The main tag of GoldPrice Articles.

You can use the search box below to find what you need.

Filter by Custom Post Type
Select all
Posts
Pages

13 04, 2024

Coffee prices predicted to keep rising under impact of world prices

By |2024-04-13T06:50:11+02:00April 13, 2024|Forex News, News|0 Comments


The Vietnam Coffee Cocoa Association (VICOFA) predicted that prices of coffee in the country will keep increasing because coffee prices in the world have constantly fluctuated.
VICOFA predicts coffee prices will keep rising under impact of world prices

However, VICOFA said that it is difficult to say how much the specific increase will be.

SGGP newspaper on April 2 published an article that increased raw coffee prices delight farmers, yet cause unease among businesses. On April 6, SGGP Newspaper reported that coffee prices in the Central Highlands region had exceeded VND100,000 a kg and coffee prices in many places kept increasing by VND3,000 a kg on April 7.

The Vietnam Coffee and Cocoa Association (VICOFA) said that the general trend is that domestic coffee prices are still increasing due to the direct impact of constantly fluctuating world coffee prices; yet, the association can’t forecast the specific increase level.

According to the Ministry of Agriculture and Rural Development, Vietnam is the second largest supplier of coffee output in the world after Brazil. According to estimates, prolonged drought and heat will reduce output by about 20 percent in the Southeast and Central Highlands regions.

Purchasers and processing coffee exporters said that if the prices of raw coffee continue to increase and are as difficult to forecast as they are currently, it will continue to affect production and business activities. As a consequence, many businesses dare not to sign stable export contracts with partners but only spot contracts – buying or selling coffee for immediate settlement (payment and delivery) on the spot date.

Economic experts also warn that rising coffee prices will be very beneficial for farmers.

However, increasing prices will show signs of virtual increases resulting in some instability in the domestic market because establishments holding large amounts of coffee stop selling or they are hoarding goods to wait for new prices, which can lead to a frozen market or slow transactions.

The Ministry of Agriculture and Rural Development further informed that this year’s coffee crop will not be harvested until around October. To ensure stable productivity and the output of raw material, the Department of Crop Production under the Ministry of Agriculture and Rural Development has sent a document to localities requesting to assess the current production – consumption situation as well as the weather to continue to monitor developments and provide forecasts so that responsible agencies can give early guidance.

According to Director Nguyen Nhu Cuong of the Department of Crop Production’s preliminary assessment, this year’s productivity and output of the coffee crop in the country only reduced due to drought. In the immediate future, the Department of Crop Production continues to ask localities to guide people in implementing preventative measures to cope with drought early and work to have enough water for irrigation.

By Phuc Hau – Translated by Anh Quan





Source link

12 04, 2024

Copper climbs to 2024 high as Wall Street banks raise price forecasts

By |2024-04-12T18:43:32+02:00April 12, 2024|Forex News, News|0 Comments


Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022.

Bloomberg | Bloomberg | Getty Images



Source link

12 04, 2024

Ethereum Price Prediction 2024

By |2024-04-12T16:43:10+02:00April 12, 2024|Forex News, News|0 Comments


Key points

  • Ethereum enters 2024 with bullish momentum.
  • The SEC might approve the first ethereum spot ETFs soon. 
  • The long-term upside hinges on the coin’s popularity.

Ethereum’s momentum is carrying forward into 2024. The world’s leading altcoin is soaring to highs not seen since 2021.

What’s causing the ethereum rally? Well, investor sentiment has increased since the Securities and Exchange Commission approved the first spot bitcoin exchange-traded funds earlier this year.

Ethereum spot ETFs might be just around the corner. That prospect could open the door for a wave of institutional investors and send ethereum prices to new all-time highs. 

Ethereum performance

Ethereum prices surged to new 52-week highs in mid-February 2024 and topped the $4,000 level in early March 2024.

The spot bitcoin ETF news has been the most significant cryptocurrency catalyst in 2024. But ethereum could also rally in the coming months if the Federal Reserve cuts interest rates sooner or more aggressively than expected.

ETH prices are up 48% in 2024. That’s roughly in line with bitcoin’s year-to-date gain. As of late March, Ethereum is trading below its all-time high of $4,891 set in November 2021. 

Additional upside in 2024 depends on monetary policy. It also hinges on clarity regarding crypto regulations and ethereum’s ability to demonstrate scalability. The scalability factor is important as the number of decentralized applications on its blockchain grows.

Ethereum price stats

Ethereum price prediction 2024

Ethereum’s momentum has been bullish in 2024. Its chart looks impressive, too. The crypto experienced a “golden cross” when its 50-day simple moving average crossed above its 200-day SMA in November 2023. That’s a bullish technical indicator.

The leading altcoin might be overbought in the near term due to the rally in February and March. But a pullback to around the 50-day SMA at $3,000 wouldn’t necessarily be a bearish signal. The key resistance level to watch is $4,000, where the ethereum rally stalled in March.

If ethereum breaks out above $4,000 in 2024, the next key level will be surpassing the all-time high of $4,891.

Industry price targets for ethereum in 2024 range between $2,600 and $20,000. But crypto markets are unpredictable and volatile. So take price targets with a grain of salt. 

Ethereum spot ETFs

The SEC delayed its ruling on BlackRock’s ethereum spot ETF application.

News on the approval and subsequent launch of ethereum spot ETFs could be a major bullish catalyst. But the SEC might want to observe the spot bitcoin ETFs for an extended period before giving other spot crypto ETFs the green light. 

Bloomberg ETF analysts recently lowered their odds of an ethereum spot ETF approval by May 2024 to just 30%.

Ethereum price prediction 2025

Ethereum models and predictions get even less reliable when you look to 2025. Several variables could impact the crypto’s price next year. 

Artificial intelligence-based websites, crypto traders and industry analysts have 2025 ethereum price targets ranging from around $6,000 to above $21,000. Industry insiders project the crypto will reach nearly $7,500 by 2025.

Fintech solutions provider Modulus Global’s models predict ethereum will reach $6,828 during the current cycle. But Modulus CEO Richard Gardner said that peak could be one to three years away.

Will ethereum outperform bitcoin eventually?

Both cryptos have performed extremely well. But bitcoin’s 153% gain in the past year has topped ethereum’s 104% gain as spot bitcoin ETFs have grabbed headlines.

Ethereum has been the better investment over a longer period, though. It’s generated nearly double the return of bitcoin over the past five years. But in context, ethereum had a longer runway, trading at less than $200 in April 2019. 

Lucas Kiely, chief investment officer at Yield App, said comparing bitcoin and ethereum is like comparing apples and oranges. While Kiely noted ethereum could outperform bitcoin eventually, many analysts say it’s unlikely to happen in the short term.

Historical sentiments: Ethereum price history

The ethereum blockchain went live in 2015 and spent most of its first few months trading for less than $2. Ethereum didn’t generate significant price momentum until skyrocketing bitcoin prices gained mainstream awareness in late 2017. 

ETH prices hit $100 for the first time in May 2017. They broke above $1,000 in January 2018 after the launch of the first bitcoin futures contracts in December 2017. 

CME Group’s bitcoin futures were the first crypto-related financial products from a mainstream financial institution. It followed up with ethereum futures contracts in September 2022. 

Ethereum prices peaked above $1,300 in January 2018 before plummeting to less than $100 by December 2018. 

Ethereum trading during the COVID-19 pandemic

Crypto trading became trendy once again during the COVID-19 pandemic. The price of ethereum soared to new all-time highs and peaked at nearly $5,000 in November 2021. That was before rising interest rates triggered a sell-off in cryptos in 2022. 

The 2022 sell-off created chaos in the crypto market. Luna and its associated stablecoin terra completely collapsed in May 2022. Crypto exchange FTX and a handful of other prominent crypto firms and crypto lenders filed for bankruptcy protection later that year. 

Crypto winter and beyond

Ethereum prices dropped as low as the $1,000 threshold during the crypto winter of 2022. But ETH made it back above $1,500 by January 2023. Since then, it’s continued gaining ground throughout the year. ETH finished 2023 in the $2,200 range.

The crypto rally picked up in early 2024 following the launch of the first spot bitcoin ETFs. The SEC approval sent ethereum’s price above $4,000 for the first time in more than two years.

Ethereum’s utility

Bitcoin is used primarily as a store of value and a means of value transfer. The ethereum blockchain network, on the other hand, has a unique utility for dApp developers. They use the ethereum network to develop other cryptocurrencies, trade non-fungible tokens, and create and run smart contracts and other decentralized finance applications. 

Bitcoin’s overall crypto market dominance has been on the rise. But ethereum’s utility and decentralization have helped it continue to dominate the sprawling field of altcoins.

Ethereum is also the most popular blockchain for NFT sales. Its network has nearly 60% more NFT sales than the bitcoin blockchain. It also has significantly more NFT sales than any other blockchain, according to CryptoSlam.

Finally, ethereum’s transition from proof-of-work verification might make the crypto more scalable. It’s also more appealing to those who are concerned about the environmental impact of crypto mining. 

Ether futures

Ethereum is the only crypto other than bitcoin with futures contracts that trade on the Chicago Mercantile Exchange. Futures contracts are agreements to buy or sell an asset at a specific price at a future date. They can provide a high degree of leverage that can supercharge returns.

Futures trading is prevalent among institutional investors. And ethereum futures can serve as useful hedges against bitcoin positions. 

You can trade ethereum futures contracts as a retail investor. But their inherent volatility creates an additional dimension of risk on top of an extremely volatile and risky crypto.

Can ethereum hit $20,000?

Determining a true value for ethereum can be difficult for even professional financial analysts. The crypto doesn’t generate cash flow or revenue like a traditional business. It also doesn’t represent ownership of a physical asset or intellectual property.

Analysts at VanEck use estimates of total ethereum network revenue to make long-term price projections for the crypto. VanEck forecasts that ethereum network revenue will climb from $2.6 billion to $51 billion by 2030. 

The firm’s bull-case projection of $136.7 billion in 2030 revenue represents a best-case scenario ethereum price target of around $51,000.

Can ethereum reach $50,000?

Ethereum prices could surpass $50,000 by 2030 in a best-case scenario, according to VanEck. But that would require a significant rise in activity on the ethereum blockchain over the next six years. When more apps are running on the blockchain, increased fee revenue is generated.

Kadan Stadelmann, chief technology officer at Komodo Platform, said such growth hinges on the ethereum network’s scalability. 

“If the ethereum network becomes more scalable, ETH could be a good investment alternative to bitcoin. However, reaching $50,000 during the next bull market cycle is possible … but unlikely,” Stadelmann said.

Should you invest in ethereum?

The ethereum blockchain has emerged as the top blockchain for dApp developers. That positions the crypto as a key player in the future of finance, NFTs and other industries. The more popular the ethereum network becomes, the more the long-term bull case makes sense.

But there is no guarantee ethereum will maintain its position as the top dApp blockchain over the long term. The crypto has been an excellent long-term investment up to this point. That said, ethereum prices have always been extremely volatile and prone to extreme sell-offs.

Frequently asked questions (FAQs)

Ethereum’s all-time high was $4,891 in November 2021.

Ethereum might be an appropriate investment for short-term market speculators and traders who have a high risk tolerance and are looking for an extremely volatile asset. 

But ethereum has an unproven long-term track record compared to assets such as gold, stocks and bonds. Don’t assume its strong past performance is a guarantee of future returns.

It’s extremely difficult to accurately predict the price of crypto given fluctuations in the market are based largely on investor sentiment. VanEck forecasts ethereum prices will reach a base of around $11,800 by 2030. Its best-case bull scenario for 2030 is around $51,000.



Source link

11 04, 2024

XAU/USD hovers around $2,350 with buyers in control

By |2024-04-11T23:21:26+02:00April 11, 2024|Forex News, News|0 Comments


You have reached your limit of 5 free articles for this month.

Get Premium without limits for only $9.99 for the first month

Access all our articles, insights, and analysts.

Your coupon code





UNLOCK OFFER

XAU/USD Current price: $2,350.55

  • The US Producer Price Index rose by less than anticipated in March.
  • The European Central Bank kept its monetary policy unchanged in April.
  • XAU/USD resumes its advance and aims to challenge the record high.

Spot Gold recovered some of the ground lost on Wednesday and trades near its daily high at $2,350.69. XAU/USD showed little reaction to Thursday’s headlines as the European Central Bank (ECB) unveiled its decision on monetary policy. On the one hand, the central bank left its monetary policy unchanged, as expected. On the other hand, officials maintain a cautious but optimistic stance, paving the way for a rate cut next summer. President Christine Lagarde repeated they remain data-dependent but noted, “We will get a lot more data by June.”

Meanwhile, the United States (US) reported that the March Producer Price Index (PPI)  rose 0.2% MoM and 2.1% YoY, below expectations. The core annual PP  was up 2.4%, above the 2.3% expected and the 2.1% posted in February. Also, Initial Jobless Claims for the week ended April 5 were up by  211K better than the 215K expected and easing from the previous 222K. The US Dollar shed some ground with the slower-than-anticipated PPI but resumed it after Wall Street’s opening, as stock could not retain the initial momentum.

Stock markets trade mixed, but overall, the market is in a sour mood. The US Dollar extended its advance against most major rivals to fresh weekly highs, while the fact that Gold remains afloat indicates continued demand for safety.

XAU/USD short-term technical outlook

From a technical point of view, the daily chart for XAU/USD shows the risk remains skewed to the upside. Technical indicators have resumed their advances in overbought territory after pulling back from extreme readings. At the same time, the pair develops above all its moving averages, which retain their upward slopes.

The near-term picture supports another leg north. In the 4-hour chart, XAU/USD is extending its recovery above a flat 20 Simple Moving Average (SMA), while the longer moving averages keep heading north far below the current level. The Momentum indicator struggles to recover above the 100 level, while the Relative Strength Index (RSI) indicator aims north around 59, reflecting increased buying interest.

Support levels: 2.327.65 2,319.20 2,303.80  

Resistance levels: 2,354.70 2,365.25 2,380.00  

XAU/USD Current price: $2,350.55

  • The US Producer Price Index rose by less than anticipated in March.
  • The European Central Bank kept its monetary policy unchanged in April.
  • XAU/USD resumes its advance and aims to challenge the record high.

Spot Gold recovered some of the ground lost on Wednesday and trades near its daily high at $2,350.69. XAU/USD showed little reaction to Thursday’s headlines as the European Central Bank (ECB) unveiled its decision on monetary policy. On the one hand, the central bank left its monetary policy unchanged, as expected. On the other hand, officials maintain a cautious but optimistic stance, paving the way for a rate cut next summer. President Christine Lagarde repeated they remain data-dependent but noted, “We will get a lot more data by June.”

Meanwhile, the United States (US) reported that the March Producer Price Index (PPI)  rose 0.2% MoM and 2.1% YoY, below expectations. The core annual PP  was up 2.4%, above the 2.3% expected and the 2.1% posted in February. Also, Initial Jobless Claims for the week ended April 5 were up by  211K better than the 215K expected and easing from the previous 222K. The US Dollar shed some ground with the slower-than-anticipated PPI but resumed it after Wall Street’s opening, as stock could not retain the initial momentum.

Stock markets trade mixed, but overall, the market is in a sour mood. The US Dollar extended its advance against most major rivals to fresh weekly highs, while the fact that Gold remains afloat indicates continued demand for safety.

XAU/USD short-term technical outlook

From a technical point of view, the daily chart for XAU/USD shows the risk remains skewed to the upside. Technical indicators have resumed their advances in overbought territory after pulling back from extreme readings. At the same time, the pair develops above all its moving averages, which retain their upward slopes.

The near-term picture supports another leg north. In the 4-hour chart, XAU/USD is extending its recovery above a flat 20 Simple Moving Average (SMA), while the longer moving averages keep heading north far below the current level. The Momentum indicator struggles to recover above the 100 level, while the Relative Strength Index (RSI) indicator aims north around 59, reflecting increased buying interest.

Support levels: 2.327.65 2,319.20 2,303.80  

Resistance levels: 2,354.70 2,365.25 2,380.00  



Source link

11 04, 2024

Brent Could Climb to $95 as Bullish Sentiment Builds

By |2024-04-11T18:28:27+02:00April 11, 2024|Forex News|0 Comments


As bullish sentiment continues to build and Brent settles comfortably above the $90 mark, oil prices look set to continue to climb this week.








– German industrial production finally broke through the cycle of gloom after it posted a 2.1% increase in February, well above the consensus expectation of a 0.5% rise month-over-month.

– Although Germany’s manufacturing is still below its pre-pandemic levels, the surprise hike in activity fuelled this week’s copper rally and reinforced the expectation of the ECB cutting rates from June onwards.

– In contrast to actual figures, business sentiment in Germany remains sour as the S&P Global PMI index dropped as low as 41.6 in March, from 42.5 in February, suggesting the country’s manufacturers don’t necessarily share the optimism.

– Europe has been the laggard continent in terms of rising commodity demand as oil demand keeps on trending flat, electricity demand has now declined for two consecutive years, and steel production has fallen to its lowest level on record. 



Market Movers

– UK-based oil major Shell (LON:SHEL) and Saudi Aramco (TADAWUL:2222) are reportedly vying for the LNG assets of Pavilion Energy, a trading firm set up by Singapore’s Temasek, in a deal that could be worth 2 billion.

– UK oil major BP (NYSE:BP) is reportedly nearing an agreement with Anglo-French upstream firm Perenco to divest its Amherstia, Cashima, and Immortelle gas fields in Trinidad and Tobago.

– French energy major TotalEnergies (NYSE:TTE) has postponed a final investment decision on its Papua LNG project to 2025, saying more alignment would be required with engineering contractors.

Tuesday, April 09, 2024

Brent crude futures have established a firm footing over the $90 per barrel mark and not even a brief opening for a potential ceasefire in Gaza managed to pull it lower. Mexico cutting oil exports will ensure bullish sentiment continues to build in the coming weeks, with further directionality set by the US and Chinese inflation numbers this week, potentially even paving the way for a climb closer to $95 per barrel. 

LNG Prices Keep Calm Despite Strong Asian Buying. Spot LNG prices in Asia have been rangebound in recent weeks around $9 per mmBtu despite higher-than-usual buying from China and Japan as European LNG imports are set to drop to a 7-month low of 8 million tonnes on high gas inventories. 

Mexico Keeps on Cutting Oil Exports. Having withdrawn 436,000 b/d of crude oil exports in April, Mexico’s state oil firm Pemex intends to cut its May exports by 330,000 b/d. The country has refrained from declaring force majeure on its supply contracts despite stretched crude production. 

Guyana Struggles to Launch Its Gas Bonanza. Whilst Guyana’s oil production has been surging recently, its $1.9 billion gas-to-power project is running at least six months behind schedule, with operator ExxonMobil (NYSE:XOM) forced to halt 400,000 b/d of production for a month in Q3. 

Iraq Mulls Restart of Idled Pipeline. The restart of Kurdish crude exports to the Turkish coast is unlikely to materialize anytime soon, but Baghdad is repairing the 350,000 b/d Kirkuk-Ceyhan pipeline destroyed by ISIS in 2014, potentially re-routing some of its exports as soon as next month. 

Hedge Funds Embrace the Bullish Mood. Portfolio investors purchased the equivalent of 37 million barrels in key oil-related futures and options in the week ending April 2, with net length in Brent now standing at 300 million barrels whilst the outlook on WTI is more cautious, at 208 million barrels of net length.  

Nigeria’s Fuel Woes Bubble to the Surface. Nigeria’s national oil company NNPC is reported to owe $3 billion to fuel traders in the African country as the reimposition of fuel subsidies makes retail sales a loss-making business for the NOC, with payments taking more than 130 days to come through. 

Shell Mulls Delisting from London Exchange. UK-based energy major Shell (LON:SHEL) is reportedly looking at all options including switching its listing from London to New York, saying that if the European valuation gap doesn’t improve by mid-2025, the company could make a move. 

Fierce Pipeline Dispute Moves to FERC. US midstream firm Energy Transfer (NYSE:ET) has asked the Federal Energy Regulatory Commission to look into the activities of Williams Cos Inc., saying it builds interstate pipelines without approval whilst the latter claims ET is blocking other operators from building new projects by not allowing them to cross existing pipes.

Guinea Is Running Out of Electricity. The African country of Guinea is facing an electricity market collapse as the state-owned utility firm announced it would deepen power cuts as energy sources get depleted, stemming from extremely low hydropower generation as well as breakdowns at thermal plants.  

Copper Bulls Are Riding High Again. The three-month LME copper benchmark contract reached $9,450 per metric tonne for the first time since January 2023 as a steady inflow of hedge fund investments keeps the bullish momentum going, buoyed by improving manufacturing data from the EU. 

Panama Canal Water Levels to Rise. The Panama Canal Authority indicated that water levels in the Gatun Lake should gradually increase from the end of May as the rainy season takes over in Latin America, with drought-heavy El Nino conditions giving way to La Nina, bringing more rainfall. 

Leaking Gulf of Mexico Pipeline to Restart Soon. The Main Pass Oil Gathering (MPOG) pipeline has successfully undergone a line integrity test and will be restarted soon after transportation was halted for more than six months, shutting 61,000 b/d of offshore production, following a November spill. 

Floods Prompt Russian Refinery Shutdown. Russian oil company Forteinvest shut its 135,000 b/d Orsk refinery in southern Russia because of unprecedented flooding on the Ural River, halting ongoing maintenance works as its product stocks would be enough to cover 10 days of regional fuel consumption.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:



Source link

11 04, 2024

Hindustan Copper shares gain most in four months after Copper prices surge to 15-month high

By |2024-04-11T18:28:25+02:00April 11, 2024|Forex News|0 Comments


Shares of Hindustan Copper gained as much as 9.8% on Tuesday, marking its biggest single-day gain since December 2023. The stock is also out of the F&O ban in today’s trading session, which means new positions can be taken in the stock.The stock also surged after global Copper prices traded near a 15-month high as supply tightened and global manufacturing picked up.

Prices of Copper have risen almost 10% this year as disruptions at major mines threaten refined metal production at Chinese plants, that account for more than half of the world’s supply, according to a Bloomberg report.

In an interaction with CNBC-TV18 on April 2, Rakesh Arora of GoIndiaStocks.com said that he would advise investors to not waste time on Hindustan Copper, citing that the company’s valuations are unreasonable.At current levels, the stock is trading at a current-year price-to-earnings multiple of 118.6 times, compared to its five-year average of 49.89 times.

On the charts, while the stock trades above all of its key moving averages, the Relative Strength Index (RSI) of the stock is now at 77, which means the stock is in overbought territory. An RSI reading above 70 indicates that the stock is overbought.

Hindustan Copper is the only listed pure play stock on copper prices in India.

While 66% stake in this PSU is held by the government, LIC holds a 8.17% stake. Quant Smallcap Fund and SBI PSU Fund hold a 1.76% and 1.23% stake in the stock respectively.

Shares of Hindustan Copper are now trading 10% higher at ₹364.45. The stock is already up 35% so far in 2024, while over the last 12 months, the stock is up 262%.



Source link

11 04, 2024

Crude oil prices slip as Israeli peace talks resume with Hamas

By |2024-04-11T18:28:23+02:00April 11, 2024|Forex News|0 Comments


The increased talks for peace in Gaza led crude oil prices to a fall on Monday as Israel reduced the number of troops it had in the fighting with Hamas.

US benchmark, West Texas Intermediate crude finished down 48 cents or 0.6% at $86.43 a barrel on the New York Mercantile Exchange.

Brent crude, considered the global benchmark recorded a 79 cent or 0.9% fall to $90.38 a barrel on ICE Futures Europe.

It was the first fall in prices in five sessions for Brent crude and the first in seven sessions for WTI.

May natural gas rose 6 cents to $1.84 per 1,000 cubic feet.

A majority of Oklahoma energy stocks recorded gains in Monday’s day of trading with a 5% jump for Empire Petroleum Corp.

Canoo EV maker saw a more than 13% gain.

Alliance Resource Partners, L.P.
28.02 USD−0.30 
160.79 USD+0.79 
43.26 USD−0.63 
Mach Natural Resources LP
Mammoth Energy Services Inc
13.15 USD+0.0100 
55.35 USD+0.080 
3.46 USD−0.030 
14.87 USD−0.22 
38.65 USD−0.28 
55.95 USD−0.83 
38.95 USD−0.28 

Other energy stocks were down for the day, according to the Texas Energy Report.

APA Corp. (Apache) (APA) down 0.70 at 35.04 – change 1.96%

Cheniere (LNG) down 0.29 at 156.47 – change 0.18%

Chevron (CVX) down 0.33 at 161.27 – change 0.21%

ConocoPhillips (COP) down 1.11 at 132.41 – change 0.83%

Diamondback Energy (FANG) up 2.25 at 206.57 – change 1.10%

Energy Transfer LP (ET) down 0.02 at 15.82 – change 0.13%

Enterprise Products Partners (EPD) down 0.26 at 29.47 – change 0.88%

EOG Resources (EOG) down 0.49 at 135.44 – change 0.37%

Exxon Mobil (XOM) down 0.82 at 120.55 – change 0.68%

Kinder Morgan (KMI) down 0.10 at 18.36 – change 0.55%

Marathon Oil Corp. (MRO) down 0.20 at 29.49 – change 0.68%

NOV Inc. (NOV) down 0.13 at 20.38 – change 0.64%

Occidental Petroleum (OXY) down 0.52 at 68.73 – change 0.76%

Phillips 66 (PSX) down 2.21 at 168.55 – change 1.29%

Pioneer Natural Resources (PXD) down 2.27 at 270.51 – change 0.84%

Tellurian Inc. (TELL) down 0.02 at 0.54 – change 3.07%

Valero (VLO) down 2.50 at 180.89 – change 1.37%

CLOSING TOP UTILITY STOCKS

American Electric Power (AEP) up 0.32 at 84.27 – change 0.38%

CenterPoint (CNP) up 0.17 at 28.22 – change 0.60%

Entergy (ETR) up 1.53 at 105.76 – change 1.46%



Source link

11 04, 2024

Low Natural Gas Prices Curb U.S. Oil Production Gains

By |2024-04-11T18:28:23+02:00April 11, 2024|Forex News|0 Comments


U.S. oil producers are not in a rush to significantly boost production despite oil prices hovering at a six-month high, as multi-year low natural gas prices are holding back drilling in parts of the Permian and costs have increased, analysts and industry executives tell Reuters.

Last week, WTI crude prices hit their highest level of the year so far, and the highest since the middle of October 2023, amid geopolitical flare-ups in the Middle East and signs of tightening oil markets.


But producers in America, where part of the natural gas is associated gas from oil drilling, are not jumping the gun. They are mindful of the investor demands for higher returns, not necessarily higher production.

“Natural gas is currently pricing at or below costs of production,” an executive at an exploration and production company said in comments in the latest quarterly Dallas Fed Energy Survey released at the end of March. 



Moreover, the same survey showed that breakeven prices for all oil-producing basins, including the Permian, have increased over the past year. Breakeven prices for companies to profitably drill a new well in the Permian now average $65 per barrel, which is $4 higher than last year, the survey showed. Almost all firms in the survey can profitably drill a new well at current prices, Dallas Fed says.





Nevertheless, producers are cautious.

“We need gas prices to get to $2.50 for an overall increase in activity. The Permian customers that have associated gas are seeing awful differentials,” Mark Marmo, CEO of oilfield firm Deep Well Services, told Reuters.

For context, the U.S. natural gas benchmark, Henry Hub, has been depressed below $2.00 per million British thermal units (MMBtu) since early February, due to weak winter demand amid milder weather, record output at the end of 2023, and higher-than-average natural gas stocks. 



Since March, the spot natural gas prices at the Waha hub in West Texas, in the Permian, have turned negative several times, sinking to as low as -$1.16 per MMBtu on March 18, per EIA data.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Source link

11 04, 2024

XAU/USD takes a breather before the US CPI inflation storm

By |2024-04-11T18:28:19+02:00April 11, 2024|Forex News|0 Comments


You have reached your limit of 5 free articles for this month.

Get Premium without limits for only $9.99 for the first month

Access all our articles, insights, and analysts.

Your coupon code





UNLOCK OFFER

  • Gold price consolidates near $2,350, as traders await strong catalysts. 
  • Gold price cheers surge in central banks’ buying despite fading June Fed rate cut bets.
  • Gold price correction is long due amid extremely overbought RSI, ahead of US CPI data.

Gold price is holding the fort near $2,350 early Tuesday, having witnessed good two-way businesses on Monday. Gold price now awaits key US fundamental data for a fresh directional move. In the absence of any top-tier US economic data later on Tuesday, the focus will remain on the speeches from the US Federal Reserve (Fed) policymakers.

Gold price hangs near record highs, correction in the offing?

Gold price has entered a phase of upside consolidation in the Asian session on Tuesday, as the US Dollar licks its wounds while the US Treasury bond yields hold their corrective downside amid a negative shift in risk sentiment.

Asian stock markets pare early gains, led by the decline in Chinese indices even as markets stay hopeful of a worldwide manufacturing rebound. Markets are trading more cautiously, as nervousness sets in ahead of Wednesday’s all-important US Consumer Price Index (CPI) data release. The US inflation data will affirm the recent pullback in the market expectations of a likely rate cut by the Fed in June.

Strong US Nonfarm Payrolls data and hawkish Fed commentaries have weighed on the Fed rate cut bets, with markets now pricing in a roughly 50% chance of another hold in June. The hawkish shift in the market expectations has underpinned the recent upsurge in the US Treasury bond yields.

Early Asia,  Minneapolis Fed President Neel Kashkari (2024 non-voter) said that “the inflation rate is running around 3% and the Fed has to get back down to 2%, adding that “the bank cannot ‘stop short’ on the inflation fight.”

However, Gold price continues to show resilience to rising US Treasury bond yields and easing geopolitical tensions in the Middle East, in the wake of a Gold buying spree by global central banks, especially by the People’s Bank of China (PBOC).

 A Chinese official reported on Sunday, the Chinese central bank purchased Gold for its reserves for the 17th straight month in March. Bullion held by the PBOC rose to 72.74 million fine troy ounces last month, the official said. Turkey, India, Kazakhstan and some eastern European countries have also been buying gold this year, per Reuters.

Renewed central bank demand for the bright metal sent the Gold price to another record high above $2,350 on Monday, extending its record-setting rally.

Looking ahead, Gold traders will take account of Fedspeak amid a lack of top-tier US economic data. Meanwhile, position adjustment and profit-taking in Gold price cannot be ruled out, as traders gear up for key US inflation report due on Wednesday.

Gold price technical analysis: Daily chart

A further upside in Gold price appears elusive, as the extremely overbought 14-day Relative Strength Index (RSI) conditions continue to threaten a correction.

If Gold buyers give up, a correction toward the previous record high of $2,331 will be in the offing.

The extension of the Gold price pullback could test the April 4 high at $2,305, below which the April 5 low of $2,268 will be tested.

However, if Gold buyers retain control, the all-time high at $2,354 will be the first resistance to scale.

A fresh rally toward the $2,370 round figure will be seen only on acceptance above the $2,350 psychological level.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 

  • Gold price consolidates near $2,350, as traders await strong catalysts. 
  • Gold price cheers surge in central banks’ buying despite fading June Fed rate cut bets.
  • Gold price correction is long due amid extremely overbought RSI, ahead of US CPI data.

Gold price is holding the fort near $2,350 early Tuesday, having witnessed good two-way businesses on Monday. Gold price now awaits key US fundamental data for a fresh directional move. In the absence of any top-tier US economic data later on Tuesday, the focus will remain on the speeches from the US Federal Reserve (Fed) policymakers.

Gold price hangs near record highs, correction in the offing?

Gold price has entered a phase of upside consolidation in the Asian session on Tuesday, as the US Dollar licks its wounds while the US Treasury bond yields hold their corrective downside amid a negative shift in risk sentiment.

Asian stock markets pare early gains, led by the decline in Chinese indices even as markets stay hopeful of a worldwide manufacturing rebound. Markets are trading more cautiously, as nervousness sets in ahead of Wednesday’s all-important US Consumer Price Index (CPI) data release. The US inflation data will affirm the recent pullback in the market expectations of a likely rate cut by the Fed in June.

Strong US Nonfarm Payrolls data and hawkish Fed commentaries have weighed on the Fed rate cut bets, with markets now pricing in a roughly 50% chance of another hold in June. The hawkish shift in the market expectations has underpinned the recent upsurge in the US Treasury bond yields.

Early Asia,  Minneapolis Fed President Neel Kashkari (2024 non-voter) said that “the inflation rate is running around 3% and the Fed has to get back down to 2%, adding that “the bank cannot ‘stop short’ on the inflation fight.”

However, Gold price continues to show resilience to rising US Treasury bond yields and easing geopolitical tensions in the Middle East, in the wake of a Gold buying spree by global central banks, especially by the People’s Bank of China (PBOC).

 A Chinese official reported on Sunday, the Chinese central bank purchased Gold for its reserves for the 17th straight month in March. Bullion held by the PBOC rose to 72.74 million fine troy ounces last month, the official said. Turkey, India, Kazakhstan and some eastern European countries have also been buying gold this year, per Reuters.

Renewed central bank demand for the bright metal sent the Gold price to another record high above $2,350 on Monday, extending its record-setting rally.

Looking ahead, Gold traders will take account of Fedspeak amid a lack of top-tier US economic data. Meanwhile, position adjustment and profit-taking in Gold price cannot be ruled out, as traders gear up for key US inflation report due on Wednesday.

Gold price technical analysis: Daily chart

A further upside in Gold price appears elusive, as the extremely overbought 14-day Relative Strength Index (RSI) conditions continue to threaten a correction.

If Gold buyers give up, a correction toward the previous record high of $2,331 will be in the offing.

The extension of the Gold price pullback could test the April 4 high at $2,305, below which the April 5 low of $2,268 will be tested.

However, if Gold buyers retain control, the all-time high at $2,354 will be the first resistance to scale.

A fresh rally toward the $2,370 round figure will be seen only on acceptance above the $2,350 psychological level.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

 



Source link

11 04, 2024

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

By |2024-04-11T18:28:18+02:00April 11, 2024|Forex News|0 Comments


Brazilian oil and gas company Enauta may soon change the face of Latin American fossil fuels by establishing an independent oil and gas company with 3R Petroleum Óleo e Gás. This is the most recent of several ambitious moves by Enauta to expand its oil and gas operations in Brazil. In recent months, the firm has signed several contracts to acquire stakes in multiple offshore oilfields in the region, thereby boosting its production capacity. The proposal to merge with 3R, if accepted, could lead to the establishment of a major new independent company in the region. 

The Brazilian oil firm 3R Petroleum Óleo e Gás announced it has temporarily halted talks with PetroReconcavo, over a proposed merger, opening the door for an alternative deal. Enauta proposed a new merger offer to 3R, which could lead to the creation of “one of the most diversified independent oil and gas companies in Latin America,” if accepted. If the merger goes ahead, the independent company will have a production capacity of over 100,000 bpd. The growing interest in 3R led its stocks to rise by 7.3 percent following the announcement. 


This move by Enauta follows a growing ‘megamerger’ trend being seen worldwide. In the U.S., both Chevron and Exxon announced a major new deal in October, with Occidental following in December, and Diamondback in February. Meanwhile, small oil and gas companies in Brazil have been looking to consolidate operations following a widespread buy-up of assets formerly owned by state-owned Petrobras. 

Enauta presented 3R with an all-stock offer. The deal would mean 3R shareholders hold 53 percent of the company, while Enauta shareholders would hold 47 percent. This is expected to provide a “balanced, five-year high organic growth portfolio with ability to add value in an environment of consolidation and resilience to commodity pricing cycles,” according to Enauta. The firm’s board of directors unanimously approved the proposal, believing the new independent company could attain a strategic positioning in domestic and international capital and banking markets. The firm believes that its deal is superior to that of PetroReconcavo in terms of “strategic positioning, governance, tangible synergies and from a risk management perspective.” 



Enauta explained, “The transaction will lead to state-of-the-art governance, with diversified reference shareholders, a predominantly independent board of directors with an experienced executive team. There will be growth opportunities in offshore and onshore operations, mitigating operational, geological and regulatory risks, complementarity in teams, talent attraction and retention and strong adherence to ESG principles.” 





This is just one of many moves by Enauta to expand its operations in recent months. In December the firm signed a deal with Petrobras to purchase two offshore oil and gas fields – Uruguá and Tambaú – in the Santos Basin, as well as natural gas pipeline infrastructure. This is expected to cost Enauta $10 million, with a potential $25 million more for oilfield development. 

That same month, Enauta signed a contract with QatarEnergy Brasil to acquire a stake in the Campos Basin oilfields. The company expected to acquire the whole 23 percent stake previously held by QatarEnergy in the Abalone, Ostra and Argonauta oilfields, which comprise the Parque das Conchas. The zone is operated by Shell, which has a 50 percent equity stake. Production stands at around 35,000 bpd from 25 wells connected to the FPSO Espírito Santo platform. This is expected to cost Enauta a total of $150 million. 

In March, Enauta also signed a deal with Houston-based Westlawn Americas Offshore (WAO) to purchase a 20 precent participating interest in the BS-4 concession for $301.7 million. Enauta released a statementsaying, “Partnerships are important drivers for value generation and risk-sharing in the development of megaprojects such as Atlanta and Oliva. Since Atlanta’s Phase I investment was sanctioned in March 2022, Enauta has been approached by several potential partners interested in joining the project… The signing of a 20 percent minority stake with WAO is aligned with principles of Enauta’s value generation strategy, capital allocation efficiency and management of a balanced high growth, high risk-adjusted return oil and gas portfolio.”



Enauta has been rapidly building up its oil and gas portfolio in Brazil’s offshore region, with the purchase of stakes in several oilfields. This will help boost production in the coming years and allow it to grow as an independent oil and gas company. This could be enhanced further by a potential merger with 3R Petroleum Óleo e Gás, if accepted, which would lead to the creation of a major Latin American independent with high production output and a significant stake in the Brazil region. 

By Felicity Bradstock for Oilprice.com 

More Top Reads From Oilprice.com:



Source link

Go to Top