Salient to Investors: Ed Morse at Citigroup said the lowest oil price in 4 years will provide as much as $1.1 trillion of stimulus to global economies by lowering the cost of fuels and other commodities, which are energy intensive to one degree or another. Combined production from the US
READ MORE... →Salient to Investors: Thomas Friedman writes: Is the US and Saudi Arabia engaged in another global war with Russia and Iran like when they pumped the former Soviet Union to death? Oil export revenues account for 60% of Iran’s government revenues and more than 50% of Russia’s. Oil producers Libya,
READ MORE... →Salient to Investors: Mark Wiseman et al at Goldman Sachs said: LNG projects in Africa, Canada and Australia face delays or cancellations as global demand slows, US output increases, nuclear reactors restart in Japan, China’s success in shale-gas E&P, and economic conditions in ASEAN. Global demand will compound at 5%
READ MORE... →Salient to Investors: Europe accounts for 25% of global demand: platinum is used in diesel vehicles and the biggest diesel-auto market is in Europe. Johnson Matthey said catalytic converters in cars account for 38% of platinum demand. Platinum’s 60-day historical volatility is the lowest since February 1997 amid fading investor
READ MORE... →Salient to Investors: Investors pulled the most money from US ETPs backed by raw materials since April. US corn and soybean crops are the biggest ever, global stockpiles of nickel are at an all-time high, the US is producing the most oil since 1986, while China is headed for its slowest
READ MORE... →Salient to Investors: China’s deepening slump is re-establishing the link between currencies and commodities, weakening the Australia dollar, New Zealand kiwi and Canadian loonie on concern their economies will slow and outweigh their relatively high interest rates. Shahab Jalinoos at Credit Suisse said you can only resist gravity for so
READ MORE... →Salient to Investors: Analysts say the easing of tensions in Ukraine offers little respite to Russia as low oil prices threaten a recession. 58% of 19 economists say Russia needs its main export crude blend to trade at $100 per barrel or more to avoid a recession, while 19% say
READ MORE... →Salient to Investors: The slump in commodity prices to a 5-year low signals investors are cautious about the strength of the global economy. Brent crude touched a 2-year low last week and iron ore at Qingdao is the lowest since 2009. Economists expect China to grow 7.4% in 2014, the weakest
READ MORE... →Salient to Investors: Gold held in ETPs are the lowest in 5 years, gold’s 60-day volatility is near a 5-yr low, and open interest near the lowest since 2009. Brian Levitt at OppenheimerFunds sees no compelling reasons to be in gold, and said no inflationary pressures and a Fed that will
READ MORE... →Salient to Investors: Silver ETP holdings are near October’s record while money managers reduced bullish wagers by 95% – Coeur Mining has hedged a third of its production through Q1 2015. Retail investors account for 80% of US ETP purchases and expect long-term growth to spur industrial demand from solar
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