LONDON, Nov 8 (Reuters) – A decades-old rivalry between
banks and trading houses in commodities markets is taking new
forms, as banks adjust to tighter regulations and merchant
traders mount increasingly sophisticated challenges.
Banks have long been the dominant players in hedging – when
commodities producers and consumers buy derivatives to help
offset potential sharp price swings.
LONDON (Reuters) – Four NYMEX traders have alleged that the North Sea Brent crude oil market has been manipulated by oil majors and trading houses since at least 2002, in a class action they brought in the wake of a wide ranging European Commission inquiry.
Royal Dutch Shell, BP, Statoil, Morgan Stanley, Trafigura Beheer, Trafigura, Phibro Trading and Vitol are named as defendants in the lawsuit filed in a Manhattan court in October.
LONDON, Oct 30 (Reuters) – Global oil consumers are likely
to feel the benefit of much cheaper fuel by 2020 thanks to the
U.S.-led shale boom, a Reuters survey found.
According to the median estimate of the poll, Brent crude
will average $95 a barrel over the course of 2020, a drop of $20
from the estimate in a similar survey a year ago, even though
spot oil prices have changed little since then.
LONDON, Oct 18 (Reuters) – Brent crude futures held steady
at around $109 a barrel on Friday after strong Chinese Q3 GDP
data was offset by poor September oil demand in the world’s
second largest oil consumer.
Brent crude was up 15 cents at $109.26 a barrel by
0920 GMT but the contract was still poised to lose around 1.9
percent on the week after two weeks of gains. U.S. crude oil
fell 2 cents to $100.65.
LONDON, Oct 15 (Reuters) – This year is likely to be make or
break for commodity funds as supply and demand fundamentals gain
the upper hand in driving prices following five years of dismal
performance determined mainly by economic factors.
The resurgence of fundamentals should, in theory, make it
easier for active managers with specialist knowledge and skills
to deliver decent returns, but this change may not turn out to
be the panacea that they had hoped for.
LONDON, Oct 11 (Reuters) – North Sea oil output tracked by
Reuters will rise by 17 percent in November from October to a
2013 high, potentially putting downward pressure on prices.
Although most European refineries are scheduled to emerge
from seasonal maintenance by November, poor margins may
encourage some to remain idle or resort to run cuts, market
LONDON (Reuters) – Base metals are back in favor with commodity managers after a long period in the dog house, reflecting a new enthusiasm for growth-oriented assets as the global economy picks up.
“The key economic regions of the world have either resumed a slight upward trend or have at least put the worst behind them,” said Ronald Wildmann, an adviser to the GFP Long Mining Fund, which returned almost 15 percent in the third quarter. “In China, the hard landing feared by many has not come to pass.”
LONDON (Reuters) – Broad commodity exchange-traded products (ETPs) returned to favour in the third quarter, attracting some $712 million according to BlackRock data, as investors sought out assets thought likely to benefit from a pick up in economic growth.
Equity ETPs also continued to do well, capturing some $28.7 billion in September, whilst fixed income ETP inflows totalled $6.6 billion. Overall, global ETP inflows reached $35 billion in September.
LONDON (Reuters) – The U.S. shale oil boom has meant a bumper pay day for U.S. refiners, but its light, sweet composition is leading to a shortage of heavy material, distorting product prices around the globe, refiners and consultants say.
Speaking at a the Oil & Money conference in London on Wednesday, Dario Scaffardi, general manager of Saras Group, an independent refiner, said there was a shortage of heavy crude in the Mediterranean basin, even as it was being priced out of the United States by cheap light, sweet Bakken crude.
LONDON (Reuters) – Up to five VLCC North Sea crude oil shipments could move to Asia this autumn after a long hiatus, as the trade becomes more viable following a fall in Brent’s premium over Dubai crude.
Asia’s low sulphur, or sweet, crude and condensate supplies are very tight as arbitrage flows were curbed in August.