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USA leaves Russia behind among world’s biggest producers of oil and gas

Posted on 12 June 2015 by VRS  |  Email |Print

Russia is no longer the largest producer of natural gas. Oil production in the USA has gained 1.6 million barrels a day, BP Plc’s Statistical Review of World Energy said. Gas output has also grown, putting America ahead of Russia on the list of world’s largest producers of hydrocarbons, Pravda.Ru reports.
The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities. “We are truly witnessing a changing of the guard of global energy suppliers,” BP Chief Economist Spencer Dale said in a presentation. “The implications of the shale revolution for the U.S. are profound.”……………………………………….Full Article: Source

Russia Grows Oil and Gas Reserves Faster Than Rivals

Posted on 11 June 2015 by VRS  |  Email |Print

Russia added the most oil and gas reserves during the past year while the United States overtook it as the top energy producer, oil company BP said Wednesday in its benchmark annual review of world energy.
The BP Statistical Review of World Energy, first published in 1951 and considered an industry handbook, showed Russia added as much as 10 billion barrels of reserves, enough to supply the world for more than 100 days. The review also showed that world oil demand grew by just 843,000 barrels per day last year, the slowest pace in 14 years outside U.S. recessions………………………………………..Full Article: Source

OPEC says oil market oversupply to ease, but raises output again

Posted on 11 June 2015 by VRS  |  Email |Print

OPEC voiced confidence that excess supply in the oil market will ease as demand picks up and supply growth slows from producers outside the group, an indication its strategy of letting prices fall, reaffirmed at a meeting last week, is working.
In a monthly report on Wednesday, OPEC pointed to its expectations that supply from rival producers would decline in the second half of the year after rising in the first. World oil demand will grow faster than it did in 2014, OPEC said………………………………………..Full Article: Source

What will Opec do about the oil supply?

Posted on 04 June 2015 by VRS  |  Email |Print

With oil prices down some 40% in a year, the oil ministers of the Organization of the Petroleum Exporting Countries (Opec) are once again getting together in Vienna this week to decide whether to cut output or keep pumping crude oil into a market that is already oversupplied.
Six months ago, Opec’s lack of consensus on a similar decision cost them almost $6 a barrel. Some may argue that in a changing world, Opec is no longer as relevant to global oil markets, but Opec summits still command attention in both the industry and the global media and this week’s meeting is no exception………………………………………..Full Article: Source

BHP Billiton warns of oversupply on metals, hitting mining sector

Posted on 04 June 2015 by VRS  |  Email |Print

Commodity company shares are under pressure after the world’s biggest miner warned than oversupply and low prices were likely to carry on for a prolonged period. BHP Billiton chief executive Andrew Mackenzie told a meeting of senior executives and politicians in Australia (as reported by Reuters):
Incremental supply, induced during periods of higher prices, will take longer to absorb and this means over-supply may persist for some time. BHP and rival Rio Tinto have been criticised for expanding their iron ore production despite a slump in the metal’s price………………………………………..Full Article: Source

Russia Met OPEC In Secret, Won’t Cut Oil Production?

Posted on 03 June 2015 by VRS  |  Email |Print

Russia is feeling the bite of lower oil prices exemplified by a secret meeting with OPEC leaders last month. This week, ahead of Friday’s Vienna meeting of the Organization of the Petroleum Exporting Countries, Kuwait, Saudi Arabia and the United Arab Emirates reportedly say they won’t meet with Russian officials because of “past broken promises,” The Wall Street Journal reports. In the Energy Journal’s email today, Christopher Harder writes:
“The secret meeting last month underscores the distance between OPEC and Russia, the world’s largest oil producer. During those discussions, which were at a staff level and didn’t include officials who could make policy, the attendees argued about a joint statement and the talks went no further. ……………………………………….Full Article: Source

OPEC oil output in May reaches highest since 2012 - survey

Posted on 01 June 2015 by VRS  |  Email |Print

OPEC oil supply in May climbed further to its highest in more than two years as increasing Angolan exports and record or near-record output from Saudi Arabia and Iraq outweighed outages in smaller producers, a Reuters survey showed. The boost from the Organization of the Petroleum Exporting Countries puts output further above its target of 30 million barrels per day (bpd), underlining the focus of top exporter Saudi Arabia and other key members on market share.
OPEC supply rose in May to 31.22 million bpd from a revised 31.16 million bpd in April, according to the survey, based on shipping data and information from sources at oil companies, OPEC and consultants………………………………….Full Article: Source

Texas set to create a gold depository

Posted on 01 June 2015 by VRS  |  Email |Print

All that glittering gold doesn’t have to go to Fort Knox or the Federal Reserve in New York. Instead Texas will soon be able to keep their precious metals in a new bullion depository lawmakers approved today. The bill goes to to governor.Now, this isn’t a place to store Great Aunt Margaret’s earrings.
Public agencies, corporations or even individuals could store gold or precious metal there if it is in certain form — such as bullion or specie, which are generally gold or silver stamped. Rep. Giovanni Capriglione, R-Southlake, has worked for two years on the legislation that allows the comptroller’s office to create the depository, which would make Texas the first state in the nation to do so………………………………….Full Article: Source

Non-OPEC production growth reduced by over 2 MMbopd towards 2020

Posted on 27 May 2015 by VRS  |  Email |Print

Non-OPEC liquids growth potential of 5.5 MMbopd over the next five years has been reduced by over 2 MMbopd to 3.3 MMbopd, according to Rystad Energy’s most recent forecasts. Latest oil field research shows investments in oil and gas production are estimated to drop 20% in 2015 compared to 2014. Outside OPEC, $200 billion in yearly capex is considered to be axed over a two-year period.
Ultimately, for every billion dollars being cut in development capex on marginal projects, the production shortfall would amount to 10 Mbopd. Only U.S. production has been visibly impacted with the trend turning from 20% annual growth during the first quarter of the year to a flat trend in the second quarter. The shortfall of global offshore production may be steeper if oil prices stay low throughout the year…………………………………..Full Article: Source

Kingdom built on oil foresees fossil fuel phase-out this century

Posted on 22 May 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s largest crude exporter, could phase out the use of fossil fuels by the middle of this century, Ali al-Naimi, the kingdom’s oil minister, said on Thursday. The statement represents a stunning admission by a nation whose wealth, power and outsize influence in the world are predicated on its vast reserves of crude oil.
Naimi, whose comments on oil supply routinely move markets, told a conference in Paris on business and climate change: “In Saudi Arabia, we recognise that eventually, one of these days, we are not going to need fossil fuels. I don’t know when, in 2040, 2050 or thereafter.”……………………………………….Full Article: Source

India moves closer to tapping 20,000-ton gold hoard

Posted on 20 May 2015 by VRS  |  Email |Print

India will allow citizens to deposit gold with banks to earn interest as the world’s second-biggest consumer seeks to cut reliance on imports by tapping idle bullion lying with households. Individuals and institutions can deposit a minimum of 30 grams in the form of bullion or jewelry under a so-called gold monetization scheme, according to a draft document released by the government on Tuesday.
The banks can set the interest rate on the deposits and the metal mobilized may be loaned to jewelers, the government said. Success in drawing out a part of the more than 20,000 metric tons of gold lying with households and institutions like temples may help India lower dependence on imports and ease pressure on the current-account deficit………………………………………..Full Article: Source

India, China account for 54% of total gold demand during Q1

Posted on 18 May 2015 by VRS  |  Email |Print

India and China accounted for 54 percent of the total global gold consumer demand in the first quarter of this year, according to a report. Global demand for jewellery, still the most significant component of overall demand, totalled 601 tonnes in the first quarter of 2015, three percent lower than the last year, said the Gold Demands Trends report prepared by the World Gold Council.
According to the report, conditions differed from market to market, but at an aggregate level these differences broadly balanced each other out. “Once again, consumers in Eastern countries dominated the market with China and India alone accounting for 54 percent?of total global consumer demand in the quarter,” said Alistair Hewitt, Head of Market Intelligence at the World Gold Council………………………………………..Full Article: Source

Saudi April oil output hits record high

Posted on 13 May 2015 by VRS  |  Email |Print

Saudi Arabia, the world’s biggest exporter, increased its production of crude oil to a record high in April to meet demand from Asian buyers and to satisfy the needs of domestic power stations and refineries.
The Kingdom pumped 10.308m barrels of oil a day last month, up from 10.294m b/d in March, according to information given by Riyadh to Opec for the cartel’s monthly oil report, reports Anjli Raval in London. Saudi Arabia’s oil minister Ali Al Naimi last month indicated that there are no plans to slow its production which has risen above 10m barrels per day in recent months………………………………………..Full Article: Source

Indian people hold 20,000 tonnes of gold

Posted on 11 May 2015 by VRS  |  Email |Print

It may come as little surprise to those who understand the “fear trade” and the “love trade” in gold, as Frank Holmes of US Global Investors likes to say. Last week the Economic Times reported that the Indian public hold 20,000 tonnes of the yellow metal in jewelry, coins and gold bars. It was unclear from the media report what was the source of the “20,000-tonnes” comment, but Arun Jaitley, the Indian Finance Minister, reportedly stated the figure after noting that the Indian government does not have data on gold held by the general public.
However it would mesh with a news story three years ago in The Financial Express, which said that Indian households have amassed up to 20,000 tonnes for a historic high of $1.16 trillion, based on the gold price in 2012. The figure came from the World Gold Council (WGC) which estimated that India’s household gold reserves at the time were 11 percent higher than the 18,000 tonnes it had earlier pegged………………………………………..Full Article: Source

Global silver output running low — report

Posted on 07 May 2015 by VRS  |  Email |Print

After over ten years of gains, global silver production is expected to drop this year, as new supply from projects won’t be sufficient to replace production losses from aging operations, a study released Wednesday shows.
According to the World Silver Survey 2015, published by The Silver Institute and Thomson Reuters GFMS, global silver output went up by 5% in 2014 to reach 877.5 million ounces, the 12th successive gain and a new record. This year, however mine supply is set to decrease………………………………………..Full Article: Source

OPEC Production Highest Since 2012

Posted on 04 May 2015 by VRS  |  Email |Print

OPEC supply rose to 31.04 MMBOPD in April, the highest in more than two years, according to a Reuters survey. The increase puts the cartel’s production even further above demand forecasts for OPEC oil in the first half of the year, although second-half demand is expected to be stronger.
If the total remains unrevised, April’s supply would be OPEC’s highest since 31.06 MMBOPD in November 2012. Iraq increased production in the north following a deal between Baghdad and the Kurdistan Regional Government, offsetting a slight decline in flows from the south which produces most of the country’s oil. Based on the survey, Iraqi exports this month look set to exceed March’s record high of 2.98 MMBOPD. Iraq hoped to reach 3.10 MMBOPD in April………………………………………..Full Article: Source

Has China Doubled Its Gold Reserves? - IMF May Soon Find Out

Posted on 24 April 2015 by VRS  |  Email |Print

Once again, speculation is cropping up regarding the size of China’s gold reserves and whether or not the People’s Bank of China has been bolstering its holdings in secret. According to data from the International Monetary Fund, China’s official gold reserves have not changed since 2009, standing at 1,054 tonnes.
However, Marc Chandler, head of global strategy at Brown Brothers Harriman, said in a report Thursday that the country could soon update its reserves. He noted China will be meeting with the International Monetary Fund (IMF) in May to make a case of including the yuan in the IMF’s Special Drawing Rights (SDR), a basket of currencies made of U.S. dollars, Japanese yen, pound sterling and euros…………………………………..Full Article: Source

Why Invest in Water?

Posted on 22 April 2015 by VRS  |  Email |Print

Water could prove the most profitable commodity investment as demand for fresh water has increased at more than twice the rate of global population growth. The main investment thesis underlying an investment in global water equities revolves around the scarcity of fresh water as a commodity. Indeed, over recent years demand for fresh water has increased at more than twice the rate of global population growth, leading to dramatic predictions of future shortfalls between supply and demand.
Additionally, fresh water resources are not evenly distributed across the globe, with even highly developed regions such as California, not immune to crippling shortages. This environment is likely to provide an increasing number of opportunities for companies involved in the treatment and distribution of water globally…………………………………..Full Article: Source

Russia Increases Gold Reserves by 1,238 Tons in April

Posted on 21 April 2015 by VRS  |  Email |Print

After a two-month hiatus, Russia’s appetite for buying gold is back. The nation increased foreign reserves of bullion to 39.8 million ounces, or about 1,238 metric tons, as of April 1, compared with 38.8 million ounces a month earlier, the central bank said on its website Monday. The 30-ton purchase was the most since September.
Russia, the fifth-biggest holder of the metal, returned to buying gold after taking a break in January and February. The country, which bought gold through the last nine months of 2014, made the purchases to diversify foreign reserves and solve issues related to ruble liquidity, central bank Governor Elvira Nabiullina said in February…………………………………..Full Article: Source

Shale Oil Boom Could End in May After Price Collapse

Posted on 14 April 2015 by VRS  |  Email |Print

The shale oil boom that pushed U.S. crude production to the highest level in four decades is grinding to a halt. Output from the prolific tight-rock formations such as North Dakota’s Bakken shale will decline 57,000 barrels a day in May, the Energy Information Administration said Monday.
It’s the first time the agency has forecast a drop in output since it began issuing a monthly drilling productivity report in 2013. Deutsch Bank AG, Goldman Sachs Group Inc. and IHS Inc. have projected that U.S. oil production growth will end, at least temporarily, with futures near a six-year low………………………………………..Full Article: Source

U.S. Leads Global Oil and Gas Production for Third Year

Posted on 08 April 2015 by VRS  |  Email |Print

For the third year running, the U.S. produced more crude oil and natural gas than any other country in the world in 2014. More oil than Saudi Arabia. More gas than Russia. And it’s happening at time when the U.S. is trying to take a leadership role in slashing greenhouse gas emissions to avert the worst consequences of climate change.
The U.S. is the Earth’s hydrocarbon production leader because of fracking, which has allowed shale oil fields in North Dakota, Texas and elsewhere to gush oil, and shale gas fields in Pennsylvania and other eastern states to produce ever more natural gas………………………………………..Full Article: Source

How Much U.S. Oil and Gas Comes From Fracking?

Posted on 02 April 2015 by VRS  |  Email |Print

Hydraulic fracturing has unleashed vast new quantities of crude oil and natural gas. The percentage of fuel flowing from shale-rock compared with traditional oil and gas fields has been steadily rising. But lackluster energy demand and low prices are expected to curb growth later this year. Here’s a graphic that helps explain fracking:……………………………………….Full Article: Source

Basic Materials: China Will Keep a Lid on Most Commodities

Posted on 01 April 2015 by VRS  |  Email |Print

Looser credit conditions or fiscal stimulus may temporarily boost China’s demand for coal, copper, and iron ore, but the bounce would be fleeting. Mined commodity prices are unlikely to recover from recent lows, as China’s structural economic transition diminishes the main source of global demand growth.
Falling input costs and global overcapacity have reshaped the global steel industry: Prices will be lower for longer. Weak crop prices and low farmer incomes are a significant headwind for fertilizer and seed companies, but we don’t expect the breeze will be too strong………………………………………..Full Article: Source

OPEC oil output hits highest since October on Iraq, Saudi

Posted on 01 April 2015 by VRS  |  Email |Print

OPEC oil supply has jumped in March to its highest since October as Iraq’s exports rebounded after bad weather and Saudi Arabia pumped at close to record rates, a Reuters survey found, a sign key members are sticking to their effort to regain market share.
The increase from the Organization of the Petroleum Exporting Countries adds to excess supply in the market, despite some signs that the halving of crude prices since June 2014 is encouraging higher oil demand………………………………………..Full Article: Source

What Happens to Global Commodities Once China is No Longer the World’s Factory?

Posted on 31 March 2015 by VRS  |  Email |Print

For many decades, China was the world’s default factory. It sucked up commodities from all four corners of the globe to power its factories. These factories then go on to crank out products that developed economies far and wide loved to consume. That was the old arrangement, and that’s why China’s annual GDP growth rate was nothing short of phenomenal.
Now, the official growth rate of China has come down to earth. Of course, it hasn’t crashed or led to a shrinkage of the Chinese economy. Instead, China is now growing at a normal rate. It’s still quite impressive and definitely enviable but considering the fact that China is still a relatively less developed country compared to the United States or the United Kingdom, it’s understandable why China’s growth rate is impressive compared to these more mature economies. Expect that to continue for quite sometime………………………………………..Full Article: Source

U.S. oil drillers scrambling to thwart OPEC threat

Posted on 30 March 2015 by VRS  |  Email |Print

OPEC and lower global oil prices delivered a one-two punch to the drillers in North Dakota and Texas who brought the U.S. one of the biggest booms in the history of the global oil industry. Now they are fighting back.
Companies are leaning on new techniques and technology to get more oil out of every well they drill, and furiously cutting costs in an effort to keep U.S. oil competitive with much lower-cost oil flowing out of the Middle East, Russia and elsewhere. “Everybody gets a little more imaginative, because they need to,” says Hans-Christian Freitag, vice president of technology for the drilling services company Baker Hughes………………………………………..Full Article: Source

Global demand to help oil prices despite U.S. glut-senior Gulf OPEC delegate

Posted on 25 March 2015 by VRS  |  Email |Print

Stronger-than-expected global oil demand should help support crude prices at around $55-$60 a barrel in the next two months despite some signs of a growing glut in the United States,‎ a senior Gulf OPEC delegate told Reuters on Tuesday.
The comments appear to counter some market forecasts that the U.S. oil glut may push prices to as low as $20-$30 and are a sign that the core Gulf OPEC members remain confident about their strategy of defending market share. “Global demand is definitely growing much stronger than expected. In December, January, and especially February ‎it was beyond what forecasts anticipated,” the delegate said………………………………………..Full Article: Source

Kuwait Says OPEC Has No Choice But to Keep Oil Production Target

Posted on 20 March 2015 by VRS  |  Email |Print

OPEC has no plans for an extraordinary meeting to discuss ways to shore up oil prices and doesn’t have a choice but to keep its crude production unchanged to maintain market share, Kuwait Oil Minister Ali Al-Omair said.
If other producers want to cut supply, “we will be very happy,” al-Omair said in Kuwait City. No “serious” requests have come from OPEC members to hold early talks so “accordingly the next meeting will be in June,” he said………………………………………..Full Article: Source

Iran calls for non-OPEC producers to cut oil output: IRNA

Posted on 19 March 2015 by VRS  |  Email |Print

Iran Oil Minister Bijan Zanganeh said non-OPEC producers should cut oil output to prop up prices, adding that he did not see “good cooperation” among producers, the OPEC member country’s official IRNA news agency reported on Wednesday.
“We must also work toward non-OPEC (producers) cutting their production because currently there is not good co-operation,” IRNA quoted Zanganeh as saying………………………………………..Full Article: Source

American Oil Production Is Still Skyrocketing: Will Oil Prices Tumble?

Posted on 16 March 2015 by VRS  |  Email |Print

With oil prices having dropped by roughly 50% since last summer, U.S. oil companies have quickly reduced their investment plans and idled drilling rigs. Many pundits have assumed these actions would quickly be followed by falling production numbers.
While that might seem intuitive, it did not prove true. At some point, reduced drilling activity will inevitably lead to a fall in crude oil output — but that point could be far in the future. For the moment, domestic oil production is still rising steadily………………………………………..Full Article: Source

The U.S. Has Too Much Oil and Nowhere to Put It

Posted on 13 March 2015 by VRS  |  Email |Print

Not only are the tanks at Cushing filling up, so are those across much of the U.S. Facilities in the Midwest are about 70 percent full, while the East Coast is at about 85 percent capacity. This has some analysts beginning to wonder if the U.S. has enough room to store all its oil.
Ed Morse, the global head of commodities research at Citigroup, raised that concern on Feb. 23 at an oil symposium hosted by the Council on Foreign Relations in New York. “The fact of the matter is, we’re running out of storage capacity in the U.S.,” he said………………………………………..Full Article: Source

Badri: OPEC Shouldn’t Cut Output To “Subsidise” Shale

Posted on 10 March 2015 by VRS  |  Email |Print

The Organisation of the Petroleum Exporting Countries Secretary-General said on Sunday that the group’s exporters should not cut output to “subsidise” higher-cost shale, an energy source whose recent growth is blamed by OPEC for weakening oil markets.
Abdullah al-Badri added in remarks to a conference in Bahrain that tight oil, a term he has used for shale, was “not a challenge for us” but the market should now be left to decide which source of petroleum could survive at current prices. Oil prices have sunk to near six year lows in recent months as a result of a large supply glut, due mostly to a sharp rise in U.S. shale production as well as weaker global demand………………………………………..Full Article: Source

Is Productivity Responsible For Drop In Commodity Prices?

Posted on 16 February 2015 by VRS  |  Email |Print

Is there a productivity force at work driving commodity prices lower? Why might lumber prices be higher? What industry cousin might offer clues about innovation in commodity markets? One of the more perplexing developments in this economic recovery is the collapsing prices of commodities.
During an economic expansion demand for commodities typically rises, sending prices higher. That has not been the case in this recovery. Metals, agriculture, energy, livestock and cotton - all of these commodities are trading at prices well below levels at the start of 2012. How could this be?……………………………………….Full Article: Source

US to remain world’s top source of oil supply growth up to 2020: IEA

Posted on 11 February 2015 by VRS  |  Email |Print

The United States will remain the world’s top source of oil supply growth up to 2020, even after the recent collapse in prices, the International Energy Agency said, defying expectations of a more dramatic slowdown in shale growth.
The agency also said in its Medium Term Oil Market report that oil prices, which slid from US$115 a barrel in June to a near six-year low close to US$45 in January, would likely stabilise at levels substantially below the highs of the last three years………………………………………..Full Article: Source

Where Is Germany’s Gold?

Posted on 06 February 2015 by VRS  |  Email |Print

Almost half of Germany’s gold resides at 33 Liberty St., the headquarters of the Federal Reserve Bank of New York, 80 feet below street level in a vault that sits on Manhattan’s bedrock. In 2012, Peter Boehringer started a campaign on his blog to bring it home. He argued the gold should be shipped to the German central bank in Frankfurt.
The hoard, amassed during Germany’s postwar boom, had never been subject to a published bar-by-bar physical review by its owners. That lack of accounting had become an insatiable itch for Boehringer. As the volunteer chairman of a private storage company for silver and gold investors based in Gerstetten, Germany, Boehringer personally counts the holdings each year by lugging metal valued at some €140 million ($161 million) from one end of the vault to the other, just to make sure it’s all there………………………………………..Full Article: Source

Chile trims copper prices expectations for 2015

Posted on 30 January 2015 by VRS  |  Email |Print

The Chilean Copper Commission, known as Cochilco, on Thursday revised downward its expectations for the average copper price in 2015, to $2.85 a pound from the $3.00 a pound it forecast in October. Chilean copper production is expected to be 6 million tons this year, down from the 6.23 million tons Cochilco projected in October.
Chile is the world’s largest copper producer and each one-cent increase in the price of the red metal represents more than $40 million in additional government revenue………………………………………..Full Article: Source

Water is the biggest output of U.S. oil and gas wells: Kemp

Posted on 19 November 2014 by VRS  |  Email |Print

The biggest product of the U.S. petroleum industry is not oil, gas or condensate but water — billions and billions of gallons containing dissolved salts, grease and even naturally occurring radioactive materials.
In 2007, when the shale revolution was still in its infant stages, the U.S. oil and gas industry was already producing more than 20 billion barrels of waste water per year, according to researchers at the Argonne National Laboratory (”Produced water volumes and management practices in the United States”, 2009). The industry’s daily output was 5 million barrels of oil, 67 billion cubic feet of natural gas, and 55 million barrels of water, according to federal government statistics……………………………………Full Article: Source

Crude oil production will grow 400 kb/d-900 kb/d by 2015 end: Barclays

Posted on 05 November 2014 by VRS  |  Email |Print

Despite the recent price drop, US production will continue to grow at a swift pace through 1H 15 and those additional barrels will need to find a home in the North American market due to export restrictions. US tight oil producers will likely take a long-term view with regards to their capex decisions, according to Barclays.
As a result, lower oil prices are unlikely to have an immediate impact on production growth. From September levels, Barclays forecast shows production growth of over 400 kb/d by the end of March and close to 900 kb/d by the end of 2015. Even opportunities to export to Canada or to export ANS internationally have limited upside from current levels………………………………………..Full Article: Source

Why is Russia buying so much gold bullion?

Posted on 27 October 2014 by VRS  |  Email |Print

One area where physical gold demand has remained constant has been Russia, with the central bank buying another 37 tonnes of gold in September. The Russians has now been net buyers for seven months running and its gold reserves are now up to 1,150 tonnes.
Adding to the country’s gold reserves has been a feature of Vladimir Putin’s stints as Russian president. It is now officially the world’s fifth largest holder of gold, but could be one place lower as China’s reserves are thought to be understated. Russia is also the number three gold producer………………………………………..Full Article: Source

U.S. To Produce More Oil & Gas Than Russia…For Decades

Posted on 24 October 2014 by VRS  |  Email |Print

The U.S. shale oil and gas renaissance has effectively stripped Russia from its status as biggest non-OPEC oil producing state. And Russia won’t recover for the next 25 years. Or more, according to the U.S. Energy Information Agency.
U.S. oil and gas production is seen going from 9.8 million barrels a day in 2011 to 14.2 million per day in 2020. By then, Russia will produce an average of 10.7 million barrels daily. And while Russia’s oil production will rise by an average of 0.6% year over year between now and 2040, U.S. oil production will be a little bit better, at around 1% growth per year………………………………………..Full Article: Source

India Steel output up by 2.5% in September,slight dip in Global output

Posted on 22 October 2014 by VRS  |  Email |Print

World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 134 million tonnes (Mt) in September 2014, a slight decrease of -0.1% compared to September 2013. India produced 6.8 Mt of crude steel, an increase of 2.5% compared to the same month 2013.
China’s crude steel production for September 2014 was 67.5 Mt, the same compared to September 2013. Elsewhere in Asia, Japan produced 9.2 Mt of crude steel in September 2014, a decrease of -0.5% compared to September 2013. South Korea produced 5.7 Mt of crude steel in September 2014, up by 10.1% on September 2013………………………………………..Full Article: Source

Iron Ore Risks Extending Collpapse on Supplies: Moody’s

Posted on 21 October 2014 by VRS  |  Email |Print

The collapse in iron ore prices may have further to run as global supply increases and steel-demand growth slows, according to Moody’s Investors Service, which said it may reduce ratings on producers.
About 300 million metric tons of new and expanded supply will come on stream over the next few years, analysts including Carol Cowan said in an e-mailed report received today. Global steel-production growth in 2014 remains muted with China, the key driver of consumption, continuing to slow, Moody’s said………………………………………..Full Article: Source

Chile’s Cochilco sees copper surplus growing in 2015 as Chinese demand slows Caracas

Posted on 20 October 2014 by VRS  |  Email |Print

The global copper market will record larger surplus next year as demand in China, the world’s largest consumer of the metal, slows sharply, but prices will remain stable, the Chilean Copper Commission, or Cochilco, said Friday.
Sergio Hernandez, the head of Cochilco, said the commission expects a surplus of 125,000 mt this year and 429,000 mt in 2015 as new mine capacity comes on stream in Chile, Peru, Mexico, the US and Zambia. Meanwhile, Chinese demand is expected to rise 4.5% next year to 11.2 million mt, or 47% of global demand, compared with growth of 9% this year, Hernandez said, citing a tight scrap market and the drop in the use of copper as loan collateral………………………………………..Full Article: Source

World top 15 gold producers - output still rising but peaking this year

Posted on 10 October 2014 by VRS  |  Email |Print

According to the latest research report from London-based precious metals analysts – Metals Focus – global mined gold output is still on the increase this year, despite the much lower gold price prevailing. This is primarily due to the build-up to full production of a number of major new gold mining operations which came on stream in 2013, while the start-ups at Kibali in the DRC, Aykem in Ghana and Tropicana in Australia added a further 21 tonnes in the first half of the current year.
The increased mine production in the first half of the year, however, was at least in part countered by a continuing decline in scrap sales – indeed the consultancy is forecasting a fall in global gold supply for the full year due to a predicted double digit drop in scrap supply………………………………………..Full Article: Source

Australia cuts 2015 iron ore price forecast to $92.40/tonne

Posted on 24 September 2014 by VRS  |  Email |Print

Australia revised down on Wednesday its forecast iron ore price for 2015 to $92.40 a tonne from $94.60 a tonne previously, citing mounting competition among producers as supply rises.
“Over the next five years, iron ore prices are projected to average between $90 and $95 a tonne,” Australian forecaster the Bureau of Resource and Energy Economics (BREE) said in its latest quarterly update. “Further increases in supply indicate increasing price competition will be needed to push more high-cost supply out of the market over the next two years,” BREE said………………………………………..Full Article: Source

OPEC May Lower Oil Production to 29.5Mln Barrels Per Day in 2015

Posted on 17 September 2014 by VRS  |  Email |Print

The Organization of the Petroleum Exporting Countries (OPEC) may decide to lower its oil output from 30 million barrels per day to 29.5 million, OPEC Secretary General Abdalla El-Badri, said on Tuesday. “I think our target next year will be lower, may be by 500,000 barrels,” El-Badri told reporters at the group’s headquarters in Vienna.
“This is an outlook, this is not a decision,” he said, adding that the decision could be made at the next regular OPEC ministerial meeting scheduled for November 27. El-Badri reiterated he was not overly concerned about the current drop in oil prices and said he expected them to rebound by the end of this year………………………………………Full Article: Source

Australian gold output up 9% in 2013-2014

Posted on 05 September 2014 by VRS  |  Email |Print

Australian gold production totaled 9.1 million ounces in 2013-2014, up 9% from 2012-2013 output and worth some A$12.5 billion at the current spot price, said Melbourne-based Surbiton Associates. Production for the June 2014 quarter was also up as Australia’s gold output totaled 71 tonnes (2.3 million oz) compared to 67 tonnes in the June 2013 quarter.
“Don’t be fooled by the good news of higher gold output,” said Dr. Sandra Close, Surbiton Associates’ director. “While some new operations have opened, others have closed, so the majority of the rise is due to an overall increase in ore grades as the industry responds to harder times.”……………………………………….Full Article: Source

Water - The World’s Most Important Commodity

Posted on 03 September 2014 by VRS  |  Email |Print

It’s quite the strange duality when you think about it. Undoubtedly, water is the single most important thing on earth….ok, so maybe it’s the second most important thing (sorry, oxygen) - but you get the idea. If I go to the store and there’s no bread, I would be shocked, and certainly annoyed, and that would be about it.
But if I turn on my faucet and nothing comes out, I’m about 15 hours away from turning into Mad Max - and so are you. So why is water so underappreciated? Why, when I live in a state that’s experiencing a once-in-a-generation drought that could become economically catastrophic in a heartbeat, can my home water bill be just 75 bucks a month?……………………………………….Full Article: Source

Australia: Rich in Commodities but not Oil

Posted on 01 September 2014 by VRS  |  Email |Print

Australia is rich in commodities, including fossil fuel and uranium reserves. It is one of the few countries belonging to the Organization for Economic Cooperation and Development (OECD) that is a significant net energy exporter, sending nearly 70 percent of its total energy production (excluding energy imports) overseas, according to data from Australia’s Bureau of Resource and Energy Economics (BREE).
However, Australia retains a surplus of all its energy commodities except oil. Australia’s dependence on oil imports has increased to fill the growing gap between domestic consumption and production………………………………………..Full Article: Source

Top 20 largest gold reserves by country

Posted on 01 September 2014 by VRS  |  Email |Print

After a long bull move gold is at a crossroads. Depending on who you talk to, the 15-year bull market in gold has ended or is taking a breather preparing for its next leg up. The massive inflation predicted from the enormous liquidity poured into the system by central banks around the world has not arrived so gold has pulled back from its 2011 high. Gold is the most followed and globally traded commodity. But not just by retail investors watching late night TV. While there is no more gold standard, governments maintain a reserve quantity of gold.
Although gold has industrial applications, gold is a monetary asset and its prime driver is investment demand. We take a look at the top reported official gold holdings of individual countries (as of June 2014) based on information from the World Gold Council………………………………………..Full Article: Source

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