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Commodities Briefing - Category | Trading more

Curtain to Fall on London’s Historic Silver Benchmark

Posted on 15 May 2014 by VRS  |  Email |Print

After 117 years, London’s silver fix will be set for the last time on Aug. 14. The demise of the fix, which is being scrutinized by regulators as part of a broader probe of financial benchmarks, leaves jewelers, miners and investors in need of a new way to price the metal for the first time since 1897.
“We will need to find a substitute,” said Lenic Rodriguez, chief executive of Canadian silver miner Aurcana Corp.”The silver price is very speculative and volatile so for accounting and planning purposes, the benchmark is good.”……………………………………….Full Article: Source

El Nino a looming wild card for commodities

Posted on 14 May 2014 by VRS  |  Email |Print

Commodity traders are placing their bets on El Nino. The periodic weather phenomenon leads to torrential rain in South America and droughts in Asia and Africa, and may provide a needed boost for commodities after last year’s slump in prices.
Weather forecasters around the world are predicting that a shift in climate patterns could occur this summer, with some warning of the strongest El Nino in more than a decade………………………………………..Full Article: Source

China’s slack April commodities output foreshadows weak import demand

Posted on 14 May 2014 by VRS  |  Email |Print

China’s crude oil runs, oil demand and total base metals production unexpectedly fell in April from the preceding month, with slackening power generation also fanning concerns that the world’s second-largest economy is not yet on a stable footing.
Although record-high daily crude steel output was a bright spark in April’s output figures, slowing real estate investments and falling property sales are set to drag on the steel sector in the coming months, analysts said………………………………………..Full Article: Source

Impact of Algo trading on commodity exchanges

Posted on 14 May 2014 by VRS  |  Email |Print

High Frequency Trading (HFT), through systematic computer based algorithms by gauging market movements and eventually acting upon pre-defined protocols, has become a popular mode commodity derivatives trading.
Such techniques initially introduced in fixed income, currency, and equity markets are now increasingly being applied to trading in bullion, energy, and the agricultural commodities. HFT has contributed to a surge in the number of trades in NYMEX crude from under 1 million in 2005 to almost 42 million in 2011, and in CBOT corn from 133,000 to 10.7 million………………………………………..Full Article: Source

China Extends Commodity Buying Tear

Posted on 09 May 2014 by VRS  |  Email |Print

China extended its buying spree for major industrial commodities in April, signaling that its decelerating economy still needs huge amounts of inputs to fuel growth.
China is the largest buyer of many commodities, from nickel to iron ore, and its slowing economic growth has pushed global prices down. But China’s economy is still growing fast – around 7.5% annually – and it appears that Chinese buyers have been bargain hunting for commodities and energy………………………………………..Full Article: Source

The importance of storage rates in commodity trade

Posted on 08 May 2014 by VRS  |  Email |Print

Commodity futures market convergence is the process where prices in the spot and futures markets come together or converge at futures market expiration. Convergence occurs at the expiry date of every futures contract because of arbitrage. If spot prices remain below futures prices, a market participant could buy in the spot market and sell in the futures market and make a risk-free profit.
Similarly, if the spot price is above the futures price, a market participant can buy in the futures market, take delivery and sell in the spot market and earn a risk free-profit………………………………………..Full Article: Source

Iran’s oil exports fall in April, closer to Western limits

Posted on 02 May 2014 by VRS  |  Email |Print

Iran’s oil exports fell in April for a second month, according to sources who track tanker movements, moving closer to levels allowed by November’s interim deal on curbing Tehran’s nuclear programme.
The decline may reflect seasonally lower crude oil demand and U.S. pressure on some customers take less. Signs of higher Iranian sales since late 2013 have led to concern in Washington that a softening of sanctions has given Tehran’s economy a boost………………………………………..Full Article: Source

India: MoF proposes single clearing platform for commodity exchange trades

Posted on 02 May 2014 by VRS  |  Email |Print

The ministry of finance is working out a roadmap to substantially bring down the transaction cost of trading on the commodity exchanges . According to official sources, in line with the banking system, there is need for common clearing system of the commodity trades. This commonality of clearing of transactions will require a common platform where multiple trades across exchanges can be settled.
In the process, the traders can cut down the transaction cost by becoming the member of a single platform for clearing of trades. At present, a trader will have to pay fees for becoming a member of separate clearing platform floated by different commodity exchanges. This entails heavy cost, multiplicity of trades, cross margining etc………………………………………..Full Article: Source

Some banks haven’t given up on trading commodities. And that’s a good thing.

Posted on 30 April 2014 by VRS  |  Email |Print

As expected, the recent by some of the largest energy trading banks has created a temporary dearth of capability, and sometimes liquidity, in the international commodity markets. Born a child of the Financial Crisis and the BP Deepwater Horizon oil spill, and later ensconced into law through Dodd-Frank, the Volker Rule and other international regulations, the anti-bank sentiment amongst policymakers has driven many of the largest players into various stages of transition toward smaller footprints.
The likes of JP Morgan, Morgan Stanley, Barclays, Deutsche Bank and Bank America – to name a few – are staring at the exit signs for some or all of their business. This is not good………………………………………..Full Article: Source

Financial intermediation and shadow banking through commodities

Posted on 29 April 2014 by VRS  |  Email |Print

Commodity trading firms are not systemically risky because they do not engage in the sort of maturity transformation that banks do. They also tend mostly to operate on a hedged basis, via “basis trade” exposure.
Short-term assets meanwhile are funded with short-term debt while long-term assets are funded with long-term debt, meaning the institutions are not heavily leveraged at all, though balance sheets are exposed to liquidity or rollover risk………………………………………..Full Article: Source

China gold imports drop as local discount curbs shipments

Posted on 29 April 2014 by VRS  |  Email |Print

China’s gold imports from Hong Kong dropped in March as local prices fell below the international benchmark in London for the first time in more than a year.
Net imports totaled 80.6 metric tons last month, compared with 111.4 tons in February and a record 130 tons a year earlier, according to calculations by Bloomberg News based on data from the Hong Kong Census and Statistics Department……………………………………….Full Article: Source

Trafigura says commodity traders don’t pose same risk as banks

Posted on 28 April 2014 by VRS  |  Email |Print

Commodity trading firms probably don’t pose systemic risks to the global economy as the companies draw increased scrutiny and banks step back from raw materials, Trafigura Beheer BV said in a report.
Trading houses, such as Amsterdam-based Trafigura, are smaller than banks and have less debt, according to the study, written by Craig Pirrong, a finance professor at the University of Houston. The firms use financial derivatives mostly to hedge their physical activities, rather than to speculate on price swings, Pirrong said in the report……………………………………….Full Article: Source

U.S. prosecutors cross Atlantic to question UK currency trades

Posted on 28 April 2014 by VRS  |  Email |Print

Criminal prosecutors from the U.S. Department of Justice have gone to London to interview individuals in connection with an investigation into traders’ alleged rigging of foreign exchange rates, a person familiar with the matter said.
The DOJ has conducted joint interviews of UK-based currency traders with the United Kingdom’s Financial Conduct Authority in London, the person said………………………………………..Full Article: Source

Banks and commodity trading: Sell signals

Posted on 25 April 2014 by VRS  |  Email |Print

Thin margins, tough regulations and worries about reputation make trading commodities look like a source of worries not profits for nervous bank bosses. Barclays, one of the biggest in the business, is the latest to head for the exit. This week it announced it would give up most of its metal, crop and energy trading.
Barclays is following JPMorgan Chase, which last month sold its physical commodities division to Mercuria, a private trading firm based in Switzerland, and South Africa’s Standard Bank, which sold its commodities unit in London to Industrial and Commercial Bank of China in January………………………………………..Full Article: Source

Iran’s crude oil, gas condensate exports hit $41.6bln: oil minister

Posted on 24 April 2014 by VRS  |  Email |Print

Iran exported $41.6 billion worth of crude oil and gas condensate in the past Iranian calendar year, which ended on March 20, Oil Minister Bijan Namdar Zanganeh said on Wednesday. Iran’s crude oil was sold at $104 per barrel on the average in the international market, the Mehr News Agency reported.
On March 12, Zanganeh said Iran’s crude oil output is forecast to increase by about 200,000 barrels per day to 4 million barrels per day, and its daily natural gas output is forecast to increase by about 100 million cubic meters per day to 400 million cubic meters per day in the current Iranian calendar year 1393, which began on March 21………………………………………..Full Article: Source

Netherlands may become natural gas importer by 2025, IEA says

Posted on 23 April 2014 by VRS  |  Email |Print

The Netherlands, Europe’s second-largest gas exporter, may become an importer by 2025 as output falls from its Groningen province and progress in unconventional sources stalls, the International Energy Agency said.
“It is time to re-assess its energy security and to look at different cost-effective pathways to guide the transition,” Maria van der Hoeven, executive director of the Paris-based adviser to 28 nations, said in the agency’s review of Dutch energy policy………………………………………..Full Article: Source

India more than doubles Iran oil imports

Posted on 23 April 2014 by VRS  |  Email |Print

India more than doubled its crude oil imports from Iran last month from a year ago as sanctions have eased on Tehran, official data show. The figures released on Tuesday indicated that India imported 387,000 barrels per day (bpd) of oil from Iran in March.
The statistics also showed that crude shipments from Iran in the first quarter of 2014 rose about 43 percent from the same period last year. India imported around 358,000 bpd of Iranian crude in the first quarter of this year………………………………………..Full Article: Source

Malaysia seeks to attract Western commodity traders as new hub

Posted on 17 April 2014 by VRS  |  Email |Print

A number of Western commodity companies are setting up new trading desks in Malaysia as the southeast Asian country introduces incentives in a bid to attract business away from the main regional trading hub Singapore.
Commodity houses Mercuria and Cargill have already set small desks in Kuala Lumpur, two sources said, and others are also studying the possibility………………………………………..Full Article: Source

FMC mulls centre-specific commodity forward trades

Posted on 17 April 2014 by VRS  |  Email |Print

The Forward Markets Commission (FMC) is considering permitting bourses to offer centre-specific, short-term forward trades in highly traded farm products as the regulator aims to increase delivery in the Rs 101- lakh crore commodity futures market, which is dominated by speculation and hedging.
Termed a “game changer” by Ramesh Abhishek, chairman, FMC, these contracts will allow traders to buy commodities like chana, rapeseed mustard, castorseed, etc, on commodity exchanges,where currently they can’t do so. This, Abhishek feels, could increase delivery by physical market traders on the six national bourses, which posted volumes ofRs 101-lakh crore in the fiscal year through March………………………………………..Full Article: Source

Banks tussle to join next generation of commodity dealers

Posted on 16 April 2014 by VRS  |  Email |Print

Facing low volatility, a lack of trading opportunities and compliance headaches, major global investment banks are pulling back from commodities. But at the same time, a number of smaller and regional players are actively seeking to increase their involvement.
A sinking feeling has pervaded Wall Street recently. During the past few years, commodity revenues have been falling at major global investment banks. Industry titans such as Deutsche Bank, JP Morgan and Morgan Stanley have decided to quit large parts of the commodities market, or leave it altogether………………………………………..Full Article: Source

Iran’s oil exports continue to surge despite sanctions cap: IEA report

Posted on 16 April 2014 by VRS  |  Email |Print

Irans global crude oil exports have far-exceeded the one-million barrel-per-day cap set by the West. The Israeli paper referred to a recent IEA report as saying that Irans global oil exports in February made the highest record since June 2012.
The IEA’s monthly report revised February’s global crude imports from Iran upwards by 240,000 barrels per day to 1.65 million barrels per day, the highest since June 2012………………………………………..Full Article: Source

EU promises ’strictest’ curbs on high-frequency trading

Posted on 15 April 2014 by VRS  |  Email |Print

Michel Barnier says new rules will stop market abuse through high-speed trading. The EU’s financial chief has promised some of the toughest curbs on controversial use of high-frequency trading highlighted by author Michael Lewis in Flash Boys.
The restrictions are part of EU market reforms that will be voted on by the European Parliament on Tuesday. Michel Barnier, the EU financial services commissioner, said on Monday: “With these rules the EU is putting in place one of the strictest set of regulations for high-frequency trading (HFT) in the world………………………………………..Full Article: Source

Global commodity traders get deal fever

Posted on 14 April 2014 by VRS  |  Email |Print

Big changes are under way among global energy and food commodity traders, with a flurry of first-quarter acquisitions and leadership moves that cover Asian, European and North American companies.
Last month, Swiss firm Mercuria Energy stepped closer to joining Vitol, GlencoreXstrata and Trafigura at the top of the independent energy and metals trading hierarchy, following its $US3.5 billion purchase of US investment bank JP Morgan’s physical commodity operation………………………………………..Full Article: Source

India: Commodity trading hours set to get a ‘break’

Posted on 14 April 2014 by VRS  |  Email |Print

Commodity derivative trading hours, on platforms such as MCX and NCDEX, may soon go in for a break. “We are planning to allow an hour or half-an-hour break for commodity trading as the trading hours are long,” Ramesh Abhishek, Chairman, Forward Markets Commission (FMC), told Business Line. FMC regulates futures trading in commodities.
Currently, commodity trading on various exchanges can be done between 10 a.m. and 11.30 p.m. However, for stock spot and futures trading, the timing is 9.15 a.m. to 3.30 p.m. with 15 minutes extra time before the start of trade for the pre-trading session………………………………………..Full Article: Source

China March commodity imports resilient despite slowing economy

Posted on 11 April 2014 by VRS  |  Email |Print

China’s imports of iron ore and copper soared in March from the previous month in anticipation of higher seasonal demand in the world’s top metals consumer, though crude oil shipments dropped after three months of high inbound volumes.
The double-digit monthly gains in iron ore and copper shipments came even as China posted weak trade data, raising doubts whether the high commodity import levels are sustainable and reinforcing forecasts that the world’s second-largest economy has slowed notably at the start of 2014………………………………………..Full Article: Source

Non-ferrous metal trade could suffer from US, EU sanctions on Russia

Posted on 11 April 2014 by VRS  |  Email |Print

The effects of any US and European Union (EU) sanctions on the non-ferrous metals trade with Russia could be significant, based on the volumes of metals traded.
The EU and the US agreed to work on the imposition of sanctions against Russia on Wednesday March 26. A four-party meeting involving the EU, US, Ukraine and Russia is to be staged next week to discuss the crisis………………………………………..Full Article: Source

IMF advises Ghana to diversify export commodities

Posted on 11 April 2014 by VRS  |  Email |Print

Division Chief of Research at the International Monetary Fund (IMF), Thomas Helbling, has asked managers of Ghana’s economy to diversify the country’s exports to minimize shocks that come with declining prices of gold and cocoa.
Ghana has lost about $1.5 billion over the last few years because of declining prices of gold and cocoa on the international market. According to the Bank of Ghana, earnings from gold exports dropped to $5 billion from 5.6 billion dollars for last year, while cocoa also declined to $1.6 billion from $2.2 billion in 2012………………………………………..Full Article: Source

Energy firms to Fed: Hands off banks’ commodity trading

Posted on 10 April 2014 by VRS  |  Email |Print

Energy companies are mounting a last-ditch effort to prevent the Federal Reserve from cracking down on physical commodity trading by major Wall Street banks, saying more restriction may further damage liquidity and raise hedging costs.
In a handful of early submissions on potential new rules, industry groups and big corporations like UPS and refiner Alon USA Energy Inc urged the Fed not to push banks out of physical markets. They warned that the unregulated commodity trading houses who are now expanding in the space may pose credit and counterparty risks that financial firms do not………………………………………..Full Article: Source

Precious metals trade: Dubai widens its role

Posted on 09 April 2014 by VRS  |  Email |Print

Dubai’s gold trade volumes should continue to grow so long as the emerging middle classes in Asia continue to grow and prosper, forecasts John Hathaway, US-based analyst and portfolio manager for Tocqueville Asset Management.
“Dubai is a distribution point to all parts of Asia and that level of flow is dependent on the prosperity of the emerging middle classes in various Asian economies. So, as long as that continues I can’t see anything stopping that flow,” added Hathaway………………………………………..Full Article: Source

India: Commodities futures trade volumes fall for second year

Posted on 09 April 2014 by VRS  |  Email |Print

Commodity futures trading volumes in India fell 40.49 percent in the year to March 2014, its second straight year of decline, the market regulator said on Tuesday.
In value terms, futures trading at commodity exchanges fell to 101.44 trillion rupees in the first twelve months from April 2013 from 170.46 trillion rupees a year ago, the Forward Markets Commission said in a statement on its website………………………………………..Full Article: Source

Iran ‘won’t wait for America’s permission’ to hike oil exports: minister

Posted on 08 April 2014 by VRS  |  Email |Print

Iran will continue its efforts to boost crude production and exports regardless of Washington’s opposition to increased international sales of Iranian oil, oil minister Bijan Zanganeh said Monday.
“Iran will use every possibility to increase the amount of oil exports and will not wait for America’s permission,” Zanganeh was quoted as saying by oil ministry news service Shana. “The sanctions do not ban Iran from increasing oil production and we have a big plan for increasing Iran’s oil production.”……………………………………….Full Article: Source

India’s gold imports rise in March

Posted on 08 April 2014 by VRS  |  Email |Print

Offering a space of breath to the Indian jewelers, the latest report revealed that the gold import in India surged nearly 50 tones in March, amid the RBI’s import restrictions. Since the RBI’s infliction of Gold import norms last year, gold import in the country was found to fade by volume, thereby creating drastic supply crunch for jewelries across the country.
The gold imported through illegal means have also increased due to the tightening of rules and enforcement of 10 % import duty because of which gold smugglers started experimenting on bizarre methods to sneak gold to India………………………………………..Full Article: Source

Dubai leading global hub for bullion trade with $75bln in 2013

Posted on 08 April 2014 by VRS  |  Email |Print

Dubai’s position as leading global bullion centre confirmed with almost 40% share of global gold trade volumes; a trade volume increase of 73% in comparison with 2012. Ahmed Bin Sulayem, Executive Chairman, DMCC, said: Dubai has quickly emerged as the leading global hub for the precious metals trade.
As a result of DMCC’s continuous efforts to realise the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai, the Emirate has risen as the destination for global precious metals trading. In 2013 almost 40 per cent of the world’s physical gold trade came through Dubai and the value of total gold traded through Dubai grew to US $75 billion, compared to US $6 billion in 2003………………………………………..Full Article: Source

Traders turn optimistic on commodities

Posted on 04 April 2014 by VRS  |  Email |Print

Commodity trading executives tend to speak bluntly. This week has been no exception. The oil sector is “stuck in a rut”, metal producers must get their “shops in order” and the agriculture industry is “on a knife edge”.
Those are some of the messages at the FT Commodities Global Summit in Lausanne. That may not sound especially positive, at least for trading houses, which can thrive on volatility. But, after a tough 2013, when prices of major commodities fell amid concerns about global financial health, the mood among delegates about the world economy was cautiously optimistic………………………………Full Article: Source

US futures regulator to examine high-frequency traders

Posted on 04 April 2014 by VRS  |  Email |Print

The U.S. Commodity Futures Trading Commission is investigating high-frequency traders to see if they were breaching the derivatives regulator’s rules, its chief said Thursday.
“Staff (is) responding to concerns brought to us about certain practices, whether it be spoofing just to give one example, whether that’s running afoul of our rule,” Acting Chairman Mark Wetjen told reporters during a meeting. “And then whether or not it meets the definition of manipulative activity under our statute,” he said………………………………Full Article: Source

Gold premiums seen falling further on any ease in trade curbs

Posted on 04 April 2014 by VRS  |  Email |Print

Gold premiums in India are expected to fall from current levels of about $30 an ounce after the Reserve Bank of India (RBI) indicated it is considering removing some of the curbs to trade that have crippled imports.
India, the second biggest consumer of gold after China, last year imposed a record 10 percent import duty on the metal and said a fifth of all shipments should be re-exported as finished product to help narrow its current account deficit (CAD)………………………………Full Article: Source

Japan traders seen returning $3 bln on commodities fall

Posted on 02 April 2014 by VRS  |  Email |Print

The commodities boom is over and you can have some money back. For investors in Japan’s biggest trading houses, Mitsubishi Corp. and Mitsui & Co., the payoff in dividends and stock buybacks could be as much as 300 billion yen ($3 billion) in the financial year beginning today, according to analysts who follow them.
As the China-led, decade-long rally in commodity prices fades, the traders have been left with excess cash and the need to boost their attractiveness to investors………………………….Full Article: Source

Commodity traders: Is there still value?

Posted on 28 March 2014 by VRS  |  Email |Print

During boom times when commodity prices were high compared to mining costs, producers had no qualms about giving up some margin for the use of third party traders to act as middle men in brokering the deals between producer and end-user.
Since the 2008 global financial crisis, companies having become more discerning over their cost base, questioned the necessity of the trader. This question has become more imperative as falling grades, increased labour, transport and utility costs and deeper mines threaten producers’ margins. The trend among producers is to go direct………………………………Full Article: Source

OPEC to cut exports on lower Asian demand, Oil Movements says

Posted on 28 March 2014 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will curtail exports through mid-April in response to lower seasonal demand from refiners in Asia, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will reduce shipments by 620,000 barrels a day, or 2.5 percent, to 23.78 million a day in the four weeks to April 12, the researcher said in an e-mailed note. The figures exclude two of OPEC’s 12 members, Angola and Ecuador………………………………Full Article: Source

Will the stagnant demand in commodities encourage hedging

Posted on 27 March 2014 by VRS  |  Email |Print

The commodity market, which had defied gravity during the last few years, is showing signs of slowing down. It is not a breather but a shift to a bear cycle. No doubt the “investors” have vanished and the herd mentality has gone out.
The standard explanation during the period of price surge was that the booming demand, particularly from China, was clashing with stagnant supply of energy, metals and agricultural produce. Talks of stagnant or falling demand are now in the favour…………………………………Full Article: Source

Spain’s oil deposits and fracking sites trigger energy gold rush

Posted on 27 March 2014 by VRS  |  Email |Print

Spain is already the world’s largest olive oil producer but now it’s looking to a very different kind of oil to pull it out of economic decline: petroleum. The discovery of two significant offshore deposits, and prospects for fracking in many areas, have triggered a black-gold rush, with demand for exploration permits up 35% since 2012.
A report published this week by Deloitte says the oil industry could create 250,000 jobs and constitute 4.3% of GDP by 2065. The report is based on an estimate of 2bn barrels of oil and 2.5bn cubic metres of gas…………………………………Full Article: Source

Are US weekly oil imports from OPEC nations finding support?

Posted on 27 March 2014 by VRS  |  Email |Print

Higher-grade crude yields larger volumes of premium products such as gasoline, but it doesn’t yield as many lower-value products due to chemical differences. In the past, refiners spent millions of dollars on equipment that would allow them to produce larger amounts of premium products from heavier and sourer crude.
As the economics maybe isn’t there to change existing capacity to accommodate lighter and sweeter crude, demand for crude from Kuwait, Colombia, Venezuela, and Saudi Arabia remains strong…………………………………Full Article: Source

U.S. shale oil could withstand big price correction: analyst

Posted on 26 March 2014 by VRS  |  Email |Print

U.S. oil production from shale formations such as the Bakken in North Dakota and Eagle Ford in Texas would remain economically viable even if world crude prices drop by as much as 30 per cent from today’s levels, a U.S. analyst says.
The industry that has revolutionized North American energy supply faces numerous risks, including the potential for weak markets, transport constraints and the inability of technology to keep up with demand, though none currently looks like it could force a halt in drilling for the light, tight oil, said Skip York, analyst at Wood Mackenzie, the international energy consultancy……………………………….Full Article: Source

Korea Exchange seeks cut of $3 bln illegal gold trade

Posted on 24 March 2014 by VRS  |  Email |Print

South Korea’s equity exchange will start offering physical gold trades for the first time today, as the government seeks to curb as much as $3 billion of black-market transactions.
Korea Exchange Inc., which has offered bullion futures since 1999, aims to gradually replace illegal sales that total as much as 70 metric tons annually and deprive the state of an estimated $280 million in taxes. Customs officers intercepted 360 kilograms last year as the number of busts more than doubled from 2012………………………………………..Full Article: Source

Carlyle’s commodity arm starts trading new gold and base metals fund

Posted on 21 March 2014 by VRS  |  Email |Print

Vermillion, the commodity arm of U.S. private equity group Carlyle Group LP, started trading a new gold and base metals fund this month as it seeks to rebuild market presence after losing more than half of its capital, people familiar with the matter said on Thursday.
In a regulatory filing dated Feb. 14, Vermillion’s chief operating officer, Christopher Zuech, said the Aeris Metals Fund had raised $122.5 million from 23 investors in total. The filing did not state the launch date………………………………………..Full Article: Source

Iran oil exports show steady increase as Asia buys more

Posted on 19 March 2014 by VRS  |  Email |Print

Iran exported more crude than allowed under Western sanctions for at least a fourth straight month in February, as ship loading data obtained by Reuters showed top clients again bought more than 1 million barrels per day (bpd) of Tehran’s oil.
The rise in sales to Iran’s main clients, mostly in Asia and including Turkey, comes after an agreement that eased some of the sanctions aimed at the OPEC member’s nuclear program. The November deal also freed up 4.2 billion US dollars in oil payments to Tehran, but it does not allow for shipments to increase………………………………………..Full Article: Source

OPEC to cut exports as refinery demand slows

Posted on 19 March 2014 by VRS  |  Email |Print

The Organisation of Petroleum Exporting Countries (OPEC) will cut crude exports this month to the lowest level since November as refinery demand slows in Europe and North America, according to tanker-tracker Oil Movements.
OPEC, responsible for 40 percent of global oil supplies, will decrease shipments by 1.1 million barrels per day (bpd), or 4.6 percent, to 23.6 million bpd in the four weeks to March 29, according to Oil Movements, reported Bloomberg………………………………………..Full Article: Source

Nickel moves over $16,000/mt on Indonesia raw material export ban

Posted on 19 March 2014 by VRS  |  Email |Print

Three-months nickel on LMEselect Tuesday breached $16,000/mt for the first time since April 2013 on the back of Indonesia’s decision to ban the export of raw materials, including nickel ore. The increase in nickel prices has seen the metal shift from the worst performing metal on the London Metal Exchange in 2013, to the best performing metal so far in 2014.
Three-months nickel on LMEselect has risen by around 22% this year, from a low of $13,334/mt in January to a year high of $16,230/mt in March. David Wilson, director of metals research and strategy at Citi Research, said technical issues are supporting nickel prices from a heightened interest in the metal due to the Indonesian ban on nickel ore exports………………………………………..Full Article: Source

Canada setting stage for oil exports beyond U.S.

Posted on 18 March 2014 by VRS  |  Email |Print

Canadian Natural Resources Minister Joe Oliver said his country is on the verge of becoming an energy superpower. While the United States mulls its options for energy hegemony, a recent free-trade deal with South Korea and pipeline developments suggest Canada may beat it to the punch.
The International Energy Agency said that, despite recent volatility, Asian economies are contributing to the bulk of macroeconomic growth. That, in turn, means global oil demand is expected to grow by 1.4 million barrels per day this year………………………………………..Full Article: Source

Will oil producers run into losses without crude exports?

Posted on 17 March 2014 by VRS  |  Email |Print

The chief operating officer at Continental Resources said that oil producers would be forced to cut back on production if the United States doesn’t allow for crude oil exports.
Is a problem of plenty brewing? Rick Bott — president and COO of Continental — said that crude oil prices will remain artificially depressed because domestically produced crude isn’t finding its way into the global markets. And this eventually lowers the incentive to keep up with production volumes. As evidence, he points out to the fact that the crude oil markets are heavily “backwardated.”……………………………………….Full Article: Source

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