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Commodities Briefing - Category | Trading more

Citigroup’s commodity trading gross profit rises 50%

Posted on 25 April 2016 by VRS  |  Email |Print

Citigroup has reaped the benefits of investing in its commodities business as rivals pull back, cementing its position as one of the leading investment banks that generate hundreds of millions of dollars from trading raw materials.
Citi generated $850m in gross profit from commodities trading last year, up by about 50 per cent compared to 2014, according to three people familiar with the situation, on the back of volatile markets and the oil price rout………………………………………..Full Article: Source

Commodities Make a Comeback as Bad Weather Meets Chinese Demand

Posted on 22 April 2016 by VRS  |  Email |Print

Commodities are roaring back. Soybeans are approaching a bull market on bad weather in South America, and silver crossed that threshold earlier this week. Iron ore jumped above $70 a metric ton and copper is near a one-month high on signs of improving Chinese demand. A Vietnam drought boosted coffee prices. Oil is trading near levels not seen in five months.
Put it all together, the Bloomberg Commodity Index is up 15 percent since Jan. 20 and heading for a third week of gains. The gauge, which tracks returns for 22 raw materials, slipped 0.2 percent on Thursday as oil, coffee and nickel retreated………………………………………..Full Article: Source

Why you need to ‘stay away’ from gold

Posted on 21 April 2016 by VRS  |  Email |Print

Investors and traders have gone for gold in the past few months, but some analysts warn that the metal could be set for a drop. “Gold is a notoriously difficult trade,” said Eddy Elfenbein, editor of the Crossing Wall Street blog. “It’s a highly speculative bet on the direction of short term interest rates, real rates, and I think with the Fed where they are right now and with the last inflation report, I don’t think real rates are going to go any lower for the rest of the year.”
Gold lost a third of its value between the start of 2013 and the end of 2015. But in 2016, the metal has become a highly sought after commodity, as the Federal Reserve has avoided tightening interest rates, and the dollar has turned a bit lower………………………………………..Full Article: Source

Switzerland – A trading paradise?

Posted on 20 April 2016 by VRS  |  Email |Print

How do Swiss-based commodities giants Glencore or Vale operate in the field and what are the consequences of their work for those living there? A new documentary by respected Swiss director Daniel Schweizer takes a rare look behind the scenes of this industry.
“Today some of the biggest extraction and trading firms are based between Geneva, Zug and Lausanne. Switzerland has a great responsibility accepting them here and monitoring them so little,” declared Schweizer at the world premiere of his new documentary Trading Paradise, shown at the Visions du Réel film festival in Nyon last weekend………………………………………..Full Article: Source

Is the commodities rebound over?

Posted on 19 April 2016 by VRS  |  Email |Print

The collapse of talks in Doha on April 17 among major oil producers aimed at freezing output levels and curbing the global supply glut has renewed broader concerns about the state of the global commodities market.
The meeting of the Organization of the Petroleum Exporting Countries as well as non-OPEC oil producing nations in the Qatari capital was called to freeze oil production at the levels of early 2016, an agreement that would have been the first global oil deal in about 15 years. But Iran’s withdrawal from the talks at the last minute triggered Saudi Arabia’s refusal to sign the draft agreement to halt production at January levels………………………………………..Full Article: Source

Commodity futures lead charge in exchange-traded derivatives

Posted on 19 April 2016 by VRS  |  Email |Print

Exchanges hope to capture a larger share of derivatives trading, on demand from emerging markets. Trading in commodity and currency derivatives surged on the world’s exchanges last year as traders in emerging economies used futures to hedge themselves against rising market volatility.
Overall volumes for exchange-traded derivatives rose 12 per cent to 23.4bn contracts in 2015, the first increase in four years, according to annual data collated by the World Federation of Exchanges, a trade association for 200 market infrastructure operators………………………………………..Full Article: Source

China Captures Top Growth in Commodity Trading After 2015 Rout

Posted on 19 April 2016 by VRS  |  Email |Print

China’s commodities exchanges got a boost from last year’s rout in raw-material prices as investors piled into bets on everything from steel and soybean meal to iron ore.
Trading in commodities on the Dalian Commodity Exchange and the Shanghai Futures Exchange surged to more than 1 billion contracts last year, according to the World Federation of Exchanges. Trading in Dalian climbed 45 percent last year as the Shanghai transactions rose 25 percent in 2015, the group said in a report released Monday………………………………………..Full Article: Source

Senate committee approves authorization for U.S. commodities regulator

Posted on 15 April 2016 by VRS  |  Email |Print

The U.S. Senate Agriculture Committee on Thursday approved a reauthorization of the Commodity Futures Trading Commission, nearly three years after the legislative authority for the country’s commodities and swaps regulator expired. The head of the CFTC, Timothy Massad, praised the committee for clearing the way for the full Senate to vote on authorization.
“I am committed to continuing to work with Congress throughout this process, particularly on making sure end-users like agricultural producers can continue to safely and affordably use the derivatives markets, while ensuring these markets do not generate excessive risk to our financial system,” he said in a statement………………………………………..Full Article: Source

China’s Appetite for Commodities Shoots Up

Posted on 14 April 2016 by VRS  |  Email |Print

Imports by China overall were down in March year-on-year, but copper, soybeans and oil stood out as winners. China’s better than expected trade data for March drove prices of copper and other industrial metals higher Wednesday, though concerns continued to linger about excess supplies.
The world’s second-largest economy imported 39% more copper in March than in the same month last year, China customs data showed. Imports of soybeans, used for cooking oil and pig feed, shot up 36% in March year over year………………………………………..Full Article: Source

Base metals lift on good China trade data

Posted on 14 April 2016 by VRS  |  Email |Print

Zinc has surged to an eight-month peak and other metals also gained after Chinese trade data brightened the outlook for demand in the world’s biggest metals consumer, prompting some investors to shift back to commodities.
Price gains in zinc and other industrial metals had a snowball effect as they pushed through key levels, sparking more buying by speculators based on technical signals, traders said. The initial catalyst was data showing that China’s exports in March returned to growth for the first time in nine months, adding to further signs of stabilisation in the world’s second-largest economy that cheered regional investors………………………………………..Full Article: Source

World’s Top Traders Say the Worst Is Over for Oil

Posted on 13 April 2016 by VRS  |  Email |Print

Top executives at the world’s largest oil-trading houses said the worst of the market’s woes are probably over, with some predicting prices will climb to $50 a barrel by next year. “The down market is behind us,” Torbjorn Tornqvist, chief executive officer of Gunvor Group Ltd., said on Tuesday at the FT Global Commodities Summit in Lausanne. “It is the beginning of the end of that for sure.”
Oil has rebounded after falling to the lowest level in more than 12 years amid signs a global glut will ease as U.S. output declines. The world’s largest oil traders were meeting in Switzerland as members of OPEC and other major producers prepare to assemble in Doha on April 17 to discuss an output freeze. Oil traders benefited from a surge in volatility last year and that should continue, according to Tornqvist………………………………………..Full Article: Source

OPEC oil output climbs 40,000 barrels a day in March: Platts

Posted on 12 April 2016 by VRS  |  Email |Print

Oil production from members of the Organization of the Petroleum Exporting Countries rose by 40,000 barrels a day in March from a month earlier, to 32.38 million barrels a day, according to a Platts survey released late Monday.
Platts attributed the increase to higher output from Iran, which climbed by 110,000 barrels a day to 3.23 million barrels a day. Iraqi output also rose by 30,000 barrels a day to 4.16 million barrels a day, according to the survey of OPEC and oil industry officials and analysts conducted by Platts………………………………………..Full Article: Source

Indian Regulator mulls single licence for equity, commodity brokers

Posted on 12 April 2016 by VRS  |  Email |Print

The Securities and Exchange Board of India (Sebi) is working on a plan to allow a single licence for equity and commodity brokers, a move that will help the broking community reduce costs. Though both security and commodity market intermediaries are now regulated by Sebi, following the absorption of Forward Markets Commission (FMC) into it, they still adhere to different guidelines and requirements.
Sebi has initiated an exercise to have a common set of these. “Once the commodity market stabilises, we will allow each lot of brokers to operate in the other segment. It will be done in a gradual and phased manner, so the market isn’t disrupted in any way,” a senior Sebi official said………………………………………..Full Article: Source

Iran expects 4 mbpd oil output by March 2017

Posted on 06 April 2016 by VRS  |  Email |Print

Iranian Oil Minister Bijan Namdar Zanganeh said the country’s crude output would reach four million barrels per day (bpd) by March 2017. “In the annual budget, the amount of oil export has been predicted around 2,250,000 bpd. This means our production this (Iranian) year will reach four mbpd,” Zanganeh said.
Zanganeh said Iran’s oil output has increased after the lifting of international sanctions in January under a nuclear deal with six major powers………………………………………..Full Article: Source

Brace for big commodities drop, traders warn

Posted on 05 April 2016 by VRS  |  Email |Print

After a great few weeks for the commodities trade, it’s now time to get out, some strategists say. The commodities trade is “not only being hit cyclically, but it’s also being hit fundamentally, so I would expect a decline over the next month,” Phillip Streible of RJO Futures said Friday on CNBC’s “Trading Nation.”
Strong gains across oil, copper, gold and other commodities have made for a very profitable month for bulls. In fact, March was the first positive month for the S&P GSCI total return commodities index since October, and the best March since 2006………………………………………..Full Article: Source

Saudi Arabia acts to slow Iran’s oil exports

Posted on 05 April 2016 by VRS  |  Email |Print

Iranian ships carrying crude restricted from entering ports in Saudi Arabia and Bahrain. Saudi Arabia has taken steps to slow Iran’s efforts at increasing oil exports, banning vessels that transport Iranian crude from entering their waters, according to traders and shipbrokers.
Iran already faces insurance, financing and legal obstacles despite the lifting of sanctions linked to its oil industry in January. Under a nuclear deal with world powers, Iran was allowed to resume crude exports to Europe and other destinations………………………………………..Full Article: Source

Commodities price collapse hurting Canadian incomes, BoC official says

Posted on 31 March 2016 by VRS  |  Email |Print

The aftershocks of the commodities price collapse, already plucking $1,800 a year out of Canadians’ pockets, could persist for more than two years and permanently impair the economy. That’s the conclusion of the Bank of Canada, based on the central bank’s latest economic modelling.
The full impact of the hit to Canadian incomes is “gradually building” and will get worse before it gets better, Deputy Governor Lynn Patterson warned in a speech in Edmonton on Wednesday………………………………………..Full Article: Source

Is the worst of the bear storm over for iron ore?: Andy Home

Posted on 31 March 2016 by VRS  |  Email |Print

The iron ore market has had a good first quarter. True, the spot price has retreated from the frothy heights of early March, when it rocketed by over 20 percent in the space of just two days to $63.60 per ton. That speculative frenzy, fueled by massive trading activity on China’s Dalian Exchange, has abated.
But at a current $54.70 per ton, iron ore is on course to close the first three months of 2016 with price gains of around 27 percent. Compare and contrast with copper, another industrial commodity plagued by the same demons of slowing demand growth and oversupply, which is currently showing year-to-date gains of just six percent………………………………………..Full Article: Source

CME Remains in First Place in Terms of Volumes: FIA

Posted on 31 March 2016 by VRS  |  Email |Print

According to the trading volumes survey for 2015 published by the Futures Industry Association (FIA), the US Chicago Mercantile Exchange (CME) is still in first place among 78 exchanges of derivatives instruments in the world, reporting trading volume growth to 3.5 billion contracts (+2.6%) year-over-year (YoY).
The official press release published by the Dalian Commodity Exchange (DCE) states that all of the three commodity futures exchanges in Mainland China ranked within the top 10 entities in terms of number of contracts. DCE’s trading volumes in 2015 totaled 1.116 billion contracts which allowed its jump in the rankings to 8th position (from 10th in 2014)………………………………………..Full Article: Source

Riding out the commodities storm

Posted on 30 March 2016 by VRS  |  Email |Print

The era of oil shocks is far from over. In the past two years, oil prices have been in a free-fall, tumbling from US$100 (RM401.5) a barrel to around US$30. Frighteningly, nobody knows for sure where the bottom is. The International Energy Agency optimistically predicts a rebound to US$80 a barrel in 2020.
Calculation by the Federal Reserve Bank at St Louis proposes oil prices could drop all the way to zero by mid-2019. This by no means suggests that oil will be offered for free. The conclusion is based on a model that combines inflation expectations with oil prices. What the study does point to is the contradiction of economic data and the roller-coaster nature of the oil market………………………………………..Full Article: Source

Why Commodities Are The Trade Of The Year

Posted on 29 March 2016 by VRS  |  Email |Print

We talked last week about the weakness in the Chinese economy, which has been compounded by the weak-yen policies in Japan (which threatens China’s king-of-exports throne). And we know, based on history, Chinese policymakers won’t sit back and let weak global demand and a currency war from Japan undo the path of their economy.
They’ve already reversed course on their currency policy of the past decade, as they’ve begun taking back some of the appreciation of the yuan of the past 10 years. And they’ve already responded with more rate cuts and bank stimulus. But with growth running at recession-like levels in China (even at 6%), expect them to do more, maybe a lot more………………………………………..Full Article: Source

China and India Rewrite the Rules of the Oil and Gas Game

Posted on 29 March 2016 by VRS  |  Email |Print

As the current oil price crisis leads to some game-changing upheavals in the global energy market, Asia’s two powerhouses, China and India, are taking advantage of the supply glut to rewrite the long-established rules of business.
India and China have seen exponential growth in oil demand over the past 25 years. Combined, they consume 16 percent of the world’s oil—second only to the U.S. at 20 percent. And analysts expect that by 2040, these two growing economies will double their combined consumption to 30 percent. These are game-changing numbers that have all major producers seeking inroads to this territory………………………………………..Full Article: Source

Commodities rebound outruns fundamentals

Posted on 24 March 2016 by VRS  |  Email |Print

Commodities have always been cyclical, but already this year we have seen two distinct mini-cycles — down in January, recovering in February and March. Of course, fundamentals do not change that quickly, but sentiment certainly can. In particular, Chinese sentiment has turned around sharply — from the lowest point in the history of Macquarie’s China steel and copper surveys in January into positive territory.
So how should we view what has happened recently? Have fundamentals improved? Yes, from an extremely low base in December and January there has undoubtedly been a demand recovery………………………………………..Full Article: Source

Chinese commodity imports are rising but they don’t signal a quick turnaround

Posted on 24 March 2016 by VRS  |  Email |Print

The improved sentiment surrounding the outlook for China’s demand for natural resources is being reflected by rising imports for some major commodities, but as usual it pays to be wary when interpreting the numbers.
Customs data released this week shows strong import growth in the first two months of the year in copper and crude oil, a more modest expansion in iron ore and a surge in imports of alumina and bauxite, the main raw materials used to make aluminium………………………………………..Full Article: Source

Rally to gather pace for industrial commodities

Posted on 24 March 2016 by VRS  |  Email |Print

Will the recovery in industrial commodity prices be sustained, asks Julian Jessop, chief global economist at Capital Economics.
The London-based research boutique, which for several months has been bullish on the sector, thinks that though “the foundations of the recovery still look a little shaky and some temporary pullbacks may be inevitable . . . the conditions for additional gains over the remainder of this year and next are gradually falling into place”………………………………………..Full Article: Source

Iraq oil exports, OPEC’s fastest growing in 2015, hold steady in March

Posted on 24 March 2016 by VRS  |  Email |Print

Iraq’s oil exports have held steady so far in March, according to loading data and industry sources, halting for now the rapid supply growth that has increased downward pressure on prices. Baghdad has given verbal support to an initiative by the Organization of the Petroleum Exporting Countries and outside producers to freeze output in an effort to boost prices.
Producers are due to meet on April 17 to discuss the plan. The lack of export growth is partly involuntary as it reflects disruptions on Iraq’s northern pipeline, offsetting near-record southern exports. Still, coupled with outages in other producers, it has supported a price rise this year………………………………………..Full Article: Source

Asian exchanges still lag in gold; Shanghai out to change that

Posted on 22 March 2016 by VRS  |  Email |Print

Asian exchanges, relative newcomers to the gold-trading market, are finding themselves far overshadowed by their powerful and well-established counterparts in London and New York. That said, the gold trade is still brisk in Tokyo, and Shanghai has cooked up plans to rival London as a price-setting giant.
The trading volume for gold is exactly zero at the Singapore Exchange. The exchange entered the gold futures market in autumn 2014 in the hope of tapping growing demand in Asia. But even at the time of the launch, trading was thin. Today, it is nonexistent………………………………………..Full Article: Source

Are all commodities heading higher?

Posted on 21 March 2016 by VRS  |  Email |Print

A massive run-up in several groups of raw materials has traders, speculators, and the producers of commodities wondering if our U.S. economy has finally turned the corner. Instead of focusing on fears of deflation, the focus has shifted to the opposite investment debacle – how to adjust and invest as prices rise.
The value of gold, the world’s benchmark for inflation, is up a whopping $200 per ounce since mid-December with the rise in silver and copper not far behind. Crude oil, the foundation of most of the Western world’s economies, bottomed around $26 per barrel in January and exploded over 50 percent in value as of Friday at $40………………………………………..Full Article: Source

Kenya moves away from commodities

Posted on 21 March 2016 by VRS  |  Email |Print

Africa is the most commodity-dependent continent on earth, but in the East African Community, Kenya is the least dependent. Africa’s economies increasingly need to create a hospitable environment for companies in the manufacturing and services sectors, Michael Armstrong, the Regional Director, Institute of Chartered Accountants in England and Wales (ICAEW) for Middle East, Africa and South Asia said last week.
He said this will drive growth, as the old models of growth driven by exports of raw materials are out-dated. Within the East Africa Region, Kenya’s economy should expand by around 6% during the 2017 to 2020 period thanks to its relatively diversified economy and comparatively low commodity dependence bonding well with the country’s economic growth outlook………………………………………..Full Article: Source

Commodities rally, dollar dives

Posted on 18 March 2016 by VRS  |  Email |Print

Wall St moved higher on Thursday, pushing the Dow Jones industrial average into positive territory for the year, as commodity prices rose on the back of a weaker U.S. dollar to boost shares in the energy and materials sectors.
The Dow’s move into positive territory came a day after the U.S. Federal Reserve took a dovish stance that weighed on the dollar. “It was a weak dollar rally,” said John Augustine, chief investment officer at Huntington National Bank. “It took up groups associated with a weaker dollar.”……………………………………….Full Article: Source

Currency Traders Baffle Norway’s Top Central Banker and Others

Posted on 18 March 2016 by VRS  |  Email |Print

The only central bank in Europe to cut rates on Thursday was met by a sudden currency appreciation that left economists and policy makers scratching their heads.
Here’s what happened: Norges Bank delivered a quarter-point rate cut to 0.5 percent, in line with almost all analyst estimates. It signaled readiness to deliver further easing, adding that negative rates were not to be ruled out. It even cut its economic outlook. Currency traders responded by sending the krone up more than 1 percent against the euro, only to think better of the move a few hours later, when they sent the krone lower……………………………………….Full Article: Source

Australia: Commodities boom to bust: are we there yet?

Posted on 17 March 2016 by VRS  |  Email |Print

The end could be in sight for the crash in commodities, but there is still the potential for downside to mining capital expenditure (capex) and more jobs losses to come. Up to 40,000 jobs might still go in the shakeout that has been a drag on incomes, spending and employment for several years, said Commonwealth Bank (CBA) chief economist Michael Blythe in a note.
The boom-bust commodity story is central to understanding the Australian economy over the past decade, the “boom” ending with commodity prices at record highs in 2011 and mining capex at 150-year highs in 2012………………………………………..Full Article: Source

Getting past the all-or-nothing mentality in gold trading

Posted on 17 March 2016 by VRS  |  Email |Print

Panicking over volatile equity markets, investors have poured roughly $7.5 billion into precious metals exchange-traded funds (ETFs) year-to-date, mostly chasing the gold trade. The SPDR Gold Shares (GLD) ETF is up more than 16 percent and has taken in 77 percent of the money, or $5.6 billion. The iShares Gold Trust (IAU) ETF has seen inflows of $1.5 billion, according to XTF.com.
After such a long downturn in gold, the rebound has been remarkable, said Matt Hougan, chief executive officer of Inside ETFs. “For the sector to turn around in such a short period of time and lead all ETFs, it’s pretty incredible,” he said………………………………………..Full Article: Source

Global oil demand growth for 2016 remains unchanged at around 1.25 mb/d to average 94.23 mb/d-OPEC

Posted on 16 March 2016 by VRS  |  Email |Print

The OPEC Reference Basket recovered in February for the first time in three months, gaining 8.4% or $2.22 to reach $28.72/b. Crude oil futures were mixed, with ICE Brent ending up $1.60 to reach $33.53/b, while Nymex WTI fell by $1.16 to stand at $30.62/b. The Brent-WTI spread halted its narrowing trend, widening by $2.76 to $2.91/b.
World oil demand growth for 2015 stands at 1.54 mb/d to average 92.98 mb/d, in line with the previous report. Global oil demand growth for 2016 also remains unchanged at around 1.25 mb/d to average 94.23 mb/d according to the OPEC Monthly Oil Market Report………………………………………..Full Article: Source

Commodities retreat weighs on miners

Posted on 16 March 2016 by VRS  |  Email |Print

Iron ore and industrial metals fell on Tuesday, weighing heavily on debt-laden mining stocks, as analysts said the recent recovery in prices could not be sustained without a pick-up in Chinese demand.
Commodities have rallied sharply since the middle of January when concerns about growth in China, the world’s biggest consumer of raw materials, reached near panic levels. Iron ore, the key ingredient in steelmaking, has risen 31 per cent, while copper has gained 15 per cent and zinc 20 per cent………………………………………..Full Article: Source

Have Commodities Backed The Fed Into A Corner?

Posted on 15 March 2016 by VRS  |  Email |Print

We have recently witnessed some subtle changes in the prices of assets that most investors pay little attention to. Many people are not even aware of their significance in world markets. However, when trying to understand the path of the stock market and the relative strength of the global economy, raw material prices often provide amazing clues to those who watch and understand their role and importance.
When I first took a job in the commodities business, the attraction was the global nature of raw material trading. While friends and schoolmates went to law school or medical school, pursued professional endeavors or took jobs in other sectors of the financial markets, it was the commodities market that was a magnetic force for me………………………………………..Full Article: Source

Is Palladium starting to play catch-up?

Posted on 15 March 2016 by VRS  |  Email |Print

Palladium, the worst performing precious metal this year, has started to play catch-up to its peers. This after acting more as an industrial metal and following overall market trends instead of trends in precious metals.
The metal fell more than 17% to a five-year low of around $470/oz in early January, when data showed that Chinese car sales increased at the slowest pace in three years. The main use of palladium in China, the biggest consumer of the metal, is in the fabrication of autocatalytic converters which reduce harmful emissions………………………………………..Full Article: Source

Commodities Speculation Doesn’t Increase Food Prices

Posted on 11 March 2016 by VRS  |  Email |Print

A few years back it was all the rage to go around shouting that commodities speculation drove food prices higher. This betrayed a startling lack of understanding of how commodities markets actually work but it really was popular to say so. This led to proposals to limit the amount of speculation that could be done in things like wheat futures and so on.
Not a good idea and not likely to be a productive public policy simply because it wasn’t the speculation driving prices higher. We’ve now also got an interesting little data point with which to refute that original contention………………………………………..Full Article: Source

Iran plays hardball with European oil buyers, slowing exports

Posted on 11 March 2016 by VRS  |  Email |Print

Iran has managed to sell only modest volumes of oil to Europe since the lifting of sanctions seven weeks ago and several former buyers are staying away, citing legal complications and Tehran’s reluctance to sweeten terms to win back customers.
Tehran had been unable to sell crude to European firms since 2012 when the EU imposed sanctions over its nuclear programme, depriving it of a market that accounted for over a third of its exports and leaving it relying completely on Asian buyers………………………………………..Full Article: Source

Sell gold if it hits this level

Posted on 11 March 2016 by VRS  |  Email |Print

Gold has been a standout performer against all other asset classes this year. But despite economic and financial market uncertainties, we do not believe it is a one-way bet. The high gold price is unsustainable, in our view, unless the U.S. enters a recession or the U.S.Federal Reserve completely reverses course on monetary policy.
Investors should consider reducing their gold holdings if the price approaches $1,310 an ounce over the coming weeks and increasing them if prices fall back to $ 1,100 an ounce………………………………………..Full Article: Source

US doesn’t believe in new oil cartel, and here is why

Posted on 10 March 2016 by VRS  |  Email |Print

The US Department of Energy has made the most pessimistic world oil price forecasts for the next two years this week, although I would call them pragmatic. While the leading world oil producers are trying to agree on freezing of production to stabilize oil prices, and taking into account oil has recently reached almost $40 per barrel, the US Department of Energy’s Energy Information Administration (EIA) has published a report forecasting the Brent oil average price will hit $34 per barrel in 2016 and $40 only in 2017.
Moreover, these estimates are even lower than EIA’s previous forecasts by $3 and $10 per barrel, respectively………………………………………..Full Article: Source

Opec targets $50 oil as Brent rally stalls at $40

Posted on 09 March 2016 by VRS  |  Email |Print

Brent oil halted gains above $40 a barrel as forecasts that US stockpiles would remain at the most since 1930 competed with speculation producers may agree to an output freeze. Futures in London lost as much as 1.4 per cent after closing above $40 for the first time since December on Monday, capping the longest run of gains in three months.
US supplies probably rose 3.5 million barrels last week, according to a Bloomberg News survey before government data Wednesday. Ecuador’s foreign ministry said Latin American producers will meet on Friday to discuss oil prices, while Russia said last week major suppliers may meet by April 1………………………………………..Full Article: Source

Time to Cash in Your Gold Trade? Sprott’s Rick Rule Comments

Posted on 08 March 2016 by VRS  |  Email |Print

Gold prices are still on the rise, up over 19% year to date, with some investors now questioning whether or not they have missed their chance to get in on the action. However, according to one veteran gold investor, the ‘real move’ in gold is yet to come.
‘If this rally falters a little bit, some people will say it’s over and miss the real move, which I believe is to come,’ Rick Rule, president & CEO of Sprott U.S. Holdings, told Kitco News at the Prospectors & Developers Association of Canada in Toronto on Sunday………………………………………..Full Article: Source

Iranian Oil Lands in Europe for First Time Since Sanctions Ended

Posted on 07 March 2016 by VRS  |  Email |Print

The Monte Toledo oil tanker covered the uneventful voyage from Iran to Europe with a haul of one million barrels of crude in just 17 days, but its journey has been four years in the making.
On Sunday, the tanker became the first to deliver Iranian crude into Europe since mid-2012, when Brussels imposed an oil embargo in an attempt to force the Middle Eastern nation to negotiate the end of its nuclear program. The ban was lifted in January as part of a broader deal that ended a decade of sanctions………………………………………..Full Article: Source

Canadian Premiers Agree on `Urgency’ of Commodity Transportation

Posted on 04 March 2016 by VRS  |  Email |Print

Canadian provinces and the federal government agreed to pave the way for accelerating transportation infrastructure to move commodities such as oil and natural gas to new markets.
The leaders said Canadian commodities need to reach markets in “responsible” and “sustainable” ways after “science-based environmental assessments,” while emphasizing the urgent need for infrastructure development, according to a statement released by Prime Minister Justin Trudeau and provincial leaders Thursday in Vancouver………………………………………..Full Article: Source

If oil doesn’t do this, then watch for a steep fall

Posted on 04 March 2016 by VRS  |  Email |Print

There’s a distinct whiff of optimism in the air where crude prices are concerned — something that has trickled down to stocks. There was good and bad news in Wednesday’s U.S. crude production data.
First the good: Oil production fell for a sixth straight week, and is now at the lowest since Nov. 2014, notes Commerzbank. But the bad: Inventories rose 10.4 million barrels, to a new record high. “The fact that the market is taking such longer-term aspects into account rather than looking solely at near-term inventory trends suggests that sentiment is shifting on the oil market,” says Commerzbank………………………………………..Full Article: Source

Buoyant zinc rallies 25% after falling in January

Posted on 04 March 2016 by VRS  |  Email |Print

Zinc has risen more than 14 per cent since the start of the year, making it the third best-performing major commodity behind iron ore and gold. Since falling to a seven-year low of $1,460 a tonne in mid-January, the metal has rallied by 25 per cent.
Glencore, the world’s biggest metal trader, said this week that its order book was strong and it had not seen any signs of “weakness”. “What we’ve also seen is the shortage of zinc concentrates in the world,” said chief executive Ivan Glasenberg after Glencore reported annual results on Tuesday………………………………………..Full Article: Source

China’s Commodities Trade Thrives as Uncertainty Spurs Wagers

Posted on 03 March 2016 by VRS  |  Email |Print

Economic uncertainty is a boon for China’s commodities trade, lifting volumes and expanding the nation’s sway over global markets for raw materials even as its own demand slows, according to two veteran metals brokers who share more than 50 years experience in the industry.
“Volatility is going to remain in the market this year and that is going to increase turnover,” said John Browning, managing partner at BANDS Financial Ltd., the brokerage he founded with Chinese business partner Tiger Shi last year………………………………………..Full Article: Source

US recovery involves short-term pain and long-term gain for commodities

Posted on 01 March 2016 by VRS  |  Email |Print

The US economic recovery placed pressure on metals prices as investors continued to unwind commodities-based positions taken during the resource supercycle, according to Export Development Canada VP and chief economist Peter Hall.
It had not been an orderly event, particularly for commodities-focussed nations that experienced pain on the lower prices caused, he told an audience at a recent meeting of the Canadian Institute of Mining’s Management and Economic Society in Toronto………………………………………..Full Article: Source

Here’s how to play gold: Technician

Posted on 29 February 2016 by VRS  |  Email |Print

Maybe the goldbugs will finally strike gold. After enduring years and years of losses, bullion is tracking for its best month since January 2012, up 9 percent. And according to a highly regarded technician, the hot commodity is about to get even hotter.
“I think we can squeeze a little bit more out of this trade” said Ari Wald of Oppenheimer on CNBC’s Fast Money last week. According to Wald’s chart work, the recent price action in gold is strikingly similar to the activity in 1999 when the commodity reversed a multi-year downtrend and started to form a base………………………………………..Full Article: Source

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