• 8 hours Shell Oil Trading Head Steps Down After 29 Years
  • 12 hours Higher Oil Prices Reduce North American Oil Bankruptcies
  • 14 hours Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 15 hours $1.6 Billion Canadian-US Hydropower Project Approved
  • 17 hours Venezuela Officially In Default
  • 19 hours Iran Prepares To Export LNG To Boost Trade Relations
  • 21 hours Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 1 day Saudi Oil Minister: Markets Will Not Rebalance By March
  • 1 day Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 1 day Rosneft Announces Completion Of World’s Longest Well
  • 2 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 2 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 2 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 2 days Santos Admits It Rejected $7.2B Takeover Bid
  • 2 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 2 days Africa’s Richest Woman Fired From Sonangol
  • 3 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 3 days Russian Hackers Target British Energy Industry
  • 3 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 3 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 3 days Lower Oil Prices Benefit European Refiners
  • 3 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 4 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 4 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 4 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 4 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 4 days OPEC To Recruit New Members To Fight Market Imbalance
  • 4 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 4 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 4 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 4 days GE Considers Selling Baker Hughes Assets
  • 5 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 5 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 5 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 5 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 5 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 7 days The Oil Rig Drilling 10 Miles Under The Sea
  • 7 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 8 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 8 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
EVs Won’t Stifle Oil Demand Anytime Soon

EVs Won’t Stifle Oil Demand Anytime Soon

There will be 280 million…

Global Energy Advisory November 17, 2017

Global Energy Advisory November 17, 2017

The IEA’s World Energy Outlook…

Commodity Prices Fall as Fed Announces it may End Quantitative Easing

Commodity Prices Fall as Fed Announces it may End Quantitative Easing

Due to concern over the possibility that the Federal Bank will end stimulus, and the worsening economic situation in China, commodity prices have fallen across the board, including gold, copper, and crude oil.

Chairman of the Federal Bank, Ben Bernanke, announced on Wednesday that bond purchases, which have helped to fuel global markets for some time, may be phased out. Bernanke said that the central bank, which currently buys around $85 billion of Treasury and mortgage debt every month, could begin to reduce this, with a target of completely ending all purchases by the middle of next year.

At the same time as this announcement from Bernanke, a private report showed that China’s manufacturing sector is shrinking, leading to fears that raw-material demand will begin to fall as well. As its economic growth slows, borrowing costs have also increased, as indicated by the seven-day repurchase rate which has risen to the highest level since 2006.

Related Article: Commodity Update: Open Interest Analysis for June 19th, 2013

Sterling Smith, a futures specialist at Citigroup Inc., commented that “investor sentiment has turned negative. The idea that the quantitative easing, sooner or later, is going to have to end, that has made inflation-oriented assets, commodity assets, very, very nervous.”

Michael Hewson, a market analyst at CMC Markets Plc., told Bloomberg on Thursday that “it’s not surprising that oil is lower when you look at the rubbish Chinese PMI data from last night. Added to that, you have Mr. Bernanke’s stimulus withdrawal that may affect growth in the U.S., and these two factors are enough to pull down prices.”

Bloomberg reported that the Standard & Poor’s GSCI Index fell 2.8 percent to 618.23, with all 24 raw materials tracked by the gauge declining. Gold futures fell 6 percent, silver dropped 9.2 percent, and crude oil was down 3.2 percent.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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