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Commodity World Roundup

12th May - 18th May- Oil Price Rally Continues...

Oil Price Rally Continues

OIL MINISTER CONFIRMED SAUDI’S ASSURANCES ON SUPPLY AS OIL HITS $80 PER BARREL

May 18, 2018

Indian Oil minister Dharmendra Pradhan said that Thursday it had received assurances from the world's top oil exporter Saudi Arabia it would ensure adequate supplies to keep a lid on soaring oil prices. Brent oil prices rose back to $80 per barrel for the first time since 2014 due to rising concerns over disruptions to Iranian oil exports because of new U.S. sanctions

Source: Economic times

BRENT OIL AT $80 A BARREL IS A BIG WORRY FOR INDIAN EQUITY INVESTORS

May 18, 2018

Depreciating Indian Rupee against US Dollar is hampering growth in Indian markets, though rupee, however, strengthened on suspected intervention by the Reserve Bank of India which is keeping prices stable at highs. Higher oil prices always affect current account and fiscal deficits.

Source: Economic times

US AS OIL EXPORTER, CRUDE AT $100 ISN’T AS PAINFUL NOW

May 18, 2018

Higher crude oil prices will not affect united sates of America as it is now a significant oil exporter, helping to lessen the damage to its trade balance. Also, the economy uses less energy per unit of GDP than it used to, becoming slightly more efficient with each passing year. Brent is nearing $80 per barrel and some analyst see $100 not far off

Source: Economic times

GOLD TRANSACTION VIA MOBILE APPS TO BE POPULAR IN COMING DECADES

May 18, 2018

Those are familiar with mobile wallet, it is something big news for them as Mobile applications which will allow individuals to buy, sell, invest and gift gold and these are developing rapidly in India and will become increasingly popular in the coming decades.

As Indian are bossed with gold savings are of particular interest, as most households have a future requirement of giving gold or jewellery as wedding gift. This will solve the problem now as ability to buy and accumulate gold via a mobile electronic platform and take delivery at a jewellery store when needed has tremendous potential in India.

Source: Financial Chronicle – mydigitalfc

DOMESTIC FUEL PRICES MAY SPUR FURTHER AS BRENT OIL AT $80

May 18, 2018

Just after Karnataka election, oil companies were bound to increase oil prices, which is further going to increase by Rs. 4 litre. Domestic oil companies, Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) are revising retails prices of diesel and petrol on daily basis after a halt of 19 days

Source: Financial Chronicle – mydigitalfc

GOLD MAY DECLINE FROM MINOR PULBACK TILL $1,305/OZ, NEAR TERM SUPPORT IS AR $1278

May 17, 2018

Comex gold futures were closer to a five-month low while Indian Gold contract on MCX remain in tight range due to depreciating Indian Rupee, as the dollar pared losses against the major currencies and traded within sight of its 2018-peak. Gold failed to retain higher above $1,325 an ounce levels could once again dent the confidence of the bulls leading to bigger fall subsequently. Gold may find support only near $1278.

Source: Business line

LEAD NEAR MONTH EXPIRY MAY REVERSE FROM A CRUCIAL BARRIER

May 17, 2018

Lead futures contract on the Multi Commodity Exchange (MCX) encountered a key resistance at Rs.162.7, has moved below its 200-day moving average at 158.70. Following an upward break out recently now on a sideways range, it met with a key medium-term resistance and 50 per cent Fibonacci retracement level of its prior downtrend at Rs.162.

Only a decisive break above this level will reinforce the short-term uptrend that has been in place from the support level of Rs.150. Any breakthrough can pave way for an up move to Rs.165 and then to Rs.168 in the short-term.

Source: Business line

CRUDE ABOVE $80 GIVES GOVT THE JITTERS

May 17, 2018

As crude oil prices skyrocketed above $80 a barrel for the first time since November 2014, government number-crunchers are feeling fidgety, as it will affect inflation, current account, fiscal position and growth, and call for tighter macroeconomic policies. Sharp selloff is witnessed in equity markets.

Source: Business line

MCX NICKEL IS FACING STIFF RESISTANCE NEAR RS 995-1000

May 16, 2018

MCX Nickel near month expiry contract witnessed a strong rally breaking above the key resistance level of Rs.950 per kg. However, the next resistance in the Rs.995-1,000 As long as the contract trades below Rs.1,000, there is a strong likelihood of it falling to Rs.950 or Rs.945 in the coming days, but in case the contract breaks below Rs.945, it can fall to Rs.920 or Rs.900.

Source: Business line

IEA WARNS GLOBAL OIL DEMAND MAY SUFFER AS CRUDE NEARS $80

May 16, 2018

Global demand for oil is likely to moderate this year, after price of crude nears $80 a barrel. Many key importing nations no longer offer consumers generous fuel subsidies and by considering this point IEA cut its forecast for global demand growth to 1.4 million barrels per day for 2018, from a previous estimate of 1.5 million bpd.

Source: Economic times

GOLD DROPS ON MUTED DOMESTIC DEMAND, WEAK GLOBAL MARKETS

May 16, 2018

Gold prices dived by Rs 430 to Rs 32,020 per 10 gram, Silver also followed suit and lost Rs 250 to Rs 40,650 per kg due to reduced off take by industrial units. Gold weakened as it fell below the USD 1,300 an ounce level now trading near lowest level of USD 1,290.30 an ounce in New York. Besides, fall in demand from local jewellers and retailers at current levels too weighed on the prices, traders said.

Source: Times of India

EQUITY MUTUTAL FUNDS LOG RS 12,400 CR INFLOW IN APRIL, AUM RERDS AT 8 LKH CRORE

May 14, 2018

Investors have pumped in more than Rs 12,400 crore in equity mutual funds in April, taking the assets under management (AUM) to a record Rs 8 lakh crore and this is much higher compared with the more than Rs 6,650 crore inflow into such schemes in March, data from the Association of Mutual Funds in India (Amfi) shows.

Source: Financial Chronicle – mydigitalfc

US OIL OUTPUT TO GROW THIS YEAR: OPEC

May 14, 2018

The US is not a member of OPEC which accounts for more than 40 per cent of the global oil market, booming output of US shale producers, eager to cash in on a rally in oil prices since late last year has proven a headache for combined efforts by both OPEC members and non-members to cut back production to combat a global oil glut.

Source: Money control