• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO

Is This $2 Billion Buy A Sign Of Opportunity In Palladium?

Is This $2 Billion Buy A Sign Of Opportunity In Palladium?

Critical item for the global platinum-group metals market this week. Suggesting that big changes may be ahead for buying and pricing in this space.

Major Russian PGM miner Norilsk said in an interview that it is creating an investment fund to buy palladium. Looking to consolidate much of the world’s privately-held stock of the metal under one umbrella.

Norilsk’s head of strategic marketing, Anton Berlin, told Bloomberg that the planned palladium fund will be of significant scale. With managers looking to buy up to $2 billion worth of the metal. Related: Is Private Equity Distorting E&P Asset Prices?

Berlin said some of this supply will be bought from the Russian central bank. While the remainder will be purchased from hedge funds and other holders.

The plan looks to more than just pie-in-the-sky thinking. With Berlin saying that the fund has already secured $1.6 billion in loan funding with an “international bank” in order to make its palladium purchases.

Norilsk itself is planning to contribute $200 million to the fund — with the company’s billionaire CEO Vladimir Potanin also participating privately. Potanin also said that Russian business magnate Roman Abramovich may contribute. Related: Top 12 Media Myths On Oil Prices

The move would be an interesting one for the PGM market — with the stated aim being to bring more transparency to palladium stockpile levels. Currently, above-ground stocks have proved difficult to assess. Leading to uncertainty about the global supply and demand picture.

If Norilsk does succeed in bringing $2 billion worth of palladium under one roof, investors would likely have a much clearer idea of what’s going on with supply. Potentially revealing that things are tighter than expected in this market. Related: Could We Finally Have A Meaningful Oil Price Rally?

That’s exactly the sort of scenario Norilsk is anticipating. With the company telling Bloomberg that it expects to see PGM production from major mining centers like Africa decline over the coming years.

If such a scenario materializes, the formation of this palladium fund could turn out to be a pivotal moment for the PGM market. Perhaps signaling an opportunity in the making here.

Here’s to funding change,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News