Sat, Mar 28, 2015
A A A
Welcome preal121
RSS

Commodities Briefing - Category | People more

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

Commodities Guru Frank Holmes Explains Why Oil Production Will Tumble

Posted on 05 December 2014 by VRS  |  Email |Print

If you want to understand why the drop in oil prices is temporary there are two things that you need to be aware of. 1) Oil demand growth is relentless. The EIA is still projecting that global oil demand is going to increase by 1 million barrels per day next, and the year after that, and the year after that…..
2) The rise in production has been entirely from North American shale which has hyperbolic decline rates. Crimped cash flow, and tight debt markets means a big reduction in drilling. Without a continued frenzied pace of drilling production will fall quickly………………………………………..Full Article: Source

OPEC: Saudi Prince says Riyadh won’t cut oil unless others follow

Posted on 03 December 2014 by VRS  |  Email |Print

Saudi Arabia’s former spy chief Prince Turki said world’s biggest oil exporter won’t surrender market share to anyone. Saudi Arabia’s influential royal Prince Turki al-Faisal al-Saud has said the kingdom would only consider cutting oil production if Iran, Russia and the US agreed to match those cuts because it wants to protect its market share.
Speaking in London, the Prince who is a senior Saudi royal and the former head of the country’s spy agency, said that the kingdom would not repeat previous mistakes of surrendering its share of the global market for crude to its rivals………………………………………..Full Article: Source

Commodities Guru Sees Bullish Markets Ahead

Posted on 27 November 2014 by VRS  |  Email |Print

Roughly seven years ago, commodity prices were surging to record highs as Western economies grew at a decent pace and Asian economies experienced supercharged growth. Though the 2008 financial crisis led to a pullback, commodity prices began moving higher again in 2009 and 2010 as economists predicted a synchronized global economic rebound.
We now know that such a widespread rebound never took root, and by the spring of 2011, commodity prices were showing signs of a breakdown. Fast forward to 2014, and this asset class is now deeply out of favor. The underperformance relative to stocks, in that time, has been quite striking…………………………………..Full Article: Source

Jim Rogers Weighs In on Commodities

Posted on 27 November 2014 by VRS  |  Email |Print

Roughly seven years ago, when China’s economy was surging and dollars were cheaper, “commodities” was one of the sexiest words in the investment lexicon. Seven years later, many commodities—including oil, copper, and gold—have fallen in value and out of favor for a host of reasons.
So what’s next for this timeless asset class? In a piece published Wednesday, Street Authority writer David Sterman discussed what legendary investor Jim Rogers is thinking about an investment category he has helped promote in recent years…………………………………..Full Article: Source

Saudi oil minister expects oil price to ’stabilise’ as OPEC gathers

Posted on 27 November 2014 by VRS  |  Email |Print

Oil prices are likely to again come under pressure Wednesday after Saudi Arabia’s oil minister showed little sign of concern ahead of a crucial meeting of the Organisation of Petroleum Exporting Countries (Opec). Speaking to reporters on the sidelines of the gathering of some of the world’s biggest oil producing countries in Vienna, Ali Al-Naimi said: “The market will stabilise itself eventually”.
He added that that Opec had made no decisions ahead of its formal meeting tomorrow after he met with senior oil emissaries of Russia’s President Vladimir Putin on Tuesday…………………………………..Full Article: Source

‘Modi effect’ aids surge in gold import

Posted on 18 November 2014 by VRS  |  Email |Print

India’s gold import bill for October rose 280 per cent over a year before, to $4.18 billion. Imports of silver surged 136 per cent, to $686 million. These import bills are the highest since May 2013. Apart from marriage and festival-related demand, imports are also rising due to lower prices of both precious commodities.
The World Gold Council (WGC) said the rise in demand for gold over recent months — it has picked up pace since June — was due to the “Modi effect”. It said in a report on the demand trend for the quarter ended September: “General sentiment among the Indian populace is on the up, aided by confidence in the new government…………………………………Full Article: Source

Chen Lin Says Gold Miners Need to Produce at $1,000/oz or Less to Survive

Posted on 18 November 2014 by VRS  |  Email |Print

How low can gold go? Chen Lin expects a probable near-term low of $1,000/ounce. The author of the What is Chen Buying? What is Chen Selling? newsletter says that at that price we can expect a bloodbath of companies, both large and small. Gold cannot be kept down forever, however, and once the bottom is in, those miners that have survived will be in an enviable position, able to buy lucrative assets at bargain prices.
I am not a big fan of conspiracy theories, but Goldman published a report in early September calling for $1,000/oz gold by the end of 2014. As I saw it, this call was quite aggressive. Goldman will lead and probably has been leading a group shorting gold aggressively. Kitco has published a report arguing that should gold fall to $1,000/oz, this would be catastrophic for most gold miners. The shorts, unfortunately, probably don’t care about gold mining companies and the jobs of those who work for them. They just want to make money. If the gold miners go under, they’ll be very happy…………………………………Full Article: Source

Oil Slide Prompts Iran’s Oil Minister to Visit U.A.E.

Posted on 17 November 2014 by VRS  |  Email |Print

Iranian oil minister Bijan Namdar Zanganeh is preparing to visit the U.A.E. this week, underscoring the deepening concern among OPEC members over the slump in oil prices.
After trips to Kuwait and Qatar last week to discuss strategies to buoy prices, Zanganeh will meet with officials in the U.A.E. tomorrow, Shana, the Tehran-based oil ministry’s news service, said on its website yesterday. The discussions come before the Organization of Petroleum Exporting Countries’ next scheduled meeting on Nov. 27……………………………………Full Article: Source

Andurand Seeing Rational Iran Bets on Oil Price Dropping

Posted on 14 November 2014 by VRS  |  Email |Print

Pierre Andurand, the oil trader who predicted the top of the market in 2008 and the plunge last month, expects prices to drop about $15 over the next six months. Andurand, whose hedge fund gained 5.4 percent last month and 20 percent in 2013, sees Brent crude declining to $65 to $70 a barrel, according to a letter sent to investors on Nov. 11.
He’s betting Iran will increase production after reaching agreement with the U.S. and European Union over sanctions tied to its nuclear program, and that a Nov. 27 meeting of the Organization of Petroleum Exporting Countries that will decide whether to reduce production won’t go far enough, he wrote…………………………………Full Article: Source

Standard Chartered CEO Commits to Commodities Financing

Posted on 14 November 2014 by VRS  |  Email |Print

Standard Chartered Plc (STAN) Chief Executive Officer Peter Sands said financing commodity trade will remain an essential part of its business even after falling prices worldwide helped curb a decade of profit growth.
The company is tightening lending criteria to reduce risk from its $61 billion of credit exposure to commodities, exacerbated by slowing economies in India, China and Korea, the bank’s management said today after a three-day meeting with some of its shareholders in Hong Kong…………………………………Full Article: Source

UAE Oil Minister Says OPEC Has Not Contributed To Oversupply

Posted on 12 November 2014 by VRS  |  Email |Print

United Arab Emirates energy minister Suhail bin Mohammed al-Mazrou said on Tuesday that oil market fundamentals had not changed, and the Organisation of the Petroleum Exporting Countries (OPEC) had not contributed to oversupply.
Speaking at an energy conference in Abu Dhabi, he said: “Fundamentals in the market didn’t change, OPEC didn’t contribute to an oversupply … We shouldn’t panic.” Asked who was oversupplying the market, the United States or Russia, he replied: “We all know that this supply in the past years came from the revolution in shale oil and (if) you look at numbers you will find this.”……………………………………….Full Article: Source

Putin feels the pinch as falling oil price sees Russia’s growth downgraded

Posted on 03 November 2014 by VRS  |  Email |Print

Deutsche Bank revises down its estimates for Russia’s economic as Brent crude oil slides towards $80 per barrel. Russia’s economy is being hammered by falling oil prices but analysts are warning that the financial pain for the Kremlin has only just begun.
“The Russian economy is heavily reliant on oil revenues, with energy and energy-related production amounting to a substantial share of total economic output, half of the federal budget revenues and almost two-thirds of export revenues,” wrote Deutsche Bank’s research team in a note to investors………………………………………..Full Article: Source

OPEC chief sees no big change on oil output in 2015

Posted on 31 October 2014 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) is unlikely to change much on its output next year, and there is “no need to panic” at the price drop, said the OPEC’s secretary general Abdalla El-Badri Wednesday in London.Badri said:” I don’t think 2015 will be far away from 2014 in terms of production. There is nothing wrong with the market.”
OPEC’s expected production level is 30 million barrels per day (bpd) this year. “If prices stay at 85 U.S. dollars, we will see a lot of investment, a lot of oil, going out of the market, about 65 percent of the producers, they have high costs. Not OPEC,” he told the conference………………………………………..Full Article: Source

Goldcorp CEO Jeannes Sees Gold Price Floor Around $1,200

Posted on 31 October 2014 by VRS  |  Email |Print

Gold won’t dip much below $1,200 an ounce as Asian buyers help create a price floor, according to the biggest producer of the precious metal by market value.
Gold will probably trade in a range of about $1,200 to $1,400 in the next six to 12 months, Goldcorp Inc. (G) Chief Executive Officer Chuck Jeannes said in a phone interview today. While continuing uncertainty about U.S. monetary policy will keep financial investors hesitant, physical demand will support prices, he said………………………………………..Full Article: Source

OPEC Chief Says Output Likely to Stay Unchanged Despite Price Fall

Posted on 30 October 2014 by VRS  |  Email |Print

OPEC’s oil output is likely to remain around the same level next year as it has this, while the group is unlikely to cut the ceiling on its production at a meeting next month despite the recent sharp slide in global oil prices, its secretary-general said Wednesday. “I don’t think 2015 will be far away from 2014 in terms of production,” Abdalla Salem el-Badri told reporters on the sidelines of an industry conference in London.
Mr. al-Badri’s comments will temper expectations that the Organization of the Petroleum Exporting Countries could seek to cut its oil output in response to oil price weakness at its next meeting in Vienna, Nov. 27………………………………………..Full Article: Source

banner
banner
March 2015
S M T W T F S
« Feb    
1234567
891011121314
15161718192021
22232425262728
293031