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Commodity World Roundup

23rd June – 29th June - Rupee breaching historic lows & its impact

Rupee breaching historic lows & its impact

1. India believes the current slide in the rupee will not be prolonged

June 29, 2018

India believes the current slide in the rupee will not be prolonged as it has adequate "firepower" of foreign exchange reserves to deal with the current volatility, a senior Finance Ministry official said. India hopes to cut losses from the rupee fall with reserves 'firepower'.

Source: Reuters

2. Petrol, diesel to cost more

June 29, 2018

Petrol, diesel to cost more; rupee's fall may not push up airfares for now. Consumers are currently paying six percent more for petrol and 19 percent more for diesel than what they did in May 2014. Even so, Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) might need a further Rs. 2.8-3.7 a litre increase in retail prices to earn normal margins.

Source: Business Standard

3. The rupee fell to an all-time low against the dollar

June 29, 2018

The rupee fell to an all-time low against the dollar on Thursday. Rupee risks frequent pain unless India fixes its thirst for imports, making it the worst-performing currency in Asia this year. There is a reason for that. As the chart shows, India sticks out like a sore thumb among most of the major economies in the Asia-Pacific region because of its large current account deficit.

Source: Business Line

4. Iran oil imports to India exclusive ; India preparing for the cut in oil imports from Iran - Sources

June 28, 2018

India is preparing for the cut in oil imports from Iran. India's Oil Ministry has asked refiners to prepare for a 'drastic reduction or zero' imports of Iranian oil from November, two industry sources said, the first sign that New Delhi is responding to a push by the United States to cut trade ties with Iran.

Source: Business Standard

5. US bailing out struggling coal and nuclear power plants is as important

June 28, 2018

Nuclear, coal bailout worth any cost 'to keep America free'. US Energy Chief, US Energy Secretary Rick Perry said on Thursday that bailing out struggling coal and nuclear power plants is as important to national security as keeping the military strong and that the cost to Americans should not be an issue.

Source: Business Standard

6. India succumbs to U.S. pressure; prepares for the cut in oil imports from Iran

June 28, 2018

The Oil Ministry has asked refiners to prepare for a 'drastic reduction or zero' imports of Iranian oil from November, two industry sources said, the first sign that New Delhi is responding to a push by the United States to cut trade ties with Iran.

Source: Business Standard

7. America appeared to take a step back from the brink of a trade war with China

June 27, 2018

U.S. equity futures reversed earlier losses and European stocks climbed as America appeared to take a step back from the brink of a trade war with China. Senior Trump administration officials said the U.S. will take a less confrontational than expected approach toward the Asian nation. West Texas Intermediate crude traded at a one-month high as America demanded that Iran's customers halt imports.

Source: Bloomberg Quint

8. Chinese stocks enter the bear market

June 26, 2018

Chinese stocks fell, with the benchmark gauge entering a bear market, amid growing concern about the country's resilience to a trade war with the US. The Shanghai composite index fell 0.5 percent at the close, taking its loss since a January high to more than 20 percent. Airlines extended a rout as a slumping Yuan boosted the cost of their dollar-denominated debt, while property developers also sank.

Source: Bloomberg

9. Oil prices rise on uncertainty over Libyan crude exports

June 28, 2018

Oil prices rose on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag.

Source: Reuters

10. Higher crude may bring gain on investor radar

June 26, 2018

When crude oil prices head north globally, investors typically exit Indian state-run energy producers that run the risk of sharing the subsidy burden on motor fuels. Not this time, it seems. India's largest gas transmission company GAIL is set to benefit from higher prices of LPG and petrochemicals while expanding its positive marketing margins on long-term gas contracts. Such benefits could result in a 6-18% earnings upgrade in the next three years for GAIL, which has fallen about 9 percent since the beginning of the year. The stock performance could now reverse.

Source: Economic Times

11. OPEC to increase oil supply, but it may not lead to lower prices

June 25, 2018

The Organization of the Petroleum Exporting Countries (OPEC) and its allies have agreed to 100% conformity with the original deal to cut 1.8 million barrels per day (Mb/d). The group together had reached a conformity level of 147% in May. The decision is expected to increase oil supply by about a million barrels per day.

Source: Livemint

12. Aramco, Saudi Arabian state-owned oil company eyes presence in India

June 25, 2018

Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire "value chain" of India's energy sector. The company did not spell out specifics of the plan but indicated that fuel marketing is one of them. The company is looking at "all options" to enter fuel retailing through partnerships with Indian oil companies.

Source: Reuters

13. Base metals trade negative on trade war worries

June 25, 2018

Since the first week of June, base metals have met with considerable weakness as the trade war between the US and other global economies escalated. With the uncertainty continuing, further correction is expected in the base metal counter. The first and second week of June saw trade war erupting between the US and the European countries, Canada and Mexico. With the standoff with China continuing, US protectionist policies have brought the world to the brink of a global trade war.

Source: Mydigitalfc

14. Oil prices fall on OPEC deal to raise output

June 25, 2018

Brent crude oil prices fell over 1.5% on Monday as traders factored in an expected output increase that was agreed at the headquarters of the Organization of the Petroleum Exporting countries (OPEC) in Vienna on Friday. Despite this, analysts said global oil markets would likely remain relatively tight this year.

Source: Livemint

15. Options volumes in MCX may grow to 60% in 6 months

June 23, 2018

India's largest commodity futures trading platform, the Multi-Commodity Exchange of India (MCX), expects "options" volumes to grow to a minimum of 60 percent of underlying futures contracts within six months.

Source: Business Standard