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Don’t enter commodities market for quick bucks: Sebi to investors

Posted on 03 August 2015 by VRS  |  Email |Print

Ready to regulate commodity trading, Sebi has cautioned small investors against entering this market for quick gains through speculation, which is “risky” and requires a lot of technical expertise. “People will come and tell you that with a small margin, you can make a lot of money. Do not fall into the trap,” Sebi Chairman U K Sinha said.
He asserted that the capital markets watchdog was fully prepared to begin regulating commodities trading and all necessary safeguards would be put in place to keep scamsters and manipulators at bay. Sebi, which expects the merger of commodities market regulator FMC with it to be completed by next month, will soon put in place a new set of regulations for this segment and the restrictions, including for trading lot sizes, would also be implemented to ensure safety of small investors………………………………………..Full Article: Source

How China is Driving the Commodity Rout (Video)

Posted on 31 July 2015 by VRS  |  Email |Print

Michael Haigh, global head of commodities research at Societe Generale, discusses the factors dragging down commodities prices, why he sees a buying opportunity created by the drop and which commodities might be the best long-term bet. He speaks on “Market Makers.”.………………………………………Full Article: Source

Roubini: Combination of Factors Weighing on Commodities (Video)

Posted on 31 July 2015 by VRS  |  Email |Print

Roubini Global Economics Chairman Nouriel Roubini talks about the factors affecting commodity prices and the reduced pricing power of OPEC. He speaks on “Bloomberg Surveillance.”……………………………………….Full Article: Source

Carl Icahn calls BlackRock a ‘dangerous’ company, cites ETF concerns

Posted on 16 July 2015 by VRS  |  Email |Print

Billionaire activist investor Carl Icahn on Wednesday lambasted BlackRock Inc, the world’s largest asset manager, as an “extremely dangerous company” because of the prevalence of its exchange-traded fund products, which Icahn deems illiquid.
“They sell liquidity,” Icahn said in reference to BlackRock’s ETF business. “There is no liquidity. That’s my point. And that’s what’s going to blow this up.” Icahn was speaking at the CNBC Institutional Investor Delivering Alpha Conference in New York, sharing the stage with Larry Fink, chief executive of BlackRock. Icahn said he was concerned about the amount of money invested in high-yield ETFs, which he called “overpriced.”……………………………………….Full Article: Source

The pope’s ecological vow

Posted on 30 June 2015 by VRS  |  Email |Print

In the days just before its publication, those involved in drafting the pope’s controversial eco-encyclical Laudato Si’ were much exercised about how it would be received by conservative critics. But Pope Francis, Vatican insiders tell me, was unfazed. He remains so in the face of the onslaught of criticism that has, indeed, ensued.
The pope’s acceptance that global warming is almost certainly man-made has irked the vocal minority with more skeptical views. They say Francis has overlooked the ability of technology to provide solutions to climate change. They’ve upbraided him for ignoring the role of free markets in lifting millions out of poverty. They’ve criticized his dismissal of birth control as the answer to an overcrowded planet………………………………………..Full Article: Source

Yellen Surprises Gold Bulls in Retreat by Reigniting Price Rally

Posted on 22 June 2015 by VRS  |  Email |Print

Janet Yellen took the gold market by surprise. Bullion had its biggest rally in a month after Federal Reserve Chair Yellen and her fellow policy makers cut their long-term projections for U.S. interest rates. Money managers had anticipated officials would tighten monetary policy faster and reduced their net-long position in gold to a five-week low the day before the central bank’s statement.
The outlook for gradual rate increases sparked renewed investor interest, and more than $880 million was added last week to the value of assets in exchange-traded products backed by the metal. Higher rates curb bullion’s allure because the commodity doesn’t pay interest or give returns like other assets such as bonds and equities. The Bloomberg Dollar Spot Index fell for two straight weeks………………………………………..Full Article: Source

Saudi’s Naimi optimistic about oil market in months ahead - SPA

Posted on 19 June 2015 by VRS  |  Email |Print

Saudi Arabia’s Oil Minister Ali al-Naimi is optimistic about the market in the coming months, he said after a meeting with Russian Energy Minister Alexander Novak, Saudi state media reported on Thursday.
“I am optimistic about the market in the months ahead, considering the continued improvement and increased global demand, and reduction in the level of commercial stocks, and regarding the improvement in the level of prices,” he was quoted as saying in Moscow by the official Saudi Press Agency (SPA)………………………………………..Full Article: Source

Oil and gas chief says sector needs to adjust to $60 a barrel future

Posted on 18 June 2015 by VRS  |  Email |Print

The new boss of the UK’s oil and gas body has warned that the sector faces a future in which long term oil prices are about $60 a barrel. Deirdre Michie told a gathering in Aberdeen that the industry needed to adjust and find a fresh way forward.
Oil prices have fallen from about $115 a barrel to $63 since last June. The annual oil and gas industry conference also heard from First Minister Nicola Sturgeon, who wants no new tax rises for the sector………………………………………..Full Article: Source

Hank Paulson says China risks ‘real damage’ to economy

Posted on 15 June 2015 by VRS  |  Email |Print

The Chinese government risks “real damage” to the economy if it does not hasten reform of China’s state-owned enterprises and overhaul a debt-fuelled growth model, Hank Paulson has warned. For more than two decades the former US Treasury secretary and Goldman Sachs chief has worked closely with pivotal Chinese political figures such as Wang Qishan, currently head of the Chinese Communist party’s anti-graft bureau, and visits Beijing frequently.
“Until the state-owned enterprises are put on a level and competitive playing field, it’s going to be difficult to have the marketplace work efficiently in some key sectors of the economy,” Mr Paulson told the Financial Times during a visit to the Chinese capital. “Reform of the SOEs has been moving too slowly.”……………………………………….Full Article: Source

Saudi oil minister ‘100 per cent comfortable’ with market: al-Hayat newspaper

Posted on 08 June 2015 by VRS  |  Email |Print

Saudi Arabian Oil Minister Ali al-Naimi said he was “100 per cent comfortable” with the oil market, in terms of supply and demand, the Saudi-owned al-Hayat newspaper reported on Friday. Naimi’s remarks come ahead of an OPEC meeting on Friday in which the organisation is widely expected to stick by its policy of unconstrained oil output for another six months.
He told the newspaper the market was witnessing an increase in demand for oil and a slight improvement in global growth and that supply from outside of OPEC member countries had declined. “I am 100 per cent comfortable with the market situation, but prices are a different issue,” he said………………………………………..Full Article: Source

OPEC Ministers Find Key to Happy Union as Iran Met With Silence

Posted on 08 June 2015 by VRS  |  Email |Print

About the only surprise to come from OPEC’s decision on June 5 to leave oil output unchanged was that everyone got along. “I have been in OPEC for some many years, and it is the first time I had seen this,” OPEC Secretary-General Abdalla El-Badri said after the meeting. “Very, very positive.”
Last November, when the Organization of Petroleum Exporting Countries introduced its strategy of maintaining production to take market share from higher-cost producers, the group’s weaker members like Venezuela argued for a cut to boost prices. This time, even they were supportive amid signs the strategy is working………………………………………..Full Article: Source

BP CEO sees oil price “softness” in second half of 2015

Posted on 04 June 2015 by VRS  |  Email |Print

BP Chief Executive Bob Dudley said on Wednesday he sees “some softness” in oil prices in the second half of the year as global supplies continue to grow. “Supply growth continues to go up. We are at a balance with the supply and demand right now,” he said on the sidelines of the Organization of the Petroleum Exporting Countries ( OPEC) seminar.
“I think we can see some softness in price continuing and as a result as an industry we must readjust cost structures, tax structures around the world,” Dudley said………………………………………..Full Article: Source

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

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