London Gold Market Report
from Ben Traynor
Wednesday 13 February 2013, 07:00 EST
“Lack of Catalyst” Leaves Gold “Susceptible to Downward Move”, But Silver “Should Move Higher”
THE DOLLAR gold price drifted back below $1650 an ounce Wednesday morning, 1.1% down on the week so far, although it jumped higher in Sterling following after a Bank of England report said policymakers are prepared to “look through” persistently high UK inflation.
“The $1625.77 level remains key [...]
Exxon Mobil is no longer the world’s number-one oil producer. As of last week, that title belongs to Putin Oil Corp – oh, whoops. I mean the title belongs to Rosneft, Russia’s state-controlled oil company.
Rosneft is buying TNK-BP, which is a vertically integrated oil company co-owned by British oil firm BP and a group of Russian billionaires known as AAR. One of the top-ten privately owned oil producers in the [...]
June 24, 2012
The following extract from Charles Gave’s (of GaveKal ) latest letter to clients is a must read for all, especially for the central planning members of the FOMC. The punchline is this statement which is so simple and obvious, it is no wonder virtually noone in control has figured it out yet: “One Cannot Operate A Capitalist System If The State Can Borrow At A Negative Cost.”
From GaveKal [...]
Via Daniel Graeber of OilPrice.com,
The White House announced it was getting into the commodities game in an effort to protect consumers from some of the geopolitical factors spilling over into the retail gasoline market. OPEC and the IEA both said in their monthly reports that market perceptions were behind higher energy prices, not physical shortages. With most U.S. consumers still economically gun shy, gasoline consumption is down amid high retail prices. But [...]
BY JULIAN PHILLIPS
The SWIFT Settlement System
In our previous article we looked at whether the U.S. Dollar was headed for a major fall or not. We demonstrated how the dominance of the U.S. dollar was almost entirely dependent on the grip it had over oil producers and this allowed the oil price to be denominated in the U.S. dollar. The U.S. has gone to war in Kuwait and Iraq over this issue under the guise [...]
From Bank of America
The risks to our outlook
The successful Greek PSI addresses – but does not eliminate – a key contagion risk for US financial markets. Clearly risks are reduced due to the absence of major debt maturities in the coming years as well as the escrow account for interest payments. However, risks remain as the second bailout package for Greece may unravel if the country fails to deliver on [...]
WASHINGTON (AP) — President Barack Obama is hitting back at Republican criticism of his energy policies and his role in controlling gasoline prices.
Obama used his weekly radio and Internet address Saturday to underscore his administration’s work to develop alternative energy sources and increase fuel efficiency.
“I’m going to keep doing everything I can to help you save money on gas, both right now and in the future,” Obama said. “I hope politicians from both [...]
With Russia, China and India each opting to continue trade, the volume of oil and thus the income to Iran is unlikely to substantially decline over the medium to long term. The exemptions to the sanctions are laughable. Italy is being supplied oil by Iran to repay debts so they’re exempt. Greece is so screwed the last thing they can deal with right now is petty logistics, so they’re exempt.
But it turns out there may be more than a political payoff.
“Killing the Keystone XL pipeline may help one of the world’s richest men get richer. North Dakota’s booming oil fields will now grow more dependent on a railroad the president’s economic guru just bought,” Investor’s Business Daily write.
“Interestingly, another billionaire, Obama economic inspiration Warren Buffett, stands to benefit from the Keystone XL pipeline delay,” writes IBD in its Nov. [...]
(Reuters) – The U.S. Fifth Fleet said on Wednesday it would not allow any disruption of traffic in the Strait of Hormuz, after Iran threatened to stop ships moving through the world’s most important oil route.
“Anyone who threatens to disrupt freedom of navigation in an international strait is clearly outside the community of nations; any disruption will not be tolerated,” the Bahrain-based fleet said in an e-mail.
Iran, at loggerheads with the West [...]
Two of China’s biggest oil producers are competing for a stake in a U.S. shale-gas services company—another step in China’s effort to tap its huge reserves of a fuel that has helped the U.S. reduce its dependence on energy imports.
Cnooc Ltd. and China Petrochemical Corp. are competing to buy a 30% stake in Texas-based Frac Tech Holdings LLC in a deal that could be valued at about $2 billion, a [...]
I recently the following quote from a newsletter I receive.
The world’s most revered investment bank was out with even more damaging news. According to Thursday’s Wall Street Journal:
Goldman Sachs Group Inc. said oil supplies will become “critically tight” in 2012, largely because production leader Saudi Arabia won’t be able to pump as much extra oil as many people believe.
Robust global economic growth will continue to drive oil [...]
Venezuela, one of the world’s leading oil producers, is trying to limit its power consumption as the country’s decrepit power utilities struggle to keep up with the demand.
The government on Monday said the biggest electricity consumers — shopping malls, factories, office buildings and even some homes — must trim their energy use by 10 percent compared to their monthly average use.
Vice President Elias Jaua and Electrical Energy Minister Ali Rodriguez [...]
1. The rescue packages in 2008-2009 were all aimed at restoring CONFIDENCE to the financial system. Yet from 2001 to 2011 the DXY is down 41.5 and gold is up 473%. Does this not equate to a loss of confidence in the US monetary system? If not how would you explain this phenomena?
2. In March of 2009 you said the ONLY reason you care about [...]
1. We got trillion in bills to pay this year.
2. They will not default (Not this Year Or Until Forced To)
3. Yes countries have to buy a certain amount of treasuries to get dollars needed to perform the absolute need to import and export goods and services. But consider that the Fed has been buying 70% of the Treasuries currently utilizing the banks as middlemen. Therefore it [...]
NEW YORK (AP) — The price of oil rose to a 30-month high on Thursday as fighters loyal to Moammar Gadhafi pushed back rebels from key areas in eastern Libya.
Benchmark West Texas Intermediate crude rose $2.45, more than 2 percent, to settle at $106.72 a barrel on the New York Mercantile Exchange. At one point it hit $106.83, the highest it’s been since September, 2008. [...]
Opec, the oil producers’ cartel, will reap $1,000bn in export revenues this year for the first time if crude prices remain above $100 a barrel, according to the International Energy Agency.
The cartel has been one of the main beneficiaries of high oil prices, which have soared in recent weeks amid the civil uprisings in the Middle East and north Africa.
Brent crude was trading at $115 a [...]
Oil rose to settle at its highest level since August 2008 on Wednesday after an airstrike near Libya‘s oil infrastructure raised more fears the OPEC nation’s oil sector could become a target in embattled leader Muammar Gaddafi’s efforts to hold power.
News of the strike in Brega, about kilometers (1.2 miles) from a Libyan oil terminal, added to two weeks of fears the unrest could [...]
The national average for a price of self-serve unleaded gasoline at $3.51, says the Lundberg Survey.
(CNN) — U.S. gasoline prices increased nearly 33 cents in two weeks, the second-biggest two-week jump in the history of the gasoline market, according to a new survey of filling stations.
The latest Lundberg Survey of cities in the continental United States was conducted Friday. It showed the national average for a [...]
NEW YORK â€“ Oil prices retreated Monday after their recent surge, as government and industry officials reported that Libya is still exporting at least some crude although strongman Moammar Gadhafi has lost control of the country’s oil fields. .
Last week’s jump above $100 per barrel continues to send ripples through global pipelines. Gasoline prices shot up by more than 13 cents per gallon last week, [...]
As oil prices race toward $100 a barrel, the expectations that gasoline prices will make a leap are running high.
Some traders say $4 a gallon will be a reality in the not-too-distant future, and prices could shoot even higher. But that might be the exception rather than the average in the United States this year unless the Middle East unrest spreads to Saudi Arabia or another [...]
Either this is some computer gone haywire in the closed session, or when America wakes up tomorrow we may be on the verge of another flash crash. As for Brent, it passed $108.50. As a reminder, and people forget this all too readily, each dollar jump in crude wipes out $100 billion in US GDP. That means that at face value, today’s move in the [...]
The economy has remained in a depression since oil prices went off the roof and sank it in mid 2008.
A $1.5 trillion federal deficit per year, 10% unemployment, and our horrible trade imbalances are a terrible price to pay for substandard economic growth, huge corporate earnings, and a stock market bubble. All that money is coming from our pockets. This is the socializing of [...]