Surge In Gold Prices Could Be Bad News For Oil

[Pitcher]

https://oilprice.com/Energy/Oil-Prices/Surge-In-Gold-Prices-Could-Be-Bad-News-For-Oil.html
 

Surge In Gold Prices Could Be Bad News For Oil

By Haley Zaremba - Jul 21, 2020, 3:00 PM CDT

The world may soon return to an international gold standard thanks to a project that European central banks have been quietly preparing for decades. This month Seeking Alpha reported that “since the 1970s, policies that paved the way for an equitable and durable monetary system have gradually been implemented,” leading us closer and closer to being able to reinstate the classic gold standard. The European Central banks predicted 50 years ago what is happening today in the international monetary system--the current fiat system is on the decline, and “unconventional monetary policy has entered a dead end street and can't reverse” Jan Nieuwenhuijs wrote for Seeking Alpha. 

The international gold standard disappeared for good in 1971--around the same time that the European Central banks started working on a contingency plan to bring it back eventually, if and when it would be needed. “Sentiment in Europe, however, was to counter dollar dominance and slowly prepare a new arrangement,”  Nieuwenhuijs writes. “Currently, central banks in Europe are signaling that a new system that incorporates gold is approaching.” 

As such, Europe has “equalized official gold reserves internationally, strategically allocated their gold, upgraded their gold to current industry standards, and are now promoting gold as the ‘perfect piggybank’ and as ‘protection against high inflation.’” And the movement to buck dollar hegemony is not limited to Europe. Officials in Malaysia and the president of the Shanghai Gold Exchange (SGE) have also publiclyadvocated moving away from the U.S. Dollar and back to gold.

Now, the revitalization of and renewed faith in the gold standard seems to have spread to the energy sector as well. Analysts at Morgan Stanley have said that they think that the ratio between two of the most watched commodities on Earth--oil and gold--is “worth highlighting,” remarking that this golden ratio (so to speak) could or should be of interest to those looking for a crystal ball for oil price futures.

Related: Where Will Bakken Oil Go When Pipelines Run Dry?

However, Morgan Stanley hedges this assertion, saying that these practices certainly have their failings as well. “The oil-gold ratio has historically been a poor indicator of future oil prices,” Morgan Stanley’s Martijn Rats and Amy Sergeant stated in a company research note last week.

“However, it is interesting at its extremes.”

As explained by CNBC, “crude futures tend to be supported during periods of high inflation, while gold is traditionally used as a hedge against inflation. This positive correlation has often meant higher oil prices have coincided with higher gold prices, although one does not directly impact the other.” the ratio between oil and gold becomes useful when determining how many barrels of oil are equivalent to the value of an ounce of gold.

Oil has been having a historically bad year. After oil demand took a severe hit from the spread of the novel coronavirus, the oil sector’s woes were compounded by a spat, which soon turned into an all-out price war, between the OPEC+ countries of Russia and Saudi Arabia. The result was a massive oil glut that soon filled the world’s oil storage to max capacity, to the extent that storing oil became more expensive than owning it, causing the West Texas Intermediate crude benchmark to plunge below zero for the first time in history on April 20th, ending the day at a previously unthinkable negative $37.63 per barrel.

While the international Brent crude benchmark never went into negative territory, it’s had a rough year as well. “At present, international benchmark Brent crude futures are down more than 35% year-to-date, on pace for their worst year since 2015,” reports CNBC. “In stark contrast, spot gold futures are trading up over 19% this year, on track for their best year since 2010.” Because of this, “the U.S. bank said the oil-gold ratio was currently trading in its 99th percentile since 1980, despite recovering from a more than 40-year low in late April.”

 

[Pitcher]

https://oilprice.com/Latest-Energy-News/World-News/Large-And-Unexpected-Crude-Build-Halts-Oil-Rally.html
 

Large And Unexpected Crude Build Halts Oil Rally

By Julianne Geiger - Jul 21, 2020, 3:48 PM CDT

The American Petroleum Institute (API) estimated on Tuesday a build in crude oil inventories of 7.544 million barrels for the week ending July 17.

Bulls were disappointed with the news, as analysts had predicted an inventory draw of 1.950 million barrels.

In the previous week, the API reported a major decrease in crude oil inventories of 8.322 million barrels, after analysts had predicted a much smaller draw.

WTI was trading up on Tuesday afternoon prior to the API’s data release, with markets ignoring the uptick in the number of new coronavirus cases in the United States, instead focusing on the vaccine prospects and a successful European stimulus package that was passed. Prices had reached levels not seen since March, prior to the oil price war that Russia and Saudi Arabia waged on the world, and prior to the settling in of the pandemic in the world’s second-largest oil consumer—the United States.

Oil production in the United States has now fallen from 13.1 million bpd on March 13 to 11 million bpd for July 10, according to the Energy Information Administration, for the fourth week in a row.  Production has rebounded somewhat from week ending June 12, which saw an average of just 10.5 million bpd produced.

At 1:13 pm EDT on Tuesday the WTI benchmark was trading up on the day by $0.93 (+2.28%) at $41.74—about $2 above last week’s levels. The price of a Brent barrel was trading up as well, by $0.99 (+2.29%), at $44.27—also $2 per barrel higher than this time last week.

The API reported a draw of 2.019 million barrels of gasoline for week ending July 10—compared to last week’s 3.611-barrel draw. This week’s draw compares to analyst expectations for a 1.175-million-barrel draw for the week.

Distillate inventories were down by 1.357 million barrels for the week, compared to last week’s 3.03-million-barrel build, while Cushing inventories saw an increase of 716,000 barrels.

At 4:48 pm EDT, WTI was trading at $41.76 while Brent was trading at $44.31.

[DinarThug]

14 minutes ago, Pitcher said:

Large And Unexpected Crude Build

Now Let Me Tell U A Story About A Man Named Jed !  
 

 

     

[Pitcher]

LMAO Thugs. 

 

Ole Jed could cut a rug.  

 

[Adam Montana]

11 hours ago, Pitcher said:

The world may soon return to an international gold standard

 

Hard to take the article serious after a statement like that. That's like a neon sign over their head saying "I don't understand money"  

[DinarThug]

4 hours ago, Adam Montana said:

That's like a neon sign over their head saying "I don't understand money"  

As Sung To The Tune Of ‘Dire Straits’ - Money For Nothing ...
 

 

That Little Clampett’s Got His Own Jet Airplane ! That Little Clampett - He’s A Millionaire !  

 

 

     

[MyLadiesDaddy]

5 hours ago, Adam Montana said:

 

Hard to take the article serious after a statement like that. That's like a neon sign over their head saying "I don't understand money"  

President Trump has been talking about the Gold standard for over 30 years. Yesterday the Senate voted to allow Judy Shelton nomination for  the Federal Reserve board to go to the floor. She's long been known as an advocate for the Gold standard. 

The Federal Reserve has stopped making coins, presumably in Lew of casting precious metals coinage. Of course the explanation is because of disruption because of the Covid19.  But then again they couldn't just admit what is happening. 

Silver is beginning a massive buildup, that could go as high as $4000 an ounce. 

And even the E.U. is talking about a Global Reset through, "innovative measures ", to include, 

 

The IMF and the World Bank have championed debt service suspension as a fast-acting measure for countries that lack the financial resources to adequately respond to the crisis.

 

That is straight out of the NESERA/GESERA law. However, the GCR plan is actually more in line with A.O.C.s New Green Deal than it is with NESERA/GESERA laws. 

My Friend I could go on and on but you get the idea. After the events of the last 7 months nothing that happens now would surprise me. But with President Trump essentially merging the Fed with the Treasury department and now using the Federal Reserve to buy as much debt as possible, two things seem inevitable. 

First, President Trump is going to collapse the dollar and leave the Fed Reserve holding the basket. 

Second, one way or another the 'definition' of money is about to seriously change. 

 

 

[DinarThug]

21 hours ago, Pitcher said:

Ole Jed could cut a rug.

 

 

 

     

[Sage449]

That article seems to point to GESERA , doesn't it? If that side of the world is prepping for return to gold standard. Just wondering. 

[Mary B]

Oil marketing company issues clarification on Iraqi exports for July

Wednesday 22 July 2020 - 00:02

Oil marketing company issues clarification on Iraqi exports for July
Baghdad - Conscious

The oil marketing company on Thursday issued an explanation of what was published about Iraq's oil exports for the month of July.

The company said in a statement received by the Iraqi News Agency (AA) that it would like to clarify to the public the truth of the inaccuracy and professionalism of the analysis contained in the news published on the energy site on July 21, tagged "Iraqi oil exports in July above opec+ target in just 20 days."

While the news confirmed that the rate of exports from Iraq's southern ports recorded an average of 2.7 million barrels per day, it had overlooked the fact that the rate itself was 100,000 barrels per day lower than the previous June rate.

It said that with the offer, the rate is not final and does not reflect Iraq's commitment, which will be reflected in the results of the July exports in early August, which the Federal Ministry of Oil has confirmed will represent a full commitment to the agreement of opec and the countries with which it is involved to reduce production.

She pointed out that the export rate mentioned in the publication "Energy" and after collecting the rate of exports of the region from northern Iraq and the volume of domestic consumption resulting in a commitment of about 100 percent to the agreement to reduce production.

The oil marketing company called on news and media organizations to be accurate and to take the information and details from its strict official sources instead of making mistakes that harm its credibility in this field.

 

https://www.ina.iq/110148/شركة_تسويق_النفط_تصدر_توضيحا_بشأن_الصادرات_العراقية_لشهر_تموز

[Mary B]

Sumo issues an explanation of Iraqi oil exports

 Time: 7/23/2020 11:23:11

 

 

  

{Baghdad: Al Furat News} The Iraqi Oil Marketing Company {SOMO} responded to what was published on the energy site on July 21 this year, titled {Iraqi oil exports in July above the OPEC target + within 20 days only}.

Sumo confirmed in a statement, which the agency (Al Furat News) received a copy of, "The fact that the published news was not accurate and the professionalization of the analysis contained therein. At a time when the news confirmed that the rate of exports from the southern ports of Iraq recorded a rate of 2.7 million barrels per day, it had been overlooked." The fact that this rate itself is less than (100) thousand barrels per day less than the previous June exports rate with the offer that this rate in itself is not final and does not reflect the commitment of Iraq, which will be shown by the results of the July exports beginning of the coming August, which Iraq has confirmed through The Federal Ministry of Oil will represent a full commitment to the agreement of OPEC countries and the countries joining with them to reduce production. "
The statement pointed out that "the export rate mentioned in the publication {Energy} itself, after collecting it at the region's exports from northern Iraq and the volume of domestic consumption, results in a commitment of approximately 100% in the production reduction agreement."
The oil marketing company called "news and media institutions to be accurate and to take the information and its details from its official official sources instead of making mistakes that harm their credibility in this field."
Ammar Al-Masoudi

 

https://alforatnews.com/news/سومو-تصدر-توضيحاً-عن-صادرات-نفط-العراق

[MyLadiesDaddy]

11 hours ago, Sage449 said:

That article seems to point to GESERA , doesn't it? If that side of the world is prepping for return to gold standard. Just wondering. 

Can you imagine back in January that by July we would be allowing nearly all of our Constitutional rights to be taken away because of the flu? 

Locked in our homes under penalty of law, forced to wear a useless mask even if it causes you to have a asthmatic attack, being terrified of getting closer than 6 feet from anyone, all social entertainment businesses being forced to close their doors and loosing their business while Planned parenthood continues to murder babies. It's time for thinking Americans to stand up and remove the idiot's violating our personal freedoms from the public discourse by any means necessary. 

 

Now imagine what will happen by Christmas.  Life is officially off the chain crazy. NESERA/GESERA is just the beginning. 

[DinarThug]

LINK

China launches the "Star Market" index today

 

23rd July, 2020   VIDEO ON THE LINK

 

The Chinese "Star Market" launched its index today, to show gains that were twice that of its American counterpart, "NASDAQ" since the beginning of the year.

China launched the "Star Market" for technology companies a year ago, and now includes 140 companies with a market value of $ 400 billion.

The new index, which includes the 50 largest companies listed on the stock exchange, achieved gains of 50% since the beginning of the year, compared to a rise of 24% for the Nasdaq during the same period.

The new "Star" exchange has been described as China's response to the NASDAQ, as Beijing hopes that this market will encourage investment in domestic technology innovations and ensure that these companies have the resources to develop them.

As China begins listing operations on a new platform on the Shanghai Stock Exchange, this will be one of the most important reforms of the Chinese market at a time when the Asian giant is seeking to adjust its economic pattern towards new technologies and high-value-added products, and at the height of a trade war with the United States.

The Chinese Nasdaq has set flexible conditions to help promising companies raise capital more easily to fund their growth. The stated aim is also for national technology companies to remain within China, at a time when Beijing is competing with Washington to dominate the crucial technology sector. "If China had not launched its new platform for the technology stock exchange, it would have missed the opportunity to direct its economic development towards the new economy," said Yang Delong, chief economist at First Seafront Foundation Management in Shenzhen.

Major Chinese companies such as Ali Baba (e-commerce) and search engine Baidu entered several years ago on Wall Street. The giant Internet company has chosen the Hong Kong Stock Exchange. When major Chinese companies are listed abroad, Beijing has less influence over its operations to attract capital. On the other hand, Beijing's restrictions on purchasing foreign shares prevent Chinese investors from contributing to the success of these companies.

There are more than 3,000 companies currently listed on the Nasdaq on Wall Street, while its Chinese counterpart has only 25 companies with no big names. Contrary to the current legislation in force, the Star Market platform allows companies that have not yet earned profits to be listed on the stock exchange. In the first five days of listing, no daily fluctuations are imposed (now 10 percent on the Shanghai and Shenzhen stock exchanges). After these days, the threshold becomes 20 percent.

A project to create a stock exchange platform in Shanghai for technology stocks was disclosed in November 2018 by President Xi Jiping. So far, the Shenzhen Stock Exchange, the second Chinese exchange after Shanghai, is characterized by the technological trend of listing operations.

[Mary B]

7/26/20

 

Gold Price in Iraq today per Gram

Current Price:	72,793 IQD
Bid Price:	72,777 IQD
Ask Price:	72,809 IQD
Today Low:	72,003 IQD
Today High:	72,988 IQD

 

Gold Price in Iraq today per Gram in Iraqi Dinar (IQD)

 

https://www.google.com/search?q=price+of+gold+in+iraq&oq=price+of+gold+in+iraq&aqs=chrome..69i57.44072j0j7&sourceid=chrome&ie=UTF-8

[Mary B]

"OPEC" production increases by about two million in July

22:12 - 07/31/2020

 

  

Information / follow-up ..

OPEC production of oil increased by about one million barrels per day in July, after Saudi Arabia and other Gulf members halted voluntary restrictions on their oil production.

According to a Reuters survey, the 13 members of the Organization of Petroleum Exporting Countries pumped 23.32 million bpd on average in July, an increase of 970,000 bpd from a revised reading in June, which was the lowest since 1991.

The agency added that Iraq and Nigeria did not implement any additional restrictions in July, but rather Iraq increased its oil exports. Both countries pledged additional cuts in the following months.

The "OPEC +" coalition, which includes members of the organization, and countries from outside it, most notably Russia, reached on March 13th a unanimous agreement to reduce oil production, described as the largest reduction of its kind in the history of global crude production.

And OPEC + members decided to cut production by 10 million barrels per day, starting in the first of May 2020 for two months.

It was also agreed to reduce production after that by 8 million barrels per day for a period of 6 months, until the end of December this year.

Beginning in January 2021, countries will reduce production by 6 million barrels per day, for a period of 16 months, ending in April 2022.

The baseline for calculating the reductions will be the production of October of 2018 for all countries, with the exception of Saudi Arabia and Russia, which will reduce production from the level of 11 million barrels per day. 25 h has ended

https://www.almaalomah.com/2020/07/31/487805/

[Mary B]

Gold above $2000 for the first time ever

Economy
Gold prices
 2020-08-03 00:44
  
Twilight News/ Gold futures for January delivery rose at the first hour of the first trading session in August by about 1% above 2009 levels per ounce for the first time in trading history.

Spot gold futures also rose by 0.5% at the start of trading, reaching a new record high of $1,984 per ounce.

The hikes come as investors flock to safe havens amid rising coronavirus infections, fears of a second wave that could hit Europe and some countries that have eased restrictions, as well as rising tensions between America and China.

 

https://shafaaq.com/ar/اقتصـاد/الذهب-فوق-2000-دولار-للمرة-ال-ولى-على-ال-طلاق

[DinarThug]

LINK

Oil slips on concerns over oversupply as OPEC + production increases

 

3rd August, 2020
 

Oil prices slid on Monday on concerns over supply glut as OPEC and its allies head to cut production cuts in August, while growing Covid-19 casualties worldwide predict a slower improvement in demand

Brent crude futures were down 27 cents, or 0.6 percent to $ 43.25 a barrel, and U.S. West Texas Intermediate crude futures fell 34 cents, or 0.8 percent, to $ 39.93

Brent rose for the fourth month in July, while US crude increased for the third month, with both raw materials rising from extremely low levels for April, when large areas of the world were under full closure due to the Corona virus pandemic

The Organization of the Petroleum Exporting Countries production rose more than one million barrels per day in July, with Saudi Arabia and other Gulf members ending additional voluntary restrictions on the above supply in an OPEC-led deal

Russian oil production remained unchanged in July compared to June levels, the Energy Ministry reported on Sunday. The OPEC + group, which includes OPEC and allies including Russia, is due to increase production in August, to pump an additional 1.5 million barrels per day into global supply

[Mary B]

Gold prices recorded a record jump amid concern from Corona

13:30 - 08/08/2020

 

  

Information / Baghdad ..
Gold prices rose to an unprecedented record, today, Monday, with demand for the metal as a safe haven boosted by concerns about the economic repercussions of growing Covid-19 injuries, but a rise in the dollar limited the gains.
Reuters reported that by 0635 GMT, the spot price of gold was stable at $ 1973.75 an ounce, after hitting a record peak at $ 1984.66 in early Asian trade.
"Sentiment is deteriorating in various markets," said Michael McCarthy, chief strategist at CMC Markets. First, growing rates of infection are a real concern for the world and a source of real support for gold prices. In light of this, it is also pushing the US dollar higher.
Corona virus infection continued to rise in the United States, with the number of infections reaching 17.96 million globally.
In other precious metals, silver fell 0.5 percent to $ 24.26 an ounce, and platinum fell 1 percent to record $ 897.61, while palladium settled at $ 2090.22 an ounce. Ended / 25

https://www.almaalomah.com/2020/08/03/488158/

[Mary B]

Oil prices fall as OPEC supply increases

Economy
Oil prices
 2020-08-04 00:50
  
SHAFQ NEWS / OIL PRICES FELL TUESDAY, AFTER THE BIGGEST GAINS IN TWO WEEKS AS INVESTORS WEIGHED IN ON ADDITIONAL OPEC SUPPLIES THAT HIT THE MARKET AGAINST SIGNS OF ECONOMIC RECOVERY ACROSS MAJOR ECONOMIES.

Crude OPEC production rose last month, led by Saudi Arabia, and its allies eased their historic cuts this month, suggesting some concerns about oversupply.

Oil has been stuck near $40 per barrel since early June, as growing casualties have raised doubts about a sustained recovery in consumption. 

OPEC + supplies were returned to the market as the return of Coved 19 began in parts of Asia and America, with many countries and states imposing small-scale closures to reduce record daily infection rates.

West Texas Intermediate (WTI) fell 0.7% to $40.71 a barrel on the New York Mercantile Exchange as of 0500 GMT.

Brent crude also fell 0.8% to $43.82 on the European Futures Exchange after rising nearly 1.5% on Monday.

OPEC increased its production by 900,000 barrels per day last month to 23.43 million barrels per day, as Saudi Arabia, the United Arab Emirates and Kuwait returned additional production, which was reduced in January when they stepped up efforts to reduce production availability.

 

https://shafaaq.com/ar/اقتصـاد/انخفاض-سعار-النفط-مع-زيادة-المعروض-من-وبك

[Mary B]

Gold is stable near a record high as concerns remain about the Corona virus

 

 

2020-08-04 | 06:48

 

Gold settled, on Tuesday, near record highs as concerns persisted about the global economic implications of increasing cases of Covid-19 disease, which overshadowed the impact of an increase in the appetite for risk due to positive data for the US economy.

Gold settled in spot transactions at $ 1976.19 an ounce, separating $ 8.47 from its highest level ever reached in the previous session.

"A problem," said Edward Meyer, an analyst at ED&F Man Capital Markets Corona VirusYou will be with us for some time. It seems that economies around the world will be very fragile for an extended period. "

"(The economies) will need to stimulate, monetary easing and lower interest rates to absorb shocks, all of which will benefit gold."

Central banks around the world have taken a set of stimulus measures and cut interest rates to mitigate the economic damage caused by the pandemic, prompting gold to rise more than 30 percent since the beginning of the year as the precious metal is seen as a hedge against inflation and currency devaluation fears.

However, investor appetite for risky assets increased after strong data for manufacturing industries in the United States and gains for shares of technology companies, which limited the gains of gold.

 

https://www.alsumaria.tv/news/اقتصاد/353993/الذهب-مستقر-قرب-ذروة-قياسية-مع-استمرار-المخاوف-بشا

[Pitcher]

Oil is up .85% today. 41.31

 

Gold is up 17.95, 1.03%,  1994.38

 

Silver Up 1.06 to 25.51

[Pitcher]

Some of you may be kicking yourself for not buying gold or silver a few months ago.  It’s OK, it’s never too late.  In my opinion as long as the Fed keeps printing money and our National Debt is over 25T we should all be looking to filter into hedging items to help with the eventual inflation that’s gling to hit some like a ton of bricks.  

 

Sitting in Cash is really losing money during inflationary times.  Take a hard look at BTC or other Cryptos as a hedging tool.  

[MyLadiesDaddy]

1 hour ago, Pitcher said:

Some of you may be kicking yourself for not buying gold or silver a few months ago.  It’s OK, it’s never too late.  In my opinion as long as the Fed keeps printing money and our National Debt is over 25T we should all be looking to filter into hedging items to help with the eventual inflation that’s gling to hit some like a ton of bricks.  

 

Sitting in Cash is really losing money during inflationary times.  Take a hard look at BTC or other Cryptos as a hedging tool.  

That's a fact. I just made over $500 in the last 2 hrs. Silver spot up to $26 and climbing. But you can't buy it for less than $30.

[DinarThug]

LINK

Iraq ranks 3 in the Arab world and 26 worldwide in oil consumption

 

4th August, 2020

According to the global firepower foundation,  Iraq ranked third in the Arab world as the largest oil consumer, while the United States ranked first globally.

According to the report, seen by Shafaq News agency, 

In Arabic countries:

Iraq ranked third in the Arab world and 26 globally with 825 thousand barrels per day.

Saudi Arabia ranked first in the Arab world and the fifth globally with a consumption of four million barrels per day.

Egypt ranked second in the Arab world and ranked 25 globally, with 832 barrels per day.

Worldwide

The United States of America ranks first, it consumes 20 million barrels daily.

China ranks the second with 13 million and 500 thousand barrels per day.

India ranks third with a consumption of 5 million barrels per day.

Bhutan ranks the last on the global list with a quantity of 2000 barrels per day.

Oil consumption depends on the country's economic strength and industrial development, as well as its population.

[DinarThug]

LINK

Oil prices decline with the return of OPEC + to raise production

 

4th August, 2020
 

Oil prices fell on Tuesday after OPEC + resumed its oil production this month, indicating some concerns about oversupply

Oil has been stuck near $ 40 a barrel since early June, as increased cases have raised doubts about a sustainable recovery in consumption

The West Texas Intermediate broker for September delivery fell 0.9% to $ 40.92 a barrel on the New York Mercantile Exchange as of 10:00 Baghdad time

Brent crude, the October load, also fell 0.10% to $ 44.05 on the European Futures Exchange, after rising nearly 1.5% on Monday

OPEC increased its production by 900 thousand barrels per day last month to 23.43 million barrels per day, as Saudi Arabia, the United Arab Emirates and Kuwait returned the additional production that was cut in January when it redoubled efforts to reduce the abundance of production