Oil Slides as Venezuela Sees Mid-$20 Crude If OPEC Doesn't Act

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Oil extended its decline as Venezuela predicted prices may drop as low as the mid-$20s a barrel unless the Organization of Petroleum Exporting Countries takes action to stabilize the market.

January futures fell as much as 1.1 percent in New York after front-month prices slid 0.9 percent last week. Saudi Arabia and Qatar are considering Venezuela’s proposal for an equilibrium price of $88 a barrel, Venezuelan Oil Minister Eulogio Del Pino told reporters Sunday in Tehran. OPEC should make room for increased Iranian crude production within its ceiling of 30 million barrels a day, the nation’s Oil Minister Bijan Namdar Zanganeh said.

Oil has slumped about 45 percent the past year amid speculation a global glut with persist as OPEC continues to pump above its collective quota. The 12-member group meets Dec. 4 in Vienna to discuss the production ceiling as Iran signals its intention to boost output by 1 million barrels a day within five to six months of economic sanctions being removed.

West Texas Intermediate for January delivery dropped as much as 47 cents to $41.43 a barrel on the New York Mercantile Exchange and was at $41.59 at 8:41 a.m. Hong Kong time. The December contract expired Friday after declining 0.4 percent to close at $40.39, the lowest settlement since Aug. 26. The volume of all futures traded was about 43 percent above the 100-day average.

Brent for January settlement was 10 cents lower at $44.56 a barrel on the London-based ICE Futures Europe exchange. The contract rose 48 cents to $44.66 Friday. The European benchmark crude traded at a premium of $3 to WTI.

Source: Bloomberg

Gold Declines as Fed Williams Spurs Rate Increase Speculation

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Gold fell to extend five weeks of losses after John Williams, president of the Federal Reserve Bank of San Francisco, said that there was a strong case for a December rate rise should economic data hold up.

Bullion for immediate delivery retreated as much as 0.4 percent to $1,074.11 an ounce and traded at $1,075.27 at 8:45 a.m. in Singapore, according to Bloomberg generic pricing. Prices lost 0.5 percent last week after dropping on Nov. 18 to $1,064.55, the lowest since February 2010.

Bullion lost 9.2 percent this year as expectations for a higher U.S. rates damped the allure of the metal which doesn’t pay interest. Most economists in a Bloomberg survey and traders of federal funds futures expect lift-off next month from near-zero, where the bank’s key lending rate has been since 2008. Money managers are holding a net-short position in the metal for first time since August as long wagers shrunk to the smallest in seven years.

The likelihood of higher rates by year-end is 68 percent, up from 50 percent at the end of October, futures data show. The U.S. central bank’s policy-setting Federal Open Market Committee will convene in Washington on Dec. 15-16.

Spot silver and palladium fell, while platinum was little changed.

Source: Bloomberg

Produsen Komoditi Asia Jatuh Dengan Saham Konsumen Naik

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Saham komoditas Asia menurun sementara saham konsumen naik, meninggalkan indeks ekuitas regional sedikit berubah setelah reli pekan lalu.

Pasar di Korea Selatan dan Australia naik tipis sementara pasar di Jepang ditutup untuk liburan. MSCI Asia Pasifik kecuali Indeks Jepang sedikit berubah di level 420,55 pada pukul 08:26 pagi waktu Hong Kong, sebelum pasar Cina dibuka, setelah naik 2,4 persen minggu lalu.

Dengan suku bunga berjangka yang sekarang memprediksi probabilitas 68 persen bahwa Federal Reserve akan menaikkan suku bunga AS bulan depan dan Presiden Bank Sentral Eropa Mario Draghi mengisyaratkan ia akan segera meningkatkan stimulus, investor akan mencermati rilis data ekonomi untuk menilai perbedaan kebijakan moneter global.

John Williams, Presiden Federal Reserve Bank of San Francisco, mengatakan pada akhir pekan bahwa ada "kasus yang kuat" untuk kenaikan suku bunga Desember, sehari setelah rekannya di St Louis Fed, James Bullard, mengatakan laju untuk setiap kenaikan akan bergantung kepada data. Komentar itu muncul setelah Draghi mengatakan pejabat ECB "akan melakukan apa yang harus mereka lakukan" untuk meningkatkan pertumbuhan harga, melemahnya euro dan memicu kenaikan untuk obligasi tempo jangka pendek Jerman. (sdm)

Sumber: Bloomberg