Sat, May 15, 2021
A A A
Welcome vaishu
RSS
Commodities Briefing 24.Oct 2016

Posted on 24 October 2016 by VRS |  Email |Print

International forecasters fear that 2017 will not be a big improvement on 2016 for a sluggish global economy. With plenty of risks ahead including geopolitical and economic instability, here are the five main challenges facing the world economy in the upcoming Year of the Rooster.
The International Monetary Fund has warned that rising populism and protectionism have correlated with stagnating economic growth. In its latest “World Economic Outlook,” the IMF’s chief economist Maurice Obstfeld warned that “turning back the clock on trade can only deepen and prolong the world economy’s current doldrums.”…………………………………Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

A growing number of investors and policy makers, seeing central banks as powerless to revive an anemic global economy, are championing a resurgence of fiscal spending.
A move away from central-bank-led policy, and toward the use of the government’s taxing-and-spending power to revive growth, would end a years-long economic era and could cause upheaval in financial markets. Investors, among them bond king Bill Gross, once feared that government profligacy was a death knell for sovereign bonds………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Saudi Oil Minister Khalid al-Falih said Sunday that the current down cycle of crude prices is close to an end as market fundamentals improve. “The current down cycle is nearing an end,” Falih told a joint press conference with his Russian counterpart Alexander Novak after a Gulf ministerial meeting in Riyadh.
“Market fundamentals, in terms of supply and demand, have begun to improve,” Falih said. Al-Falih said the points of view between the kingdom and Russia, the world’s top oil producer, on the need to stabilise the market “are getting closer.”…………………………………Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

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

Posted on 24 October 2016 by VRS |  Email |Print

Qatar’s fiscal breakeven oil price of $60 a barrel this year is at least 13% lower than the Gulf Cooperation Council (GCC) average but higher than that of Kuwait and the UAE, according to the Institute of International Finance (IIF).
“The significant cut in spending has reduced fiscal breakeven oil prices in all (the Gulf) countries,” Washington-based IIF said, highlighting that the weighted average fiscal breakeven price of oil for the GCC is expected to decline steadily from a peak of $87 in 2014 to $66 by 2017………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Saudi Arabia’s Energy Minister Khalid al-Falih said on Sunday he had invited his Russian counterpart Alexander Novak to meet Gulf Arab energy ministers in Riyadh as part of efforts to cooperate with non-OPEC members to stabilize the oil market.
“Russia is one of the world’s biggest oil producers … and is one of the influential parties in the stability of the oil market,” Falih said at the opening session of the six-member Gulf Cooperation Council (GCC)………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Gold is set to advance by as much as 15 percent before the end of next year as the Federal Reserve goes slow on increasing interest rates and the dollar remains subdued, buoying bullion demand, according to Templeton Emerging Markets Group.
“The Fed is going to increase the rates by a little bit but not excessively and there is no guarantee that a rise in interest rates will put people off,” Executive Chairman Mark Mobius said in an interview at a Bloomberg event in Mumbai. “A lot will depend on the real rates.”…………………………………Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

The gold industry has firmly overcome so many obstacles in 2016, while at the same time reinventing itself, that there are no signs of the weakness some analysts talk about. This is the main takeaway from Haywood Securities latest Gold Producers Industry Report.
The investment dealer remains constructive on the yellow metal sector by pointing to its relatively stable prices and producers’ optimized operations………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

R Srinivasan, MD, Priyanka Bullion, in Madurai, has been in the bullion dealing business for a long time. The North Indian tradition of buying gold during Dhanteras, as part of Diwali, leads to good business during the festival season.
Wanting to buy gold on Dhanteras has increased in recent years, says Srinivasan. This year, too, bookings from his customers have already started. “The influence of North India has increased and people down South, too, think that buying gold on Dhanteras is auspicious. More than jewellery, women now want to buy it as bars of 20/30 gram…” His customers aside, Srinivasan himself too buys gold from the market during Diwali. “I buy for my children, the investment made that day brings luck…”…………………………………Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Two of the world’s largest iron ore producers - Vale SA VALE and Rio Tinto plc RIO - slashed their iron ore outlook. The Anglo Australian miner Rio Tinto tweaked its expectation for shipments to 325-330 million tons for 2016 from 330 million tons while maintaining the iron ore shipment forecast of 330-340 million tons for 2017.
On the other hand, Brazilian miner Vale expects to produce 360-380 million tons of iron ore next year, down from the previous forecast of 380-400 million tons.Production of iron ore rose 2% at Rio Tinto while shipments fell 5% in the third quarter due to port and rail maintenance. For Vale, production increased 1.5% due to improved performance at mines in the northern Amazonian state of Para………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Inflows into global commodity exchange-traded products continued in September, with precious metals the key “driving force,” says Barclays. Analysts report that overall commodity ETPs posted a modest inflow of $1.7 billion last month. Although lower than the year-to-date monthly average of $3.9 billion, this nevertheless means that commodities ETPs collectively have seen inflows every single month so far in 2016, analysts say.
“Precious metals remained the driving force behind ETPs inflows, bringing in $1.64 billion, while ETPs linked to other sectors saw only $0.1 billion of inflows,” the bank says. “As (of) the end of August, precious metals ETPs had combined inflows of $28.2 billion year-to-date, higher than any full-year inflows on record. Precious metals ETP AUM (assets under management) increased to $114.3 billion at the end of September, which is the highest level since May 2013.”…………………………………Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Assets invested in ETFs/ETPs listed in Asia Pacific ex-Japan reached a new record of US$132 billion at the end of 3Q2016, according to independent research and consultancy firm ETFGI. Net flows gathered by ETFs/ETPs in September were $6.46 billion, according to preliminary data from the firm’s September 2016 global ETF and ETP industry insights report.
Record levels of assets were also reached at the end of Q3 for ETFs/ETPs listed globally at $3.41 trillion, in the United States with $2.42 trillion and in Europe at $566.74 billion. At the end of 3Q2016, the Asia Pacific ex-Japan ETF/ETP industry had 929 ETFs/ETPs, with 1,077 listings, assets of $132 billion, from 114 providers listed on 18 exchanges in 14 countries………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

The collapse of the British pound this year (22 per cent versus the euro) has thrown an improvised explosive device into the currency wars and complicated what has become a fairly cosy world of co-ordinated monetary policy.
In Australia, it’s combining with the steadily devaluing yuan to put pressure on the incoming RBA governor, Philip Lowe, to loosen policy some more and stop the Aussie from rising. The trade-weighted index is back above 65, back at the April 2016 peak and near an 18-month high — up nearly 7 per cent in five months — while against the US dollar it’s still below the April high of US78c………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

Zimbabwe seems to be in a mess as a German company, Giesecke and Devrient, refused to print the country’s controversial new currency. The action of the company has forced President Robert Mugabe’s government to delay the introduction of the new currency amid worsening cash shortages.
The Reserve Bank of Zimbabwe (RBZ) announced in May that it will introduce bond notes that will be at par with the United States dollar to address liquidity challenges………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

New analysis finds more international carbon trading could drastically reduce costs of delivering deep emissions cuts. The cost of mitigating climate change could be reduced by almost a third by 2030 through greater cooperation via carbon trading, according to a new report released this week by World Bank.
The analysis, prepared with technical support from consultancies Ecofys and Vivid Economics, found an expanded international carbon market could enable large-scale emissions reductions at a far lower cost than is currently the case………………………………….Full Article: Source

Posted on 24 October 2016 by VRS |  Email |Print

According to a new World Bank report released this week, increased global cooperation through carbon trading could reduce the cost of climate change mitigation by 32% by 2030. Released at an international carbon event held in Vietnam on Tuesday, the State and Trends of Carbon Pricing 2016 report shows that increased international cooperation on carbon trading could enable large-scale emissions reductions at much lower costs than are currently present, based on the carbon mitigation goals currently outlined in the Intended Nationally Determined Contributions (INDCs) filed under the Paris Agreement.
A total of 189 countries representing 96% of global greenhouse gas emissions and 98% of the world’s population have committed to reducing greenhouse gas emissions and adapting to climate change, but now these governments must follow through on these promises………………………………….Full Article: Source

See more articles in the archive

banner
banner
banner
banner
May 2021
S M T W T F S
« Nov    
 1
2345678
9101112131415
16171819202122
23242526272829
3031