Sat, Oct 25, 2014
A A A
Welcome kbr175@gmail.com
RSS
Commodities Briefing 13.Nov 2008

Posted on 13 November 2008 by VRS |  Email |Print

From Times Online: Opec has made a scathing attack on a report from the International Energy Agency which says that the world’s existing oil producers face a “huge challenge” to keep up with a projected rise in global demand.

The report from the IEA, the respected Paris-based energy advisor to the Organisation for Economic Co-operation and Development (OECD) club of wealthy nations, said that to compensate for the depletion of existing oilfields, by 2030 the world would need to find new production equivalent to 45 million barrels per day, or the output of four Saudi Arabias, to maintain present levels of supply……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Theage.com.au: Gold hovered near two-week lows as falling oil prices and a weak equities market prompted selling from speculators. Gold was trading at $US713.50 an ounce, up $US2.35 or 0.3% from New York’s notional close on Wednesday, when it fell as low as $US707.80, its weakest since Oct. 27, as investors dumped risky assets including gold and stocks.

“The stock market and currencies are the focus as investors try to gauge the state of the real economy,” said Koji Suzuki, a senior analyst at SBI Futures Co Ltd……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Mineweb.com: If we are in for a period of recession rather than a global depression, then it looks as though announced production cutbacks by mining companies are far more severe than the demand situation would justify.

Nowadays not a day seems to go by without some significant base metals producer, or prospective producer, announcing major base metals project delays, cutbacks and curtailments. Add to that the announced, and so far unannounced, cessations in exploration programmes and we are looking at a near term very substantial fall in base metals output - and in other industrial and precious metals too……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Canada.com: The Montreal climate exchange aims to become the central canadian marketplace for carbon emissions trading, even before the government finalizes the climate change legislation required to kick-start the market.

Canada’s conservative government, re-elected in October, introduced climate change proposals last year that would see a nationwide emissions trading scheme start in 2010……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Commodities-now.com: The International Energy Agency (IEA) has published the latest edition of its World Energy Outlook (WEO). The report states that nuclear capacity must grow to least 1.8 times current capacity by 2030 if global temperature rises are to be kept to 2 degrees C.

Nobou Tanaka, IEA Executive Director, said that “current trends in energy supply and consumption are unsustainable - environmentally, economically and socially” and called for the medium- and longer-term target of secure sustainable energy for all not to be ignored…….. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Zawya.com: Developing countries, located on different continents, will play a crucial role in balancing global oil demand in 2009, a financial and commodities market research institution has said in a recent report. Oil demand will significantly subside in developed economies in 2009 the report predicted.

Merrill Lynch, in its recent analysis on global energy demands, said the Middle East and the emerging economies of ‘Chindia’ (China and India) are few of the resilient regions where hydrocarbon requirement will continue to grow, albeit at a slower pace in spite of the recession……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Guardian: Improved lending by troubled banks is key for the raw materials industry to continue operating. “My biggest fear is the breakdown of the banking system,” Richard Elman, the Chief Executive Officer of the Hong Kong-based Noble Group.

A deepening financial crisis has begun to tear into the real economy, as tight credit conditions force buyers of raw materials to reduce demand in the absence of financing.
Miners and steelmakers, two major industries for which the Noble Group manages the supply of raw materials, cut production significantly and froze expansion plans due to lack of demand……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Bloomberg: Emerging-market bonds tumbled, led by losses in Russian and Venezuelan debt, as mounting concern the global economy is slipping into a recession throttled demand for developing nations’ commodity exports.

The extra yield investors demand to own developing nations debt instead of U.S. Treasuries swelled 45 basis points to 6.37 percentage points at 4:17 p.m. in New York, according to JPMorgan Chase & Co.’s EMBI+ Index. A basis point equals 0.01 percentage point. The so-called spread is the widest since Oct. 30……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Livemint.com: China’s iron ore imports may fail to increase next year for the first time since at least 1999 because of slowing demand from steel mills, an industry group said.

Imports may remain at 400 million tonnes (mt) next year, unchanged from 2008 levels, Zou Jian, chairman of the China Metallurgical Mining Enterprise Association, said. The demand slump will show up in import figures in the next two months, he said……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Bloomberg: Aluminum fell to three-year low in London as bulging stockpiles heightened speculation that miners need more output cuts to match slowing demand led by China, the world’s biggest buyer. Copper rebounded from a three-year low.

Aluminum inventories in warehouses monitored by the London Metal Exchange have jumped 67 percent this year to the highest since 1995 and copper supplies are the highest since 2004. China’s aluminum demand may grow 2 percent or 3 percent next year, the slowest pace since 1997…… Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From WSJ: After years of small-scale experiments in using so-called emissions trading to reduce pollution, China is taking steps to set up a nationwide system.

In recent months, three cities — Shanghai, Beijing and Tianjin — have begun creating emissions exchanges modeled after a system pioneered in the U.S. to reduce emissions that caused acid rain. Known as cap-and-trade, this system sets an overall limit, or cap, on how much an industry can pollute. Individual companies get permits, which can then be traded……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Theglobeandmail.com: Copper steadied into the close on Wednesday, bouncing from an early slide to three-year lows, as rising inventories and decelerating economic growth continued to highlight the industrial metal’s dim demand prospects.

“Higher supply and lower outlook for demand going forward is the perfect storm for lower prices, and that’s exactly what we have seen,” said Adam Sarhan, founder of GlobalMacroResearch.com in New York……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Theaustralian.news.com.au: Australian shares tumbled more than 4 per cent after global equity and commodity markets slumped on growing recession fears.he benchmark S&P/ASX 200 fell 170.1 points, or 4.33 per cent, to 3757.2 in the first 15 minutes of trading.

The broader All Ordinaries was down 155.7 points at 3727.9 with the resources sector registering the biggest losses. The basic materials index was down more than 7 per cent after BHP Billiton dived 8.45 per cent to $25.91, Fortescue Metals Group shed 8.37 per cent to $1.86 and Rio Tinto lost 6.45 per cent to $70.35……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From FT: Crude oil sank to a fresh 20-month low even as the International Energy Agency warned of a potential global supply crisis due to delays in investment arising from price weakness and the credit squeeze.

The energy watchdog said there was a real risk that under-investment would cause an oil supply crunch with large gaps opening up between demand and supply after 2010 as project delays and cancellations took effect. …… Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Business-standard.com: Companies are stuck with huge inventories. The crash in commodity prices is hurting companies as many are carrying huge inventories of raw material, and in some cases, finished goods made with raw material bought at higher prices.

This is especially true for oil refiners. Typically, oil refiners take 8-10 weeks to purchase, processes and sell the products at retail outlets. But crude prices have come down from $147 a barrel to $62 a barrel……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Easybourse.com: The derivatives industry should request hearings on how U.S. financial regulators will share regulatory responsibilities in the future, the senior Democratic commissioner of the Commodity Futures Trading Commission said.

Stricter oversight of financial markets is certain, according to Michael Dunn, and with lawmakers having decided that industry self-regulation hasn’t worked, market participants need to keep pace with what’s certain to be fast action in Washington in the coming months……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Energymatters.com.au: The World Energy Outlook 2008 report released today by the International Energy Agency has painted a bleak picture for the future of oil and is calling for a global low carbon and renewable energy revolution in spite of the current financial crisis.

While the IEA still believes that oil will be available in for the foreseeable future, the sources of oil and costs of producing it mean that ” the era of cheap oil is over” according to Nobuo Tanaka, Executive Director of the International Energy Agency……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Contrarianprofits.com: Never has there been a time where the stock market has influenced the commodities markets so much. Last time I checked, the price of soybeans, cocoa or orange juice had absolutely no relationship to whether Microsoft, Disney, or Google declined in price.

But these days, we’ve got a serious blurring of the lines between global marketplaces. In addition, the prevalence and ease of electronic trading, coupled with well-capitalized hedge funds, means we’re seeing all kinds of different markets having an affect on one another……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Seekingalpha.com: Diversified commodities have suffered approximately the same peak-to-trough percentage decline as equities, illustrating the point that commodities are not a valuable hedge to a stock portfolio in a deflation scare and a liquidity crisis.

However, just as it is not the time to abandon stocks, this is not the time to abandon commodity positions in the context of a diversified multi-asset portfolio. Those who are predicting an extended deflation (which would obviously be a negative backdrop for commodities, as well as equities) should re-read Fed Chairman Bernanke’s 2002 speech on the subject of preventing a Japanese style deflation in the U.S……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Easybourse.com: The U.S. derivatives industry and oil companies are concerned that a new regulation aimed at petroleum market manipulation drafted by the Federal Trade Commission may chill energy commodities trading, forcing it overseas.

Under new powers given to the FTC by Congress, the agency has drafted a rule that would penalize market players up to $1 million a day for recklessness or fraud in the wholesale petroleum markets……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Timesonline.co.uk: Mining stocks, already under pressure amid fears of falling demand from China, were dealt a further blow today after China announced plans to raise the VAT on metal ores from January 1.

China is the world’s top consumer of copper and aluminium, and the tax would likely hit imports of metals as well as domestic production, and will further cut demand for metals from foreign miners……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Guardian: Consumers who switch energy and phone suppliers have been getting a very poor deal since the government abolished price controls, a report by MPs says.

The Commons public accounts committee concludes that a quarter of all people who switched electricity suppliers ended up paying higher bills, while the phone tariff system makes it almost impossible for consumers to decide which company provides the best value for money……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Gulfnews.com: Gulf countries are not yet ready to float their currencies or their unified currency as and when it happens, according to Jean-Pierre Beguelin, chief economist of Pictet, a Swiss private bank.

Beguelin argues that GCC countries, with their huge oil surpluses, would face severe upward (exchange rate) pressure on currencies if they decide to float……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Commodities-now.com: Liquefied natural gas is now taking a back seat to other fuels, and especially since the global credit crisis has taken hold. But over the next decade and as the demand for power resumes, it could assume a notable role in the country’s overall energy plan.

Despite growing energy demand from the four corners of the world, the United States will be able to attract LNG supplies from foreign suppliers. Even though other nations will pay higher prices for such natural gas in the near term, this nation will become a lucrative market for LNG providers because of its sustained energy demand, its strong infrastructure and its reliability as a partner……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Independent.co.uk: The emergence of a new environmental management profession offers exciting opportunities for those wishing to develop a career where they can make a real difference to the environment.

No longer is working as an environmental professional just about taking water or air samples, recording species and habitats as part of ecological surveys, or dealing with neighbours about noise issues……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Publicradio.org: The record high prices for copper and other metals that had thieves stealing statues and electrical wires are no more. Commodities prices have crashed, creating a big problem for scrap dealers.

At a Los Angeles scrap yard, big machines move mountains of old aluminum siding. It looks like business as usual. Not so, says Scott Horne with the Institute of Scrap Recycling Industries……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Mineweb.com: There is no question that governments will have to continue offering and providing both monetary and fiscal support before the global easing cycle can be said to have ended. The good news, however, is that some key indicators have started to show fragile signs or turning around, at least in some regions.

But how can investors measure the process? In measuring the progress towards what will hopefully ultimately be the end of a global credit markets crisis, combined with attempts to reverse the underlying slowing in the global economy, the Bank Credit Analyst has selected three key indicators: interest rate spreads, the gold price, and currency volatility……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From Commodities-now.com: Most of the metals suffered further declines yesterday after Monday’s China induced rally stalled. The exceptions were tin and surprisingly zinc.

The fact that Monday’s rally attracted selling is not a surprised as there may well be more risk reduction that needs to be done, but is now being done into rallies as opposed to chasing prices lower……. Full Article: Source

Posted on 13 November 2008 by VRS |  Email |Print

From AP: Gold prices plunged Wednesday as investors, fearful that a prolonged economic downturn will result in a sharp drop in demand for basic materials, continued their exodus from commodities.

Energy prices and most agriculture futures also fell. Investors have fled both commodities and stocks amid a worsening global economic crisis, which was sparked by the bust of the U.S. housing market last year……. Full Article: Source

See more articles in the archive

banner
October 2014
S M T W T F S
« Sep    
 1234
567891011
12131415161718
19202122232425
262728293031