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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His Gold Calls Have Been Quite Accurate; Now He’s Calling The Bottom

(Kitco News) - It seems the best way for investors to make money in the gold market lately is by being on the bearish side, but according to one analyst with a strong track-record, this trend could change. “Gold dropped 5 weeks in a row after my May 29th bearish call. All indicators tell me that a trend reversal is imminent,” noted Lejun James Shao, founder of www.myIRAs.net, in a Seeking Alpha post Wednesday. So far this year, Shao’s gold calls have been “quite accurate,” as he put it. ...
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COMMODITIES HALFTIME REPORT: SEPARATING THE WHEAT FROM THE CHAFF GOLD

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 weighing d...
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Oil cracks $50 a barrel for the first time in three weeks

U.S. crude surged above $50 a barrel for the first time in more than three weeks, as a report surfaced that OPEC members are considering cutting production more deeply to tackle a persistent supply glut that has weighed on prices. U.S. West Texas Intermediate crude (New York Mercantile Exchange: @CL.1) futures for June delivery were more than 2 percent higher at $50.40 a barrel shortly by 12:30 p.m. ET. That put WTI above the key level of $50.22 a barrel, the high for the week of April 24 — jus...
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Worst Seems Over for Oil as Supply Drops, OPEC Talks Longer Deal

Oil climbed for a second day, leaving the worst of last week’s rout behind for now, as U.S. stockpiles fell and two OPEC members said there’s a consensus to extend output cuts. Futures rose 1.1 percent in New York after surging 3.2 percent on Wednesday, when government data showed a 5.25-million barrel stockpile drop last week. Two members of the Organization of Petroleum Exporting Countries said Thursday there is consensus on extending production curbs for six more months when the group meet...
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Kilduff: Oil market is about to get ‘ugly’

It was a rough week for the crude oil market. After months of relative price stability, with WTI oil prices pinned between $50 and $55 per barrel, the floodgates of selling opened wide, as the record amount of long positions that was built up by speculators over the preceding weeks was, quite obviously, liquidated, as evidenced by sky-high volume in both futures and option contracts. There were several catalysts: Crude oil inventories in the United States hit a new, record level, according the...
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Oil prices could jump $10 a barrel if OPEC extends output cap deal, analyst says

It has been a troubled week for oil prices, which dropped to below the $50 a barrel threshold for the first time this year. But the cost of a barrel of oil could jump to $60 by the end of this year, if OPEC countries decide to extend their output cut agreement, an analyst told CNBC. "We could see WTI go down into the mid-40s but we do still see that rebalancing story intact. Fundamentals haven't changed dramatically this week," Richard Mallinson, geopolitical analyst at Energy Aspects, told CN...
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Oil prices slip as rising U.S. supplies offset OPEC cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices slipped on Tuesday but continued to trade in a tight range, as concerns about rising U.S. crude inventories ahead of data overshadowed OPEC production cuts. U.S. crude stockpiles have been rising for seven consecutive weeks, and forecasts of an eighth build of 2.9 million barrels last week fuelled worries that demand growth may not be sufficient to soak up the global crude oil glut.[EIA/S] Inventory data is due from industry group the Am...
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Oil rises in thin trade, but swelling U.S. output caps rally

By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices inched higher on Monday, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally, although growing U.S. output and stubbornly high stockpiles kept price gains in check. Top OPEC exporter Saudi Arabia's crude oil shipments fell in December to 8.014 million barrels per day (bpd) from 8.258 million bpd in November, official data showed on Monday. Brent futures (L...
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Oil prices rise as OPEC output cuts drain stocks

By Scott DiSavino NEW YORK (Reuters) - Oil prices edged higher on Tuesday ahead of weekly U.S. inventory data on evidence the global market is tightening as lower production by OPEC and other exporters drains stocks. Increased drilling in the United States, however, could keep a lid on prices. Brent (LCOc1) futures gained 21 cents, or 0.4 percent, to settle at $55.44 a barrel, while U.S. West Texas Intermediate (CLc1) gained 43 cents or 0.8 percent, to $53.18 per barrel. That put WTI up fo...
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