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US to release oil from strategic reserve

Posted on 13 March 2014 by VRS  |  Email |Print

The US has announced its first “test” sale of oil from its strategic petroleum reserve since Iraq invaded Kuwait in 1990, in a move that underlines its ability to respond to any energy market turmoil that might arise from the Ukrainian crisis.
The Department of Energy described the planned release of up to 5m barrels of oil, less than 1 per cent of the 696m barrels in the reserve, as intended “to appropriately assess the system’s capabilities in the event of a disruption”………………………………………..Full Article: Source

KSA’s oil output rises to 9.84 mbd

Posted on 12 March 2014 by VRS  |  Email |Print

OPEC heavyweight Saudi Arabia produced 9.849 million barrels per day (mbd) of crude oil in February, up from 9.767 mbd in January, an industry source familiar with the matter said on Tuesday.
The world’s largest oil exporter supplied 9.899 mbd in February to the market, down from 9.916 million bpd in January. Supply to market may differ from production depending on the movement of barrels in and out of storage………………………………………..Full Article: Source

Exactly how much does it cost to produce an ounce of gold?

Posted on 07 March 2014 by VRS  |  Email |Print

For many years, there was broad agreement that the gold industry’s cost reporting was an embarrassment and an utter joke. Gold miners have worked hard to shed that reputation in the past year and a half. And they certainly made progress with the introduction of all-in sustaining costs.
But the question remains: Are investors now being told what it really costs to produce an ounce of gold? According to experts, that is debatable………………………………………..Full Article: Source

OPEC oil output drops to lowest level in 2.5 years

Posted on 04 March 2014 by VRS  |  Email |Print

Oil production from OPEC dropped to its lowest level in 2 1/2 years, according to a Bloomberg survey. Production dropped by 11,000 barrels per day from January to February, down to an average of 29.877 million barrels per day. OPEC’s production hasn’t been that low since June 2011.
Much of the lost production was due to a decrease in production in Saudi Arabia, as well as the ongoing political conflict in Libya and Nigeria that has forced capacity offline. Libya’s oil production dropped by 120,000 bpd in February, marking the ninth out of eleven months in which oil production dropped. Its daily output now stands at 350,000 barrels — the country has the ability to produce around 1.5 million bpd, as it did before its civil war………………………………………..Full Article: Source

HSBC maintains $1,292/oz gold price forecast for 2014

Posted on 04 March 2014 by VRS  |  Email |Print

HSBC is keeping its 2014 average gold price forecast unchanged at $1,292 per ounce, the bank said, and sees the metal ranging between $1,120 and $1,390 this year.
Physical demand for jewellery, coins and bars from China and other emerging markets is now driving the price, it said in a note on Monday. And while ETF outflows have moderated, investment demand for gold remains tepid, it added. “The gold market is still finding its equilibrium after last year’s price plunge, which ended a bull run,” chief precious metals analyst James Steel said………………………………………..Full Article: Source

Australia boosts gold output

Posted on 04 March 2014 by VRS  |  Email |Print

Output of gold in Australia, the world’s No. 2 producer, rose to its highest in a decade in 2013 as richer ores were mined to combat weak bullion prices, a survey released on Sunday showed.
The practice, known as high-grading, caused output to jump by 7 percent, or 18 tonnes, to 273 tonnes (8.8 million ounces) last year, worth about $9 billion and the highest since mid-2003, according to a tally by Melbourne-based consultant Surbition Associates. “The 2013 total gold output of 273 tonnes is the highest annual figure since 2003,” said Dr. Sandra Close, a Surbiton director………………………………………..Full Article: Source

OPEC oil output drops to lowest level in 2 ½ years

Posted on 03 March 2014 by VRS  |  Email |Print

Oil production from OPEC dropped to its lowest level in 2 ½ years according to a Bloomberg survey. Production dropped by 11,000 barrels per day from January to February, down to an average of 29.877 million barrels per day. OPEC’s production hasn’t been that low since June 2011.
Much of the lost production was due to a decrease in production in Saudi Arabia, as well as the ongoing political conflict in Libya and Nigeria that has forced capacity offline. Libya’s oil production dropped by 120,000 bpd in February, marking its ninth out of eleven months in which oil production dropped. Its daily output now stands at 350,000 barrels – the country has the ability to produce around 1.5 million bpd, as it did before its civil war………………………………………..Full Article: Source

Domestic oil production continues to improve trade picture

Posted on 26 February 2014 by VRS  |  Email |Print

New data from the Energy Information Administration illustrates the improving trade picture for the United States due to a rapid increase in oil production. Rising production, flat demand, and increasing exports of refined petroleum products reduced the U.S. trade deficit to its lowest level in November 2013 since the aftermath of the financial crisis in 2009.
However, the quantity of oil imported dropped a lot more than its price tag. In other words, U.S. oil imports peaked in 2005 at around 10 million barrels per day………………………………………..Full Article: Source

Why the resource supercycle is still intact

Posted on 25 February 2014 by VRS  |  Email |Print

Natural-resource-based industries are very capital intensive, and hence extremely cyclical. It is not unreasonable to say that as a natural-resource investor, you are either contrarian or you will be a victim. These markets are risky and volatile!
Let’s talk about cyclicality first. Some of the cyclicality of these industries is a function of their being extraordinarily capital intensive. This lengthens the companies’ response times to market cycles. Strengthening copper prices, for example, do not immediately result in increased copper production in many market cycles, because the production cycle requires new deposits to be discovered, financed, and constructed—a process that can consume a decade………………………………………..Full Article: Source

Water is not a commodity, it is a part of our heritage

Posted on 19 February 2014 by VRS  |  Email |Print

Access to good quality water was the topic of the first-ever official hearing held for a European citizens’ initiative at the European Parliament on 17 February. The Right2Water campaign wants universal access to clean water and sanitation and opposes the liberalisation of water services. They collected nearly two million signatures in order to ask the European Commission to produce EU legislation on this. We talked to the organisers to find out more.
Organisers of the Right2Water campaign are urging the Commission to guarantee access to water and sanitation for all Europeans and give legaly binding guarantees that water services will not be liberalised in the EU. “Water is not a commodity, it is part of our heritage,” said Anne-Marie Perret, president of the Right2Water citizens’ committee. (Press Release)

Oil inventories declined most since 1999 in IEA estimate

Posted on 14 February 2014 by VRS  |  Email |Print

Oil inventories in advanced economies tumbled in the fourth quarter by the most since 1999 because of “surprising robustness” of demand in the U.S. and other developed nations, the International Energy Agency said.
The IEA, a Paris-based adviser to oil-consuming nations, also boosted forecasts for global fuel demand this year and the amount of crude that will be required from the Organization of Petroleum Exporting Countries………………………………………..Full Article: Source

Platts survey: OPEC pumps 29.87 mln barrels of crude oil per day

Posted on 12 February 2014 by VRS  |  Email |Print

Crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) rose 150,000 barrels per day (b/d) to 29.87 million b/d in January from 29.72 million b/d in December as an increase of 280,000 b/d in still-beleaguered Libyan production more than offset drops in Angola, Iraq and Saudi Arabia, a just-released Platts survey of OPEC and oil industry officials and analysts showed Monday.
“The Libyan situation has a long way to go to play out but this is clearly good news,” said John Kingston, Platts global director of news. “Steady increases in Libyan output will help the country recover and will help bring stability to a market that is getting hit by various outages around the world.” Libyan production climbed to 530,000 b/d in January from 250,000 b/d in December after the restart of production at the 340,000 b/d-capacity Sharara field at the beginning of the month. (Press Release)

OPEC oil production reaches 29.94 mln bpd in January

Posted on 04 February 2014 by VRS  |  Email |Print

OPEC’s (Organization of the Petroleum Exporting Countries) oil production reached an average of 29.94 million barrels per day in January, Reuters reported. January’s expansion in oil output was a contrast to December’s production of 29.63 million bpd - the lowest since May 2011 for OPEC when the average was 28.90 million bpd.
Oil output from Iran gained 50,000 bpd to reach 2.75 million bpd in January. Previously, OPEC said it could handle a rise in oil supply from Iran if sanctions that restrict oil output are loosened, The Wall Street Journal reported………………………………………..Full Article: Source

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Why OPEC’s output is finally on the rise after December low

Posted on 03 February 2014 by VRS  |  Email |Print

OPEC’s oil output has risen in January from December’s 2-1/2-year low, due to a partial recovery in Libyan supply and higher shipments from Iraq and Iran. Output from the Organization of the Petroleum Exporting Countries averaged 29.94 million barrels per day (bpd), up from a revised 29.63 million bpd in December, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants.
The survey illustrates the potential for OPEC supply to rebound in 2014 if Libya, Iraq and Iran sustain higher output. That could put pressure on oil prices without cutbacks from other members………………………………………..Full Article: Source

OPEC says can handle extra oil from Iran, Libya, Iraq

Posted on 28 January 2014 by VRS  |  Email |Print

OPEC will be able to handle the extra oil expected to come from Iran, Iraq and Libya, OPEC’s secretary general said on Monday, insisting the group would collectively head off any oversupply.
Top OPEC supplier Saudi Arabia along with core Gulf producers the United Arab Emirates and Kuwait have increased supplies to fill the gap left from outages in Libya and Iraq and Western sanctions on Iran………………………………………..Full Article: Source

Gold production soars to record in 2013 despite price drop: study

Posted on 24 January 2014 by VRS  |  Email |Print

Despite plummeting gold prices, global production of the precious metal reached a record in 2013 for the fourth-consecutive year. The result appeared in a report on Thursday from the precious metals consultancy Thomson Reuters GFMS. In addition to dispelling theories about “peak gold,” the study shows that gold miners are churning out the metal at a furious pace, even though they are facing severe margin pressure.
Total gold mine supply reached 2,982 tonnes last year, according to GFMS estimates, up 4.1% from 2012. But Rhona O’Connell, head of metals research and forecasting at GFMS, said the final number will likely be higher as fourth quarter production guidance from miners has been stronger than expected………………………………………..Full Article: Source

OPEC cuts production in December

Posted on 20 January 2014 by VRS  |  Email |Print

OPEC has lowered its oil output further and is pumping less than this year’s global need for its crude, the exporter group said, underlining the toll that outages in Libya and elsewhere are taking on production.
The monthly report from the Organization of the Petroleum Exporting Countries kept unchanged its global supply and demand forecasts, which point to a smaller market share for OPEC in 2014 due to increasing supply from non-OPEC countries………………………………………..Full Article: Source

OPEC cuts output closer to 2014 demand, upbeat on economy

Posted on 12 December 2013 by VRS  |  Email |Print

OPEC has trimmed its crude oil output towards next year’s global requirement, the exporter group said on Tuesday, further whittling away at a supply surplus that could weigh on prices.
The monthly report from the Organization of the Petroleum Exporting Countries, which kept its output policy unchanged at a meeting last week, also sounded an upbeat note on the prospects for the world economy in 2014………………………………………..Full Article: Source

Worst raw-material slump since ’08 seen deepening

Posted on 03 December 2013 by VRS  |  Email |Print

The commodity slump that spurred bear markets in everything from gold to corn to sugar this year will deepen by the end of December as prices head for their first annual loss since 2008, if history is any guide.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell in December 83% of the time since 1971 when the benchmark gauge was posting losses for the year through November, data compiled by Bloomberg show. The average December loss was 3.9%, which if it happened this time would mean a 7.8% drop for the year……………………………….Full Article: Source

Worst raw-material slump since ’08 seen deepening: Commodities

Posted on 02 December 2013 by VRS  |  Email |Print

The commodity slump that spurred bear markets in everything from gold to corn to sugar this year will deepen by the end of December as prices head for their first annual loss since 2008, if history is any guide.
The Standard & Poor’s GSCI Spot Index of 24 raw materials fell in December 83 percent of the time since 1971 when the benchmark gauge was posting losses for the year through November, data compiled by Bloomberg show. The average December loss was 3.9 percent, which if it happened this time would mean a 7.8 percent drop for the year………………………………..Full Article: Source

Oil supply: The cartel’s challenge

Posted on 02 December 2013 by VRS  |  Email |Print

At a private dinner early in November a group of executives from one of the world’s largest commodity traders was asked to predict the price of oil in a year’s time. Without exception the forecasts, scribbled on place cards without consultation, were for Brent crude to fall well below the $100 a barrel level it has traded above for most of the past three years.
Those predictions reflect a growing consensus in the oil market. From US shale to an easing of sanctions on Iran, the coming years are expected to provide a huge boost to global output, inverting the structure of the oil market in which supplies have long been rationed by a handful of producers………………………………..Full Article: Source

How to invest in the most precious commodity on earth

Posted on 21 November 2013 by VRS  |  Email |Print

“Water, water everywhere, nor any drop to drink.” This line from Samuel Taylor Coleridge’s poem “The Rime of the Ancient Mariner” is apropos not only for those lost at sea but for the Earth in general.
The Earth is indeed the “water planet,” with more than 70% of its surface covered with the liquid. However, more than 97% of this water is unusable salt water, meaning freshwater accounts for less than 3% of the world’s supply. Of that total, more than 70% is frozen, resulting in a very limited supply of usable freshwater. Only 0.007% of all of Earth’s water is available for human use. ………………………………..Full Article: Source

Oil supply now comfortable but could tighten - IEA

Posted on 15 November 2013 by VRS  |  Email |Print

Oil markets look well supplied in the short term but prices could rise in the next few months due to a seasonal increase in demand and production problems in some OPEC producers, the West’s energy watchdog said on Thursday.
The International Energy Agency (IEA) said in its monthly report oil was likely to stay volatile with prices responding to political turmoil in Libya, security problems in Iraq and stronger northern hemisphere winter consumption………………………………………..Full Article: Source

Are gold supplies running out?

Posted on 14 November 2013 by VRS  |  Email |Print

Gold has long been a sought after commodity. Human history, such as the conquest of the Americas, has been defined by the quest to find gold mines and reserves. Now, however, the world’s gold mines may be becoming fully tapped.
Some experts even believe that all gold mines could become fully tapped within the next 20 years. This could have a dramatic impact on gold and bullion prices as while supply may run out, demand most likely will not………………………………………..Full Article: Source

China could match U.S. gold reserves inside 10 years – or earlier

Posted on 14 November 2013 by VRS  |  Email |Print

Since writing a recent article suggesting that China’s Reserve Bank, the Peoples Bank of China (PBOC), has been building up its gold holdings, but without reporting this to the IMF we have been contacted by a Bloomberg research analyst, Andrew Cosgrove, who has, with his colleague Kenneth Hoffmann, been working on Chinese gold data, and who has come up with a somewhat similar conclusion.
In this case some specific figures have been developed in the research which do tie in well with Philip Klapwijk’s assertion that China has taken some 300 tonnes of gold into reserves in the first half of the current year………………………………………..Full Article: Source

U.S. to become world’s top oil producer in 2015 - IEA

Posted on 13 November 2013 by VRS  |  Email |Print

The United States will stride past Saudi Arabia and Russia to become the world’s top oil producer in 2015, the West’s energy agency said, bringing Washington closer to energy self-sufficiency and reducing the need for OPEC supply.
But by 2020, the oilfields of Texas and North Dakota will be past their prime and the Middle East will regain its dominance - especially as a supplier to Asia, the International Energy Agency (IEA) said on Tuesday………………………………………..Full Article: Source

OPEC oil output remains higher than 2014 demand

Posted on 13 November 2013 by VRS  |  Email |Print

OPEC’s production remains higher than next year’s global requirement for its crude, the exporter group said on Tuesday, even after Saudi Arabia cut production from a record high level.
The monthly report from the Organization of the Petroleum Exporting Countries adds to signs that increasing supply from the United States, enjoying a shale energy boom, and other non-OPEC countries will weigh on OPEC’s market share in 2014………………………………………..Full Article: Source

Brazil set to become major global oil supplier -IEA

Posted on 13 November 2013 by VRS  |  Email |Print

Brazil is set to become a net oil exporter and top 10 producer from 2015 if it overcomes hurdles to developing its giant offshore discoveries, the West’s energy agency said on Tuesday.
In its 2013 World Energy Outlook, the International Energy Agency (IEA), which advises large industrialised nations on energy policy, said Brazil could play a major role in supplying the world’s energy needs in coming decades, though its rise would hinge on its ability to develop its resources………………………………………..Full Article: Source

China’s growing gold stockpile

Posted on 04 November 2013 by VRS  |  Email |Print

The news that a Chinese company is to buy the largest commercial gold vault in the world (inthe Chase Manhattan Plaza in New York) is yet another reflection of China’s enthusiasm for stockpiling gold. Although China only infrequently releases official figures on this matter,the World Gold Council estimates China will import over 1000 tonnes of gold this year, overtaking India as the biggest buyer in the world.
But whereas India is trying to reduce its gold imports through the imposition of taxes and import restrictions, China takes the opposite view and is encouraging the acquisition of gold by all sectors………………………………………..Full Article: Source

Water as a commodity: can investors boost access to this critical resource?

Posted on 31 October 2013 by VRS  |  Email |Print

‘Blue gold’ investors claim to improve access to a vital resource, but critics argue commoditization may out-price the poor. From commodity guru Jim Rogers to the likes of Goldman Sachs, it has become almost cliché to refer to water as “blue gold” – a whole new commodity that can be bought and sold on par with gold, oil and corn.
After all, as demand grows and water infrastructure crumbles, the world is running out of drinkable water. And many believe the problem can only be solved if cash-strapped governments team up with “angel” investors and others in the private sector……………………………….Full Article: Source

Statoil chief casts doubt on Arctic oil production potential

Posted on 31 October 2013 by VRS  |  Email |Print

Statoil’s chief executive played up the Norwegian oil company’s positions in what he called “the workable Arctic”, in Norway and eastern Canada, while casting doubt over imminent success in other parts of the polar region.
Arctic oil exploration has been hit by a series of bad headlines after Royal Dutch Shell and Cairn Energy spent billions of dollars with disappointing results in Alaska and Greenland respectively……………………………….Full Article: Source

World crude steel production rises 6.1pct in September Y-0-Y

Posted on 23 October 2013 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 133 million tonnes (Mt) in September 2013, an increase of 6.1% compared to September 2012.
World crude steel production for the 65 reporting countries was 1,186 Mt in the first nine months of 2013, an increase of 2.7% compared to the same months of 2012. Asia produced 795.1 Mt of crude steel in the first three quarters of 2013, an increase of 5.9% compared to the same period of 2012………………………………………..Full Article: Source

The current state of copper: Too soon for surplus?

Posted on 22 October 2013 by VRS  |  Email |Print

In a note out late last week, French bank, Natixis, queries the assumption that the copper market is already in surplus. While it doesn’t dispute that the copper market could move into surplus over the next few years, the bank maintains that saying it is already in surplus could be premature.
The reason for the dispute is the level of stocking or destocking in China that has taken place over the last few months - an issue that caused problems for copper price predictions previously………………………………………..Full Article: Source

Angola says has 4 bn barrels more in oil reserves than OPEC estimate

Posted on 16 October 2013 by VRS  |  Email |Print

Angola has 13 billion barrels of proven oil reserves, a top oil official from the African nation said, nearly 4 billion barrels more than an OPEC estimate for late 2012.
The Organization of the Petroleum Exporting Countries, whose estimates on the oil reserves of its members often differ from the countries’ own numbers, has said Angola had 9.1 billion barrels of oil reserves at the end of last year. ……………………………………….Full Article: Source

U.S. soon to overtake Russia as top oil producer

Posted on 14 October 2013 by VRS  |  Email |Print

The U.S. will become the world’s largest oil producer next year, overtaking Russia thanks to its shale oil boom which has remade the global energy landscape, the West’s energy watchdog said.
The prediction comes only days after estimates by the U.S. government showed the spectacular growth in production has allowed the world’s largest oil consumer to reduce imports so drastically that it has lost its ranking as the world’s biggest oil importer to China. “The U.S.’s place in the driver’s seat of growth is also a throwback to decades past,” the International Energy Agency, or IEA, said in its monthly report late last week………………………………………..Full Article: Source

Opec oil output at lowest in two years

Posted on 11 October 2013 by VRS  |  Email |Print

Opec pumped crude at the lowest rate in almost two years in September, according to the oil producing cartel’s own analysis, as disruptions to supplies from several members continued to support oil prices.
Brent crude oil has traded near the $110-a-barrel mark since mid-August, as theft has pushed Nigerian production below 2m barrels a day, and much of Libya’s oil industry has been closed by a wave of militia activity. Saudi Arabia has responded by pumping crude at an unprecedented rate………………………………………..Full Article: Source

Now largest oil and gas producer, will the US get extra clout?

Posted on 10 October 2013 by VRS  |  Email |Print

A recent article in the Wall Street Journal (WSJ) reported: The U.S. is overtaking Russia as the world’s largest producer of oil and natural gas, a startling shift that is reshaping markets and eroding the clout of traditional energy-rich nations.
There are many recent similar claims along with others more critical of any notion of increased clout for the US. Much has been made of a technological revolution in extraction methods (non-conventional petroleum or NCP) as a source of resurgent US global power………………………………………..Full Article: Source

Coal remains power generator king through 2035: IEA

Posted on 08 October 2013 by VRS  |  Email |Print

The International Energy Agency tweeted this chart about electricity trends to 2035. Not that surprisingly, it shows renewables and natural gas really taking off, with renewables surpassing natural gas as source of power over the next couple of years. By 2035, renewables will be giving coal a run for the money.
What surprised us, however, was the coal’s durability. It will remain the top fuel for generating electricity for the next 20 years, with growth in coal-fired power in emerging markets outweighing its decline in rich countries, the IEA said………………………………………..Full Article: Source

Biggest raw-materials rally of year seen stalling: Commodities

Posted on 01 October 2013 by VRS  |  Email |Print

The biggest rally in commodities in a year may stall in the fourth quarter as supply of everything from copper to corn expands, tensions in the Middle East ease and the Federal Reserve refrains from tapering stimulus as it seeks more evidence of sustained growth.
Six of 15 commodities will drop by the end of 2013, seven will gain and two will move less than 1 percent, according to the median of estimates from 144 analysts surveyed by Bloomberg News. Cocoa, gasoline and cotton will lose the most as natural gas, coffee and soybeans lead the winners. Goldman Sachs Group Inc. says raw-material prices will be mostly lower in a year………………………………………..Full Article: Source

For oil and gas producers, it’s all about assets

Posted on 27 September 2013 by VRS  |  Email |Print

The industry is focusing on liquid-rich plays, but some gassier regions offer solid returns, asserts Joel Musante, senior research analyst for oil and gas exploration and production with Euro Pacific Capital. With oil trading over $100 per barrel, liquids-rich plays are most attractive.
Prices may pull back, even though the surge in merger and acquisition activity suggests that some companies might believe that these price levels are here to stay. Ultimately, producers must consider development costs as well as product types and margins to enhance returns………………………………………..Full Article: Source

UAE’s oil output rises by 1.8 pct in Q2 2013

Posted on 25 September 2013 by VRS  |  Email |Print

The UAE’s oil output rose by 1.8 per cent to 2.72mn bpd in Q2 2013, compared with 2.67mn bpd during Q1 2013, according to data from the International Energy Agency (IEA). The IEA report showed that the country’s oil output in August, however, fell marginally to 2.72mn bpd compared to its average output of 2.75mn bpd in July.
The agency also noted that the UAE has a sustainable oil production capacity of 2.9mn bpd and its crude supply averaged 2.69mn bpd in the first half of 2013………………………………………..Full Article: Source

World aluminum supply needs 40pct cut

Posted on 23 September 2013 by VRS  |  Email |Print

In a little more than two weeks, Alcoa Inc. (AA) will report third-quarter results, and there is every reason to believe that those results will not be pretty. The consensus estimates call for earnings per share of $0.06 on sales of $5.74 billion. The earnings estimate has been cut in half over the past three months, and if comments today by another aluminum miner are any guide, the estimates for Alcoa are optimistic.
A senior executive of the world’s largest aluminum producer, Russia’s Rusal, has said that 40% of global aluminum production is unsustainable at current prices. From around $1,900 per metric ton (tonne) a year ago, the price today is about $1,830………………………………..Full Article: Source

China stocks up on gold as price tumbles

Posted on 16 September 2013 by VRS  |  Email |Print

Jeffrey Currie, head of commodity research at Goldman, says the yellow one could fall below $US1000 an ounce and the bank’s target average for 2014 is $US1050 an ounce.
Sure, it’s been a bad week for gold. The seeming truce on the Syrian chemical weapons issue (no US airstrikes required) and anticipation that the Federal Open Market Committee, which meets tomorrow, will reduce the rate of money printing have induced a market feeling that all is well (no wealth protection required)………………………………………..Full Article: Source

U.S. predicts decrease in OPEC oil supplies

Posted on 12 September 2013 by VRS  |  Email |Print

Oil supplies by OPEC will decrease in 2013 and 2014 reaching 35.82 million barrels per day (bpd) and 35.62 million bpd respectively, according to the Short-Term Energy Outlook published by the U.S. Energy Information Administration (EIA) on its official website.
In 2012, according to the EIA’s estimates, OPEC supply amounted to 36.59 million bpd. At the same time EIA stressed that in August, unplanned disruptions among the OPEC and non-OPEC producers reached expected 2.7 million bpd, the highest level since at least January 2011………………………………………..Full Article: Source

OPEC to cut production by 500,000 barrels

Posted on 10 September 2013 by VRS  |  Email |Print

The Organisation of Petroleum Exporting Countries(OPEC) may cut oil production by half a million barrels a day when its meets in December, the International Energy Agency(EIA) has said. The body said if all go accoridng to plans, the reduction in production would be the first in five years since the last time such exercise was carried out was 2008.
It said: “ The last time OPEC cut its oil output was in late 2008 when it reduced production to 4.2 million barrels a day. During this time, oil demand fell and prices crashed amid the financial crisis………………………………………..Full Article: Source

America’s oil boom won’t make it energy-independent from Middle East madness

Posted on 06 September 2013 by VRS  |  Email |Print

Thanks to increased domestic oil production and falling demand, energy independence is becoming a realistic goal for the U.S. But that doesn’t mean it won’t be vulnerable to price shocks if a Syria attack goes bad.
If the U.S. does strike Syria, the price of oil — already at $115 and rising in the Brent index, largely because of political disruptions in Libya, a major producer — is likely to spike. It’s not that Syria is a major oil producer — even before the war its exports were modest by Middle East standards, and now the embattled regime of Syrian President Bashar Assad can manage just 50,000 barrels a day, barely 5% of what tiny Oman can pump………………………………………..Full Article: Source

OPEC output lowest since June 2011

Posted on 03 September 2013 by VRS  |  Email |Print

OPEC’s oil production fell to its lowest level since June 2011 in August as protests at many of Libya’s key oil exporting ports saw the country’s output half. Crude-oil production from the Organization of Petroleum Exporting Countries averaged 30.170 million barrels a day in August, down about 165,000 barrels a day from 30.335 million barrels a day in July.
An increase in Saudi Arabia’s output to 9.975 million barrels a day, the Kingdom’s highest level since June last year according to data compiled by the Wall Street Journal, wasn’t enough to offset substantial declines in Libya’s production as strikes and protests roiled the country’s oil industry………………………………………..Full Article: Source

OPEC: Iran holding 3rd largest crude reserves in world

Posted on 29 August 2013 by VRS  |  Email |Print

The Organization for Petroleum Exporting Countries (OPEC) in its Annual Statistical Report announced that the volume of Iran’s oil reserves amounted to 154.58bln in 2012, showing an increase of more than 1.8 percent as compared with the figures in the year before.
Venezuela with 297.735bln barrels of crude and Saudi Arabia with 265.85bln barrels precede Iran in the OPEC’ list as the states holding the largest and second largest crude reserves. According to the OPEC report, the world’s crude reserves stood at 1.478211trln in 2012, showing a 0.9 percent increase compared with the preceding year………………………………………..Full Article: Source

Gold costs more to bring to the surface than its selling price: Industry CEO

Posted on 20 August 2013 by VRS  |  Email |Print

Producing an ounce of gold can cost roughly $1,500, even though the metal is now selling for only $1,300 to $1,400 per ounce, reported trade publication Mining Weekly on Monday.
Gold Fields Limited (NYSE:GFI) CEO Nick Holland said that “all-in” cost metrics from the World Gold Council, promoted in June, show that the global gold industry is incurring losses amid high production costs and low gold prices………………………………………..Full Article: Source

Can Saudi Arabia pump enough crude oil ?

Posted on 15 August 2013 by VRS  |  Email |Print

One of Wikileaks’ most celebrated revelations, in 2011, was a confidential mail from a US diplomat in KSA (Kingdom of Saudi Arabia) stating that he had been convinced by a Saudi oil expert named Sadad al-Husseini using data from as far back as 2005 that the nation’s oil reserves are overstated by nearly 40%. The diplomat was certain that KSA could not “keep a lid on oil prices”.
To be sure, there was no need to consult Wikileaks or the State Dept to hear that – for at least a decade Matthew Simmons, author of books including Twilight in the Desert: The Coming Saudi Oil Shock published in 2005 has worked the theme of Saudi exaggeration or lying about its oil reserves………………………………………..Full Article: Source

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