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Speculation and fundamentals drive resources rally

Posted on 25 November 2016 by VRS  |  Email |Print

The extraordinary rally in commodities is being driven both by fundamentals and speculation, but experts are divided as to its sustainability. The last time Fortescue Metals Group shares traded above $6 a share five years ago, iron ore was selling at close to $US120 a tonne, well above the current price of $US75 a tonne. The roaring return for Australian mining stocks has outpaced the recovery of their respective commodities.
Driving investors into the stocks is a heady combination of Chinese fiscal and monetary stimulus supporting demand for steel, optimism that President-elect Donald Trump will push through infrastructure spending quickly, and a return to favour in the value end of the market, in which resources sector sits………………………………….Full Article: Source

Resources rally a game-changer: Goldman’s Tim Toohey

Posted on 22 November 2016 by VRS  |  Email |Print

Goldman Sachs’ Australian chief economist Tim Toohey is predicting interest rate hikes and a stronger dollar as commodity prices continue to defy expectations. Coking coal is up 300 per cent this year, thermal coal up 100 per cent and iron ore 80 per cent, with most of the gains in the past two months amid economic stimulus, regulatory change and speculation in China.
The surge in bulk commodity prices has been one of the biggest surprises of 2016 and the degree to which it is sustained will make a big difference for the Australian economy. Based on Goldman Sachs’ upwardly revised commodity price forecasts, the increased value of coal and iron ore exports by the end of 2017 will be worth 1.4 per cent of GDP…………………………………….Full Article: Source

Russia is loading up on gold

Posted on 04 November 2016 by VRS  |  Email |Print

Central banks around the world added a net 13 tonnes of gold to their stockpiles in September, according to data released by the World Gold Council on Wednesday.
The Central Bank of Russia was the biggest buyer, purchasing 16.55 tonnes. September’s addition marked a 20th straight month of buying for the CBR, which hasn’t seen reserves fall since January 2015 when its holdings dropped by 0.48 tonnes………………………………………Full Article: Source

U.S. Oil Output Set to Decline as OPEC Deal Up in Air, EIA Says

Posted on 02 November 2016 by VRS  |  Email |Print

U.S. crude production is set to decline this year as the Organization of Petroleum Exporting Countries struggles to put a dent in global oversupply, according to the head of the U.S. Energy Information Administration.
Output in the U.S. will fall 800,000 barrels a day this year, Adam Sieminski, administrator for the EIA, said in an interview in Riyadh. That would be the first drop since 2008, data compiled by Bloomberg show. OPEC’s attempts to carry out an agreement on limiting production are still “very much up in the air,” he said……………………………………Full Article: Source

OPEC, non-oil cartel members discuss production cuts

Posted on 31 October 2016 by VRS  |  Email |Print

Vienna, Austria- OPEC officials held talks with Russia and other non-cartel members Saturday in Vienna to debate how to implement a plan aimed at cutting oil output to reduce a global supply glut and bolster prices.
“The recovery process has taken far too long and we cannot risk delaying the adjustment any further,” said Sanusi Barkindo, the secretary general of the Organization of the Petroleum Exporting Countries, in his opening remarks……………………………………..Full Article: Source

Non-OPEC yet to pledge concrete oil output steps after meeting OPEC

Posted on 31 October 2016 by VRS  |  Email |Print

Non-OPEC producers made no specific commitment on Saturday to join the Organisation of the Petroleum Exporting Countries in limiting oil output levels to prop up prices - a stance that suggested they wanted OPEC to solve its differences first.
Officials and experts from OPEC countries and non-OPEC nations including Azerbaijan, Brazil, Kazakhstan, Mexico, Oman and Russia met for consultations in Vienna on Saturday and only agreed to meet again in November before a scheduled regular OPEC meeting on Nov. 30, they said in a statement……………………………………..Full Article: Source

Recent global copper supply growth ‘unsustainable’

Posted on 27 October 2016 by VRS  |  Email |Print

The recent growth in global copper output is unsustainable now that most of the new projects have been completed and copper prices have remained low, Freeport-McMoRan President and CEO Richard Adkerson said Tuesday.
Speaking to investors and analysts in a third-quarter conference call, Adkerson acknowledged that copper supply had risen substantially in recent years, mainly due to new production projects at mines and mills. “We were a big part of that; we had three big projects we started in the 2010 timeframe that have been completed now,” he said…………………………………Full Article: Source

Resources rally can’t last forever

Posted on 17 October 2016 by VRS  |  Email |Print

Commodity prices cannot keep marching higher indefinitely in the face of weak global trade and a stagnant global economy. The rally in commodity markets has been the biggest surprise in the global economy this year — no one predicted it — and it is bringing welcome relief to resource investors and federal government tax collectors.
It has been based on both the effectiveness of the stimulus delivered by Chinese authorities to their economy and on the US Federal Reserve’s continued inability to deliver on its repeated promises to raise rates……………………………………..Full Article: Source

Surplus: Oil glut to last until mid-2017, says IEA

Posted on 13 October 2016 by VRS  |  Email |Print

A massive oil glut may weigh on world markets deep into next year unless the OPEC producer cartel makes good on its promise to cut output, the International Energy Agency (IEA) said. The oil price has recovered steadily since OPEC said last month that it would reduce production, with details to be hammered out at the cartel’s November meeting, and such a deal would “speed up the process” of working off global oil inventories, the IEA said in its monthly report.
“Even with tentative signs that bulging inventories are starting to decline, our supply-demand outlook suggests that the market- if left to its own devices- may remain in oversupply through the first half of next year,” the IEA said……………………………………..Full Article: Source

China continues leading the world in gold production, consumption

Posted on 06 October 2016 by VRS  |  Email |Print

China is set to continue to lead the world in production and consumption of gold, Song Xin, head of the China Gold Association (CGA) said. China produced 516 tonnes of gold in 2015, up 0.6 percent from 2014, more than any other country.
Increasing demand for gold jewelry and bars made the country consumed 986 tonnes of the precious metal in 2015, up 3.7 percent, also the highest in the world. Till the end of 2015, China had been the world’s leading gold producer for nine years and consumer for three………………………………….Full Article: Source

Opec agreement to cut oil production faces array of hurdles

Posted on 30 September 2016 by VRS  |  Email |Print

Reports of the cartel’s demise were exaggerated — but who will cut output, and when? As he emerged from nearly five hours of talks in Algiers on Wednesday evening, Iran’s oil minister Bijan Zanganeh stopped to speak to reporters.
“Opec made an exceptional decision,” he said, as the Saudi energy minister left the meeting without taking questions. After two years of squabbling, the cartel had finally crafted a provisional deal to cut production and tackle the global supply glut in crude oil………………………………………Full Article: Source

Russia’s Adding Another 200 Tons of Gold to Its Treasury and Here’s Why

Posted on 30 September 2016 by VRS  |  Email |Print

Russia plans to stock up on about 200 tons of gold this year, nearly matching the 208 tons it purchased in 2015. That’s according to Anton Navoi, the deputy head of the statistics department at the Russian Central Bank.
Navoi explained that it’s profitable for the state to buy the precious metal, since Russia is a world leader in its production. Speaking at a conference on Wednesday, the official said that “last year, the Central Bank purchased 208 tons of gold. This year, it will purchase around 200 tons.”……………………………………..Full Article: Source

Opec agrees on oil output cut at Algiers meeting

Posted on 29 September 2016 by VRS  |  Email |Print

Crude prices climb more than 6% as cartel ministers reach consensus on production curbs. Some of the world’s biggest oil producers have agreed to cut production for the first time in eight years, sending crude prices higher by more than 6 per cent.
After more than four hours of talks in Algeria on Wednesday Opec committed itself to reducing output to between 32.5m barrels a day and 33m b/d, according to ministers. The agreement surprised oil traders who thought a consensus would be difficult to reach because of divisions between Saudi Arabia and Iran, two of Opec’s largest and most influential members……………………………………Full Article: Source

OPEC Considers Cutting 1 Million Barrels a Day

Posted on 28 September 2016 by VRS  |  Email |Print

OPEC plans to discuss Wednesday a proposal that would cut almost 1 million barrels a day of global production over one year, said people involved in the discussions, setting up a showdown between Saudi Arabia and Iran.
The plan isn’t expected to be agreed to on Wednesday when the Organization of the Petroleum Exporting Countries plans an informal gathering on the sidelines of an energy conference in Algiers. The scenario is meant to start discussions that could pave the way for an agreement when the producer group meets again in November, the people said……………………………………Full Article: Source

Growth rate cut for one of OPEC’s newest members

Posted on 28 September 2016 by VRS  |  Email |Print

The economy of Indonesia, one of the newest members of OPEC, is on the decline, but could recover as policy reforms take hold, the Asian Development Bank said. The ADB said Tuesday it trimmed its forecast for growth in Indonesia from 5.2 percent to 5 percent. Next year’s growth rate should be around 5.1 percent, a decline from the March estimate by the ADB of 5.5 percent.
The bank said it cut its forecast for growth because investment spending was slower than previously expected. “Despite a challenging environment, Indonesia’s economy is still poised to grow at a healthy pace this year,” Sona Shrestha, ADB deputy country director for Indonesia, said……………………………………Full Article: Source

Iran Plays Down Prospects of OPEC Production Deal

Posted on 27 September 2016 by VRS  |  Email |Print

Iranian officials played down expectations for an oil-production deal, calling an OPEC gathering here this week “consultative,” and renewed their vow to pump output higher.
Iran Oil Minister Bijan Zanganeh’s comments to Iranian state media came as energy ministers from across the world arrived in Algiers for a three-day conference that is set to culminate Wednesday in an informal gathering of the Organization of the Petroleum Exporting Countries. The 14-nation cartel is considering output limits, known as a production freeze, that some members hope would lift oil prices out of a two-year funk……………………………………..Full Article: Source

Russia Bought 24 Tons of Gold in August

Posted on 26 September 2016 by VRS  |  Email |Print

In the face of everything that is going on during this insane election cycle, it is easy to forget that there are forces operating behind the scenes, regardless of what the news cycle is reporting on.
The elections, which are to showcase the first debate on Monday between Donald Trump and Hillary Clinton and is speculated to be the most-watched election event in U.S. history, is important and captivating indeed, but still, the world continues on, no matter what the results of that night bring……………………………………Full Article: Source

Africa gold reserves now worth $1.5 trillion

Posted on 23 September 2016 by VRS  |  Email |Print

A new report by SNL Metals and Mining shows Africa at the top of tables when it comes to the value of gold still in the ground. Using the combined value of reserves and resources reported by explorers and mining companies active on the continent, the research company, calculated a figure of $1.48 trillion for primary gold projects.
Canada and the US came in second with gold in situ values as at September 8 of $1.26 trillion. For gold in non-gold primary projects, Asia-Pacific was the key contributor in terms of resource value, accounting for $692 billion of the total according to SNL………………………………………Full Article: Source

Russia Targets China for Gold Sales as VTB, Sberbank Expand

Posted on 23 September 2016 by VRS  |  Email |Print

Russia’s gold sales in China are set to expand as VTB Capital boosts sales and Sberbank PJSC prepares to enter the market, chasing demand in the world’s biggest consumer of bullion.
Sberbank CIB plans to register on the Shanghai Gold Exchange and eventually to sell up to 100 tons (3.2 million ounces) a year, according to an e-mail from the investment arm of Russia’s largest bank. VTB Capital, a unit of the second-biggest lender, is targeting sales of as much as 20 metric tons of gold in China in 2017, Sergey Nenashev, the bank’s head of precious metals, said by e-mail. Sales may reach a rate of 100 tons a year near the end of 2018, he said………………………………………Full Article: Source

Zinc demand set to outpace production

Posted on 20 September 2016 by VRS  |  Email |Print

Global zinc demand growth is set to marginally outpace production growth between now and 2020, averaging 1.7% and 1.3%, respectively, advisory firm BMI Research said. Refined zinc production is slowing as weak prices and an ore shortage force major producers to curb output.
“We expect global mined zinc output to drop by 6.8% year-on-year; as such, we forecast global output to decline slightly this year by 0.9% and remain muted at an average yearly growth rate of 1.8% between 2017 and 2020,” BMI noted………………………………………..Full Article: Source

Saudi Arabia Reclaims Spot as Top Global Oil Producer

Posted on 14 September 2016 by VRS  |  Email |Print

U.S. output down 460 MBOPD since May, making Saudi Arabia the largest global oil producer for now. U.S. output in August stood at 12.2 million barrels a day, including natural gas liquids, according to the IEA.
The drop in U.S. production came as the number of rigs drilling for oil and gas fell to a record low of 404 on May 20, according to data from Baker Hughes Inc. That number has since recovered to 508 as of Sept. 9………………………………………..Full Article: Source

OPEC now sees non-cartel oil output in 2017

Posted on 13 September 2016 by VRS  |  Email |Print

OPEC said Monday that oil production by countries outside the exporters’ cartel was now expected to rise in 2017, revising its previous expectations of a drop. In its monthly report, the Organization of the Petroleum Exporting Countries said Kazakhstan, Norway and Britain were now all expected to produce more next year than forecast earlier.
This means production outside the cartel is expected to rise by 200,000 barrels per day, against previous projections of a 150,000 b/d decline. Global oil demand is projected to continue growing………………………………………..Full Article: Source

Saudi Oil Output Said to Drop as OPEC Debates Production Freeze

Posted on 09 September 2016 by VRS  |  Email |Print

Saudi Arabia told OPEC that its oil production dropped by 40,000 barrels a day in August to 10.63 million barrels as the group debates a deal to curb output to shore up prices.
The figures were submitted to the Organization of Petroleum Exporting Countries, according a person with knowledge of the data, who asked not to be identified because the information hadn’t yet been made public. The country’s output declined from an all-time high of 10.67 million barrels a day in July, according to OPEC submissions………………………………………..Full Article: Source

OPEC Likely to Be Cautious on Output Cap

Posted on 07 September 2016 by VRS  |  Email |Print

OPEC members face a dilemma in the run-up to a new round of oil-production talks later this month: They want to boost crude prices to raise their revenue, but they don’t want to send prices so high that North American shale-oil producers will lift their output.
The result, say officials from members of the Organization of the Petroleum Exporting Countries, is that the cartel is unlikely to make aggressive efforts to curb output when it meets in Algiers beginning Sept. 26………………………………………..Full Article: Source

Iran’s Ready to Pump More as OPEC Faces ‘Prisoner’s Dilemma’

Posted on 06 September 2016 by VRS  |  Email |Print

As speculation swirls over whether oil producers will reach a deal to coordinate output and aid a recovery in prices, Iran says it’s ready to pump more. The OPEC member can raise production to 4 million barrels a day in two to three months from the current daily level of about 3.8 million, Mohsen Ghamsari, director of international affairs at state-run National Iranian Oil Co., said.
The company faces no technical or operational reasons to restrict or cut output, state news agency Mehr cited Managing Director Ali Kardor as saying………………………………………..Full Article: Source

Terence Goodlace warns of platinum supply cliff

Posted on 06 September 2016 by VRS  |  Email |Print

Supply of platinum from SA, the world’s largest producer, would drop “off a cliff” in the next decade after years of underinvestment. There was little chance of reversing that trend any time soon, CEOs and industry players warned.
In recent weeks, leading CEOs of platinum companies have flagged concerns about supply from SA, which is by far the biggest source of the metal used to make autocatalyst devices in vehicle exhausts to scrub out noxious elements, as well as for jewellery………………………………………..Full Article: Source

OPEC, Oil Producers Walk Fine Line on Supply, Demand (Video)

Posted on 01 September 2016 by VRS  |  Email |Print

Libby Toudouze, partner at Cushing Asset Management, discusses OPEC’s role in oil markets, the impact of lower global production, and what she sees as the best investment opportunities in energy. She speaks with Bloomberg’s Alix Steel on “Bloomberg ‹GO›.”.………………………………………Full Article: Source

Water: The commodity underwriting our low-carbon future

Posted on 24 August 2016 by VRS  |  Email |Print

The quintessential first thought when you think of saving water, drilled into us at childhood, is turning off the tap when you brush your teeth. As we age and the world advances — with a global climate agreement and the new Sustainable Development Goals — a broader view on water is now mainstream.
It includes economic pillars such as agriculture; the immense amount of cooling water that power plants need to function; and the water embedded in the food you eat, the cotton shirt you wear and even the smart phones we cannot imagine living without………………………………………..Full Article: Source

OPEC production may slip in August after July’s record-high, warns UBS

Posted on 17 August 2016 by VRS  |  Email |Print

OPEC crude oil production hit an eight-year peak in July, but may fall this month amid turmoil in major member countries, UBS said on Tuesday.
OPEC output rose by 150,000 barrels per day (kb/d) to 33.39 million barrels per day (mb/d) last month, as Saudi Arabia pushed its production to a new high and Iraq pumped more, according to the International Energy Agency. However, UBS forecasts a drop in Iraqi oil production following militant attacks at the Bai Hassan field in northern Iraq on July 31………………………………………..Full Article: Source

Saudi Oil Output Sets Record Despite Global Glut

Posted on 11 August 2016 by VRS  |  Email |Print

OPEC says kingdom’s July output rose to nearly 11 million barrels as it focused on market share over prices. The fight for market share among the world’s biggest oil producers is still raging, pushing output from OPEC members close to an all-time high in July and suggesting the group isn’t yet seriously considering a meaningful curtailing of production.
Output by Saudi Arabia, OPEC’s key member, reached a high last month, as part of a broader ramp-up by the Organization of the Petroleum Exporting Countries, according to OPEC data published Wednesday………………………………………..Full Article: Source

OPEC Output Disrupted in July on Nigeria Attacks, Libya Dispute

Posted on 03 August 2016 by VRS  |  Email |Print

OPEC’s crude oil output was disrupted in July by militant attacks in Nigeria and political disputes in Libya, according to a Bloomberg News survey. Output from the 13 established members of the Organization of Petroleum Exporting Countries, excluding new entrant Gabon, fell by 80,000 barrels a day last month, a Bloomberg survey of analysts, oil companies and ship-tracking data showed.
Nigeria led the decline with a 70,000-barrel-a-day monthly drop to 1.52 million, while Libya and Saudi Arabia reduced output by 20,000 and 40,000 barrels a day respectively………………………………………..Full Article: Source

Non-Opec oil output decline rates speed up

Posted on 29 July 2016 by VRS  |  Email |Print

Non-Opec oil field decline rates have accelerated to 5 per cent as a result of the impact on output from a 41 per cent or $285 billion reduction in global oil & gas capex from the 2014 peak, a Bank of America Merrill Lynch (BofAML) report said.
This figure is higher than the 4.87 per cent recorded in 2009, and it is also slightly higher than previous estimates for this year of 4.9 per cent, explained the report titled, “Global Energy Weekly: Oil decline rates speed up” authored by the Global Commodities team at BofAML………………………………………..Full Article: Source

Why Saudi Arabia Continues To Pump Crude At Record Levels

Posted on 28 July 2016 by VRS  |  Email |Print

As the Financial Times reported on 12 July, Saudi Arabia’s oil-output reached record highs in June 2016. Increasing production 280,000 barrels/day to 10.6m b/d, Saudi Arabia has once again waved off OPEC’s request not to glut the market with oil.
As it turns out, economic principles explain why the Saudis began, in late 2014, to pump crude as fast as they could – or close to as fast as possible. In fact, there is a good reason why the Saudi princes are panicked and pumping………………………………………..Full Article: Source

OPEC June output nears eight-year high

Posted on 19 July 2016 by VRS  |  Email |Print

OPEC crude output continued to grow in June, climbing close to an eight-year high. According to S&P Global Platts, OPEC’s crude oil output grew by 300,000 barrels per day to 32.73 million bpd.
The gains came despite disruptions in Nigeria, where militants have been attacking oil and gas infrastructure. Nigeria booked the largest output gain in June, with the country’s production rising by 150,000 bpd to 1.57 million bpd………………………………………..Full Article: Source

Oil Producers Prepare for Second-Half Slump as Rally Sputters

Posted on 18 July 2016 by VRS  |  Email |Print

Oil producers aren’t betting on the rally. After surviving two years of low prices, they’re gearing up for a third by buying protection against a renewed downturn. Laredo Petroleum Inc. said July 14 that it hedged more than two million barrels of 2017 output earlier this month. Drillers have increased bets on falling prices by 29 percent this year.
Crude has declined more than 10 percent since hitting a 2016 peak in early June, stoking fears of another second-half slump. It was July that broke the back of last year’s bull-run, with oil plummeting 21 percent………………………………………..Full Article: Source

IEA warns that oil demand is ebbing while supply remains at ‘elevated levels’

Posted on 14 July 2016 by VRS  |  Email |Print

There are warning signs that global oil demand is ebbing while oil stocks remain at “elevated levels,” threatening a rebalancing act in oil markets, the International Energy Agency (IEA) warned on Wednesday.
With oil prices rising since the lows seen at the start of the year, hopes have risen that a “balancing act” between supply and demand in oil markets was finally taking place after two years of declining prices due to a supply glut………………………………………..Full Article: Source

Banks in oil-exporting countries: Lending at $47 a barrel

Posted on 08 July 2016 by VRS  |  Email |Print

At first glance, Nigeria’s decision last month to float its currency and the announcement this week of a bank merger in the United Arab Emirates (UAE) have little in common. Nigeria is a country of almost 180m people with a GDP per person of less than $3,000 (at last year’s market exchange rates).
The population of the UAE is 18 times smaller and 13 times better off. Both countries are, however, members of the Organisation of the Petroleum Exporting Countries (OPEC), a cartel, and both are learning to cope with cheaper crude………………………………………..Full Article: Source

US is now world’s largest oil reserve but global supply still small

Posted on 07 July 2016 by VRS  |  Email |Print

America has surpassed Saudi Arabia and Russia in oil reserves, a new report says, but current rate of production oil supplies will only last 70 more years. The United States has surpassed Saudi Arabia and Russia as the global leader in oil reserves, according to a report by a Norwegian consultancy firm.
“We have done this benchmarking every year, and this is the first year we’ve seen that the US is above Saudi Arabia and Russia,” Per Magnus Nysveen, head of analysis at Rystad Energy, said. He credited the rise to a sharp increase in the number of discoveries in the Permian basin in Texas over the past two years………………………………………..Full Article: Source

Saudi Arabia’s oil reserves: how big are they really?

Posted on 06 July 2016 by VRS  |  Email |Print

“How much oil lies beneath the desert sands of Saudi Arabia and how long will it last before running out?” is a question that has intrigued and confounded oil experts for five decades. The kingdom has proven reserves of 266 billion barrels according to government estimates submitted to the Organization of the Petroleum Exporting Countries (”Annual Statistical Bulletin”, OPEC, 2015).
If these numbers are correct, Saudi Arabia’s reserves will last for another 70 years at the average production rate of 10.2 million barrels per day reported for 2015. But there is widespread scepticism about the official estimates, which were abruptly raised without explanation from 170 billion barrels in 1987 to 260 billion in 1989……………………………………….Full Article: Source

Basic Materials: Recent Commodity Rallies Leave Few Opportunities

Posted on 01 July 2016 by VRS  |  Email |Print

Optimism continues to reign in the basic materials sector year to date, but investors are overestimating the sustainability of recent commodity price rallies. The basic materials sector remains severely overvalued, with a market-cap weighted price/fair value estimate of 1.26 as of May 31.
The reasons for rallies in steel, iron ore, and gold differ, but we don’t expect any of the price gains to hold. Limited impact from steel trade cases and significant oversupply will bring pain to steelmakers and iron ore miners, respectively, in the second half of 2016. The recent Brexit vote helped extend the 2016 gold rally as interest rate hikes are potentially delayed through the second half of the year……………………………………….Full Article: Source

Understanding the Difference Between Hard and Soft Commodities

Posted on 30 June 2016 by VRS  |  Email |Print

There are two main types of commodities: hard and soft. Hard commodities consist of natural resources, such as oil or gold. While soft commodities are agricultural goods or livestock that must be grown and cared for in order to be produced. Both markets trade on supply and demand, and are heavily influenced by macroeconomic events.
Hard commodities are usually the ones that make headlines, or are referred to as a basis for economic health. Because the production and supply of these assets can be predicted fairly accurately, they are used to gauge global-economic health. Copper and oil, in particular, are often looked at to determine where the economy is headed by observing total-worldwide demand for these products……………………………………….Full Article: Source

Water: The World’s Ultimate Commodity

Posted on 28 June 2016 by VRS  |  Email |Print

Water is one resource that is absolutely necessary for life. Humans can’t survive more than a few days without it, and without water, crops wither and die. You would think we’d consider it a precious commodity. But in the United States, especially on the East Coast, we don’t tend to think of water as the valuable commodity it really is.
Usually the worst drought we have on the East Coast is one that causes us to water our roses less, and make our lawns brown instead of green. At this point, the drought that is hitting its fifth year in California has become old news. We know that the state is suffering from a bad drought… but did you know that it’s the worst drought in 1,200 years?……………………………………….Full Article: Source

Commodities and Brexit — 5 things to watch

Posted on 24 June 2016 by VRS  |  Email |Print

As the UK begins voting in the EU referendum here are five things to watch in the commodities world. It’s a widely-held view among investors that gold would be among the big beneficiaries of a Brexit. Some analysts reckon the price could rise by as much as 10 per cent to $1,400 after a vote to leave as nervous investors pile in looking for safe places to park cash.
But there are also reasons for thinking gold, a good barometer of risk, could suffer, at least in the near-term. How markets react to Thursday’s vote is a huge unknown but one thing investors have learnt since the financial crisis is how quickly liquidity can dry up and impact markets………………………………………..Full Article: Source

China Plans to Boost Metals Reserves Amid Commodities Glut

Posted on 17 June 2016 by VRS  |  Email |Print

China, the world’s top consumer of base metals, will boost stockpiles, accelerate the closure of excess capacity and provide tax breaks for producers as the country grapples with a raw-materials glut amid the slowest growth in decades.
The nation will increase reserves of some metals and study a trial program for companies to build stockpiles in addition to their inventories, according to State Council guidelines posted on its website Thursday. China already holds stockpiles of metals though the State Reserve Bureau. The statement from China’s cabinet didn’t specify a timeline or say how the plan would be financed………………………………………..Full Article: Source

Rare-earth metal prices climb as China builds reserves

Posted on 16 June 2016 by VRS  |  Email |Print

International spot prices for rare-earth metals are rising amid moves by China to stockpile those key materials for high-tech consumer electronics and hybrid vehicles.
Neodymium, which is used in high-performance magnets, is selling for around $56 per kilogram — up 10% from a month ago and the highest since July 2015. Dysprosium prices have climbed 3% from the previous month to $265 per kilogram, while prices of terbium, a phosphor raw material, have increased 11% to around $570 per kilogram………………………………………..Full Article: Source

Non-Opec oil supply to grow again next year – IEA

Posted on 15 June 2016 by VRS  |  Email |Print

Strong demand growth and production disruptions are easing the oil glut quicker than anticipated, but supply rises outside of the Opec group will return next year, according to the world’s leading energy body.
“Less oil has been stock-piled than we originally expected,” said the International Energy Agency in its closely watched monthly oil market report. The agency initially estimated the surplus of supply over demand in the first half of 2016 would be 1.5m barrels a day, but this has fallen to 800,000 b/d. It expects the oil market to reach a balance by the end of the year………………………………………..Full Article: Source

America Sitting on $50 Trillion in Oil and Gas?

Posted on 09 June 2016 by VRS  |  Email |Print

‘Fueling Freedom’ author Kathleen Hartnett White says the U.S. is sitting on $50 trillion in oil and gas, but the government is stopping us from getting at it. Why is the government blocking access to America’s abundant resources and preventing the country from becoming energy independent?
“Yes, it’s quite a big number and it’s the government’s number if you combine all of the Department of Energy’s estimates and I might add it also includes coal,” White said. White said the shale revolution is a key factor in improving access to those energy resources………………………………………..Full Article: Source

US forecasts decline in non-OPEC oil supplies

Posted on 09 June 2016 by VRS  |  Email |Print

The US Energy Information Administration (EIA) forecasts non-OPEC countries oil supplies to decline to 57.04 million barrels per day in 2016 and to 56.8 million barrels per day in 2017. Non-OPEC supply of oil and other liquid hydrocarbons was 57.64 million barrels per day in 2015, according to the EIA’s June Short-Term Energy Outlook (STEO).
In its May STEO the EIA forecasted non-OPEC liquid supplies at the level of 56.9 million barrels per day in 2016 and 56.69 million barrels per day - in 2017. The US and Russia are the largest non-OPEC oil producing countries. The US and Russia supplied 15.04 million and 11.03 million barrels of oil and other liquid hydrocarbons per day respectively in 2015, according to EIA………………………………………..Full Article: Source

Nigeria’s Tumbling Oil Production Drags Total OPEC Supply Lower

Posted on 09 June 2016 by VRS  |  Email |Print

Rebel attacks on oil installations cut Nigeria’s production by 10 percent in May, contributing to a drop in monthly output from the Organization of Petroleum Exporting Countries, a Bloomberg News survey showed.
Nigerian production declined by 160,000 barrels a day to 1.45 million, according to the survey. OPEC’s total crude output fell to 32.71 million barrels a day last month, from a revised 32.83 million in April………………………………………..Full Article: Source

Ghana sees slight dip in gold production this year

Posted on 02 June 2016 by VRS  |  Email |Print

Ghana expects to produce 2.7 million ounces of gold in 2016, down only marginally from last year as new production offsets a decline in output due to lower global prices and ageing mines, the Chamber of Mines said on Wednesday.
Gold is the single biggest revenue earner for Ghana, which is following a three-year aid deal with the International Monetary Fund. The West African country produced 2.8 million ounces of gold last year, the Chamber’s Chief Executive Sulemanu Koney said, down 10 percent from 2014 when AngloGold Ashanti’s Obuasi mine laid off workers and all but stopped production………………………………………..Full Article: Source

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