Investors should watch miners’ 2016 results carefully to see whether firms take the bait of higher prices and let capital expenditures drift up again. Mining executives are a sober lot these days. “Capital discipline” has replaced “commodity supercycle” as the industry catchphrase.
Things are looking somewhat brighter recently, however. Chinese metals demand has staged a limited, but real, rebound, and U.S. President-elect Donald Trump is touting an infrastructure-investment plan…………………………………Full Article: Source

Despite the fall, Finland remains an important trade partner for Russia, the deputy prime minister stressed. “Between January and September 2016, the volume of trade between Russia and Finland came to around $6.2 billion, falling 20 percent compared to the same period last year.
The main reason for this is the fall in oil prices,” Kozak said during a meeting of the Russian-Finnish Intergovernmental Commission for Economic Cooperation. The Finnish delegation at the meeting was headed by Minister for Foreign Trade and Development Kai Mykkanen, while Kozak headed the Russian side…………………………………Full Article: Source

Copper’s recent turbo-charged rally has upended the market’s narrative of supply surplus. Too much supply was supposedly the reason why copper, until this month, was the worst performer among the base metals traded on the London Metal Exchange (LME).
But right now the market is struggling to work out where all that extra copper actually is. LME stocks are low and falling. Stocks registered with the Shanghai Futures Exchange (ShFE) are rising but still low………………………………………Full Article: Source

Gold prices close at a five-month low; Janet Yellen said that a rate increase ‘could well become appropriate relatively soon’. Gold prices closed at a five-month low on Thursday, weighed down by a stronger U.S. dollar and expectations for an interest-rate increase as early as December.
Gold for December delivery settled down 0.6% at $1,216.90 a troy ounce on the Comex division of the New York Mercantile Exchange, its lowest close since June 2. The precious metal reversed gains after trading as high as $1,229.30 an ounce on Thursday morning……………………………………..Full Article: Source

Commodities were broadly lower as the US dollar notched up fresh multi-year highs, even as analysts sounded a bullish note on oil and gold. Front month Brent crude futures fell back, albeit following sharp gains in the previous session, with Brent down 0.5% to $46.72 while West Texas Intermediate was drifting 0.2% lower to $45.71 on the ICE.
To take note of, Russian energy minister Alexander Novak reportedly said there were good odds that OPEC members would agree on the details of an oil output cut by 30 November, when the cartel was next scheduled to meet………………………………………..Full Article: Source

Research Team at Westpac, lists down the US election risks for equities and commodities markets by taking reference from the recent Brexit scenario. Expect a similar outcome to Brexit - safe haven demand for gold should push it higher on a Trump win.
Gold rose 5% in the day after the UK vote, those gains holding in subsequent weeks, though gold fell 3.7% in the week before the UK vote as confidence in a “remain” win grew. By contrast gold prices have risen modestly through October as Trump’s odds have firmed. Oil prices fell 4.9% on Brexit, but in the week into the vote they rose almost 10%…………………………………….Full Article: Source

Iraq is arguing that its intensifying war against Islamic State won’t allow it to reduce output along with other OPEC members, threatening to derail the landmark agreement.
The Persian Gulf country is pushing for an exemption from an Organization of the Petroleum Exporting Countries pact reached in September that would cut output between 1% and 2% to make oil more scarce globally and shake prices out of a two-year slump……………………………………Full Article: Source

Expectations of tightening monetary policy tend to be bearish for gold. The metal doesn’t pay interest and struggles to compete with other investments when rates rise.
The precious metal was also hurt by a strengthening U.S. currency, which makes dollar-denominated gold more expensive for foreign investors. The WSJ Dollar Index, which weighs the dollar against a basket of other currencies, was recently up 0.1%………………………………….Full Article: Source

Iraq’s insistence that it should be exempt from a proposed deal to limit oil output may sound audacious coming from OPEC’s second largest producer, but analysts say it’s entirely possible that top exporter Saudi Arabia will give Baghdad a pass.
Iraqi Oil Minister Jabar Ali al-Luaibi dropped the bombshell on Sunday, doubling down after Iraq had already kicked up a fuss over how OPEC plans to set quotas when it meets next month in Vienna. He argued that his country can’t cut production because it badly needs oil revenue to fight the Islamic State, which Iraqi forces are now fighting to dislodge from Mosul, Iraq’s second-largest city and ISIS’s last stronghold in Iraq…………………………………..Full Article: Source

Saudi Arabia pushes to freeze oil production and Russia signals its support. It seems OPEC is trying to increase prices again and strengthen oil producing economies. Some of the organisation’s energy ministers met their counterpart from non-OPEC member Russia on Sunday.
The ministers want to see greater cooperation between OPEC and non-OPEC countries to stabilise the oil market. Prices fell to an all-time low in January. They’re still half what they were at their peak two years ago. OPEC is looking to review its strategy…………………………………..Full Article: Source

Iran hopes non-OPEC Russia and OPEC heavyweight Saudi Arabia can agree to coordinate on possible actions on the global oil market, Iranian Oil Minister Bijan Zanganeh said on Sunday. “I hope the two sides can reach an understanding, … that and Russia and non-OPEC countries will reach an understanding over the decision by OPEC members to decrease oil production,” said Zanganeh.
The Organization of the Petroleum Exporting Countries (OPEC) agreed in Algiers on Sept. 28 to reduce production to a range of 32.5 million to 33.0 million barrels per day, which would be its first output cut since 2008. Another meeting on Nov. 30 is set to firm up details of the accord………………………………….Full Article: Source

One of the world’s largest gold-consuming nations is expected to see firm bullion demand this year and the next, according to one regional director of the World Gold Council.
WGC expects to see Chinese gold demand to remain firm between 900 and 1000 tonnes this year and nextIn an interview with Reuters, on the sidelines of the London Bullion Market Association’s annual conference in Singapore, Roland Wang, managing director for China at the WGC, said that the council is expecting total Chinese demand be between 900 and 1000 tonnes for 2016 and 2017……………………………………Full Article: Source

While gold’s performance in the immediate future may hinge on economic data and Federal Reserve rate-hike expectations, analysts with TD Securities “still see a place in many portfolios” for the yellow metal.
Gold has fallen in October, but expectations for a December Federal Reserve rate hike are already factored into the market and many longs have already exited the futures, which may help the metal now hold chart support, TDS says. If U.S. economic data are strong, gold and silver could probe still lower. ………………………………..Full Article: Source

Investec has released a note in which it says China, and in particular, Chinese government policy is the main driver in the recovery of the mining sector along with selected commodities this year.
The broker cited coal as a particular example where Chinese ’supply restrictions’ have had a material impact on prices. Metallurgical coal is the best performing commodity this year, easily outstripping the performance of gold and silver…………………………………Full Article: Source

Singapore will study the possibility of bringing the gold benchmark pricing in London to users in Asia, in a move that would also allow market participants in the world’s top consuming region to help set the price of bullion.
Home to the world’s biggest buyers China and India, Asia’s importance has been on the rise as the key source of demand for gold, but bullion traders in the region are often exposed to intraday price volatility and overnight foreign exchange risks with benchmark prices currently being set out of London…………………………………..Full Article: Source

2016 has been a good year for commodities. Year-to-date, the FTSE world Mining index is up just less than 56% in dollar terms, while the FTSE oil and gas index is up just less than 20%.
Such a return to form has been welcome after a pretty dismal performance for the preceding few years, but it has also left the market wondering how much juice is left in the rally. The problem is, the commodities complex is just that - complex. And, there are cogent arguments to be made on both sides of the coin……………………………………Full Article: Source

It has never been more important to own gold as part of a diversified portfolio. The form your gold investment takes is just as important as owning it in the first place. ETFs and pooled gold may not be functional in extreme markets and may themselves be subject to systemic risk events.
We are living in extraordinary times and key to any investment plan that can weather the coming global financial storm is access to all important – liquidity……………………………………Full Article: Source

Demand for crude oil in 2016 is seen edging higher compared to last year, while supply is forecast to be slightly lower, according to the October OPEC market report, which highlights how money managers were caught out by a new deal to limit production.
This month’s revisions to the forecasts are minimal, with only a 0.1 million barrels per day (mb/d) rise in demand added to both annual forecasts since September’s report……………………………………..Full Article: Source

Iraq could increase its oil production despite OPEC’s recent announcement. This has to trouble OPEC, and mostly Saudi Arabia, who has been trying to micromanage global oil prices over the past few weeks with announcements to agree to agree to production cuts at OPEC’s next meeting in November.
There is even talk that Iran, who is still trying to reach pre-sanctions production levels, would actually not have to cut production as part of the deal, as well as a potential waiver for both Nigeria and Libya. Russia is also reportedly going to meet with OPEC members in a meeting in Istanbul this week over possible production cuts……………………………………….Full Article: Source

Let’s cut to the chase: we do not think the drop in gold earlier this week marks the end of this bull market. Why did gold drop? First, I think it’s fair to say that, technically, gold was looking increasingly vulnerable over the past several weeks.
Many new-time buyers were getting nervous. Against that background, it did not take much for gold to fall. The “collapse” in the gold price has been attributed to hawkish comments from Fed officials. This contributed to the negative sentiment, but in reality it is much sound and fury, signifying nothing………………………………………Full Article: Source

Base metals continued to trade sideways-to-lower on the LME on Thursday, October 6 while investors remained sidelined ahead of key data and economic news.
Markets will first look to see if the European Central Bank (ECB) will taper its monetary-easing measures – there is talk of cuts to its bond-buying scheme from 80 billion ($89.5 billion) euros per month. The dollar index continues to hold above 96 after largely stronger-than-expected economic data from the US. It was recently at 96.25, up 0.05 percent……………………………………….Full Article: Source

It has been a good ride for gold holders this year, as bullion posted its best first half performance in almost four decades. With global interest rates hovering at record lows, investors have piled into the precious metal.
Meanwhile, political uncertainty from Britain’s vote to leave the European Union and the looming U.S. presidential election also fanned demand, sending prices to almost $1,400 per ounce over the summer………………………………….Full Article: Source

When it comes to commodities, plenty of investors are familiar with gold and oil, but there are times when other, less heralded commodities outperform bullion and crude. Of course, knowing when a particular commodity will fall out of favor and when it will be a leader is difficult.
So there are advantages to a diversified commodities exchange traded fund, such as the WisdomTree Continuous Commodity Index Fund, which tracks the Thomson Reuters Equal Weight Continuous Commodity Total Return Index. An ETF like GCC can be particularly useful during periods of commodities volatility or when the asset class swings between various extremes as it did last month…………………………………….Full Article: Source

Gold slumped 3 per cent to its lowest level since the UK vote to leave the EU as investors eye a US interest rate hike later this year and demand remains weak in India and China. The price of the precious metal fell by the most in more than a year to touch $1,270.4, its lowest level since June 24, the day after the referendum. Shares in gold miners also fell. .
Gold’s 21 per cent rally this year has started to stall as investors take profits and anticipate a second rise in US interest rates in December…………………………………….Full Article: Source

OPEC’s move to cut output might be too late. After pumping full tilt for the past two years, the Organisation of the Petroleum Exporting Countries is weighing a plan to reduce production by up to 700,000 barrels a day later this year. But many analysts say the proposed reduction isn’t big enough, nor will it happen quickly enough, to address a global supply glut that has kept oil prices low.
Going into this year, many forecasters projected that supply and demand for crude would return to balance by the end of 2016. But even after OPEC’s agreement, most now don’t see a rebalancing until the middle of next year, or even later………………………………………Full Article: Source

The global integrated oil and gas business is stabilizing and will likely improve modestly from recent historical lows over the next 12-18 months, says Moody’s Investors Service in a recent report. The report—“Integrated Oil & Gas: Global Oil Price Uptick, Accelerated Cost Cuts Put Upstream Activities on Road to Recovery”—says higher oil prices and lower operating costs are driving a steady improvement in companies’ earnings.
“Over the last year, integrated oil and gas companies have accelerated reductions in their operating costs to adjust to earlier oil-price declines. As a result, most companies’ upstream operations returned to positive net income generation in the second quarter of 2016, while also benefiting from an uptick in the price of crude,” said Elena Nadtotchi………………………………………Full Article: Source

IMF and WTO warn on threats posed by low inflation and tepid response by governments to slow growth. The world economy is at risk of slipping into a deflation trap and faces a historic slump in global trade that should serve as a wake-up call for governments around the world, two leading economic institutions have warned.
The International Monetary Fund warned on Tuesday that a “broad-based phenomenon” of low inflation, fed by a collapse in commodity prices and faltering demand, risked deteriorating into a full-blown deflation trap, particularly in advanced economies. Governments needed to join central banks, which were increasingly seen to be running out of options, to do more to boost growth and raise incomes, it said……………………………………..Full Article: Source

The agreement reached at the extraordinary meeting of the Organisation of the Petroleum Exporting Countries, in Algiers, to trim the cartel’s collective output by about 700,000 barrels a day, in an effort to balance supply and demand in the global oil market, caught markets by surprise.
It was well-acknowledged that the group needed to take decisive action to staunch the two-year-long slide in global crude prices, that saw Brent prices more than halve from about $103 a barrel in end-August 2014 to $45.45 a barrel on September 1 this year……………………………………..Full Article: Source

This is what the oil market looks like in 2016: Traders and investors this week had one eye on Algiers, where the Organization of the Petroleum Exporting Countries on Wednesday vowed to cut production for the first time in eight years.
And OPEC has one eye on what is happening in the bountiful shale fields from the Permian Basin in Texas to the Bakken formation on the plains of North Dakota where exploration firms are poised to drill more………………………………………Full Article: Source

Safe-haven demand will continue to drive gold and silver prices higher next year and support the precious metals market in the next three years, according to one Canadian bank that is making across-the-board revisions to its precious metals forecast.
In a report published Thursday, analysts at BMO Capital Markets, said that they see gold prices averaging $1,413 for 2017, up 5% from their previous forecast $1,350 an ounce. “We look past the upcoming Fed meeting in December – though it undoubtedly drives short-term volatility – and instead focus on monetary policy that is anything but “normal” for the next year or two at least,” the analysts said………………………………………Full Article: Source

Suddenly the tables have been turned on Saudi Arabia. The biggest oil exporter has swapped its traditional role as price dove with regional foe Iran, for years OPEC price hawk. The government in Riyadh is now offering a deal — including its first output cut in eight years — to boost prices; Tehran is dragging its feet.
At the center of the reversal is their contrasting thresholds for enduring economic pain. PIMCO Europe MD and Portfolio Manager Mike Amey discusses oil with Bloomberg’s Anna Edwards on “Countdown.”…………………………………..Full Article: Source

Jonathan Bell, chief investment officer at Stanhope Capital, discusses A.P. Moeller-Maersk splitting and outlook for the commodities market as a whole. He speaks with Guy Johnson, Nejra Cehic and Caroline Hyde on Bloomberg Television’s “On The Move.”.…………………………………….Full Article: Source

As most of the world focuses on how unfettered oil production will weigh on prices, a few say a rebound is on the cards as the market starts to reflect a growing risk of shortages. OPEC’s strategy of keeping its taps open is leaving a smaller cushion if there’s an unexpected need for more oil.
The group’s spare capacity has dwindled to the least since 2008, U.S. government data show, while global spending cuts have diminished prospects for new output. Prices may jump more than 35 percent from current levels as they start to reflect the risk of a supply squeeze, according to Citigroup Inc. and trader Gunvor Group………………………………………..Full Article: Source

An NGO has slammed Swiss commodity traders for allegedly making handsome profits from selling poor grade fuel to African countries that contains high concentrations of toxic substances, such as sulphur.
Public Eye (known until recently as Berne Declaration) released a report on Thursday that called on traders to stop the legal, but “illegitimate”, practice of selling “African Quality” fuel to countries with low environmental and health standards………………………………………..Full Article: Source

The International Energy Agency (IEA) has said that the pace of global oil demand growth is dropping more quickly than initially predicted. In its latest monthly outlook, the agency lowered its forecast for oil demand growth in 2016 by 100,000 barrels per day, to 1.3 million b/d. It forecast the growth rate would be even lower in 2017, at 1.2 million b/d.
With OPEC producers pumping at close to record-high levels, the stock overhang that has stymied oil price rallies in recent months looks set to continue. Non-OPEC production has been dropping because of low prices, but not by enough to eat into bloated inventories. The IEA estimated that oil inventories in OECD countries hit a new record high in July, of 3.1 billion barrels, a rise of 32.5 million bbl from the previous month………………………………………..Full Article: Source

OPEC raised its forecast of oil supplies from non-member countries in 2017 as new fields come online and U.S. shale drillers prove more resilient than expected to cheap crude, pointing to a larger surplus in the market next year, Reuters reported.
Demand for crude from the Organization of the Petroleum Exporting Countries will average 32.48 million barrels per day (bpd) in 2017, OPEC said in a monthly report on Monday. That is down 530,000 bpd from the previous forecast………………………………………..Full Article: Source

The two biggest oil producers in the world last week signed an oil agreement to cooperate for stabilizing the oil prices. This is what every oil producer has been waiting for, as some sort of understanding was required to try stabilizing the oil market particularly the oil prices. The two oil producers have finally agreed in principle to freeze oil production and persuade other producers to follow suit. So far so good!
They also agreed to form joint committees to work on other details for the meeting which will be held in Algeria before the end of this month. It seems all OPEC members as well as Russia are in agreement to freeze production, and for the super producers to iron out the details in order to produce the final binding agreement………………………………………..Full Article: Source

A surge in speculation is making commodity markets more volatile. A game of cat and mouse appears to be taking place in the oil market. The felines are big producers who want prices to go higher, the rodents speculators betting that they will fall.
Twice this year, in the first quarter and the third, hedge funds and others have taken out record short positions on futures of West Texas Intermediate (WTI), an American crude-oil benchmark, only to be mauled by (so far empty) talk among members of the OPEC oil cartel and Russia of a production freeze. The resulting scramble by funds to unwind their short positions has fanned a rally in spot oil prices………………………………………..Full Article: Source

Price wars can be painful — even for the mighty OPEC. That’s why the oil cartel, along with Russia, is once again entertaining a freeze in production aimed at putting a floor beneath low prices.
The goal is to keep prices high enough to give oil-reliant countries a financial boost, but not so high that they encourage their chief rival — American shale oil producers — to start pumping aggressively again………………………………………..Full Article: Source

OPEC members face a dilemma in the run-up to a new round of oil-production talks later this month: They want to boost crude prices to raise their revenue, but they don’t want to send prices so high that North American shale-oil producers will lift their output.
The result, say officials from members of the Organization of the Petroleum Exporting Countries, is that the cartel is unlikely to make aggressive efforts to curb output when it meets in Algiers beginning Sept. 26………………………………………..Full Article: Source

Gold built on its biggest daily increase since June and traded near the highest in almost three weeks as the dollar weakened amid diminishing chances of a U.S. interest-rate rise in September.
Bullion for immediate delivery was 0.2 percent higher at $1,352.16 an ounce at 11:29 a.m. in Singapore, after surging 1.7 percent on Tuesday, the most since the results of the Brexit vote on June 24, according to Bloomberg generic pricing………………………………………..Full Article: Source

Analysts and investors usually hang on the lips of Glencore CEO Ivan Glasenberg at the group’s results presentations to hear where one of the world’s top commodities traders thinks commodity prices are headed.
Glencore and South32, both with a significant exposure to energy and industrial metals, have reported lower profits for their recent financial periods because of weak prices. But they are showing strong cash generation and their optimism about current conditions, after a general firming in commodities since February/March, is reflected in their dividend policies………………………………………..Full Article: Source

The Energy Information Administration has made some changes to the way it reports figures on weekly U.S. oil production, exports and petroleum demand — and analysts say the moves mark a significant improvement to the data the market heavily relies on.
“The improvements to the EIA data will definitely offer a better read for those tracking the fundamentals of the energy markets compared to the less accurate estimates’ that were previously published,” said Tyler Richey, co-editor of The 7:00’s Report………………………………………..Full Article: Source

Iron ore faces renewed pressure and prices may sink back below $50 a metric ton before year-end as rising supply offsets an improvement in Chinese demand, according to Clarksons Platou Securities Inc., which dubbed the raw material its least favorite commodity.
There’s been a pickup in exports this month after a weak performance in July, said Jeremy Sussman, an analyst at Clarksons Platou in New York. Even as steel output in the largest supplier is set to remain resilient this year, iron ore may sink into the high-$40s, he said in e-mailed comments………………………………………..Full Article: Source

Shares of gold and base-metals producers, among the best-performing industries on the S&P 500 Index this year, are showing signs of fatigue. A stronger dollar and concerns over the prospect of higher U.S. interest rates are helping send a gauge of gold-mining companies tracked by Bloomberg Intelligence to the biggest monthly decline in more than a year, while a base-metals index slides toward its first such loss since May.
Citigroup Inc. cut its six-month stance on the industry to bearish, reversing an upgrade of the sector following the Brexit vote………………………………………..Full Article: Source

Crude markets will continue to be plagued by volatility in the short and medium term after suffering the biggest downturn in a generation over the past two years, according to oil-company executives gathering for one of the industry’s biggest conferences in Norway.
Oil declined on Monday amid doubts producers will agree on a deal to stabilise the market when suppliers meet next month for informal talks. Iran’s plan to continue boosting crude output until it regains its pre-sanctions Opec market share is dimming prospects of collective action, according to Patrick Allman-Ward, the chief executive of Sharjah’s Dana Gas, at the ONS conference in Stavangar, Norway……………………………………….Full Article: Source

India will be hit by an economic crisis if crude oil price crosses USD 60 per barrel, BJP MP Subramanian Swamy said. “Given the state of our economy, if crude oil price per barrel rises above $60 then we will be hit by an economic crisis,” he tweeted.
US benchmark West Texas Intermediate is trading around $47 per barrel while Brent is at $49 currently. The slump in oil prices last year is one of the factors that helped Indian economy notch up big gains by cutting its import bill and reining in inflation……………………………………….Full Article: Source

The International Chamber of Commerce has put forward a set of business recommendations to help leaders of the world’s major economies prepare for discussions on the world’s most pressing economic policy challenges at next month’s G20 Summit taking place Hangzhou, China.
From climate change and energy to taxation and trade, the recommendations cover seven areas not covered by the 20 principle 2016 policy recommendations developed by the Business -20 (B20), and to which ICC significantly contributed and fully endorses………………………………………..Full Article: Source

OPEC’s share of the oil market is at a good level, UAE energy minister Suhail Bin Mohammed al-Mazroui said as the producer group continues to contend with low crude prices. “Regardless of the different views on the oil market, we see that the OPEC current market share is at a good level,” Mazroui said on his official Twitter account on Saturday.
Mazroui also said he believed that any future decision on oil production would require full participation from all members of the Organization of the Petroleum Exporting Countries plus other major producers………………………………………..Full Article: Source

The quintessential first thought when you think of saving water, drilled into us at childhood, is turning off the tap when you brush your teeth. As we age and the world advances — with a global climate agreement and the new Sustainable Development Goals — a broader view on water is now mainstream.
It includes economic pillars such as agriculture; the immense amount of cooling water that power plants need to function; and the water embedded in the food you eat, the cotton shirt you wear and even the smart phones we cannot imagine living without………………………………………..Full Article: Source