Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Oil Surges Above $49 as Supply Draw Shows Market in Better Shape

Oil closed above $49 a barrel for the first time since May on growing optimism OPEC’s supply cuts are trimming a supply glut. Futures climbed 0.6 percent in New York for a fourth day of gains. Kuwait joined the U.A.E. in promising to pump less oil after Saudi Arabia called on OPEC producers to cut more supply. U.S. crude inventories declined by 7.21 million barrels last week to the lowest level since early January, according to the Energy Information Administration. The market is digesting...
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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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Saudi Arabia Turns Off the U.S. Oil Tap

At last, Saudi Arabia seems to be doing what it takes to reduce the world's most visible oil glut: the one in the U.S. Unfortunately, its renewed vigor comes as OPEC's deal to reduce excess crude stockpiles starts to show signs of unraveling elsewhere, a subject that will be wrestled with by the group's oil ministers as they and other producer nations meet in St Petersburg on Monday. Saudi Slump Weekly U.S. crude oil imports from Saudi Arabia have fallen sharply since early June So...
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Amber Waves of Grain

Of the 14 commodities we track closely at U.S. Global Investors, wheat rose to take the top spot for the first half of 2017, returning more than 25 percent. The grain was followed closely by palladium—used primarily in the production of catalytic converters—which gained 24 percent. To view our ever-popular, interactive Periodic Table of Commodity Returns, click here. Between the start of the year and June 30, the Bloomberg Commodity Index contracted 4.03 percent, with energy weighi...
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Oil up on widespread OPEC deal compliance, U.S. rig count rises

Oil prices rose on Friday after reports that OPEC members delivered more than 90 percent of the output cuts they pledged in a landmark deal that took effect in January. Supply from the 11 members of the Organization of the Petroleum Exporting Countries with production targets under the deal fell to 29.92 million barrels per day, according to the average assessments of the six secondary sources OPEC uses to monitor output, or a 92 percent compliance. The International Energy Agency (IEA...
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Gold Hovers Just Below 2.5-Mo. High, As Bulls Maintaining Some Power

Kitco News ,  CONTRIBUTOR Gold prices are trading near steady levels in early U.S. dealings, and are just below the 2.5-month high hit on Monday. A strong U.S. dollar on this day is keeping the precious metals bulls somewhat subdued. Still, the near-term chart postures for gold and silver markets have significantly improved recently, which have the bulls feeling more comfortable than they have been in months. April Comex gold was last up $0.20 an ounce at $1,232.30. March Comex silver was last ...
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Oil stuck near $57 as Iran, OPEC countered by U.S. drilling rebound

A petro-industrial factory is reflected in a traffic mirror in Kawasaki near Tokyo December 18, 2014. REUTERS/Thomas Peter/Files   By Alex Lawler LONDON (Reuters) - Oil steadied close to $57 barrel on Monday as rising tensions between the United States and Iran and OPEC supply cuts were countered by ample inventories and signs that higher prices will revive U.S. output. U.S. energy companies added oil rigs for a 13th week in the last 14, data showed on Friday. Despite the OPEC cu...
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Shale Oil Makes $70 the New $100

It shows Wood Mackenzie's projections of breakeven oil prices for new wells in North America's shale basins and the Gulf of Mexico. The first thing to notice is that, on average, it makes sense on paper to drill almost anywhere. Reality is a bit more complicated. As we discussed in this earlier column, all-in costs for exploration and production companies include things like general and administrative overhead and interest charges, all of which must be borne by the barrels they produce. I...
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$50 oil is here to stay if OPEC sticks to its deal

by Zahraa Alkhalisi   @CNNMoneyInvest It was a roller coaster year for oil prices. And little wonder. Iranian oil flooded onto world markets after sanctions were lifted, OPEC squabbled over production levels and then ended the year with a rare agreement to cut supply. The icing on the cake: big producers outside the cartel promised to help curb output and drain a huge oil glut. After starting the year around $30 a barrel, prices plunged to $26 in February -- the lowest since 2003 -- be...
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