Sat, Dec 20, 2014
A A A
Welcome preal121
RSS

Commodities Briefing - Archive | September, 2012

Commodity rally losing steam post QE3

Posted on 28 September 2012 by VRS  |  Email |Print

The rally in commodity prices seems to be losing steam after the announcement of a third round of quantitative easing (QE3) by the US Federal Reserve in the middle of this month. Prices were already up before the announcements and once the news was out, follow-up buying from real sectors didn’t happen due to growth concerns.
While smaller metals are still up, prices of copper, aluminium, crude oil and gold have plateaued or fallen after the announcement. Analysts say the growth issue is again at the fore, not leaving any strength for the sort of rally seen following earlier liquidity pumping by central banks in the past………………………………………..Full Article: Source

China’s economic slowdown to hit commodities exporters hard

Posted on 28 September 2012 by VRS  |  Email |Print

A new report released by the International Monetary Fund (IMF) indicates that commodities exporters and emerging economies will be hardest hit by slower growth in China and an attendant decline in commodities prices.
According to the report released in Washington on Thursday China’s internal investment has comprised around 50% of economic growth throughout the first decade of the new century, with infrastructure investment becoming especially prominent towards the end of the noughties following the introduction of stimulus programs to weather the global financial crisis………………………………………..Full Article: Source

Oil is not looking so hot

Posted on 28 September 2012 by VRS  |  Email |Print

I received another one of those scratchy cell phone calls from my friend in the West Texas oil patch. You could almost feel the dust coming through the ether. He said that while Ben Bernanke his committed to buying $40 billion a month of mortgage-backed securities as part of QE3, he has not promised to buy a single barrel of oil. This is bad for oil.
That means Texas Tea has to take the full brunt of collapsing demand caused by economies in free-fall like Europe, China, and Japan. There are no bailouts here. On top of that, Saudi Arabia wants to whip some discipline into its fellow OPEC members………………………………………..Full Article: Source

OPEC: Oil demand in ‘13 unchanged

Posted on 28 September 2012 by VRS  |  Email |Print

World oil demand has overcome earlier expectations of a declining momentum and moved to a more stabilized trend, supported by the summer driving season, the summer heat, and the continued shutdown of most of Japan’s nuclear capacity. As a result, the forecast for global oil demand growth in 2012 remains unchanged at 0.9 mb/d, the Organization of Petroleum Exporting Countries (OPEC) said Wednesday in its “Monthly Oil Market Report” for the month of August 2012.
There is considerable uncertainty surrounding the forecast for world oil demand growth in 2013, which remains unchanged at 0.8 mb/d. Nonetheless, risks are currently seen to be skewed to the downside………………………………………..Full Article: Source

Crude oil prices may decrease further: $108 in focus

Posted on 28 September 2012 by VRS  |  Email |Print

OPEC is currently pumping oil at record amount, while US oil production has hit highest level since 1997. On the demand side, we are seeing transport companies such as FedEX issuing slow down warnings. This slowing down of demand is in-line with the global concerns over Europe and China.
With supply going up and demand coming down, Crude bulls will be getting more worried each day even before US flood the supply from its Strategic Petroleum Reserve………………………………………..Full Article: Source

Gold could fall back to $800/oz in ten years: Ric Deverell, Credit Suisse

Posted on 28 September 2012 by VRS  |  Email |Print

I do not think that gold is actually a physical market at the moment. The main driver for gold at the moment is financial demand and that is that a lot of people are very concerned about the global financial system, a lot of people are very concerned about fiat currencies.
Gold prices are very very substantially above the long run average and my guess is that if you are looking five and certainly ten years out, they will move back towards that average. So whereas at the moment we have got gold prices sort of $1750, my guess is that in 10 years’ time, it will be more like $800………………………………………..Full Article: Source

South Africa unrest to affect gold bullion supply and support gold price

Posted on 28 September 2012 by VRS  |  Email |Print

Gold will continue to be supported by the ‘US Fiscal Cliff’ which is the US government deadline to agree on a plan to decrease the federal budget or trigger $600 billion in spending cuts, which will create austerity for the people and a huge knock to an already unstable US economy.
In South Africa, gold mine strikes ceased nearly 39% of production, at AngloGold Ashanti Ltd. (ANG) and Gold Fields Ltd. (GFI), as labour walkouts spread across the country amid demands for above-inflation pay increases………………………………………..Full Article: Source

Intermarket explanation for coming gold bubble

Posted on 28 September 2012 by VRS  |  Email |Print

As we travel to Toronto for the Cambridge House conference, we thought we’d share a few points from our upcoming presentation titled “The Setup for a Gold Bubble.” There are many different ways we can analyze this.
By that we mean fundamental triggers, historical ratios, valuations and potential money flows, etc. can explain the setup for and why this bull market will become a bubble. Today, we focus on intermarket analysis, which is one of our favorite subsets of technical analysis………………………………………..Full Article: Source

Barclays: China Silver industrial demand vulnerable near term

Posted on 28 September 2012 by VRS  |  Email |Print

Although still weak, Chinese silver imports continued to show signs of improvement in August, too. Imports fell just 3% y/y to 304 tonnes, while exports fell almost 10% y/y to 61.5 tonnes, keeping China a firm net importer.
“However, the latest semiconductor billings data revealed weakness in shipments in Europe and US and a modest recovery in China and Japan, which is insufficient to balance the market. We believe silver industrial demand remains vulnerable in the near term.” Barclays said in a report………………………………………..Full Article: Source

Copper bulls retreat on concern stimulus not enough: Commodities

Posted on 28 September 2012 by VRS  |  Email |Print

Copper bulls retreated for a third consecutive week on mounting concern that weaker manufacturing from Europe to China will curb demand even as central banks pledge more stimulus to boost economies.
Thirteen analysts surveyed by Bloomberg said they expect prices to gain next week, 12 were bearish and one was neutral. That’s the lowest proportion of bulls since Aug. 17. They were the most bullish since October at the start of the month………………………………………..Full Article: Source

5 highest-yielding commodity ETFs

Posted on 28 September 2012 by VRS  |  Email |Print

Earning income from commodity investments typically requires some work and creativity on the part of investors. After all, gold bars and barrels of oil don’t pay out any income in and of themselves.
That means that investors who want yield from their commodity investments need to either periodically sell part of their position to replicate income, or they need to invest in shares of commodity-related companies that do pay dividends………………………………………..Full Article: Source

Which commodity ETFs could outpace QE3?

Posted on 28 September 2012 by VRS  |  Email |Print

Global easing programs from around the world have investors scrambling back and forth. Some are excited to see stock markets have such positive reactions, while others are ripping the Fed for what they feel will be our undoing.
Either way you spin it, QE3 is here and it may be staying for quite a while. Ben Bernanke announced that this round of asset-purchasing will feature $40 billion in MBS per month until the Fed sees a material growth in the jobs sector and the economy. What it defines as a significant growth isn’t clear, so many are predicting for this spending spree to continue on for quite some time………………………………………..Full Article: Source

Nigeria: Commodity derivatives – a must for emerging economies

Posted on 28 September 2012 by VRS  |  Email |Print

Commodity derivatives are useful tools for hedging against risk in emerging economies whose revenues mainly come from exports of mono products. Commodity markets are generally held to comprise oil and gas, gold, silver, platinum and palladium, copper nickel, aluminum, zinc and tin, as well as agricultural products which include grain, sugar, coffee, cocoa.
Each of these products can potentially use derivative instruments for risk management purposes, but it is the energy and metals markets that are at present the most well developed with parallels with most financial derivatives products………………………………………..Full Article: Source

Get short these 4 commodities: Kathleen Kelley

Posted on 28 September 2012 by VRS  |  Email |Print

Demand for certain commodities is contracting around the world, making the case for shorting a few of them, Queen Anne’s Gate Capital Management CIO Kathleen Kelley said Thursday on CNBC.
“We tend to look at commodities as really being a supply-demand play,” she said on “Fast Money.” “When we look at demand — supply is adequate in most of these commodities — when we look at demand, including coming from China, in a lot of these sectors it’s just not there………………………………………..Full Article: Source

Euro perkier, commodity currencies shine

Posted on 28 September 2012 by VRS  |  Email |Print

The euro held firm on Friday, while commodity currencies started Asian trade sharply higher as worries about the euro zone eased somewhat after Spain unveiled a crisis budget that many saw was a step towards a bailout.
The single currency stood at $1.2911, having bounced from a two-week low of $1.2828 set on Thursday. Initial resistance is seen at $1.2960, the 38.2 percent retracement of its Sept 17-27 slide………………………………………..Full Article: Source

Global currency wars in full escalation

Posted on 28 September 2012 by VRS  |  Email |Print

The worldwide currency debasement war has now entered a new and more deadly phase. Central banks have escalated the combat plan to bring about the world’s weakest currency for their individual countries.
On the heels of the Federal Reserve and European Central Bank’s promises of unlimited counterfeiting forever, the Bank of Japan announced last week that it would expand its purchase of Japanese Government Bonds (and other assets including equities) by 10 trillion Yen. This brings the latest round of BOJ intervention to a total of 80 trillion Yen!……………………………………….Full Article: Source

First carbon permits issued as emissions market dawns

Posted on 28 September 2012 by VRS  |  Email |Print

Carbon trading has officially begun in Australia, with the government yesterday issuing the first permits under its carbon price. Nearly three months since the scheme began, two companies have been given permits worth a total of nearly $150 million - aluminium firm Alcoa, and Queensland Nitrates, which supplies chemicals to the mining industry.
The issue of the permits is significant because it marks the point at which carbon permits start to be bought and sold among the roughly 300 companies that pay the carbon price………………………………………..Full Article: Source

Global warming scare too costly to let continue

Posted on 28 September 2012 by VRS  |  Email |Print

The global warming scare is one of the most costly and misguided mass movements ever. The belief that man-made carbon dioxide (CO2) is causing dangerous climate change is not supported by the scientific evidence.
Yet, across the world it has captured governments, corporations, the education system and mainstream media. Millions of people believe that “the science is settled” and we must act quickly to avert a climate catastrophe………………………………………..Full Article: Source

The dawn of systemically important commodity traders

Posted on 27 September 2012 by VRS  |  Email |Print

One area, however, in which some banks have been maintaining, or even expanding, their activities is in the physical side of the commodity business, increasing holdings of physical products and investments in the supply chain. These activities are more akin to those traditionally being undertaken by the commodity trading houses themselves.
Recently, investors have also grown more cautious, pulling back their commodity-related investments. Commodity-related assets under management have declined, reducing another financing flow into commodities trading……………………………………….Full Article: Source

Australia’s commodity-driven economy likely to rebound

Posted on 27 September 2012 by VRS  |  Email |Print

One of the largest producers in the commodity market is Australia, which sells 28% of its exports to China. A fraction of the size of its Asian counterpart, the Australian economy is extremely vulnerable to fluctuations in the Chinese market.
Its dollar appreciated more than any other major currency from the end of 2008 to this past July due to increased Chinese demand for iron ore, coal, and natural gas. Since demand has faded, the Australian dollar depreciated, losing 1.5 percent of its value this past month………………………………………..Full Article: Source

Top 14 commodities to invest in

Posted on 27 September 2012 by VRS  |  Email |Print

The financial advisors globally ask their clients to invest in commodities, as they foresee the increasing demands for goods in the backdrop of growing figures of global population. Morgan Stanley’s commodities team led by Hussein Allidina has come up with those top commodities in which it is good to invest in the coming days.
They prefer soybeans, corn and wheat, as poor weather conditions are failing supplies. They also support for precious metals like gold and silver, as loose monetary policy sends investors seeking something with more stable value and the Federal Reserve’s latest action was a game changer as far as the yellow metal is concerned………………………………………..Full Article: Source

Can energy for all be a reality by 2030?

Posted on 27 September 2012 by VRS  |  Email |Print

Ban Ki-moon is confident the UN initiative to promote sustainable energy can lead to universal access. Imagine a world, 18 years from now, in which every single household on the planet is connected to a reliable energy supply that comes from a sustainable source.
It is a fiercely ambitious goal, but a feasible one – according to the UN secretary-general, Ban Ki-moon. Universal energy access is just one of the aims of his Sustainable Energy for All initiative, which got a big push at a recent meeting on the sidelines of the UN general assembly………………………………………..Full Article: Source

EU crisis push oil prices down

Posted on 27 September 2012 by VRS  |  Email |Print

Most commodity prices remained bearish on Wednesday with Brent crude oil falling more than $1 per barrel to below $110. It was weighed down by a stronger dollar, worries over global growth and the Euro zone debt crisis as Greece faced its biggest anti-austerity strike for months.
Greece’s transport system ground to a halt, shops pulled down their shutters and hospitals worked on emergency staff on Wednesday as the country’s two biggest unions protested against a new round of belt-tightening………………………………………..Full Article: Source

OPEC: Oil demand in ’13 unchanged

Posted on 27 September 2012 by VRS  |  Email |Print

World oil demand has overcome earlier expectations of a declining momentum and moved to a more stabilized trend, supported by the summer driving season, the summer heat, and the continued shutdown of most of Japan’s nuclear capacity.
As a result, the forecast for global oil demand growth in 2012 remains unchanged at 0.9 mb/d, the Organization of Petroleum Exporting Countries (OPEC) said Wednesday in its “Monthly Oil Market Report” for the month of August 2012………………………………………..Full Article: Source

Crude oil to trade in $90-95/bbl range near term:IIFL

Posted on 27 September 2012 by VRS  |  Email |Print

Supported by exogenous factors such as geopolitical concerns, crude oil prices would trade within US$90-US$95/bbl in the near term, according to IIFL report.
In the absence of any positive trigger on the demand side, crude oil prices can eventually drift lower towards US$85/bbl in the medium term. Prevalent demand and supply variables do not justify oil prices sustaining near US$100/bbl odd levels, they added………………………………………..Full Article: Source

Gold prices slip but “secular bull” set to reach $3000 or $5000

Posted on 27 September 2012 by VRS  |  Email |Print

“We remain secular bulls on gold,” says Bank of America-Merrill Lynch technical analyst Stephen Suttmeier, looking at a logarithmic chart of Gold Prices – where the vertical axis marks an even distance between percentage changes rather than Dollars-per-ounce.
“The breakout above the year-long downtrend line completes the correction within the longer-term uptrend. Gold Prices point to a stronger rally to $2050-2300 and up to $3000 longer-term.” Suttmeier’s BAML colleague MacNeil Curry, head of foreign-exchange technical strategy, last week told CNBC that he sees Gold Prices hitting $3000 to $5000 an ounce, but “not in the next few months.”……………………………………….Full Article: Source

Gold may hit $2,500 in 3 years as banks buy, Newmont says

Posted on 27 September 2012 by VRS  |  Email |Print

Gold may rise to $2,500 an ounce in three years as investors buy the metal as a hedge against inflation, said Richard O’Brien, chief executive officer of Newmont Mining Corp. (NEM), the second-biggest producer by sales.
Demand from central banks on price dips will probably help create a floor for gold prices at around $1,600, O’Brien, 58, said in a phone interview yesterday from Las Vegas, where he’s attending the MINExpo conference………………………………………..Full Article: Source

Hedge funds bullish on silver as hoard nears record: Commodities

Posted on 27 September 2012 by VRS  |  Email |Print

Hedge funds are the most bullish on silver in seven months and investors’ holdings are expanding toward a record on speculation the metal will outperform gold as central banks seek to boost growth.
Wagers on rising prices jumped 10-fold since June, U.S. Commodity Futures Trading Commission data show. Investors bought 717.2 metric tons valued at $771.9 million through exchange- traded products this quarter, the most in a year, according to data compiled by Bloomberg………………………………………..Full Article: Source

Precious metals – When financial repression fails

Posted on 27 September 2012 by VRS  |  Email |Print

Financial repression may prove to be the policy that triggers the inevitable return to fair value in precious metals. The failure of this academic policy, originally deployed in the 1950s, adds to the list of possible scenarios triggering the failure of the manipulative price suppression that has been observed in the precious metals futures markets.
For example, the price of monetary metals like silver and gold should rise as growing debt concerns and an ongoing US dollar devaluation policy set the stage for a new American currency or even a global currency that will be backed by assets of true intrinsic value like gold and silver………………………………………..Full Article: Source

Copper to average $8,350/ton in Q4; $8,600/ton in Q1 2013: Commerzbank

Posted on 27 September 2012 by VRS  |  Email |Print

Copper prices to average $8,350 per metric ton in the last quarter of this year and to average $8,600 a ton in the first quarter of next year, according to the latest forecast released by Commerzbank, second-largest German bank after Deutsche Bank.
Further gains in base metals despite an uptick already from quantitative-easing announcements from central banks and the go-ahead for infrastructure projects in China, the German bank added………………………………………..Full Article: Source

10 Commodity ETFs with monster inflows in 2012

Posted on 27 September 2012 by VRS  |  Email |Print

As the years have gone by, commodity ETFs have continued to surge in popularity. These vehicles have allowed for investors of all kinds to add vital exposure to hard assets with ease.
While there have been a number of innovative products released in the past few years, some have hit home with investors better than others. Below we outline 10 commodity ETFs that have seen strong inflows as of Sept. 21, 2012, to give you an idea of what is trending in the financial world………………………………………..Full Article: Source

Currency wars: Yen ETF holds steady after stimulus

Posted on 27 September 2012 by VRS  |  Email |Print

The Bank of Japan has announced a 10 trillion yen ($126.7 billion) asset purchase stimulus plan to help kick-start the third largest economy in the world. Despite the action, the yen has continued to gain strength, continuing a multi-year bull run. The Guggenheim CurrencyShares Japanese Yen Trust (NYSEArca: FXY) recently broke through its 200 day-moving-average.
“As a consequence of QE3, the US dollar is the weakest performing G10 currency this quarter and pressure on the already overvalued yen has been stepped up,” Jane Foley, currency strategist at Rabobank, said in a report. “Retaliation against the Fed’s QE3 announcement provides a decent explanation as to why the BoJ decided to waste no time in announcing further monetary policy measures.”……………………………………….Full Article: Source

QE3 triggers fear of new currency wars

Posted on 27 September 2012 by VRS  |  Email |Print

Fear has crept into the foreign exchange markets: fear of central banks. Currency traders are rapidly shifting assets to countries seen as less likely to try to weaken their currencies, amid concern that the fresh round of US monetary easing could trigger another clash in the “currency wars”.
Fund managers are rethinking their portfolios in the belief that “QE3″ — the Federal Reserve’s third round of quantitative easing — will weaken the dollar and trigger sharp gains in emerging market currencies. Such moves would cause a headache for central banks worried about the domestic impact of a strengthening local currency, leading to possible intervention………………………………………..Full Article: Source

Carbon trading schemes around the world

Posted on 27 September 2012 by VRS  |  Email |Print

Carbon trading schemes are emerging all over the world as governments try to meet greenhouse gas emissions reduction targets in the fight against climate change.
Thailand and Vietnam this week announced plans to launch emissions trading schemes. The European Union has agreed to link its own carbon market with Australia’s scheme in 2018 and has struck a deal with China to help with the design and implementation of its emissions trading schemes. These moves are encouraging small steps towards a potential international scheme in the future, carbon analysts say………………………………………..Full Article: Source

China takes a huge step in reducing carbon emissions

Posted on 27 September 2012 by VRS  |  Email |Print

China has agreed to work with the EU to create its own carbon trading system. This will create a large pool of funding for sustainable development. The tide is changing. In a huge move for the global effort to reduce carbon emissions, China has announced that it is starting its own emissions trading system. And it is doing so with the help of the EU, with the long-term aim of the two carbon markets working together.
This means that the world’s largest overall emitter of carbon emissions will be doing its all to develop in a more sustainable manner. By linking emissions to a market, Chinese industry will have a monetary incentive to reduce emissions………………………………………..Full Article: Source

What’s moving commodities now?

Posted on 26 September 2012 by VRS  |  Email |Print

Commodity investors got what they wanted when the Federal Reserve announced a third round of bond buying on Sept. 13. But if they expected big gains, they’re sure to have been disappointed: The Standard & Poor’s GSCI index, which tracks a basket of commodities, has dropped 3% during the past two weeks.
Not all commodities have acted the same, as we explained in the most recent Weekend Investor cover story. Oil has dropped 4.8%, copper has gained 1.2%, gold has jumped 1.9 %, and soybeans have dropped 6.3%………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Hard returns from soft commodities

Posted on 26 September 2012 by VRS  |  Email |Print

There is always demand for food, so that would make it a good long-term investment. And there will occasionally be disruption to supply, from drought, flooding, pestilence or disease, so that would make it a good short-term investment if your timing is right.
If you held BetaShares’ agricultural exchange-traded fund (ETF) between June 4 and July 23, you would have made more than 30 per cent in growth and picked up a 25¢ dividend along the way, another 1.9 per cent in yield………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Investors look for new approaches to commodities

Posted on 26 September 2012 by VRS  |  Email |Print

Investors still want commodities, despite the slowdown of the so-called “Supercycle” that has dominated the last couple of decades. But they are looking for new ways to access the asset class, no longer satisfied with pure beta play.
The latest Barclays Capital’s annual survey of institutional investors revealed plans to significantly increase their commodity investments this year. Of the survey participants, 56% said they will initiate or increase their exposure to the asset class this year, compared to 45% last year. The proportion planning to decrease their exposure, on the other hand, halved from last year to 7% of respondents………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Big commodity houses may pose new risks -Bank of Canada

Posted on 26 September 2012 by VRS  |  Email |Print

Large commodity trading houses, together with the physical trading operations of big investment banks, are playing an increasingly prominent role in commodity markets and may become systemically important, Bank of Canada Deputy Governor Timothy Lane said on Tuesday.
In a speech to a Calgary business group on the relationship between the financial system and commodity markets, Lane said it was worth asking whether the losses a trading house incurs, or the failure of a house altogether, would have a significant knock-on effect on the financial system as a whole………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Bank of Canada casts wary eye on commodity traders

Posted on 26 September 2012 by VRS  |  Email |Print

Is a behemoth commodity trader such as Glencore International PLC too big to fail? Bank of Canada deputy governor Timothy Lane is wondering. “Could the failure of one of the large trading houses cause serious disruption in the commodities markets in which it played a market-making role?”
Lane asks in a speech Tuesday to the CFA Society of Calgary. “Could the losses that trading house incurs through the positions it has taken in commodities have significant knock-on effects on the financial system? We are far from having answers to those questions, but they need to be addressed.”……………………………………….Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

The rising price of commodities may lead to record food prices in 2013

Posted on 26 September 2012 by VRS  |  Email |Print

The rising price of commodities may lead to record food prices in 2013, which may last for a sustained period. This agricultural inflation or ‘agflation’ caused by failing crops worldwide will affect feed intensive crops, which will have a serious knock on effect on the animal protein and dairy industries says a recent report from Rabobank.
The worst drought in the US since 1936 and water shortages in Russia and South America are all taking their toll says Rabobank………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Goldman analyst says commodities to grow 18pct

Posted on 26 September 2012 by VRS  |  Email |Print

The commodities markets are expected to show an overall 18 percent return in the next 12 months, according to an analyst report from Goldman Sachs Group Inc. The report, by Jeffrey Currie, says energy and industrial metals will lead the way, including a boost in copper during the first half of 2013, according to an article on Yahoo’s finance news site.
The energy sector is expected to grow 26.5 percent in the next year, with 10 percent growth in industrial metals and 6 percent gains for precious metals………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Major cause behind global commodity price hikes

Posted on 26 September 2012 by VRS  |  Email |Print

All through CY11 and particularly in CY12 so far, the commodity prices have remained aggressively volatile and generally on the higher side. Primary commodities have been on this jittery road, climbing up most of the time and rebounding after short dip spans.
Conventionally, the demand-supply factor would be the first reason that would come to the mind during times of high uncertainty; inelastic demand and tight supply of these commodities is a very valid cause behind the route taken by the commodity prices………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

QE and the commodity markets

Posted on 26 September 2012 by VRS  |  Email |Print

After the recent announcements of the ECB’s OMT program, (outright monetary transactions), and the FED’s QE 3 program, (open ended asset purchases), we were forced to not only review the equity markets, but also the commodity markets. We updated the commodity charts last weekend.
Those who review our public charts, on a regular basis, are one step ahead of this report. We will start with a review of the GTX (S&P GSCI Commodity Index), then all five of its sectors………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

China loans boost access to OPEC nation after Ecuadorean default

Posted on 26 September 2012 by VRS  |  Email |Print

Ecuador’s inability to borrow in international markets after its 2008 default is drawing the nation closer to China as the world’s largest commodities consumer grants loans in exchange for access to oil and metals.
Home to untapped copper reserves similar to those of Chile and Peru, the world’s top producers, Ecuador has signed loans for $7.3 billion from China since 2009, or about one-third of the Andean country’s annual budget, according to data compiled by Bloomberg based on government announcements……………………………………….Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Gulf OPEC producers want Brent oil at $100/barrel

Posted on 26 September 2012 by VRS  |  Email |Print

Gulf members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, would like to see oil prices stabilize around $100 a barrel as high prices could slow down economic growth and hit demand, Gulf OPEC delegates said Monday.
“There is a consensus now between Gulf countries and in fact some non-Gulf members of the Organization of Petroleum Exporting Countries that $100 a barrel is a suitable price for both producers and consumers,” a delegate from one Gulf country said………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

OPEC, Russia stress need for stable, predictable oil markets

Posted on 26 September 2012 by VRS  |  Email |Print

OPEC and independent producer Russia on Tuesday stressed the need for stability and predictability in world oil markets during talks in Vienna between the cartel’s secretary-general Abdalla el-Badri and Russian energy minister Alexander Novak.
“The parties exchanged views on the current oil market situation and underscored the importance of stable and predictable markets for the long-term health of the industry and investments, and above all, the well-being of the global economy,” the two sides said in a joint statement………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

Brent below $110 on economic woes; Iran tension limits losses

Posted on 26 September 2012 by VRS  |  Email |Print

Brent crude slipped below $110 per barrel on Wednesday, weighed down by worries that a fragile global economy would cut oil demand, although supply disruption risks amid rising tensions between Iran and Western nations kept losses in check.
Big anti-austerity protests in Spain reignited fears about the three-year old debt crisis in the euro zone, while more profit warnings by U.S. companies, including heavy equipment maker Caterpillar Inc, showed how the global slowdown is slashing corporate earnings………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

New oil market regulations canned following opposition

Posted on 26 September 2012 by VRS  |  Email |Print

The International Energy Agency and OPEC are natural rivals when it comes to oil policy. But the two international organizations were on the same page recently when it came to one thing: ensuring that new regulations on the oil market don’t come to pass.
That’s the rub from a Financial Times report that shows how a strange-bedfellows coalition that also included oil giants Shell and Total put the kibosh on proposed new regulations on oil-price agencies like Platts and Petroleum Argus………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

The best investment in coal

Posted on 26 September 2012 by VRS  |  Email |Print

Traders are extremely pessimistic regarding the growth of China over the next year, and this has led them to dumping their positions in coal, into the market. This has led to an oversupply of coal, which is pushing down its market price. Coal is one commodity amongst many that reflects the health of the global economy.
The latest stimulus package by the Federal Reserve Bank, Japan, and China could increase infrastructure spending meaning an upside for coal and iron ore. For investors looking to avoid the volatility in the prices of coal, Peabody Energy could turn out to a great investment, and here are a few reasons why………………………………………..Full Article: Source

Podcast Play - Download this article   |   Play - Download Full Briefing   |   Subscribe to the Podcast Feed

banner
banner
September 2012
S M T W T F S
« Aug   Oct »
 1
2345678
9101112131415
16171819202122
23242526272829
30