It won’t be long before the essential raw minerals and commodities of the planet’s Far North such as rare earths, oil and gas get gobbled up by the industrialists. On Wednesday, the Arctic Council granted China, India, Italy, Japan, Republic of Korea and Singapore new Observer States status. Essentially, the six nations gained rightful entry to listen in on meetings of the council, as well as propose and finance policies.
Observers, however, do not have powers related to decision making within the council. “Many of the applicants wrote that they wanted to become observers because they are interested in arctic science,” Swedish Arctic Council Chairman Gustaf Lind said………………………………………..Full Article: Source

Investment in Australia’s resources sector is expected to peak at a record $85 billion this year, led by unprecedented spending in the oil and gas sector.
Consulting Group Wood Mackenzie predicts spending on upstream gas will reach $48 billion this year and $50 billion in 2014, accounting for around half of all resources investment in Australia over two years………………………………………..Full Article: Source

If Europe thought it had a crisis on its hands in the Eurozone, it’s nothing to the crisis a lack of oil would inflict. Thanks to the EU’s disastrous energy policies, while the world is proving to be awash with black gold in one form or another, Europe is fast losing the security of its oil supply.
And, just for good measure, a UK House of Lords report just published concludes that the EU will need a trillion euros of new investment if it is to stave off an energy crisis; investment its “muddled” policies are currently failing to attract………………………………………Full Article: Source

Consumers will sell the least used gold in five years after prices tumbled into a bear market, curbing a source of metal that typically accounts for about one in every three ounces of global supply.
Refiners will handle about 1,550 metric tons of old jewelry and other discarded metal this year, 4 percent less than in 2012 and the least since 2008, Toronto-based TD Securities Inc. estimates. The amount is valued now at $71.4 billion, from $84.5 billion at this year’s peak………………………………………..Full Article: Source

Is the U.S. holding too much crude oil in its rainy-day reserve? After the Arab oil embargo of 1973, the major industrialized nations agreed to build emergency stockpiles to guard against supply shocks and prolonged price spikes.
The U.S. and other major oil consumers pledged through the International Energy Agency to hold oil reserves in government or commercial hands equal to at least 90 days “cover” of net oil imports………………………………………..Full Article: Source

If one is to believe the hype and the optimism going around Lebanon these days, one would think that every Lebanese citizen, or at least those residing in Lebanon, is going to strike the jackpot and join the ranks of the Gulf Arab millionaires once drilling in the newly discovered offshore oil and natural gas fields begins.
Among the anecdotes making the rounds of Lebanese coffee houses is one that all Lebanese living abroad will now return to the old country. That would be nice but it would create a terrible shock to the real estate market, already over-priced as it stands………………………………………..Full Article: Source

Coal prices are likely to fall this year, owing to low demand and increased supplies. Citi Research has lowered the price estimates of global thermal coal for this year and the next, citing increased supply and subdued demand in India and China, the key coal-importing nations.
Citi’s commodity research team cut its coal price forecasts for 2013 and 2014 by six per cent and 15 per cent to $89 a tonne and $94 a tonne, respectively. Earlier, the price was estimated at $95 a tonne for 2013 and $111 a tonne for 2014. Citi said the subdued demand in the European and Chinese markets, along with oversupply of 31-41 million tonnes (mt) in 2013-14, would reduce prices further………………………………………..Full Article: Source

Global cotton production is estimated to fall 5% to 26.3 mn tons while acreage is expected to to fall fall 5% to 34.1 mn ha in 2012-13 season on a year-on-year basis, according to International Cotton Advisory Committee (ICAC). World production is forecast to fall another 6% to 24.6 mn tons in 2013-14.
From 2012/13 to 2013/14, cotton production in China and the United States is each forecast to fall by 700,000 tons to 6.7 million tons and 3 million tons respectively, and production in India is forecast to decline by 170,000 tons to 5.7 million tons as farmers continue to switch out cotton for more profitable alternatives………………………………………..Full Article: Source

World crude steel production for the 63 countries reporting to the World Steel Association (worldsteel) was 135 million tonnes (Mt) in March 2013, an increase of 1.0% compared to March 2012.
In the first three months of 2013, Asia produced 259.8 Mt of crude steel, an increase of 6.4% over the first quarter of 2012. The EU produced 41.5 Mt of crude steel in the first quarter of 2013, down by -5.4% compared to the same quarter of 2012. North America’s crude steel production in the first three months of 2013 was 29.7 Mt, a decrease of -5.7% compared to the first quarter of 2012………………………………………..Full Article: Source

Saudi Arabia’s petroleum ministry foresees a bigger improvement in oil demand this year than the world’s three best-known forecasting agencies, including OPEC.
Saudi Arabia, OPEC’s largest producer, expects world demand to rise about 1 million barrels a day this year, and exceed 90 million barrels a day “for the first time in history,” Ibrahim al-Muhanna, an adviser to Saudi Oil Minister Ali al-Naimi, said yesterday in Kuwait……………………………………..Full Article: Source

Crude-oil output from members of the Organization of the Petroleum Exporting Countries fell in March to its lowest monthly level since October 2011, according to data released Tuesday by the U.S. Energy Information Administration.
OPEC members pumped 29.83 million barrels a day last month, down from a revised 29.88 million barrels a day in February, the EIA said in its monthly Short-Term Energy Outlook. Last month, the EIA estimated OPEC’s February crude oil production at 30.01 million barrels a day………………………………………..Full Article: Source

With 54% of the world’s platinum production, 78% of diamond and 20% of gold output, why should Africa look elsewhere for growth? Reams upon reams of studies tend to focus on the continent’s “resource course”, and the folly of depending on a few commodities, with analysts fretting on the resource sector’s inability to raise the standards of living of the wider population.
But the opposite is happening in Africa, and one report seems to suggest Sub-Saharan African should embrace its natural riches and use it as a weapon to fight poverty, unemployment and general economic lethargy………………………………………..Full Article: Source

U.S. production of refined copper in 2012 decreased by about 3% from that in 2011, the U.S. Geological Survey observed in a Mineral Industry Survey made public Thursday.
Nevertheless, mine production for the full-year 2012 was at its highest level since 2009, according to the USGS. Copper mining production increases in Arizona, Nevada and New Mexico were partially upset by lower production in Utah, “where production at Kennecott Utah Copper’s Bingham Canyon Mine decreased by 32,000 metric tons.”……………………………………….Full Article: Source

At a time when U.S. equities are trading near a record and the dollar is having its best start in three years, commodities will finish this quarter little changed from where they were at the end of 2012. The Standard & Poor’s GSCI gauge of 24 raw materials will be at 644 at the end of June, 1.4 percent lower than now, according to the median of nine investor and analyst predictions compiled by Bloomberg.
The index rose 1 percent this year, the worst start since 2009. Gains in arabica coffee, silver and nickel will be offset by declines in cotton, crude and natural gas, analyst forecasts show. Investors had $132 billion tracking commodity indexes at the end of February, Barclays Plc estimates………………………………………..Full Article: Source

Oil theft in Nigeria helped drive down production from the Organization of the Petroleum Exporting Countries in March to its lowest level in a year and a half, according to a survey conducted by Dow Jones Newswires.
Crude-oil output from the group of major oil producers averaged 30.226 million barrels a day in March, down from 30.436 million barrels a day in February, according to the survey of industry and official sources. The March level is the lowest since October 2011, when it stood at 30.195 million barrels a day………………………………………..Full Article: Source

When you turn on the faucet of your kitchen sink or bathroom shower, it’s easy to forget that behind the water is a really big business. From finding a clean source, to purifying it, and getting it into your home, there are plenty of ways to profit from good old H2O. And the demand for safe, clean water in every corner of the world has never been higher.
We were reminded of its importance last week with the United Nation’s 20th annual World Water Day. Connecticut Water Services (CTWS) marked the occasion by ringing the closing bell at the Nasdaq marketsite. ……………………………………….Full Article: Source

Economic benefits countered by environmental damage and fears over lopsided nature of trade relations with Beijing. Amazonian forest cleared in Ecuador, a mountain levelled in Peru, the Cerrado savannah converted to soy fields in Brazil and oil fields under development in Venezuela’s Orinoco belt.
These recent reports of environmental degradation in Latin America may be thousands of miles apart in different countries and for different products, but they have a common cause: growing Chinese demand for regional commodities………………………………………..Full Article: Source

The United States is suddenly awash in fossil fuels. Oil output has risen to its highest level since 1992. Natural gas is booming, thanks to new and improved fracking techniques. Refined petroleum has become one of the country’s top exports.
Which means it’s time to start wondering… about “Dutch disease.” Dutch disease isn’t some weird fungal infection. It’s an odd economic phenomenon that often afflicts countries rich in natural resources. Back in the 1960s and ’70s, the Netherlands discovered a large natural-gas field and began selling the gas abroad………………………………………..Full Article: Source

Demand for OPEC crude oil is declining as non-cartel producers in North America continue their growth, the cartel said in its monthly report for March. The Organization of Petroleum Exporting Countries, in its March report, said gains from non-OPEC producers were led by the United States.
“As in the previous year, U.S. oil supply in 2013 is expected to achieve the highest growth among all non-OPEC countries,” OPEC said. Adam Sieminski, administrator for the U.S. Energy Information Administration, said trends in the United States meant it was relying less on foreign markets to meet energy demands…………………………………….Full Article: Source

The UAE’s crude oil output fell close to 3 per cent to average 2.60 million barrels a day (bpd) in January from 2.68 million bpd in December 2012, latest estimates of the Paris-based International Energy Agency (IEA) show.
“Production from the UAE declined by 80,000 bpd to 2.6 million bpd, due to a temporary reduction in onshore output stemming from work related to plans to raise crude oil production capacity from the current 2.8 million bpd to 3 million bpd. Plans to expand capacity by 200,000 bpd were delayed from the fourth quarter of 2012 and are now expected to be completed by the end of the first quarter of 2013,” said the IEA, which advises 28 industrialised countries on energy policy………………………………………..Full Article: Source

A new report by countries by the World Economic Forum has criticized the OPEC-member countries of failing to adjust to the changing energy architectures and renewable energy sources.
None of the member countries have made it to the top 50 list of the energy report, which focuses on the strengths and weaknesses of countries’ energy systems. Titled ‘The Global Energy Architecture Performance Index 2013‘, the report has been compiled in partnership with Accenture and ranks the top high-income countries in the world for adapting to the upcoming energy systems………………………………………..Full Article: Source

SNL Metals Economics Group’s (SNL MEG) 23rd edition of Corporate Exploration Strategies (CES) calculated that the industry’s estimated total budget for nonferrous metals exploration increased to $21.5 billion in 2012.
Despite ongoing uncertainty in Europe and the United States, and concerns about waning demand in China, most metals prices remained well above their long-term averages in 2012, giving varying levels of support to the industry. Led by higher budgets among the major producers, exploration budgets documented in the study increased by $3.3 billion (19%) to $20.53 billion to set a new all-time high………………………………………..Full Article: Source

While other countries may be more reliable and better equipped, Myanmar has emerged as the new promised land for global oil and gas giants unperturbed by a lack of data on its proven energy reserves.
Since political reforms helped Myanmar shed its pariah status and prompted international sanctions to be lifted, the world’s major energy firms have been eyeing the potentially oil-and-gas-rich country tucked between China and India………………………………………..Full Article: Source

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Opec’s biggest cushion of unused production capacity in two years is doing little to restrain prices, as threats to supplies from Algeria to Iran undermine the confidence that surplus crude usually creates. Brent futures have advanced even as idle reserves expand in the Organisation of Petroleum Exporting Countries, moving higher in tandem at the fastest rate since at least 2006, according to data compiled by the International Energy Agency and Bloomberg.
Oil is facing unprecedented political threats, Goldman Sachs Group said last month, three days before Algeria was struck by the bloodiest assault on its energy industry in five years…………………………………….Full Article: Source

BofAML (Bank of America Merrill Lynch) now forecasts Iraqi oil production to average 4.9 million b/d in 2017, compared to a government target of 9-10 million b/d.
Given the uncertain prospects for capacity growth in OPEC-11, Iraq’s output is becoming increasingly critical for global oil supplies. Crude production has increased at a phenomenal pace, recently rising to a record high of 3.2 million b/d from an average of 2.4 million b/d in 2010……………………………………Full Article: Source

China is on track to produce enough crude oil outside its borders to rival Opec members such as Kuwait and the United Arab Emirates, after its state-owned oil companies spent a record $35-billion (U.S.) buying foreign rivals last year.
In the first tally of the impact of China’s recent overseas oil investments, the International Energy Agency calculates China’s national oil companies will produce 3 million barrels a day abroad in 2015, double their 2011 overseas output of 1.5m b/d and equivalent to Kuwait’s annual output……………………………………Full Article: Source

Crude oil production from the Organization of the Petroleum Exporting Countries (Opec) fell to 30.45 million barrels per day (bpd) in January from 30.65 million bpd in December, led by a further drop in volumes from Saudi Arabia, said a just-released Platts survey of Opec and oil industry officials and analysts.
Saudi Arabia reduced output to 9.25 million bpd in January from 9.45 million bpd in December, the report stated. The January level was the lowest since an estimated 9.05 million bpd in May 2011, it added………………………………………..Full Article: Source

The Organization of Petroleum Exporting Countries will cut crude shipments by 0.9 percent this month amid lower production by Saudi Arabia, according to tanker tracker Oil Movements.
The group that supplies about 40 percent of the world’s oil will export 23.51 million barrels a day in the four weeks to March 2, down 220,000 a day from 23.73 million in the previous period, the researcher said today in an e-mailed report. Those figures exclude Angola and Ecuador………………………………………..Full Article: Source

China maintained it’s position as the world’s largest producer of gold for the sixth consecutive year. Gold output of China increased 11. 66% and reached a record high of 403.05 tons in 2012, said China Gold Association.
But China still remains the second largest consumer of the yellow metal after India. Of the total output, 82.71% for the year is from the country’s main ten gold producing regions including provinces of Shandong, Henan, Jiangxi………………………………………..Full Article: Source

Jim Rogers, who co-founded the Quantum Fund with George Soros in the 1970s, is exploring the world for investments in water technology. “There will be wars east of the Red Sea over oil and wars west of the Red Sea over water,” Rogers, 70, said in an interview yesterday before giving a speech to the CFA Society of Atlanta.
Rogers, who is chairman of Rogers Holdings in Singapore where he lives with his wife and two young daughters, said he isn’t interested in owning lakes, reservoirs or other sources of water that could be confiscated by governments in times of turmoil. He said he’s looking for technologies that can help free countries from dependency on outside water sources. One stock he holds is Singapore-based HyFlux Ltd, which makes and installs water purification, treatment and recycling systems………………………………………..Full Article: Source

World crude steel production is expected to rise 4.7% to 1620 mn tons, according to MEPS International. Global crude steel output in 2012 was 1,548 mn tons which represented a growth of 1.2% over previous year, according to World Steel Association data. The growth came mainly from Asia and North America while crude steel production in the EU (27) and South America decreased in 2012 compared to 2011.
Blast furnace ironmaking is expected to expand at a rate similar to that of steel in 2013 and reach 1160 million tonnes. Direct reduced iron manufacturing should show better growth as the popularity of this process is increasing in the Middle East and India………………………………………..Full Article: Source

Platinum supplies are falling to a 13-year low as mines in South Africa, the world’s biggest producer, close and automobile sales reach new highs. Production will drop 2.7% to 5.68 million ounces, the least since 2000, according to Barclays, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum (AMS) said it plans to idle shafts.
At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5% in 2013, Barclays says. Investors are buying platinum at the fastest pace in three years………………………………………..Full Article: Source

Platinum supplies are falling to a 13-year low as mines in South Africa, the world’s biggest producer, close and automobile sales reach new highs. Production will drop 2.7 percent to 5.68 million ounces, the least since 2000, according to Barclays Plc, which raised its 2013 shortage estimate sixfold last month after Johannesburg-based Anglo American Platinum Ltd. (AMS) said it plans to idle shafts.
At the same time, demand from carmakers, the biggest consumer of the metal, will increase 0.5 percent in 2013, Barclays says. Investors are buying platinum at the fastest pace in three years……………………………………..Full Article: Source

Global demand for iron ore is expected to reach 2.6-billion tons in the next seven years, with China poised to remain the biggest consumer of the steel-making ingredient, Diedrik Tas, partner at commodities search firm McKinsey & Co, told attendees at the Mining Indaba in Cape Town on Monday.
Prices were also to remain high, Mr Tas said, but he warned that this would not be due to increased demand, but rather a function of rising operating costs. Iron-ore prices are closely linked to growth in the steel markets. Over the past year, prices have wavered as the slowdown in China’s economic growth led to lower demand for the metal……………………………………..Full Article: Source

As gold companies grew, too few large deposits have been discovered to sustain current production rates. Though, in recent years, the development of a handful of large mines and the threat of others to follow provided the useful impression that the Production Cliff would be deferred, at least to the point where it was perceived to be a next-cycle problem.
No such luck. Project congestion marked by capacity constraints and resultant delays and cost pressures has forced a more orderly sequencing of projects. High-quality projects have stayed at the front of the queue with delays, while the rest have seen significant delays or, worse, been shelved……………………………………..Full Article: Source

The amount of fresh water consumed for world energy production is on track to double within the next 25 years, the International Energy Agency (IEA) projects. And even though fracking—high-pressure hydraulic fracturing of underground rock formations for natural gas and oil—might grab headlines, IEA sees its future impact as relatively small.
By far the largest strain on future water resources from the energy system, according to IEA’s forecast, would be due to two lesser noted, but profound trends in the energy world: soaring coal-fired electricity, and the ramping up of biofuel production………………………………………..Full Article: Source

The “2013 Mineral Commodities Summaries” released by the U.S. Geological Survey Tuesday revealed that, in 2012, the estimated total value of U.S. mineral production increased for the third consecutive year. The estimated value of mineral raw materials produced at U.S. mines was $76.5 billion, a slight increase from $74.8 billion in 2011, according to the USGS.
Estimated total value of U.S. metal mine production in 2012 was $34.9 billion, down 3% from 2011. Principal contributors to the total value of metal mine production last year were gold (36%), copper (27%), iron ore (15%), molybdenum (10%), and zinc (4%). Average prices for most domestically mined metals decreased in 2012………………………………………..Full Article: Source

Oil and gas majors, including, BP, Shell, and Statoil, could face a loss in market value of up to 60 per cent should the international community stick to its agreed emission reduction targets, analysts at HSBC have warned.
A new report from the banking giant finds that 17 per cent of Norwegian company Statoil’s reserves would become “unburnable” in a world where oil and gas use falls as countries seek to keep carbon concentrations in the atmosphere to 450 parts per million (ppm), the level the International Energy Agency (IEA) estimates is necessary to deliver a 50 per cent chance of limiting long-term temperature rises to 2°C………………………………………..Full Article: Source

Up to 233 billion barrels of oil has been discovered in the Australian outback that could be worth trillions of dollars, in a find that could turn the region into a new Saudi Arabia. The discovery in central Australia was reported by Linc Energy to the stock exchange and was based on two consultants reports, though it is not yet known how commercially viable it will be to access the oil.
The reports estimated the company’s 16 million acres of land in the Arckaringa Basin in South Australia contain between 133 billion and 233 billion barrels of shale oil trapped in the region’s rocks………………………………………..Full Article: Source

History shows commodity prices tend to trend sideways for 10–20 years, and then jump upwards in response to structural changes in the global economy, before resuming their sideways trajectory. That makes clear economic sense.
An event like China’s rapid industrialization and urbanization inevitably causes a sudden price leap, as suppliers scramble to meet the upsurge in demand. Eventually, producers bring new (and sometimes more marginal) resources on line and supply begins to catch up, at which point the dramatic price increases stop………………………………………..Full Article: Source

The Executive Director of the International Energy Agency (IEA) Maria Van der Hoeven said Monday she doesn’t see a further decline in global crude production in 2013.
Saudi Arabia cut its oil production by close to 5 percent to 9.025 million barrels a day in December in response to lower demand chiefly from Asian customers, and comes amid expectations for lower demand for crude oil from the Organization of the Petroleum Exporting Countries this year………………………………………..Full Article: Source

The Executive Director of the International Energy Agency (IEA) Maria Van der Hoeven said Monday she doesn’t see a further decline in global crude production in 2013.
Saudi Arabia cut its oil production by close to 5 percent to 9.025 million barrels a day in December in response to lower demand chiefly from Asian customers, and comes amid expectations for lower demand for crude oil from the Organization of the Petroleum Exporting Countries this year. Asked by Dow Jones Newswires in an interview if the market is likely to see further production cuts this year, Van der Hoeven said: “I don’t think so.”……………………………………….Full Article: Source

US oil production will jump by a quarter by 2014 to its highest level in 26 years, figures suggest. This is mainly because of the discovery of vast reserves of shale oil.
The Energy Information Administration (EIA) in the US also forecast average global oil prices would fall from $112 a barrel in 2012 to $99 in 2014. It said US oil imports would fall by a quarter between 2012 and 2014, because of rising domestic production and the discovery of shale gas………………………………………..Full Article: Source

The Organization of Petroleum Exporting Countries will cut crude exports by 2.6 percent as demand during the northern hemisphere winter begins to slacken, according to tanker tracker Oil Movements.
The group that supplies about 40 percent of the world’s oil will export 24.1 million barrels a day in the four weeks to Jan. 5, down 640,000 barrels a day from the previous period, the researcher said in an e-mailed report today. The figures exclude Angola and Ecuador………………………………………..Full Article: Source

Resources managers George Cheveley and Bradley George have been increasing their net market exposure to commodities as they see positive macro signs for equities in gold, iron ore and the energy majors over the next few months.
Cheveley told Citywire Global that he expected an upturn in meaningful Chinese growth in the first two quarters of next year, which would benefit iron ore companies in particular, and said the large diversified miners such as core holdings BHP and Rio Tinto would also be able to surprise the market with better than expected cost savings………………………………………..Full Article: Source

World wide stainless steel crude steel production has increased in the first nine months of 2012 by 2.9% compared to the same period of 2011. Total production for the first three quarters was 26.1 mn metric tons (Mt). This is 0.7 Mt more than in the same period of 2011.
Total production for the quarter was 8.3 Mt – a new all-time high for a third quarter. However, there were big differences in the performance of the individual regions – states a preliminary data released by the International Stainless Steel Forum (ISSF)………………………………………..Full Article: Source

OPEC’s spare capacity will rise to 4.1 percent of global oil demand in 2013, analysts of the Global Energy Studies Centre (CGES) believe. According to the CGES analysts’ report, due to the recent reduction in Saudi Arabia’s production, OPEC’s spare output capacity has risen slightly to 3.74 million barrels per day (mbpd).
Although OPEC decided in Vienna recently to maintain its 30-mbpd ceiling, making no attempt to address its excess production, which has persisted throughout 2012, many observers predict that the Saudis and their Gulf allies will need to trim output in 2013………………………………………..Full Article: Source

The Organization of Oil Exporting Countries (OPEC) will likely consider supply cuts next year to prevent prices from falling and to protect Brent crude at $90-110/bbl, especially that the market remains well balanced with sufficient supplies ready to counter any short-term disruptions or heightened geopolitical risks, the National Commercial Bank said in its December “Saudi Economic Review”.
Saudi Arabia has been unilaterally decreasing its supply in recent months, curbing output to a 13-month low of 9.67 mb/d in November, the report said……………………………………..Full Article: Source

Resource nationalism is making commodity prices more volatile and threatens global security, warns think-tank Chatham House. Based on new data concerning commodity trade flows, a report by the think-tank highlights how international politics has come to dominate resource markets.
It says “every country for itself” resource grabs mean markets do not respond properly to higher prices, risking trade wars, environmental degradation and famine in poorer countries unless new ways are found to govern resources………………………………………..Full Article: Source

Most members of the Organization of Petroleum Exporting Countries are signaling they’ll keep production policy unchanged at a meeting in Vienna today as the group struggles to agree on a new secretary-general.
While OPEC’s own forecasts show that it’s pumping more than consumers need, Saudi Arabia, Iraq, Iran, the United Arab Emirates, Angola and Ecuador have indicated that supply and demand are approximately in balance, suggesting that the group will stick to its official output target of 30 million barrels a day………………………………………..Full Article: Source