LONDON, Dec 15 (Reuters) – Economically sensitive
commodities such as energy and copper may fall by less in 2012
than the consensus view as large-scale monetary easing and tight
inventories lend support, Bank of America Merrill Lynch said on
“Quantitative easing will lend a strong hand next year,”
said Sabine Schels, head of fundamental commodity research,
speaking at the bank’s year-ahead briefing in London. “We see
cyclical commodity prices falling only modestly.”
LONDON (Reuters) – Investors’ dash for cash has overwhelmed gold’s traditional status as a haven from risk, putting the metal on course for its first quarterly fall since end-September 2008, when the global credit crunch was at its worst.
Investors said gold could continue its slide through to the end of 2011 as they liquidate positions in a scramble for dollars at the end of a difficult year, with the euro zone debt crisis causing money markets to seize up.
LONDON (Reuters) – Oil fell $4 on Wednesday amid a deepening euro zone crisis, failed expectations of a new stimulus for the U.S. economy and concerns that oil producing group OPEC may struggle to quickly cut production after formally agreeing a high output ceiling.
Oil together with other commodities suffered from a stronger dollar .DXY as investors diverted money into the greenback to avert risk while the Reuters-Jefferies commodities index .CBR was down by over 2 percent, the lowest since early October and the sharpest drop since mid-November.
The trend hasn’t altered much in the first week of December with gold still the investors’ favourite.
Co-ordinated central bank action to inject more dollar liquidity into the financial system came too late to help the more cyclical commods.
Energy exchange traded products recorded global net outflows again in November despite a strong performance by U.S. crude.
LONDON (Reuters) – High oil prices will help push 2012 global energy exploration and production (E&P) spending to a record high of $598 billion, but the rate of growth will slow from a year ago in part due to wariness about continued economic uncertainty, Barclays Capital said on Monday.
The $598 million is up 10 percent from $544 billion this year, analysts at Barclays found after surveying 350 oil and gas companies.
LONDON (Reuters) – Oil prices rose on Monday with Brent crude futures up near $111, extending gains from last week as rising tensions between Iran and the West increased the risk of disruption to crude shipments by the world’s fifth-largest oil exporter.
Iran warned the West on Sunday that any move to block its oil exports would more than double crude prices with devastating consequences for a fragile global economy.
LONDON (Reuters) – Oil crude futures rose above $107 on Thursday, helped by bigger-than-expected stock draws in the United States and tensions around Iran, while stronger German data offset some of the negative sentiment generated by Wednesday’s poor bond auction.
Brent crude oil futures were up 68 cents to $107.70 a barrel by 1100 GMT. U.S. crude was up 40 cents at $96.57 a barrel. Trading volume is expected to be thin Thursday as the U.S. market is closed for the Thanksgiving holiday.
LONDON (Reuters) – Brent crude oil rose a dollar to over $109 a barrel on Friday, helped by a weaker dollar, after posting steep losses in the previous session, but analysts and traders said the risk remained to the downside given the economic weakness in Europe.
Brent crude was up $1.207 at $109.44 a barrel by 1015 GMT, after closing down $3.66 in the previous session. U.S. crude oil futures were up 72 cents to $99.54.