Commodities

April 16 2013 5:50 PM

Is the worst of the risk asset selling over or was Tuesday's trading activity just a bit of short covering rally in a broader downtrend that is just getting underway? Tuesday's trading session saw a partial recovery in equity values in selective market like the US with Europe closing lower and Asia getting ready to start a new session. As is normally the case the market sentiment tends to quickly react to changes in the status of the global economy as has been the case for the last several days.

April 16 2013 7:56 AM

Brent crude oil fell nearly $3 on Monday to slipped below $100 a barrel after investors pulled out of the commodities market. Brent traded at $99.55 on Tuesday morning at 6:00 GMT after weak data supported concern about diminishing global demand. Data from China showing stunted economic growth in the number two oil consumer was unexpected and rattled markets. Economic growth in the first quarter of 2013 was just 7.7 percent, much lower than the forecast 8 percent and down from 7.9 percent in the final quarter of 2012. The news gave many reason to doubt China's recovery and sparked a sell off within the commodity market.

April 15 2013 5:07 PM

The U.S. mining industry was dealt a devastating blow as Kennecott Utah Copper’s Bingham Canyon Mine experienced a pit wall failure causing a massive landslide with rocks and dirt covering the bottom of the mine pit. It’s a miracle no one was hurt due to the vigilance of its owner, Rio Tinto.

April 15 2013 9:39 AM

Most risk asset market are starting the week in negative territory after China's latest GDP number for the first quarter came in at 7.7 percent or 0.2 percent below the fourth quarter level. The market was expecting an 8 percent growth rate. China is the main global economic and commodity growth engine of the world. With China looking like it is also entering a slowing pattern demand for energy and most other major commodity markets is likely to falter and thus act as a downside catalyst for prices. With the rest of the world in a mediocre economic pattern falling oil and commodity prices could be a strong positive for the global economy.

April 12 2013 8:55 AM

With all three forecasting agencies (IEA, EIA and OPEC) painting a weakening picture for global oil demand growth for 2013 coupled with a disappointing weekly oil inventory snapshot this week the oil complex has been moving lower for the last several days. This month all three agencies reduced their growth forecast for oil. This is the third month in a row that the IEA lowered its projection. This has resulted in a bearish view starting to permeate around the market and a realization that slow economic growth in some countries like the US is not enough to result in a strong growth spurt in oil consumption.

April 11 2013 8:44 AM

Brent crude oil slid to $105.51 at 6:36 GMT on Thursday morning amid growing concern about global demand caused by higher inventories and reduced global demand forecasts. Following the US Energy Information Administration's revised, lower 2013 oil demand projection earlier in the week, the Organization of Petroleum Exporting Countries followed suit and trimmed its forecast for oil demand growth as well.

April 10 2013 8:53 AM

After a few days of short covering the oil complex is starting today's session on the defensive after a bearish API fundamental snapshot along with a weak demand projection by the EIA in their monthly Short Term Energy Outlook report. Oil prices are drifting lower ahead of this morning's EIA oil inventory report. I still view the movement in the oil complex on Monday and Tuesday as mostly driven by short covering after last week's strong declines. The fundamentals are becoming more bearish but the technicals are improving slightly and once again are starting to show the early signs of forming a bottom. All of the commodities in the complex are in a trading range with WTI and Brent currently near the upper end of the range while refined products are in about the middle of the range. The external oil price drivers… equities and the US dollar were both supportive for oil on Tuesday.

April 09 2013 9:42 AM

Until recently Tunisia was considered to be a minor league and relatively underexplored venue in Africa's rapidly expanding oil & gas scene. This situation has quickly changed with new bid rounds and forced relinquishments creating an opportunity for new companies to come in. Major American E & P companies like Shell have jumped at the opportunity to acquire ground that had been dominated for decades with little to no work conducted, mostly by European State oil & gas companies in this former French protectorate. For the first time major spending has been committed to test Tunisian basins which are arguably equally prolific as those in neighbouring environments with more work performed, such as Libya.

April 09 2013 9:05 AM

Brent crude oil dipped below $105.00 on Monday after choppy trading brought prices down. The commodity reached above $105.00 on Tuesday morning following data that showed China's inflation eased in March and traded at $105.18 at 6:23 GMT. Oil prices have been under heavy pressure this year as slow growth in the world's top consumers have reduced demand and raised oil inventories.