Crude oil was little changed near a two-week high in New York after rising yesterday on risks to supplies from the Middle East and Nigeria.
Oman evacuated about 7,000 people from areas in the path of a cyclone heading toward the coast, Agence-France Presse reported. Brent crude oil climbed to $70.40 a barrel yesterday on the risk to tankers operating in the Gulf and the threat of further strikes in Nigeria, Africa's biggest producer.
``Global market forces are playing on the U.S. crude markets again,'' said Tom Hartmann, commodity broker at Altavest Worldwide Trading Inc. in Mission Viejo, California. ``With Brent back above $70 we can't be too far behind.''
Crude oil for July delivery was at $66.08 a barrel, down 13 cents, in after-hours electronic trading on the New York Mercantile Exchange at 7:42 a.m. in Singapore.
The contract rose $1.13, or 1.7 percent, to $66.21 yesterday, the highest close since May 21. Futures touched $66.48, the highest intraday price since April 30.
``There's a storm in the Arabian sea that may threaten shipments,'' Phil Flynn, vice president of risk management at Alaron Trading Corp. in Chicago, said yesterday. ``There are storms, both geopolitical and weather related, that will keep prices rising.''
Tropical Cyclone Gonu strengthened into a Category Four storm with 150 mile-per-hour winds in the Arabian Sea and is forecast to head for Oman, the U.S. Navy said yesterday. The cyclone is moving northwest at 11 miles per hour on a path Navy forecasters expect will take it toward the Gulf of Oman, an important shipping lane for tankers carrying oil from the Persian Gulf.
Monday, June 4, 2007
Gold, Silver are Little Changed as Euro Steadies Against Dollar
June 4 (Bloomberg) -- Gold and silver, little changed in New York, may gain on speculation a decline in the dollar's value against the euro will boost the appeal of the precious metals as an alternative investment.
Gold generally moves in tandem with the euro, which today rose from a seven-week low against the dollar. Before today, gold had gained 6.1 percent this year as the euro climbed 1.9 percent against the dollar.
``The dollar weakness should give gold a boost,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``People are looking for gold to go higher.''
Gold futures for August fell 60 cents to $676.30 on the Comex division of the New York Mercantile Exchange. The price earlier traded as high as $679.50.
Silver for July rose 0.5 cent to $13.745 an ounce. Before today, the metal had gained 6.2 percent this year.
The euro reached a record $1.3681 against the dollar on April 27. The 13-nation currency traded as high as $1.3499 today before paring gains.
Some investors also bought metals as a hedge against a decline in equities, traders said. China's benchmark plunged 7.7 percent today, the biggest decline on record. The index peaked on May 29. The Standard & Poor 500 Index and Dow Jones Industrial Average have also reached all-time highs this year.
``The market is focusing on inflationary concerns,'' said Nick Ruggiero, a trader at Eagle Futures Inc. in New York. ``We have a lot more investors looking to trade gold as a hedge against their stock portfolio.''
Some investors sold gold on speculation last week's rally was overdone. The price rose 1.5 percent on June 1, the most in three months. Gold gained 2.3 percent last week after dropping 4.1 percent in the previous three weeks.
Gold generally moves in tandem with the euro, which today rose from a seven-week low against the dollar. Before today, gold had gained 6.1 percent this year as the euro climbed 1.9 percent against the dollar.
``The dollar weakness should give gold a boost,'' said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. ``People are looking for gold to go higher.''
Gold futures for August fell 60 cents to $676.30 on the Comex division of the New York Mercantile Exchange. The price earlier traded as high as $679.50.
Silver for July rose 0.5 cent to $13.745 an ounce. Before today, the metal had gained 6.2 percent this year.
The euro reached a record $1.3681 against the dollar on April 27. The 13-nation currency traded as high as $1.3499 today before paring gains.
Some investors also bought metals as a hedge against a decline in equities, traders said. China's benchmark plunged 7.7 percent today, the biggest decline on record. The index peaked on May 29. The Standard & Poor 500 Index and Dow Jones Industrial Average have also reached all-time highs this year.
``The market is focusing on inflationary concerns,'' said Nick Ruggiero, a trader at Eagle Futures Inc. in New York. ``We have a lot more investors looking to trade gold as a hedge against their stock portfolio.''
Some investors sold gold on speculation last week's rally was overdone. The price rose 1.5 percent on June 1, the most in three months. Gold gained 2.3 percent last week after dropping 4.1 percent in the previous three weeks.
Home prices grow at slowest pace in 14 years
NEW YORK (Reuters) -- Prices of American homes rose in the first quarter of this year at the slowest annual rate in 14 years, Freddie Mac, the second-largest U.S. home funding company, said Monday.
Home prices did not keep pace with the overall level of inflation during the quarter. As the housing market settles near the bottom of its cycle during the second half of this year, national home price growth will probably slow further, with price declines in many parts of the country, said Freddie Mac Vice President and chief economist Frank Nothaft."Existing home sales rose in the first quarter relative to the fourth quarter, on a seasonally adjusted basis, but were down more than 9 percent from a year ago and as a result home price growth decelerated further," he said in a statement.
Home prices did not keep pace with the overall level of inflation during the quarter. As the housing market settles near the bottom of its cycle during the second half of this year, national home price growth will probably slow further, with price declines in many parts of the country, said Freddie Mac Vice President and chief economist Frank Nothaft."Existing home sales rose in the first quarter relative to the fourth quarter, on a seasonally adjusted basis, but were down more than 9 percent from a year ago and as a result home price growth decelerated further," he said in a statement.
Oil remains a big draw for institutional investors
London: Tension in major exporter Nigeria and anxiety about US gasoline supplies mean oil is still a big draw for institutional investors, even if their initial enthusiasm has waned.
Big financial players, including naturally cautious pension funds, moved into commodities, including oil, over the past five years.
They helped to stoke prices, which have come close to revisiting last year's record highs of near $80 a barrel and few are predicting a crash.
"Oil is still attractive," said Angus McPhail of UK-based fund manager Alliance Trust. The crude oil futures are indicating that prices will continue to rise, he said.
"If that's the case then that does make it quite an attractive way to mitigate risk in equities and other asset classes."
');
Last year began with a surge of institutional investment money that drove a strong rally that peaked at $78.40 in mid-July.
The picture this year appears to be one of growth of these investments, but at a slightly slower rate.
A Barclays Capital survey of institutional investors in February found more than half who took part estimated assets under management in commodity products could reach $120-$150 billion by the end of 2008, assuming $100 billion invested currently.
Big financial players, including naturally cautious pension funds, moved into commodities, including oil, over the past five years.
They helped to stoke prices, which have come close to revisiting last year's record highs of near $80 a barrel and few are predicting a crash.
"Oil is still attractive," said Angus McPhail of UK-based fund manager Alliance Trust. The crude oil futures are indicating that prices will continue to rise, he said.
"If that's the case then that does make it quite an attractive way to mitigate risk in equities and other asset classes."
');
Last year began with a surge of institutional investment money that drove a strong rally that peaked at $78.40 in mid-July.
The picture this year appears to be one of growth of these investments, but at a slightly slower rate.
A Barclays Capital survey of institutional investors in February found more than half who took part estimated assets under management in commodity products could reach $120-$150 billion by the end of 2008, assuming $100 billion invested currently.
Russian chill cast doubts over new oil investment
London: A frostier climate for private investors in Russia, holder of the world's largest natural gas reserves, is likely to stop oil firms from pressing ahead with new projects there.
BP's Russian venture is facing the loss of the licence for the Kovykta gas field. The move follows Kremlin pressure on projects involving companies like Royal Dutch Shell and Total.
"The big oil companies haven't been doing much new in Russia, they have been seeking to hang on to what they've already got rather than signing new deals," said Julian Lee, analyst at the Centre for Global Energy Studies.
"Private investors generally are finding life more difficult. There's a lack of clarity for investors."
Russia's vast resources of oil and gas have prompted Western oil firms, facing increasing difficulties in gaining access to large sources of new reserves, to flock to Russia.
Now, the companies are finding the climate increasingly tricky and, in a shift in tone, some are indicating that new investment might be shelved.
BP's Russian venture is facing the loss of the licence for the Kovykta gas field. The move follows Kremlin pressure on projects involving companies like Royal Dutch Shell and Total.
"The big oil companies haven't been doing much new in Russia, they have been seeking to hang on to what they've already got rather than signing new deals," said Julian Lee, analyst at the Centre for Global Energy Studies.
"Private investors generally are finding life more difficult. There's a lack of clarity for investors."
Russia's vast resources of oil and gas have prompted Western oil firms, facing increasing difficulties in gaining access to large sources of new reserves, to flock to Russia.
Now, the companies are finding the climate increasingly tricky and, in a shift in tone, some are indicating that new investment might be shelved.
Gold May Climb as World's Central Banks Slow Sales, Survey Says
June 4 (Bloomberg) -- Gold may gain for a second straight week on speculation central banks will slow sales of the metal.
Twenty-two of the 32 traders, investors and analysts surveyed by Bloomberg from Sydney to Chicago on May 31 and June 1 advised buying gold, which rose $15.50, or 2.3 percent, to $676.90 an ounce last week on the Comex division of the New York Mercantile Exchange. Two said to sell and eight were neutral.
The European Central Bank, one of 16 signatories of the so- called Central Bank Gold Agreement, said last week it won't sell any more gold until after Sept. 26. It has sold 60 tons since last September. The banks have agreed to sell no more than 500 tons a year and have shed just 290 tons since September 2006.
Last week's gain in gold surprised analysts surveyed May 25 and May 26, who had predicted a loss. The Bloomberg survey has forecast prices accurately in 99 of 162 weeks, or 61 percent.
This week's survey results: Bullish: 22 Bearish: 2 Neutral: 8
Twenty-two of the 32 traders, investors and analysts surveyed by Bloomberg from Sydney to Chicago on May 31 and June 1 advised buying gold, which rose $15.50, or 2.3 percent, to $676.90 an ounce last week on the Comex division of the New York Mercantile Exchange. Two said to sell and eight were neutral.
The European Central Bank, one of 16 signatories of the so- called Central Bank Gold Agreement, said last week it won't sell any more gold until after Sept. 26. It has sold 60 tons since last September. The banks have agreed to sell no more than 500 tons a year and have shed just 290 tons since September 2006.
Last week's gain in gold surprised analysts surveyed May 25 and May 26, who had predicted a loss. The Bloomberg survey has forecast prices accurately in 99 of 162 weeks, or 61 percent.
This week's survey results: Bullish: 22 Bearish: 2 Neutral: 8
Palladium generating support in jewelry sector
Palladium is increasingly attracting more attention among U.S. jewelers, who packed a recent palladium presentation at the Couture 2007 show now on-going in Las Vegas.
Among the presenters were Stillwater President and CEO Frank McAllister, who explained that 20% of the world palladium production is now used in jewelry.
He said that Stillwater recently hosted a select group of metallurgists, research scientists, and manufacturing jewelers at mining operations in Montana. "Their excitement for palladium was really infectious," he declared.
Among those who advocate palladium is Scott Kay, a nationally renowned designer of bridal jewelry, who forecast last year that "palladium is going to explode into our industry, unlike anything we're ever seen before... not because of opinions but because of facts. Because of its purity, color and density factor and all other characteristics it shares with platinum."
"Last year at this point, hardly anybody was carrying palladium," Kay said at last week's panel. "Now there are thousands of retailers selling palladium every day."
McAllister said jewelry manufacturer Hoover & Strong is expected to announce soon that it has developed "a new palladium alloy with a remarkable higher Vickers hardness and having increased rigidity-ideal for use with spring mechanisms, ear wires and other findings requiring maximum shape retention."
He also noted that the International Platinum Group Metals Association is commissioning a study "to provide a palladium marketing blueprint," which is "due out this fall. While it would be premature to project the ultimate outcome of the study or the support level this will result in, this development is big news."
Meanwhile, Johnson Matthey last week unveiled an information and technical manual detailing "palladium's unique working and manufacturing characteristics," which is co-authored by the Palladium Alliance International (PAI) technical advisors Mark and Lainie Mann.
McAllister said PAI has commissioned Germany's Research Institute for Precious Metals and Metals Chemistry (fem) to design a technical document for best practices in palladium casting.
Among the presenters were Stillwater President and CEO Frank McAllister, who explained that 20% of the world palladium production is now used in jewelry.
He said that Stillwater recently hosted a select group of metallurgists, research scientists, and manufacturing jewelers at mining operations in Montana. "Their excitement for palladium was really infectious," he declared.
Among those who advocate palladium is Scott Kay, a nationally renowned designer of bridal jewelry, who forecast last year that "palladium is going to explode into our industry, unlike anything we're ever seen before... not because of opinions but because of facts. Because of its purity, color and density factor and all other characteristics it shares with platinum."
"Last year at this point, hardly anybody was carrying palladium," Kay said at last week's panel. "Now there are thousands of retailers selling palladium every day."
McAllister said jewelry manufacturer Hoover & Strong is expected to announce soon that it has developed "a new palladium alloy with a remarkable higher Vickers hardness and having increased rigidity-ideal for use with spring mechanisms, ear wires and other findings requiring maximum shape retention."
He also noted that the International Platinum Group Metals Association is commissioning a study "to provide a palladium marketing blueprint," which is "due out this fall. While it would be premature to project the ultimate outcome of the study or the support level this will result in, this development is big news."
Meanwhile, Johnson Matthey last week unveiled an information and technical manual detailing "palladium's unique working and manufacturing characteristics," which is co-authored by the Palladium Alliance International (PAI) technical advisors Mark and Lainie Mann.
McAllister said PAI has commissioned Germany's Research Institute for Precious Metals and Metals Chemistry (fem) to design a technical document for best practices in palladium casting.
Subscribe to:
Posts (Atom)
