LONDON (Reuters) – An end to U.S. monetary stimulus may not necessarily spell doom for commodity prices if a strong U.S. economic recovery boosts demand for oil and base metals, leading commodity managers say, but gold and silver are to be avoided.
Commodities sold off heavily in June following signals from the U.S. Federal Reserve that it would wind down its stimulus program, as long as the U.S. economy continues to improve. The shift in direction led to investors dumping bonds, a sharp rise in real interest rates and a stronger dollar – all of which clobbered commodity prices, particularly gold.
LONDON, July 5 (Reuters) – Britain must get tough with major
oil firms that prevent smaller producers from getting access to
platforms and pipelines, or risk leaving as much as $500 billion
worth of oil in the ground, North Sea oil companies say.
Output from the North Sea has been in steep decline as
mature fields are exhausted and global firms such as BP
and Shell focus on more promising projects elsewhere.
LONDON (Reuters) – Investors sold out of commodity exchange-traded products (ETPs) in June after the U.S. Federal Reserve signalled it would wind down its economic stimulus programme, pushing up real interest rates and making gold less attractive.
But the June outflow of $4.7 billion from commodity ETPs was less than May’s $6.3 billion and April’s record of $9.3 billion, according to data from BlackRock, the world’s largest asset manager. Gold ETP outflows at $4.1 billion accounted for most of the June total.
LONDON, May 24 (Reuters) – A tighter oil market in the
second half of 2013 will boost some energy stocks, which have
trailed the rest of the equity market though the rally, said
Charles Whall, co-manager of Investec’s $1 billion-plus energy
Although investors have flocked to equity markets since the
start of 2013, they have shunned energy stocks. Only basic
materials equities have put in a worse performance.
LONDON, May 22 (Reuters) – Europe’s energy price
manipulation probe has turned regulatory attention to secretive
trading units at oil companies with huge turnover and
millionaire staff with risk appetite higher than at Wall
Street’s biggest banks.
Regulators have scrutinised banks, trading houses and
commodities markets more closely following the Libor benchmark
rigging scandal but trading desks at oil majors have largely
LONDON, May 15 (Reuters) – North Sea oil output is set to
fall by just over 10 percent in June from May largely due to
maintenance in the Ekofisk region, which is expected to support
Norway’s light, sweet grades.
Output from 12 crude streams tracked by Reuters will average
1.734 million barrels per day (bpd) in June, based on the latest
information from loading schedules and trading sources, down
from the 1.932 million bpd in May.
LONDON/NEW YORK, April 29 (Reuters) – Investors are staying
away from commodities, fearing that the worst is yet to come
after prices plunged in April on signs of slower world economic
Wealth managers have been pulling money from commodities
since the start of the year, culminating in a major sell off in
April when investors dumped gold, copper and oil.
LONDON, April 25 (Reuters) – Brent crude oil prices held
above $101 a barrel on Thursday, although scepticism set in that
Wednesday’s rally would be sustained as traders focused on the
weak outlook for global demand and rising supply.
Recent disappointing data from Europe and top oil consumers
the United States and China have stoked worries about global
demand for oil, dragging down prices by more than 5 percent
since the start of April and fuelling speculation about supply
LONDON, April 19 (Reuters) – Commodity funds took a beating
in the first quarter, with the average actively managed fund in
the Lipper Global Commodity sector down 1.83 percent, as market
volatility provided no clear direction.
A cross-commodity sell-off in mid-April led by safe-haven
gold has since compounded the pain. Gold plunged about 13
percent over last Friday and Monday – its worst two-day fall in
LONDON, April 19 (Reuters) – Oil prices climbed towards $100
a barrel on Friday, recovering some ground after a steep six-day
fall, although worries about lower global demand and oversupply
kept a lid on the rebound.
Analysts said the market seemed to be stabilising after a
week of heavy liquidation, in which prices tumbled from over
$106 along with a rout in gold and industrial metals.