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

World’s Biggest Miner Prepares For The EV Boom

The world’s top mining company…

Alt Text

Busting The Lithium Bubble Myth

Lithium demand continues to grow…

The World’s Inventory Of This Rare Metal Has Quietly Fallen To Zero

Moly

Here’s a story you haven’t heard anything about. But which might vault into the headlines of the mining investment world very, very soon.

World molybdenum stocks are nearly gone.

That was revealed in data released last week from the London Metal Exchange. With a monthly report from the world’s premier metals trading platform showing that moly stocks have plunged over the last four months at a shocking rate.

As the chart below from LME clearly shows, warehouse stocks of molybdenum began to decline this past May. With the shipments of metal out of warehouses accelerating in July and August — resulting in total inventories falling to below 20 tonnes. A reduction of more than 80% in just a matter of weeks.

You can see the pattern of growing outgoing deliveries in the monthly bar chart below. All told, net outflows from LME warehouses have been 108 tonnes. 

(Click to enlarge)

The outgoing shipments over the summer are especially notable in comparison with the placid trading that LME moly saw during the previous 8 months. Both charts above show that warehouses had been mostly idle up until May — with overall stock levels holding almost exactly even since August of last year.

Perhaps most interestingly, LME reported that the drop in inventories has come as global molybdenum prices have been rising. The chart below shows how prices began to take off in early May — just as outgoing deliveries from warehouses began to pick up. Related: LNA Wrestles Control of Three Libyan Oil Ports from PFG

(Click to enlarge)

Prices have continued their strong trend up till the end of August. Having gained nearly 35% since April.

Of course, it’s hard to tell what’s chicken and what’s egg here. Metal could be moving out of warehouses because rising prices are encouraging sales. Or prices could be rising because buyers are eying the increasingly scarce supply.

Either way, this is an important situation for mining investors to keep an eye on. Watch for LME data next month to see if the drawdown is continuing — and check moly prices for continued upward momentum.

Here’s to a star rising.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Bill Simpson on September 17 2016 said:
    Anybody see Kyle Bass renting warehouses?

Leave a comment




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