided to increase its production of the substance rather than cut it. Sanctions currently placed on Iran could soon be lifted as part of international nuclear negotiations, which would mean the country’s crude oil would come back on to the market and cause prices to plunge further………………………………………..Full Article: Source

Saudi prince sees power grow in oil restructuring

Posted on 04 May 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s largest oil exporter, has restructured its hydrocarbon sector by splitting the state oil company from the oil ministry in a move that consolidates the power of the king’s son over the economy. King Salman bin Abdel Aziz al-Saud formed the 10-member Supreme Council for Saudi Aramco, headed by his son, Deputy Crown Prince Mohammed bin Salman, to oversee Saudi Aramco, the state oil company.
The council will include the ministers of oil, finance, economy and the central bank governor, among others. It is the latest measure to concentrate power in the hands of the prince, who this week was picked as second in line to the throne. In January, his father appointed him defense minister and head of the council on economic and development affairs, which will co-ordinate economic reforms as the kingdom copes with lower oil prices………………………………………..Full Article: Source

Saudi Arabia elevates Aramco chief as it braces for more market uncertainty

Posted on 30 April 2015 by VRS  |  Email |Print

Saudi Arabia is likely grooming Khalid Al-Falih to replace Ali Al Naimi’s oil minister, as the kingdom prepares for more uncertainty in oil markets. On Wednesday, Saudi King Salman initiated a number of significant changes, including the promotion of Al-Falih as chairman of state-owned Saudi Aramco, a position previously held by Ali Al-Naimi, the 80-year-old oil minister.
Al-Falih, 55, who joined Aramco in 1979, and became its president and chief executive in 2009, now appears most likely to succeed Al-Naimi, given the kingdom’s long-standing tradition of promoting non-royals to the all-important position………………………………………..Full Article: Source

Meet the man who could be the next ruler of oil market

Posted on 30 April 2015 by VRS  |  Email |Print

There’s no one individual who has the power to shake the world oil markets quite like Ali al-Naimi, Saudi Arabia’s octogenarian oil minister. So the replacement of al-Naimi as chairman of state-owned Aramco with its former CEO Khalid al-Falih is being read as a signal by oil traders that he could now be the front runner for oil minister when al-Naimi retires.
He was also named to the post of health minister in a series of key appointments by King Salman bin Abdulaziz al-Saud, which included a sweeping succession plan with a new generation in line………………………………………..Full Article: Source

Opec officials said to plan technical talks with non-Opec in May

Posted on 29 April 2015 by VRS  |  Email |Print

Opec officials will meet with representatives from oil producers outside the group to discuss the global market in May, a few weeks before the organization’s ministerial meeting, according to two people with direct knowledge of the matter.
Technical experts from Russia, Mexico and Oman will confer with counterparts from the OrganiSation of Petroleum Exporting Countries’ 12 members at the group’s secretariat in Vienna on May 12 to 13, said the people, who asked not to be identified because the talks are private. The conference was suggested by member nation Venezuela, they said, which has urged OPEC to revive prices by cutting output………………………………………..Full Article: Source

Saudi Prince Sees ‘Excellent’ Oil Market as Kingdom Pumps On

Posted on 28 April 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s biggest oil exporter, will meet any demand for its crude as the kingdom seeks to keep customers happy and maintain a balanced market, Prince Abdulaziz bin Salman, the deputy oil minister, said.
The oil market is in “excellent” condition, he told reporters on Monday in the eastern city of Khobar, without elaborating. Benchmark Brent crude has gained 13 percent this year and was trading 9 cents lower at $65.19 a barrel at 4:39 p.m. in London………………………………………..Full Article: Source

Iran Oil Minister Wants OPEC to Cut Output by 5% Ahead of June Meeting

Posted on 15 April 2015 by VRS  |  Email |Print

Iranian Oil Minister Bijan Namdar Zangeneh on Tuesday called on the Organization of the Petroleum Exporting Countries to reduce production by at least 5% to boost prices that have collapsed since last summer, signaling the possibility of another tense meeting when the organization gathers in June.
OPEC has been pumping more than 30 million barrels a day since December, when the cartel decided against cutting production in the face of precipitously falling crude prices. Led by Saudi Arabia, and over the objections of countries such as Iran, Iraq and Venezuela, the cartel agreed to keep production high so that countries could protect their market share………………………………………..Full Article: Source

IEA Chief Economist: No Immediate Oil Market Impact After Iran Deal

Posted on 14 April 2015 by VRS  |  Email |Print

It could take three to five years for a new wave of Iranian oil to significantly increase world petroleum supplies and have a lasting impact on prices, the chief economist of the International Energy Agency said Monday.
The prospect of a deal to lift Western sanctions in exchange for limits on Iran’s nuclear program has added a new layer of volatility to an oil market reeling from a historic collapse in prices, from about $115 a barrel last summer to a low of $47 in January. Brent crude, the global benchmark, was trading at about $59 Monday afternoon in London………………………………………..Full Article: Source

Saudi oil adviser says too early to say what OPEC will do in June

Posted on 10 April 2015 by VRS  |  Email |Print

It is too soon to say what OPEC will do when it meets to set output policy in June, an adviser to Saudi Arabia’s oil minister said on Thursday.”It is too early,” said Ibrahim al-Muhanna in response to a question at an energy conference in Riyadh.
“Any decision about the outcome will depend in the first place on the ministers themselves. When they meet they will decide,” he said. Top exporter Saudi Arabia was the driving force behind OPEC’s landmark decision, at its last meeting in November, not to cut oil output to support prices, and instead seek to defend market share………………………………………..Full Article: Source

Goldman Sachs Commodities Guru Jeff Currie On Why Oil Is Still Heading To $39 (Video)

Posted on 09 April 2015 by VRS  |  Email |Print

There have been signs that U.S. oil production is starting to roll over. That has put a spark under the price of oil in recent days. But Jeff Currie still sees oil going lower. His reasoning is that Russia, Saudi Arabia and Iraq are all producing at all-time highs. He sees oil staying in the $40s at least until the third quarter.……………………………………….Full Article: Source

OPEC won’t support oil’s price alone, says Saudi minister

Posted on 23 March 2015 by VRS  |  Email |Print

OPEC will not take sole responsibility for propping up the oil price, Saudi Arabia’s oil minister said on Sunday, signalling the world’s top petroleum exporter is determined to ride out a market slump that has roughly halved prices since last June.
Last November, the Organization of Petroleum Exporting Countries kingpin Saudi Arabia persuaded members to keep production unchanged to defend market share. The move accelerated an already sharp oil price drop from peaks last year of more than $100 (U.S.) a barrel that was precipitated by an oversupply of crude and weakening demand………………………………………..Full Article: Source

Vladimir Putin calls for ‘Eurasia’ currency union

Posted on 23 March 2015 by VRS  |  Email |Print

Has the time come for Russia to dump the rouble and create it’s vision for their own Eastern European economic and monetary block? Back in May, LeapRate reported the on formal signing of partnership of the new ‘Eurasian Union’, which includes Russia, Belarus and Kazakhstan. The partnership, which has been effective from the start of the year, will implement tariff and non-tariff regulations.
The report back in may stated that the newly formed ‘Eurasian Union’ will “gradually align” their currency and monetary policies. Well, 3 months into 2015, the Russian leader is looking to speed things along on the monetary front, especially as the rouble has been battered within the last year………………………………………..Full Article: Source

The U.S.’s 12 richest oil and gas CEOs

Posted on 18 March 2015 by VRS  |  Email |Print

Not only does oil and gas provide the life-giving fuel that powers our modern lifestyle, it also has a legacy of often leaving wealth and abundance in its wake. Following the devastating real estate collapse of 2007-2009, it was oil and gas that virtually single-handedly filled Texas and North Dakota’s state surplus budgets to over $2 Billion each within 4 years.
The top-paid CEO in America comes from the natural gas sector. No shock, many of the highly compensated executives the last two years work in the fossil fuel sector; oil and gas in particular. Of curious note however, no CEO from the coal industry appeared on this list, which extends through Robert Walker of Anadarko Petroleum at US$15.7 million, although Consol Energy Inc’s J. Brett Harvey was not far behind at US$15.1 million………………………………………..Full Article: Source

China, India drive global energy needs: Ex-OPEC official

Posted on 13 March 2015 by VRS  |  Email |Print

The global energy industry has seen huge demand from two fast-growing major economies - China and India - even as consumption dropped in Europe. “These two countries have launched themselves to a high growth zone,” said Abdullah bin Hamad al-Attiyah President of the Administrative Control and Transparency Authority ( ACTA).
“Take the case of India, from a very classical agrarian-based economy with just textile exports, India has become a giant in industry, IT and many sectors,” Abdullah was quoted as saying by the Gulf Times. China and India would need huge amounts of energy to achieve their growth targets………………………………………..Full Article: Source

OPEC chief: After July, oil market will be back in balance

Posted on 10 March 2015 by VRS  |  Email |Print

The global crude-oil market will return to balance in the second half of this year from an oversupply of 2 million barrels a day that has caused prices to plummet, OPEC Secretary-General Abdalla El-Badri said.
Speaking yesterday at a conference in Manama, Bahrain, El- Badri said demand growth in 2014 was weaker than expected “at just below 1 million barrels a day” and usage will rise by 1.2 million barrels a day this year. Crude has lost half its value since June as U.S. producers pumped oil at the fastest pace since 1983. Prices collapsed after OPEC’s decision on Nov. 27 to maintain production rather than sacrifice market share in the face of a glut………………………………………..Full Article: Source

Kuwaiti minister: Oil price likely to stabilize at $50-$60

Posted on 09 March 2015 by VRS  |  Email |Print

World crude prices are expected to gain this year or at least stabilize at between $50 and $60 a barrel, Kuwaiti Oil Minister Ali al-Omair was quoted as saying. “Forecasts for the oil price this year indicate that it will gain or at least stabilise between $50 and $60 a barrel,” the official KUNA news agency quoted Omair as saying late on Saturday in Bahrain.
The minister said prices are currently supported by conflict in Iraq and Libya and by a drop in sand oil and shale oil output. But that is counterbalanced by slow global economic growth, which is dampening demand, Omair said. World prices dropped at close on Friday as the dollar rose sharply, making dollar-priced crude more expensive for buyers using weaker foreign currencies………………………………………..Full Article: Source

OPEC Sec-Gen says oil market should return to balance in H2 2015

Posted on 09 March 2015 by VRS  |  Email |Print

The Organisation of the Petroleum Exporting Countries (OPEC) Secretary-General said on Sunday OPEC and non-OPEC producers should work together to stabilize oil markets, suggesting oversupply could amount to two million barrels per day (bpd).
But Abdullah al-Badri added in remarks to a conference in Bahrain he had no doubt markets would return to balance in the second half of 2015, explaining that he did not believe fundamentals warranted a price drop of the extent markets had seen. “Tremendous opportunity” in oil remained, despite recent market volatility and uncertainties, he said, adding that the industry’s ‎long term outlook remained healthy………………………………………..Full Article: Source

OPEC Sec-Gen says oil mkt should return to balance in H2 2015

Posted on 09 March 2015 by VRS  |  Email |Print

The Organisation of the Petroleum Exporting Countries (OPEC) Secretary-General said on Sunday OPEC and non-OPEC producers should work together to stabilise oil markets, suggesting oversupply could amount to two million barrels per day (bpd).
But Abdullah al-Badri added in remarks to a conference in Bahrain he had no doubt markets would return to balance in the second half of 2015, explaining that he did not believe fundamentals warranted a price drop of the extent markets had seen………………………………………..Full Article: Source

Saudi Oil Minister Denies Price War With U.S. Shale

Posted on 05 March 2015 by VRS  |  Email |Print

Saudi Arabia’s oil minister Ali al-Naimi Wednesday denied his country was waging a price war on U.S. shale producers and reasserted OPEC’s relevance, arguing that its actions have helped crude prices stabilize in recent weeks. “Some speak of OPEC’s ‘war on shale,’ others claim ‘OPEC is dead.’ Theories abound. They are all wrong,” Naimi said.
Naimi, an influential figure in the Organization of the Petroleum Exporting Countries, who often makes terse, sometimes opaque, remarks to reporters, used the speech to issue a lengthy and unusual defense of Saudi oil policy since crude prices began collapsing last summer………………………………………..Full Article: Source

Oil prices at $60 is ‘new normal’, says Colombian finance minister

Posted on 02 March 2015 by VRS  |  Email |Print

Mauricio Cárdenas, Colombia’s finance chief, says country is adjusting to new era of lower prices. The era of $100 oil is over, according to Colombia’s finance minister, who said the country was preparing for a “new normal” of between $60 and $70 per barrel.
Mauricio Cárdenas said Colombia, which produces one million barrels of oil per day, was “not counting” on prices returning to their June high of $115 a barrel in the coming years. “We’re making everything that is necessary to adjust in a small and gradual way to prices between $60 and $70,” he told the Telegraph………………………………………..Full Article: Source

‘Happy Naimi’: Calm Saudi Arabia signals $60 oil price for the long-haul

Posted on 02 March 2015 by VRS  |  Email |Print

OPEC kingpin Saudi Arabia is feeling vindicated after a strategy of allowing oil to flood the market has begun to achieve what it was aiming for. As a global oil glut pushed prices down 60 percent between June 2014 and January 2015, signs began to emerge that OPEC’s rivals, including North American producers, will have to curtail output of their expensive barrels.
Two months into 2015, oil prices have recovered to around $60 per barrel from their January lows of $45 – much faster than Saudi Arabia had hoped for when it convinced fellow OPEC members in November not to cut output to defend market share against shale oil and other competing supply………………………………………..Full Article: Source

The price of oil is not a reflection of demand and supply

Posted on 19 February 2015 by VRS  |  Email |Print

“People today are worried about the plunging price of oil, which however is not a reflection of demand and supply alone”, says Dr. R. Seetharaman, Group CEO, Doha Bank. In the last six months, we have seen oil prices come down by 50 per cent – this does not mean that supply has increased by 50 per cent, or that demand has reduced by 50 per cent.
Yes, there indeed is excess supply, but what really has changed is the currency. The Dollar Index, for instance, has moved from 79 to above 94, and has also contributed to fall in prices in the commodity market. When the Dollar is weak, people hedge their risks by buying commodity futures, and when the Dollar is strong they unwind their positions………………………………………..Full Article: Source

Get ready for $10 oil, says A. Gary Shilling

Posted on 18 February 2015 by VRS  |  Email |Print

At about US$50 a barrel, crude oil prices are down by more than half from their June 2014 peak of US$107. They may fall more, perhaps even as low as US$10 to US$20. Here’s why. U.S. economic growth has averaged 2.3% a year since the recovery started in mid-2009. That’s about half the rate you might expect in a rebound from the deepest recession since the 1930s.
Meanwhile, growth in China is slowing, is minimal in the euro zone and is negative in Japan. Throw in the large increase in U.S. vehicle gas mileage and other conservation measures and it’s clear why global oil demand is weak and might even decline………………………………………..Full Article: Source

Did OPEC engineer the oil crisis?

Posted on 17 February 2015 by VRS  |  Email |Print

Richard Fischer, President, Dallas Federal Reserve, on February 11 said that OPEC engineered the drop in oil prices to put US oil producers out of business. However, Fisher is not the only one calling out OPEC for taking aim at US shale. Dan K. Eberhart, CEO of Canary LLC, picked up on this proactive action months ago.
During an interview on CNBC in early December last year, Eberhart said, “what’s shaping up is a battle royale between the US shale producers and OPEC. It’s a case of who’s going to blink first. I think OPEC, by deciding not to change their production quota, is betting on the US.”Eberhart explained that OPEC is applying downward pressure on oil prices by significantly contributing to excess oil supplies during a period of lessened demand………………………………………..Full Article: Source

Iraq minister predicts oil price recovery

Posted on 13 February 2015 by VRS  |  Email |Print

An eight-month slump in the oil market has reached a bottom and prices will recover, Iraq’s oil minister predicted Tuesday. Oil prices have slumped more than 50% since June amid a surge in oil supply led by U.S. shale oil production and sluggish demand.
Iraq and other members of the Organization of the Petroleum Exporting Countries have taken a hands-off approach to the selloff, opting to defend market share rather than cut production to bolster prices as the group had done in the past………………………………………..Full Article: Source

Rosneft’s Sechin Accuses OPEC of ‘Destabilizing’ Oil Market

Posted on 11 February 2015 by VRS  |  Email |Print

The head of top Russian oil producer Rosneft on Tuesday criticized OPEC policy and warned lower oil output as a result of falls in crude prices may lead to a supply shortage as early as the fourth quarter. Igor Sechin, speaking at the International Petroleum Week industry forum in London, said producer group OPEC had “lost its teeth” and its policy had led to “destabilization” of the oil market.
Oil prices collapsed in 2014 in a decline that deepened after the Organization of the Petroleum Exporting Countries in November shifted strategy and chose not to cut its own output. The 12-country group instead moved to retain its market share, which has been eroded by rival supply sources such as U.S. shale oil………………………………………..Full Article: Source

Total CEO Expects Oil Price Of $60/Barrel This Year

Posted on 05 February 2015 by VRS  |  Email |Print

Oil prices are likely to remain relatively low until the summer, the chief executive of Total was quoted as saying on Wednesday, leading the French oil major to assume an average price of $60 a barrel this year.
Talking to the privately Saudi-owned al-Hayat newspaper on the crude oil price outlook, Patrick Pouyanne said: “I see it as relatively low until summer, but it is hard to predict after that. When we see the history of the crude cycles, we notice that prices fall hard and quick then rise back usually within 18 months. “Because we are cautious we have adopted a price of $60 a barrel for this year and this is more of a prediction,” he was quoted saying………………………………………..Full Article: Source

Why Jim Rogers Is Wrong About Hot Commodities

Posted on 28 January 2015 by VRS  |  Email |Print

“If you’ve got young people who don’t know what to do, I’d urge them not to get MBAs, but to get agriculture degrees,” – Jim Rogers. “All your viewers who got MBAs made a terrible mistake; they should try to exchange them for farming degrees or mining degrees”. – Jim Rogers speaking to a Bloomberg anchor.
In 2004, Jim’s book Hot Commodities was published. In the book he focuses specifically on sugar and coffee due to favourable supply demand issues. Over the few years following publication both commodities rallied hard producing gains of 155% and 232% respectively………………………………………..Full Article: Source

OPEC’s El-Badri: $200 Oil Possible If There’s Lack of Investment

Posted on 27 January 2015 by VRS  |  Email |Print

OPEC’s secretary-general said oil prices as high as $200 a barrel are possible if producers fail to invest in new supply. “If you don’t invest in oil and gas, you will see more than $200,” Abdalla El-Badri said in an interview in London on Monday, without giving a timeframe. West Texas Intermediate, the U.S. crude benchmark, erased a decline of as much as 2.7 percent following his comments.
Crude prices tumbled 46 percent last year as Saudi Arabia and other members of the Organization of Petroleum Exporting Countries said they wouldn’t curb output in response to a supply glut caused in part by surging U.S. shale oil production………………………………………..Full Article: Source

Former Saudi oil boss says it can cope with low price

Posted on 20 January 2015 by VRS  |  Email |Print

Saudi Arabia can cope with low oil prices for “at least eight years”, Saudi Arabia’s minister of petroleum’s former senior adviser has told the BBC. Mohammed al-Sabban said the country’s policy was to defend its current market share by enduring low prices.
“You need to allow prices to go as low as possible in order to see those marginal producers move out of the market,” he said. Mr al-Sabban advised the ministry for 27 years, leaving last year………………………………………..Full Article: Source

Iran minister’s Saudi visit delayed due to oil price fall: Tehran

Posted on 19 January 2015 by VRS  |  Email |Print

Iran’s Foreign Minister Mohammad Javad Zarif has postponed a visit to Saudi Arabia in protest against Riyadh’s reluctance to cut oil production, a senior Iranian official said on Sunday.
Oil prices have fallen 60 percent from their June 2014 peaks, driven down by rising production, particularly of U.S. shale oil, and weaker-than-expected demand in Europe and Asia………………………………………..Full Article: Source

Marc Faber’s Big Bet: Gold to Rise 30% in 2015

Posted on 15 January 2015 by VRS  |  Email |Print

Famed investor Marc Faber, famously known as “Dr Doom” for correctly forecasting market crashes and for having a perennially bearish outlook, expects gold prices to rise by 30 per cent in 2015. In Indian rupee, gold could surge from Rs. 27,000 to Rs. 35,000 per 10 gram, without adjusting for exchange rate and duties, if his forecast comes true.
“I’m positive that gold will go up substantially (in 2015) say 30 per cent,” Market Watch quoted Dr Faber as saying at Societe Generale’s global strategy presentation in London on Tuesday………………………………………..Full Article: Source

Nichols: Gold price has cleared top two hurdles in 2015

Posted on 15 January 2015 by VRS  |  Email |Print

Gold on Wednesday continued its strong 2015 run with futures contracts on the New York Mercantile Exchange adding as much as $10 an ounce to change hands for $1,244 an ounce, the highest since October 22. Gold has now advanced nearly 5% so far this year and is up sharply from close to four-year lows of $1,143 hit early November.
Expert commentator and economist Jeffrey Nichols of American Precious Metals Advisors, argues in his latest missive titled Gold: Pregnant with Possibility on Wednesday that in 2015 gold will shake off three years of underperformance and continue its long term uptrend:……………………………………….Full Article: Source

Iran will weather oil price slide, Saudi Arabia will suffer – Rouhani

Posted on 14 January 2015 by VRS  |  Email |Print

Iranian President Hassan Rouhani said Tuesday that Iran can cope with the economic turmoil of falling oil prices, adding that Saudi Arabia and Kuwait will be harder hit. Rouhani said that while oil now only accounts for one-third of Tehran’s budget, some of the Gulf states are up to 95 percent reliant on it.
“If Iran suffers from the drop in oil prices, know that other oil-producing countries such as Saudi Arabia and Kuwait will suffer more than Iran,” he said. He added that “Kuwait’s budget is 95 percent reliant on oil,” and 90 percent of Saudi Arabia’s “annual exports are related to oil.”……………………………………….Full Article: Source

The days of $100 oil are gone: Saudi prince

Posted on 13 January 2015 by VRS  |  Email |Print

Prince Alwaleed bin Talal, billionaire businessman and a memeber of the Saudi royal family, told USA Today that $100 oil prices are history. “I’m sure we’re never going to see $100 anymore,” said Al-Waleed. “I said a year ago, the price of oil above $100 is artificial. It’s not correct.”
The prince, who was recently estimated to have an estimated wealth of $31.2 billion, said the decline is due to both too much supply and weak global demand. He noted that Iraq and Libya, despite unrest, are both producing a lot of oil. Many major economies, except the US, are weak………………………………………..Full Article: Source

Venezuela’s Maduro seeks support from Saudi Arabia on oil prices

Posted on 12 January 2015 by VRS  |  Email |Print

Venezuelan President Nicolas Maduro met Saudi Arabia’s Crown Prince Salman in Riyadh on Sunday as part of a diplomatic tour of OPEC members to discuss falling oil prices, which have hit its economy hard.
The Saudi side in the meeting included Oil Minister Ali al-Naimi and several princes including Deputy Crown Prince Muqrin, intelligence chief Prince Khaled bin Bandar and three sons of King Abdullah, who is in hospital, state media reported………………………………………..Full Article: Source

Jim Rogers Gold Price 50% Correction Low During 2015

Posted on 09 January 2015 by VRS  |  Email |Print

Jim Rogers Gold outlook for 2015 according to a recent youtube video is for the gold price to halve from its all time high during 2015, which implies a drop from its April 2011 high of $1923 to $960 as the following extract illustrates -
“We have a lot of people who bought gold in the last 14 years. Gold has not had a proper correction for a long long time and in my view until there is a proper correction Gold cannot make a bottom and start over.” “Gold has not been down 50% in many years and that is not normal, most things go down 50% every 3 or 4 years, it’s just the way markets work.” “If Gold were to go down 50% that would be $960″………………………………………..Full Article: Source

OPEC trying to punish US oil frackers: Kovacevich

Posted on 07 January 2015 by VRS  |  Email |Print

The refusal by OPEC to cut production in the face of prices plunging to 5½-year lows shows the cartel is looking to put a lid on the U.S. fracking boom, former Wells Fargo Chairman and CEO Richard Kovacevich told CNBC on Tuesday.
U.S. crude prices were lower again in early Tuesday trading—below $49 a barrel at one point—following Monday’s 5 percent drop in New York to lows not seen since April 2009. The price collapse has been pressuring stocks, which saw the Dow Jones Industrial Average fall 331 points Monday, the worst session in three months………………………………………..Full Article: Source

OPEC’s Badri says hopes for oil price revival by end H2 2015

Posted on 22 December 2014 by VRS  |  Email |Print

OPEC Secretary-General Abdullah al-Badri told Reuters on Sunday he hoped to see a recovery in the price of oil by the end of the second half of 2015.
“We hope the price would rebound by the end of the second half of 2015,” he said. “We can’t see the market now, we have to wait until the end of the second half of 2015 to see how the market react to these low prices.”……………………………………….Full Article: Source

Oil price fall is temporary, says Saudi minister

Posted on 19 December 2014 by VRS  |  Email |Print

Recent falls in the price of oil are likely to be temporary, says the oil minister for Saudi Arabia, Opec’s biggest producing nation. Ali al-Naimi said commodity price fluctuations were to be expected and said he was hopeful for the future.
He added it was “difficult, or even impossible, for Saudi Arabia or Opec to undertake any measure that would lead to a reduction in [their] share of the market and an increase in of others”. The price of oil has halved since June. On Thursday, the price of Brent crude was just below $63 a barrel, while US crude was near $58………………………………………..Full Article: Source

Levin seeks crackdown on physical commodities

Posted on 17 December 2014 by VRS  |  Email |Print

Sen. Carl Levin has introduced a bill seeking to crack down on trading on inside information in physical commodities, the first such legislation limiting Wall Street banks’ ability to deal in physical markets from crude oil to aluminum.
The bill, co-sponsored with Republican John McCain, is seen as the Michigan Democrat’s parting swipe at Wall Street before he retires in January. He has previously accused Goldman Sachs and other banks of manipulating physical commodity markets……………………………………..Full Article: Source

Predicting The Oil Price: Smart Vs Lucky

Posted on 16 December 2014 by VRS  |  Email |Print

Paul Krugman made the point recently that the only stock market forecasters who correctly predicted a market drop were those who always predicted falling markets. This is known as the ‘stopped watch’ approach to forecasting: constantly make one prediction and eventually the market will move in that direction.
Especially for oil prices, which are highly variable, this works wonders to the point where the great Adam Sieminski often joked that you should predict the price or the date, but not both………………………………………Full Article: Source

Opec veteran says oil price a ‘disaster’ and cartel powerless

Posted on 12 December 2014 by VRS  |  Email |Print

Opec is now “powerless” on its own to prevent oil prices falling further because of a 2m barrels per day (bpd) surplus of supply in the market and the cartel should seek a deal with Russia, Norway and Mexico to arrest the decline, according to a senior Gulf official.
Speaking exclusively to the Telegraph, Abdullah bin Hamad al-Attiyah, a senior adviser to the Emir of Qatar and a former president of the Organisation of Petroleum Exporting countries (Opec) said: “Opec can’t solve this problem alone like before, now it’s a different story. Russia, Norway and Mexico all must sit down with Opec to discuss making cuts.”……………………………………….Full Article: Source

Roubini Global Predicts Sub-$60 Iron Ore Amid Massive Surplus

Posted on 11 December 2014 by VRS  |  Email |Print

Iron ore may drop to less than $60 a metric ton next year as the largest mining companies press on with raising supply, deepening a glut just as demand growth in China falters, according to Roubini Global Economics LLC.
The commodity will average $65 a ton in 2015, with weaker prices in the first half before a recovery as some higher-cost capacity is closed, Director of Commodities Helen Henton said in an interview. While producers won’t fare well in an environment of falling prices, it does make sense for low-cost suppliers to keep expanding in the expectation that less-competitive mines will be shuttered, she said………………………………………..Full Article: Source

Jim Rogers Weighs in on Commodities Carnage

Posted on 09 December 2014 by VRS  |  Email |Print

As global commodities prices plummet, it’s incredibly convenient to pronounce the commodities super-cycle dead, isn’t it? Yet banks from Goldman Sachs to Citigroup to Deutsche Bank are on record as saying it’s over. The Rogers Commodities Index, which represents the value of a basket of 36 commodity futures contracts, is down 20% since mid-June.
But does incredible opportunity lie among the carnage? Well, I asked the Founder of the Index, celebrated hedge fund manager and bestselling author, Jim Rogers………………………………………..Full Article: Source

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