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After the gold rush — Paul Rollinson

Posted on 23 May 2016 by VRS  |  Email |Print

When Paul Rollinson took over as chief executive of Kinross Gold four years ago the end was in sight for the biggest gold boom in history — and for some of the people who were part of it. After rising 500 per cent in a decade, the market price of the precious metal had peaked. In the rush to exploit the boom, mining investments and costs had spun out of control.
Investors in gold miners such as Kinross, which had lavished $11bn on acquisitions in six years and was already writing off part of that spending, were in revolt. Tye Burt, Mr Rollinson’s predecessor, was among a score of mining chief executives to lose their jobs………………………………………..Full Article: Source

Oil market unlikely to rebalance fully by year-end: Total CEO

Posted on 19 May 2016 by VRS  |  Email |Print

Oil demand in 2016 will stay strong, supporting prices, but the market is unlikely to rebalance by the year end, the chief executive of French oil and gas major Total said. Patrick Pouyanne told a French Senate committee that oil demand rose sharply in 2015 to 1.8 million barrels per day (bpd), increasing at about 2 percent in a single year.
“This year, experts see demand at about 1.2 million barrels per day,” Pouyanne said. “Me and my team see it at about 1.4 million barrels per day, which is still strong and means the market is rebalancing, but will not rebalance completely by the end of the year, however, it will somehow support prices,” he added………………………………………..Full Article: Source

Russia’s Novak: Global oil market won’t balance before H1 2017

Posted on 13 May 2016 by VRS  |  Email |Print

Russian Energy Minister Alexander Novak told reporters on Thursday that the global oil surplus stood at 1.5 million barrels per day (bpd) and that the market might not balance out until the first half of 2017.
A deal to freeze oil output by OPEC and non-OPEC producers fell apart last month after Saudi Arabia demanded that Iran join in, ruining any chance of sealing what would have been the first such cooperation plan in 15 years. “This (the forecast that the market won’t balance until the first half of 2017) is an optimistic forecast as oversupply persists and the decline in production volumes is slower than analysts expected,” he said………………………………………..Full Article: Source

What OPEC Has To Fear From The New Saudi Oil Minister

Posted on 11 May 2016 by VRS  |  Email |Print

In a surprise move, Saudi Arabia sacked its long-time oil minister over the weekend, an event that illustrates the near-total control that the new young Saudi prince has obtained over the country’s energy industry.
For many years, Ali al-Naimi, the outgoing Saudi oil minister, was the voice of Saudi Arabia’s oil industry and policy. Even seemingly insignificant remarks from al-Naimi could move oil prices up or down. But the 80-year old oil minister has seen his power eclipsed by the 30-year old Deputy Crown Prince Mohammed bin Salman………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

OPEC is dead, says Rosneft

Posted on 11 May 2016 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) has virtually ceased to exist as a single institution able to influence the oil market, said Rosneft CEO Igor Sechin in an interview to Reuters, published on Tuesday.
“The 1970s, when the larger Middle East producers could determine the global oil market by creating cartel structures such as OPEC, should be forgotten,” Sechin told Reuters. He added that Rosneft had been skeptical about the chances of a positive result from the meeting in Doha on April 17, where OPEC and non-members were trying to agree to freeze production at January levels………………………………………..Full Article: Source

Oil ouster: Three things Saudi Arabia needs to do now

Posted on 10 May 2016 by VRS  |  Email |Print

Ali al-Naimi, who was Saudi Arabia’s oil minister for more than 20 years, was virtually the face of the oil markets during that time. His ouster over the weekend roiled the oil market.
For many in the industry, al-Naimi represented stability and moderation in the inherently chaotic ebbs and flows of oil markets. The minister championed Saudi interests, but always within an eye to balancing the needs of OPEC producers and the world’s consumers………………………………………..Full Article: Source

Oil price lows to drag on after Saudi minister is ousted

Posted on 09 May 2016 by VRS  |  Email |Print

Saudi oil minister Ali al-Naimi, who was leading calls to help rebalance the struggling oil market, has been ousted by the government in a move which could signal a slower price recovery. The highly influential Mr Naimi will be replaced after twenty years by the chairman of the state oil company Saudi Aramco, Khalid al-Falih, scuppering hope that the world’s major oil producing nations might agree to freeze output in a bid to raise prices in the oversupplied global oil market.
Earlier this year oil prices rallied almost 40pc from twelve year lows after Mr Naimi said that members of the Organization of Oil Producing Countries (Opec) would meet with non-Opec oil producers in Doha to thrash out a production freeze deal………………………………………..Full Article: Source

Saudi Shift Brings Uncertainty on Oil

Posted on 09 May 2016 by VRS  |  Email |Print

The dismissal of Saudi Arabia’s long-serving and influential oil minister ushered in a new wave of uncertainty for oil prices, which have rallied lately but could change course depending on the kingdom’s policies.
To some, the removal of Ali al-Naimi after 20 years as oil minister cemented the grip of 31-year-old Deputy Crown Prince Mohammed bin Salman on Saudi Arabia’s energy policy. Some officials at the Organization of the Petroleum Exporting Countries said that could mean a deeper politicization of oil-production strategy as the kingdom looks to neutralize its rival Iran, which is trying to come back from years of Western sanctions with a surge of output………………………………………..Full Article: Source

Adieu to Al Naimi

Posted on 09 May 2016 by VRS  |  Email |Print

After 20 years, OPEC bids adieu to Saudi Arabia oil supremo. Saudi Arabian Oil Minister Ali al-Naimi, the architect of the 2014 switch in OPEC policy that’s since roiled the energy market, companies and entire economies from Mexico to Nigeria, is leaving his post.
An 80-year-old who rose from modest Bedouin roots, al-Naimi headed the ministry for almost 21 years, steering the world’s largest crude exporter through wild price swings, regional wars, technological progress and the rise of climate change as a key policy concern. “During my seven decades in the industry, I’ve seen oil at under $2 a barrel and $147, and much volatility in between,” al-Naimi said. “I’ve witnessed gluts and scarcity. I’ve seen multiple booms and busts.”……………………………………….Full Article: Source

The most powerful man in oil is out - here’s what comes next

Posted on 09 May 2016 by VRS  |  Email |Print

Ali al-Naimi was the most powerful man in the oil business for two decades - until this weekend. As the oil minister of Saudi Arabia, in control of the largest proven crude reserves in the world, al-Naimi was the de-facto leader of OPEC.
At one point he held three key positions at the same time: Minister of petroleum, chairman of Saudi Aramco and chairman of Saudi’s Supreme Petroleum Council. In a word, he called the shots, and he let other OPEC ministers know just that. The past year and a half had been particularly important, as oil prices crashed and oil-dependent countries looked to Saudi Arabia to lead the effort to support prices………………………………………..Full Article: Source

Saudi Arabia Is Getting Ready For “Peace” In The Oil Market, For Now

Posted on 09 May 2016 by VRS  |  Email |Print

A shake-up in the Saudi government over the weekend, which included the replacement of oil minister Ali al-Naimi by Khaled al-Faleh, signals that the Kingdom is ready for peace in the oil market.
Long serving oil minister Ali al-Naimi was the architect of Saudi Arabia’s policy to flood world markets with oil in an effort to halt the American fracking revolution and to undermine Iran’s re-entry into world markets after the lifting of sanctions………………………………………..Full Article: Source

OPEC Set to Hold Fast on Policy Following Saudi Oil Minister’s Exit

Posted on 09 May 2016 by VRS  |  Email |Print

The dismissal of Ali al-Naimi as Saudi Arabia’s oil minister puts the country’s deputy crown prince firmly in control of energy policy and makes an agreement to freeze oil production less likely when the Organization of the Petroleum Exporting Countries meets next month, OPEC officials said.
Prince Mohammed bin Salman, second in line to the throne, has taken a hard line on Saudi oil policy, doubling down on the kingdom’s strategy of maintaining high crude output in the face of collapsed prices………………………………………..Full Article: Source

Jim Rogers Says China Right to Cool Casino-Like Commodity Frenzy

Posted on 05 May 2016 by VRS  |  Email |Print

Veteran investor Jim Rogers says that authorities in China are right to tackle the frenzy of speculative investing that’s broken out in the nation’s commodity futures markets, warning that a failure to act would have stored up problems.
“China is doing their best to cool it off and calm it down,” Rogers, Singapore-based chairman of Rogers Holdings, said in an interview. “That’s good, because over-speculation in anything leads to problems, especially if people don’t know what they’re doing.”……………………………………….Full Article: Source

Jim Rickards says for gold prices will go higher as dollar weaken

Posted on 04 May 2016 by VRS  |  Email |Print

Gold prices, fresh from Monday’s 15-month high, look set for further gains as the dollar weakens, according to author and gold markets expert Jim Rickards. Spot gold hit $1,303.6 an ounce on Monday, its highest price since January 2015, and has since come off to trade around $1,295 an ounce on Tuesday morning in Asia.
But Rickards, who is the author of “The New Case for Gold,” published last month, as well as 2011 best-seller “Currency Wars: The Making of the Next Global Crisis,” said gold was “going to go a lot higher.”……………………………………….Full Article: Source

Harvard Professor Urges EMs To Buy Gold

Posted on 04 May 2016 by VRS  |  Email |Print

Emerging market economies need to shy away from the U.S. dollar and U.S. treasuries, and instead invest more in gold, this according to one Harvard profession.
Tuesday, in a commentary for Project Syndicate, Kenneth Rogoff, professor of Economics at the Ivey League university and former chief economist at the International Monetary Fund, recommended that emerging economies boost their gold reserves to about 10%, which would still keep them below some developed country’s gold reserves………………………………………..Full Article: Source

Oil market to face lack of supply in 3 years: Total CEO

Posted on 29 April 2016 by VRS  |  Email |Print

The global oil market will face a lack of supply in three years’ time due to expenditure cuts and postponements in mega projects, Patrick Pouyanne, chairman of the Board and CEO of French oil giant Total said.
Speaking at 2016 Columbia Global Energy Summit, Pouyanne talked about the difficulties that oil companies are facing under low oil prices. “Fifteen days after I became the CEO of Total, oil prices collapsed … and we lost $10 billion in cash flows in two months,” he said. “Due to the huge drop in oil prices, most of the players had to squeeze their cash flows and investments,” he added………………………………………..Full Article: Source

How Smart People Mess Up Investing In Commodities (Video)

Posted on 20 April 2016 by VRS  |  Email |Print

Why is it that so many seasoned investors mess up when they decide to enter the commodities market? Otherwise smart people seem to lose all reason and are frequently left with a handful of nothing.
I sat done recently with veteran commodity markets investor Jeff Christian to discuss this matter. His experience goes back decades to the 1970s commodities boom and then he survived the two-decade bear market which lasted from 1980 through the turn of the millennium………………………………………..Full Article: Source

Gold will soar 700% in near future

Posted on 14 April 2016 by VRS  |  Email |Print

An economist has claimed gold will soar in value in the coming years and cited cyber warfare as the number one reason people will pile into the commodity. James Rickards, chief global strategist at West Shore Funds, told Bloomberg Markets that the 21st century cyber age poses risks to digital money and wealth to all investors and savers.
He claims gold will climb to $10,000 an ounce if confidence in currency collapses, which he believes could happen as a result of another financial crisis. The precious metal is currently trading around $1,250 an ounce. ……………………………………….Full Article: Source

Dead wrong: Osama bin Laden bet that gold was going to $3,000

Posted on 07 April 2016 by VRS  |  Email |Print

A year before Navy SEALs stormed his compound and put an end to Osama bin Laden, the al Qaeda leader was puzzling over a question with which every investor is familiar: where to put his cash. The decision made was to put the money into gold and coins. Osama bin Laden — the gold bug.
“The overall price trend is upward,” the terrorist leader wrote in a letter to Atiyah Abd al-Rahman, the al Qaeda general manager, according to the New York Times. “Even with occasional drops, in the next few years the price of gold will reach $3,000 an ounce.”……………………………………….Full Article: Source

A former Opec insider tells how global oil pricing got flipped on its head

Posted on 04 April 2016 by VRS  |  Email |Print

From 2004 to 2008 and 2010 to 2014, oil production and prices both rose. The price increases were completely divorced from the market principle of a supply-demand balance. In the middle of 2014, the price momentum ran out of steam and prices began sinking in a bog of unconsumed, overproduced, expensive new oil.
That market disorder should have been a reason for concern. Unfortunately, greed suppressed the voices that raised the alarm and warned of the long-term dangers of short-term gains………………………………………..Full Article: Source

FG nominates Barkindo for OPEC secretary-general

Posted on 01 April 2016 by VRS  |  Email |Print

The Federal Government has put forward the name of a former Group Managing Director of the Nigerian National Petroleum Corporation, Mohammed Barkindo, for the position of Secretary-General of the Organisation of Petroleum Exporting Countries.
Barkindo worked at NNPC until 2010 and served as acting secretary-general of OPEC in 2006, as well as representing Nigeria at the group. Bloomberg reported that two persons privy to the development confirmed the nomination but asked not to be identified because it had yet to be made public………………………………………..Full Article: Source

Stevens Says Australia Coping With Commodities, Has Policy Scope

Posted on 23 March 2016 by VRS  |  Email |Print

Australia’s economy is “adjusting quite well” to lower commodity prices and has more fiscal and policy scope to respond to a global downturn than most countries, Reserve Bank Governor Glenn Stevens said.
Stevens’s speech spanned possible international shocks that ranged from the plunge in oil prices to weaker world growth — including China’s slowdown — to navigating global monetary policies. He noted that the global banking system is far more resilient than it was eight years ago………………………………………..Full Article: Source

Mitsui chief sees upside of commodities downturn

Posted on 22 March 2016 by VRS  |  Email |Print

One of the biggest and oldest foreign investors in the resources industry says the commodities downturn is an opportunity to roll out a new wave of labour-saving technology across the industry rather than a cause for gloom.
Mitsui & Co Australia chairman Yasushi Takahashi says the future of the mining industry is much greater automation that will allow more employees to operate remote equipment from distant locations, which will mean less need for fly-in fly-out workers………………………………………..Full Article: Source

OPEC’s Badri hopes for positive producer meeting in April, says Iran could join group later

Posted on 22 March 2016 by VRS  |  Email |Print

Iran may join other oil producers planning to freeze production to support prices at a later date, OPEC’s secretary general said on Monday, since the country is seeking to raise its exports. Producers from the Organization of the Petroleum Exporting Countries and non-members are due to meet on April 17 in Qatar discuss the output freeze.
But Iran is seeking to increase exports, following the lifting of Western sanctions in January. “I hope the result of the meeting will be positive,” Abdullah al-Badri said at a news conference in Vienna. “They are not objecting to the meeting but they have some conditions for the production and maybe in the future they will join the group,” he said of Iran………………………………………..Full Article: Source

Commodity Fund Hires Former Tudor, Ospraie, Tigris Managers

Posted on 22 March 2016 by VRS  |  Email |Print

Argon Capital Management appointed former executives of Tudor Investment, Ospraie Management and Tigris Financial to head the commodities fund’s energy, metals and macro strategies.
The New York-based firm hired Jeffrey Halpern as chief risk officer, co-founder Marcos Bueno said Monday. Halpern, who performed a similar role at Credit Suisse and Moore Capital, will work with newly appointed senior portfolio managers and partners John Curran, Andrew Suckling and Pasha Bahadori………………………………………..Full Article: Source

Demand Shows More Pain Ahead for Commodities (Video)

Posted on 16 March 2016 by VRS  |  Email |Print

Paras Anand, head of European equities at Fidelity, discusses the impact of currency and demand on commodities producers and where he sees opportunities in the sector. He speaks on “Bloomberg Surveillance.”.………………………………………Full Article: Source

Jim Cramer: This Commodities Rally Has Legs

Posted on 10 March 2016 by VRS  |  Email |Print

The commodities rally that began several weeks ago is the real deal, TheStreet’s Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC’s “Stop Trading.”
“You may think that it’s just a short-covering rally, but it’s actual money being put on the line,” he said. As proof he pointed to the Baltic Dry Index, which shows the commodities rally really took off around Feb. 24. The index includes 23 shipping routes and covers different carriers carrying a range of commodities including coal, grain and iron ore………………………………………..Full Article: Source

Gold could hit US$8,000 as bull market returns: Pierre Lassonde

Posted on 09 March 2016 by VRS  |  Email |Print

Legendary gold investor Pierre Lassonde says gold prices are heading higher, much higher. “The five-year bear market for gold is over and we are at the beginning of a new bull market,” he told BNN.
During strong gold bull markets, the price of gold often hits a one-to-one ratio with the Dow Jones industrial average, says the chairman of Franco-Nevada Mining and former president of Newmont Mining. That means gold could surge to US$8,000 an ounce or even higher, he says………………………………………..Full Article: Source

Who’d you thank for surging gold price? Thank Donald Trump

Posted on 03 March 2016 by VRS  |  Email |Print

Gold was enjoying another solid day of trading on Thursday jumping to a day high of $1,245 an ounce and bringing its gains for the year to 17%. Following three down years, many factors have been driving gold’s resurgence in 2016:
Geopolitical turmoil – spreading from the Middle-East into Europe and beyond – burnishing gold’s safe haven status. Doubts about the health of the global economy and financial system and the longer-term impact of the slump in oil prices forcing investors to look for insurance policies……………………………………….Full Article: Source

Commodity markets have hit bottom

Posted on 02 March 2016 by VRS  |  Email |Print

Glencore PLC’s Chief Executive Ivan Glasenberg Tuesday said he thinks commodity markets have hit the bottom and that cuts in spending by the world’s biggest mining companies will have a positive impact on prices in the future. Reduced spending “is going to tighten up supply and you’re not going to get new excess supply coming on the market,” Glasenberg said on a conference call.
He said the company’s sales to China and around the world “at the moment is pretty good.We continue to see good orders into China.” Regarding copper, one of Glencore’s most important commodities, Glasenberg said global inventories have dwindled, indicating a potential shortening in supply. “Our [copper] sales into China is still pretty strong,” he said………………………………………..Full Article: Source

Buhari to OPEC: Oil price crash unacceptable

Posted on 29 February 2016 by VRS  |  Email |Print

President Muhammadu Buhari in Doha, Qatar, told member states of Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC members that the continued crashing of oil prices was no longer acceptable.
He, as a matter of of urgency, called on all other stakeholders in the sector, especially the oil producing nations to articulate ways of rising up to the challenges as the development had seriously affected the economy of many nations………………………………………..Full Article: Source

OPEC veteran Attiyah urges output cut, frets about glut

Posted on 25 February 2016 by VRS  |  Email |Print

OPEC and non-OPEC producers should cut production to balance the global oil market before a supply glut becomes unmanageable “like a cancer”, Qatar’s former oil minister Abdullah al-Attiyah said.
Attiyah, influential in OPEC as Qatar’s energy minister from 1992 to 2011, said a deal announced in Doha last week by Saudi Arabia and Russia to freeze production at January levels was not enough to balance the market as an oversupply continues to grow………………………………………..Full Article: Source

Oil Prices Drop on Saudi Oil Minister’s Comments

Posted on 24 February 2016 by VRS  |  Email |Print

U. S. oil prices slid Tuesday as Saudi Arabian Oil Minister Ali al-Naimi said that production cuts aren’t forthcoming. An earlier comment by Iran’s oil minister rejecting the suggestion that it would freeze production also weighed on prices.
The global crude market has been oversupplied for more than a year and a half, sending prices plunging to 12-year lows earlier in February. In the U.S., crude stockpiles stand at the highest level in more than 80 years………………………………………..Full Article: Source

El-Badri: OPEC willing to work with non-OPEC producers

Posted on 23 February 2016 by VRS  |  Email |Print

Both OPEC and non-cartel countries are willing to cooperate in order to find a solution to plunging oil prices, OPEC secretary general Abdalla Salem El-Badri said Monday. At the annual IHS CERAWeek conference in Houston, El-Badri also said the current oil cycle is facing a supply problem that could last for years unless a solution is found.
Despite a more than 6 percent surge in spot prices on Monday, oversupply has dragged down crude by nearly 50 percent over the last year, and U.S. crude has dropped nearly 20 percent this year. The OPEC official said that inventory overhang is a problem, and took a shot at the U.S. for continuing to both import and store so much oil………………………………………..Full Article: Source

Putin’s Reward for Doing a Deal With OPEC Overshadowed by Risks

Posted on 16 February 2016 by VRS  |  Email |Print

Neither a recession nor a collapse in revenue has yet been enough to convince Russian President Vladimir Putin that it’s time to join with OPEC in cutting oil output to boost prices. His reasons may be pragmatic rather than political.
As Russia’s oil minister meets his Saudi Arabian counterpart in Doha on Tuesday, the world’s second-largest crude producer faces numerous obstacles in cooperating on such a deal even if Putin decides it’s in the national interest. Reducing the flow of crude might damage Russia’s fields and pipelines, require expensive new storage tanks or simply take too long………………………………………..Full Article: Source

UAE Minister of Energy expects oil market supply to ‘stabilise’ as Brent surges 11 per cent

Posted on 15 February 2016 by VRS  |  Email |Print

UAE Minister of Energy Suhail Al Mazrouei said he expects supply levels on world markets to “stabilise”, easing pressure on crumbling prices. “The market will oblige all (producers) not to reduce but to stabilise their output levels,” Al Mazrouei told Sky News Arabia.
He expected world demand for crude to rise this year by 1.3 million barrels per day (bpd) and also said it was “possible” that supplies from non-Opec producers fall by 500,000 bpd. Producers could fall short of the 1.8 million bpd gap because “several countries have suspended investments” needed to boost output capacity, he said………………………………………..Full Article: Source

Tullow Oil chief: Crude oil price to jump to $65

Posted on 12 February 2016 by VRS  |  Email |Print

Oil prices should recover in the second half of this year and end 2016 at between $60 and $65 per barrel, Tullow Oil chief Aidan Heavey has said. Heavey, but said the second half of this year should see signs of recovery both for Tullow and the broader industry.
He added that a more gradual rise from $60/$65 per barrel could be seen in 2017 — came a day after prices saw their third biggest daily fall in eight years and a month after they hit 12-year lows of around $28 per barrel. Yesterday they were hovering around the $30 mark………………………………………..Full Article: Source

Commodities: What Comes Next to Move Markets? (Video)

Posted on 10 February 2016 by VRS  |  Email |Print

Eric Lee, commodities strategy research analyst at Citigroup, discusses shocks that could affect the oil market, central banks’ influence on commodities, and the likelihood of a coordinated cut in oil production. He speaks on “Bloomberg Surveillance.”.………………………………………Full Article: Source

Saudi, Venezuela Oil Ministers Hold ‘Successful’ Talks on Market

Posted on 08 February 2016 by VRS  |  Email |Print

Saudi Arabian Oil Minister Ali al-Naimi said he held “successful” talks with his Venezuelan counterpart about ways of cooperating to stabilize the crude market, without saying what steps producers should take to shore up prices.
The two ministers, who met on Sunday in Riyadh, discussed Venezuelan Oil Minister Eulogio Del Pino’s recent discussions with other crude producers and the results of those meetings that seek cooperation among suppliers to bring stability to the market, the Saudi ministry said in an e-mailed statement. Venezuela and Saudi Arabia, the biggest exporter, are both members of OPEC, which supplies about 40 percent of the world’s oil………………………………………..Full Article: Source

Commodities Recovery Seen in 2017, Says Billionaire Agarwal

Posted on 25 January 2016 by VRS  |  Email |Print

The billionaire chairman of Vedanta Resources Plc, India’s biggest metals producer, says commodities markets will recover next year after a spell of consolidation in 2016. “This year will be a settling-down time, in 2017 you’ll see things will be different,” Anil Agarwal told Bloomberg TV’s Francine Lacqua and Jonathan Ferro in Davos. “Zinc will recover the fastest and aluminium will be next.”
The firm he founded is the country’s biggest producer of zinc, copper and aluminum, all of which have been battered as China’s appetite for raw materials slowed………………………………………..Full Article: Source

Opec emergency meeting ‘may hurt market’

Posted on 25 January 2016 by VRS  |  Email |Print

Iran’s oil minister said on Friday any emergency meeting of the Organization of Petroleum Exporting Countries (Opec) would hurt the crude oil market if it made no decision to shore up falling prices.
Venezuela has been calling for an emergency meeting to discuss steps to prop up prices, which are at their lowest since 2003. But Iran and Gulf members of the Opec have been rebuffing Venezuela’s push for a special meeting………………………………………..Full Article: Source

Oil price: fall to $10 a barrel ‘not impossible’, admits BP boss

Posted on 22 January 2016 by VRS  |  Email |Print

Independent analysts predicting the oil price could fall to painful lows is one thing, but when an oil major admits an ultra-bearish forecast is likely, people sit up and take notice. zzzzthe boss of BP, Bob Dudley, told the BBC’s Kamal Ahmed it was “not impossible” the price of oil could fall to $10 a barrel - a forecast made earlier this month by emerging-markets lender Standard Chartered.
In fact, he has predicted “a price $30 to $40 by the middle of the year” and eventually “towards the end of the year, it could be into the $50s”………………………………………..Full Article: Source

Australia not ditching commodities: FinMin

Posted on 21 January 2016 by VRS  |  Email |Print

Despite the sharp plunge in commodity prices around the world, Australia’s finance minister told CNBC that the economy was not ready to give up on a key pillar of the country’s economic model – resources – altogether. “The Australian economy is clearly an economy in transition from resource investment-driven growth to broader drivers of growth,” Mathias Cormann told CNBC on Wednesday.
“(But) we’re not diversifying away from resources. Part of the reason the economy continues to grow strongly is that our export volumes in terms of resources have actually increased very strongly and that is on the back of significant resource investment in recent years,” he said………………………………………..Full Article: Source

Oil Market Could Recover Within One Year Of Global Economic Growth

Posted on 20 January 2016 by VRS  |  Email |Print

Bahrain’s Energy Minister Abdulhussain Ali Mirza said that at the moment, oil supply exceeds demand by about 2 million barrels due to stagnation in the Chinese and other economies. The global oil market could recover within a year of the world economy returning to growth, Bahrain’s Energy Minister Abdulhussain Ali Mirza said.
“In a year, for example, the economy can return to growth and thus the situation in the oil market will be balanced,” he said………………………………………..Full Article: Source

Compass CEO Andrew Su says risk of Arab Spring may force Saudi Arabia, OPEC to cut oil output

Posted on 20 January 2016 by VRS  |  Email |Print

Holding on to around 30-million-barrel-a-day production ceiling could land OPEC’s powerbroker with its own Arab Spring, one industry expert has warned. The prolonged slump in oil prices has eaten away the huge cash pile of Saudi Arabia, forcing the oil giant to introduce austerity measures such as cuts to subsidies it offers its citizens that can potentially fuel social unrest.
Andrew Su, chief executive of Australian brokerage Compass Global Markets, told CNBC, “When the Saudis and OPEC moved to push prices lower last year, they were trying to keep pressure on Russia and the US shale producers. That has happened.”……………………………………….Full Article: Source

Oil market will take time to stabilize, says Al-Naimi

Posted on 19 January 2016 by VRS  |  Email |Print

S. Arabian Minister of Petroleum and Mineral Resources Ali Al-Naimi said on Sunday it would take “some time” to restore stability to the global oil market in the midst of a glut, but he remained optimistic about the future.
Al-Naimi’s comments come at a time when OPEC member Iran is preparing to raise oil exports after international sanctions were lifted on Saturday. Brent plunged to $28.94 a barrel on Friday, its lowest in 12 years, on the prospect of additional Iranian barrels………………………………………..Full Article: Source

Saudi minister optimistic oil market will stabilize

Posted on 18 January 2016 by VRS  |  Email |Print

Saudi Oil Minister Ali Al-Naimi said on Sunday that it would take “some time” to restore stability to the global oil market but he remained optimistic about the future. Al-Naimi’s comments came even as Iran said it was ready to increase its crude oil exports by 500,000 barrels a day, hours after international sanctions on Tehran were lifted, removing an obstacle to exports.
“As you know, the oil market has witnessed over its long history, periods of instability, severe price fluctuations, and petro-economic cycles,” Al-Naimi said in a speech at an energy event in Riyadh attended by the Mexican president and energy minister………………………………………..Full Article: Source

Statoil CEO says expects oil price to rise over time

Posted on 08 January 2016 by VRS  |  Email |Print

The price of crude oil is likely to rise over time despite the recent fall to levels last seen in 2004, Statoil Chief Executive Eldar Saetre told Reuters on Thursday. “It’s difficult to predict how the price will develop in the short term. There will probably be volatility and big swings. We firmly believe prices will rise because there is little new production capacity entering the market,” he said.
“I also believe that the longer it takes before the oil price rises, the more powerful that increase will become.”……………………………………….Full Article: Source

Restructuring Activity to Be Boosted By Flagging Commodities in 2016

Posted on 07 January 2016 by VRS  |  Email |Print

China’s economic slowdown led the U.S. markets to drop already in the new year, but it could mean a boon to the number of restructurings and corporate bankruptcies. Restructuring professionals believe the majority of their work will be led by commodities-related companies as demand falls and prices across sectors continue to dip, namely in the oil patch, according to turnaround-advisory firm AlixPartners’ annual restructuring survey.
Nearly 90% of the 185 lawyers, bankers, investors and others surveyed expect the energy and resources industry to be the most distressed. About 40% expect energy companies to restructure through chapter 11, while 31% expect them to try to work out their problems out of bankruptcy court………………………………………..Full Article: Source

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