Halfway into an OPEC-led oil supply cut, Asia remains awash with fuel in a sign that the group’s efforts to rein in a global glut have so far had little effect.
The Organization of the Petroleum Exporting Countries (OPEC) and other suppliers including Russia have pledged to cut production by almost 1.8 million barrels per day (bpd) during the first half of this year to rein in oversupply and prop up prices.
Yet almost three months into the announced cuts, oil flows to Asia, the world’s biggest and fastest growing market, have risen to near record highs.
The Asian surplus will pressure global oil prices and weigh on the budgets of major oil producing nations but may also help spur growth in demand needed to soak up the excess.
Thomson Reuters Oil Research and Forecasts data shows around 714 million barrels of oil are being shipped to Asia this month, up 3 percent since December when the cuts were announced.
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Gold climbs on global cues; silver tops Rs 46,000 mark. Silver also reclaimed the crucial Rs 46,000 mark by recovering Rs 500 to Rs 46,200 per kg on increased off take by industrial units and coin makers. Read more Live Commodity Gold/Silver Market News at: www.marketmagnify.com/freetrial.php or Get Free Trials Just Give One Missed Call @78-79-88-11-22.
Gold prices surged by Rs 120 to Rs 30,770 per 10 grams at the bullion market today, tracking a firm trend overseas amid fresh buying by jewellers at domestic spot market. Silver also reclaimed the crucial Rs 46,000 mark by recovering Rs 500 to Rs 46,200 per kg on increased off take by industrial units and coin makers. Traders said a firm trend overseas where it rebounded from a three-week low after the European Central Bank said it will consider adding stimulus as needed, boosting demand for the precious metal, mainly led to rise in gold prices.
Gold down Rs 51 in futures trade on weak global cues :-
Gold prices drifted lower by Rs 51 to Rs 31,347 per 10 gram in futures trade today as participants lightened their positions, largely in tandem with a weak trend overseas. In futures trade, gold for delivery in October was trading Rs 51 or 0.16 percent down at Rs 31,347 per 10 gram on the Multi Commodity Exchange with a business turnover of 25 lots. The metal for delivery in August too fell by Rs 40 or 0.13 percent to Rs 30,965 per 10 gram in 656 lots.
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Gold rose on Friday and was headed for its fifth straight weekly gain, boosted by a weaker dollar as the safe-haven asset continued to be in demand despite an increase in risk appetite post the Brexit vote.
The dollar pulled back against the yen and also fell against a basket of six currencies, even as Asian stocks rose on Friday as risk appetite continued to recover from last week’s Brexit shock.
Spot gold was up 0.6 per cent at $1,329.66 an ounce by 0418 GMT. The yellow metal registered its biggest monthly rise since February in June and was up 1 per cent for the week so far. US gold rose as high as 1 per cent to touch a session best of $1,334.10.
“It seems that investors are pushing both equities and gold higher simultaneously. One of these will eventually have to give, but for the moment, they each seem to be trading on their own dynamics,” The shock has actually passed but expectations of a rate hike by the US Federal Reserve for the short term has actually fallen quite significantly in combination with the apparent loosening of the monetary policy in Europe driving investor demand,”
Silver breached the $19 level to reach the highest since September 2014. The white metal climbed 2.5 per cent to 19.15, after reaching a session high of $19.25. Silver, which has gained more than 8 per cent this week, is on track for its best week since August 2013.
“Gold has been on an uptrend and silver tends to catch up,” said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.
Platinum and palladium both rose to their highest since mid-May and were up 1.1 per cent and 0.5 per cent respectively.
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