Friday, September 14, 2012

PRECIOUS-Gold extends rally to hit six-month high after Fed

 
http://in.reuters.com/article/2012/09/14/markets-precious-idINL3E8KE2UJ20120914

* Bullion set for four-week rally, first time since January
    * Gold could see resistance at major highs $1,790-1,802
    * S.African mining labor strife adds support to platinum

 (New details throughout, updates comment, changes byline,
dateline, previously LONDON)
    By Frank Tang
    NEW YORK, Sept 14 (Reuters) - Gold rose to a six-month high
on Friday, extending the previous session's 2 percent rally
after the U.S. Federal Reserve unleashed another round of
aggressive stimulus. 
    Platinum group metals gained sharply on supply worries due
to mining unrest in South Africa and a better demand outlook the
day after the Fed pledged to pump $40 billion monthly into the
U.S. economy until it saw a sustained upturn in the jobs market.
    Investors looking to gold as a traditional inflation hedge
in times of accommodative monetary policy put bullion on track
to rise for a fourth straight week for the first time since
January.
    The European Central Bank has also unveiled an aggressive
plan to tackle the three-year old debt crisis there, while
China's Premier Wen Jiabao also said this week the government
could utilise a massive fiscal stability fund to boost growth.  
    Spot gold was up 0.4 percent to $1,773.26 an ounce by
12:45 p.m. (1645 GMT) after climbing to an intraday peak of
$1,777.51, its highest since Feb. 29. 
    U.S. COMEX gold futures for December delivery were up
$3.70 at $1,775.80 an ounce, with trading volume set to be
higher than average for a second straight day, preliminary
Reuters data showed.
    Analysts differed on whether gold could keep up the
blistering rally.
    "When multiple major central banks are coordinating their
effort in printing more money and engaging in stimulus measures,
 that has to be overtly bullish for gold," said Adam Sarhan,
chief executive of Sarhan Capital.
    But Tom Kendall, an analyst at Credit Suisse, cautioned that
after the rally in recent weeks, gold could be in for a period
of consolidation.
    And UBS gold strategist Edel Tully said that gold is due to
encounter stiff resistance at an area between $1790 and 1,803,
which were the metal's February and last year's November highs.
    Gold's appeal as an inflation hedge got a boost when the
U.S. Labor Department reported on Friday that consumer prices
rose in August at the fastest pace in more than three years.
    Reuters data shows asset performance has tended to diminish
with each new round of quantitative easing, or QE, from the Fed,
and that it sometimes takes as long as a year for the effects of
Fed action to kick in.
    (Asset reaction to QE: link.reuters.com/pym62t)
    Gold investment demand showed no signs of abating. Holdings
of SPDR Gold Trust, the world's biggest gold-backed
exchange-traded fund, inched up 0.2 percent on the day to
1,292.432 tonnes by Sept. 13. 
    Among other precious metals, silver was down 0.3
percent at $34.55 an ounce. Platinum gained 1.9 percent
to $1,708.25, while palladium was up 2.1 percent at
$698.22 an ounce. 
    Platinum is headed for a 8 percent rise on the week, its
biggest weekly gain since last October, due to supply fears
caused by mining labor unrest in South Africa, which is
estimated to own 80 percent of the world's platinum reserves.
    
 Prices at 12:45 p.m. EDT (1645 GMT)                          
 
                               LAST      NET    PCT     YTD
                                         CHG    CHG     CHG
 US gold                    1775.80     3.70   0.2%   13.3%
 US silver                   34.380   -0.336  -1.0%   23.2%
 US platinum                1714.00    34.50   2.1%   22.5%
 US palladium                704.00    15.50   2.3%    7.3%
 
 Gold                       1773.26     6.97   0.4%   13.4%
 Silver                       34.55    -0.09  -0.3%   24.8%
 Platinum                   1708.25    31.55   1.9%   22.6%
 Palladium                   698.22    14.32   2.1%    7.0%
 
 Gold Fix                   1775.50     3.00   0.2%   12.8%
 Silver Fix                   34.71   171.00   5.2%   23.2%
 Platinum Fix               1697.00     3.00   0.2%   22.9%
 Palladium Fix               702.00    10.00   1.4%   10.4%
 
 (Additional reporting by Eric Onstad, Rujun Shen in Singapore
and Veronica Brown in London; Editing by David Gregorio)

Thursday, September 13, 2012

Billionaire Ross Says Shipping Rout Attracts Private Equity


http://www.sfgate.com/business/bloomberg/article/Billionaire-Ross-Says-Shipping-Rout-Attracts-3862252.php

Alaric Nightingale and Devin Banerjee, ©2012 Bloomberg News

Read more: http://www.sfgate.com/business/bloomberg/article/Billionaire-Ross-Says-Shipping-Rout-Attracts-3862252.php#ixzz26NFRvF9N
(Updates with shipping billionaire John Fredriksen’s plans in seventh paragraph.)

(Bloomberg) -- Wilbur Ross, whose company manages about $10 billion of assets, said private-equity investors are increasingly interested in shipping after a four-year rout caused by a glut of capacity.
WL Ross & Co. was among investors who spent $900 million a year ago on 30 tankers hauling refined oil products. It became the largest shareholder last month of Navigator Holdings Ltd., which carries liquefied petroleum gas. Growth in developing economies will drive demand for shipping, Ross said in an interview at Bloomberg’s headquarters in New York on Sept. 10.
“For the first time, private equity is seriously interested in shipping,” he said. “Getting to numbers in the billions is not a stretch. It’s more a question of finding the right opportunity set that has a low-enough entry point.”
 
The combined market value of 145 shipping companies that are part of U.S. stock indexes tumbled at least 60 percent to $137 billion since May 2008, data compiled by Bloomberg show. Apollo Global Management LLC and Blackstone Group LP are among private-equity firms that bought vessels in the past two years. The industry’s investment in shipping jumped 13-fold to $3.3 billion last year, according to Marine Money International, a New York-based consultant and publisher.
Earnings for ships hauling crude oil, iron ore, coal and grains are mostly below what owners need to break even, according to figures from the Baltic Exchange in London, which publishes costs along more than 50 maritime routes. Owners are contending with fleets growing at least twice as fast as demand, based on data from London-based Clarkson Plc, the world’s largest shipbroker.
Fredriksen’s Billions

“It’s one of the most capital-intensive industries I know, and yet uniquely it’s highly fragmented,” Ross said. “It has not become oligopolistic, despite being inherently global and capital-intensive. We think that will begin to change as we go through this extremely traumatic period that we’re in.”
John Fredriksen, the world’s richest ship owner, said in interviews with Bloomberg Markets magazine and Bloomberg News this year the industry may be close to a bottom. He is investing $4 billion in vessels to transport liquefied natural gas, gasoline, propane and other fuels, as well as $7 billion for 18 oil rigs.
The largest crude-oil tankers are losing $2,480 a day when they ship 2 million-barrel cargoes of Saudi Arabian oil to Japan, the industry’s benchmark route, according to the exchange. They need $10,670 to pay running expenses, a figure that excludes interest costs on debt, according to Moore Stephens International Ltd., a consultant that tracks expenses.

Blackstone Tankers

Capesizes, the largest iron-ore carriers, are earning $3,490 a day, according to the exchange. They need $7,400 to cover operating costs, Moore Stephens estimates.
Blackstone, based in New York, bought nine refined-product tankers in August from Leer, Germany-based Hartmann AG for an undisclosed price. It also controls American Petroleum Tankers Parent LLC, whose ships are authorized to transport cargoes along the U.S. coast.
The U.S. restricts shipping in its waterways to American- owned and -flagged ships under the Jones Act, a 92-year-old law.

Cruise Holdings

Apollo bought a stake in Prestige Cruise Holdings Inc. in 2007 and a holding in Norwegian Cruise Line in 2008, according to Melissa Mandel Kvitko, a spokeswoman for the firm at Rubenstein Associates Inc. The New York-based company started Principal Maritime Management LLC in 2010, which operates a fleet of 11 Suezmax oil tankers.
“Very few ships are being ordered now because they can’t get the funding,” Ross said, adding that accelerating demolitions and rising cargo demand will reverse the current slump over “a couple of years.”
The number of private-equity firms considering shipping investments expanded this year, said Peter Shaerf, a managing director at AMA Capital Partners LLC, a New York-based consultant.
“We’ve seen a lot of people dancing around the edge, asking questions and looking at it,” he said.

--With assistance from Michelle Wiese Bockmann and Vignesh R S in London. Editors: Stuart Wallace, Dan Weeks

To contact the reporters on this story: Alaric Nightingale in London at anightingal1@bloomberg.net; Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net

Read more: http://www.sfgate.com/business/bloomberg/article/Billionaire-Ross-Says-Shipping-Rout-Attracts-3862252.php#ixzz26NFEIfev

WAfrica Crude-Stronger as October cargoes find homes

 
http://www.reuters.com/article/2012/09/13/markets-oil-westafrica-idUSL5E8KDFCI20120913

GENEVA, (Reuters) - West African crude oil
differentials firmed a little on Thursday as remaining supplies
of Nigerian and Angolan grades found homes with end-consumers
and as another Asian buying tender was announced.
    Two Indian refiners are in the market for sweet crudes
loading in November and both may take West African barrels,
especially if differentials remain as depressed as they have
been with the absence of many U.S. end-consumers.
    Only a handful of the almost 160 cargoes due to load across
the region in October are still available, traders said, with
more than 30 cargoes of Nigerian, Angolan and other African
producers said to have been sold over the last week.
    More Asian buying tenders for November are expected to be
announced over the next week, traders said.

    NIGERIA
    * Only around half a dozen of 72 Nigerian crude cargoes for
lifting in October are left unplaced with end-users, traders
said, including a Bonga, Yoho, Bonny and two Qua Iboe cargoes.
    * Qua Iboe BFO-QUA: BP was said to be re-offering a Qua
Iboe cargo for Oct. 26-27 at above dated Brent plus $2.50, a
level considered "speculative" by one potential buyer. Exxon was
also reported to be offering a Qua Iboe cargo for loading in the
last three days of October.

    ANGOLA
    * Five cargoes loading in October were still unplaced,
traders said, comprising Kissanje, Girassol, Saxi, Palanca and
Cabinda.
    * Kissanje: Exxon offered a cargo at dated Brent plus 30
cents with bids said to be close to below dated Brent.
    * Girassol: Total offered an end-October Girassol cargo at
dated Brent plus 60 cents, but buying indications were seen
around plus 20 cents and doable levels somewhere in the middle
of this range, traders said.
                
    TENDERS 
    * Mangalore Refinery and Petrochemicals Ltd (MRPL) has
tendered to buy 600,000 barrels of low sulphur crude oil loading
in November on an fob or delivered basis, tender documents
showed on Thursday. Quality offers must be submitted by Sept. 18
and must remain valid until Sept. 21.
    * India's Bharat Petroleum Corp (BPCL) has tendered to buy
one or more cargoes of light, sweet crude loading in November,
tender documents show. Quality offers to the oil refiner must be
submitted by Sept. 14 and price offers by Sept. 17 and must
remain valid until Sept 19. 
    * State-owned refiner Indian Oil Co Corp (IOC) bought five
West African light, sweet crude oil cargoes for loading in
November, traders said. IOC took two Nigerian Qua Iboe cargoes
from Chevron, one Qua Iboe and one Nigerian Bonga cargo from
Glencore and one Angolan Kissanje cargo from Morgan Stanley.
Price details were not disclosed. Details of the awards could
not be confirmed with officials at IOC or with the traders
reported to be involved. 
    
    DATABASE 
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click on:
    here

 (Reporting by Christopher Johnson; Editing by Alison Birrane)

Wednesday, September 12, 2012

Storage facility to come online in Iran within a month

 
http://tankstoragemag.com/industry_news.php?item_id=5378

One of Iran's largest oil storage facilities currently under construction is scheduled to come online within the next month.

Located in the southeast of Kerman province, the 650 billion rials (€41 million) facility will be able to store 345 million litres of petrol and diesel fuel.

As Tank Storage magazine reported last week, five new storage terminals will be online by March next year in the nation, increasing its storage capacity from 11.6 billion to 12.8 billion litres. Iran's current capacity has been deemed insufficient for 58 days consumption.

Last year, Iran installed 16 new storage facilities which added an extra 1 billion litres. The nation hopes to be able to store 14.5 billion litres of oil by 2016 and is to set aside $47.5 billion (€38 billion) to invest in various sectors of the oil refining and distribution industry. In addition, the national oil pipeline network will be extended from 3,700km to 5,100km by 2015.

U.S. ambassador to Libya killed in Benghazi attack

U.S. envoy Chris Stevens listens during a news conference held by leaders of Libya's rebel leadership after talks with representatives of the African Union in Benghazi April 11, 2011. REUTERS/Esam al-Fetori
 
 
By Hadeel Al Shalchi | Reuters
 
BENGHAZI, Libya (Reuters) - The U.S. ambassador to Libya and three embassy staff were killed as they rushed away from a consulate building in Benghazi, stormed by al Qaeda-linked gunmen blaming America for a film that they said insulted the Prophet Mohammad.
 
Gunmen had attacked and set fire to the U.S. consulate in the eastern city of Benghazi, the cradle of last year's uprising against Muammar Gaddafi's 42-year rule, late on Tuesday evening as another assault was mounted on the U.S. embassy in Cairo.

The California-born ambassador, Christopher Stevens, was trying to leave the consulate building for a safer location as part of an evacuation when gunmen launched an intense attack, apparently forcing security personnel to withdraw.

"The American ambassador and three staff members were killed when gunmen fired rockets in their direction," a Libyan official in Benghazi told Reuters. Airport sources said the bodies were due to be flown from Benghazi to Tripoli.

The attack was believed to have been carried out by Ansar al-Sharia, an al Qaeda-style Sunni Islamist group that has been active in Benghazi, a Libyan security official said. Witnesses said the mob also included tribesmen, militia and other gunmen.

The attack raised questions about the future U.S. diplomatic presence in Libya, relations between Washington and Tripoli, the unstable security situation in post-Gaddafi Libya and whether more protests might take place in the Muslim world.

The film portrayed Mohammad as a fool, a philanderer and a religious fake. In one clip posted on YouTube, Mohammad was shown in an apparent sexual act with a woman. For many Muslims it is blasphemous even to show a depiction of the Prophet.

U.S. President Barack Obama, whose administration supported the Libyan insurgency with funds, weapons and training, branded the killing an "outrageous attack" and ordered increased security at U.S. diplomatic posts worldwide.

KARZAI CONDEMNS "DEVILISH ACT"

A Danish newspaper caused a storm of protest across Islamic nations in 2005 by printing cartoons lampooning Islam and the Prophet Mohammad in 2005, the most famous depicted him wearing a bomb in his turban. The images touched off riots in the Middle East, Africa and Asia in 2006 in which at least 50 people died.

Afghan President Hamid Karzai sharply condemned the film in a statement, calling its making a "devilish act", saying he was certain those involved in its production represented a very small minority.

U.S. ambassadors in such volatile countries as Libya are accompanied by tight security, usually travelling in well-protected convoys. Diplomatic missions are usually protected by marines or other special forces.

Stevens grew up in California, graduated from Berkeley and worked in North Africa as a Peace Corps volunteer. He taught English in Morocco before joining the foreign service where he worked in the Middle East and North Africa.

Libya's interim government has struggled to impose its authority on a myriad of armed groups that refused to lay down their weapons and often take the law into their own hands.

Security experts say the area around Benghazi is host to a number of Islamist militant groups who oppose any Western presence in Muslim countries.

The worst-case scenario for Western governments is that a spate of recent attacks could be the start of an Iraq-style insurgency by Islamist militants. That could have an impact on oil exports as the energy sector depends on foreign workers.

However, security analysts say an insurgency is unlikely to gain the kind of traction it had in Iraq, mainly because Western states have no military presence on the ground in Libya.

Libyan Deputy Prime Minister Mustafa Abu Shagour condemned the killing of the U.S. diplomats as a cowardly act.

INTENSE ATTACK

The consular officials were killed after heavy clashes between Libyan security forces and Islamist militants around the consulate building. Looters raided the empty compound and some onlookers took pictures after calm returned.

"The Libyan security forces came under heavy fire and we were not prepared for the intensity of the attack," said Abdel-Monem Al-Hurr, spokesman for Libya's Supreme Security Committee.

U.S. pastor Terry Jones, who had inflamed anger in the Muslim world in 2010 with plans to burn the Koran, said he had promoted "Innocence of Muslims", which U.S. media said was produced by an Israeli-American property developer.

Jones, a pastor in Florida whose latest stunt fell on the anniversary of the September 11, 2001, attacks on the World Trade Center and the Pentagon, triggered riots in Afghanistan in 2010 with his threat to burn the Koran.

Many Muslims consider any depiction of the Prophet as offensive and any depiction of him can cause furious protests in the Islamic world as well as among Muslims in Europe.

CHARRED WALLS, FIRE BURNS

On Wednesday morning, the compound in Benghazi stood empty, with passers-by freely walking in to take a look at the damage.

Walls were charred and a small fire burned inside one of the buildings. A small group of men was trying to extinguish the flames and three security men briefly surveyed the scene.

A Reuters reporter saw chairs, table and food lying alongside empty shells. Some blood stains could also be seen in front of one of the buildings. Three cars were burnt out.

In neighboring Egypt, demonstrators had torn down an American flag and burned it during a protest against the film. Some tried to raise a black flag with the words "There is no God but God, and Mohammad is his messenger".

The crowd of around 2,000 protesters in Cairo protesting against the film was a mixture of Islamists and teenage soccer fans known for fighting police and who played a part in the revolt that toppled Egypt's leader Hosni Mubarak last year.

Egypt's Coptic Orthodox Church condemned in a statement some Copts living abroad who it said financed "the production of a film insulting the Prophet Mohammad", an Egyptian state website said. About a 10th of Egypt's 83 million people are Christian.

The fortress-like U.S. mission in Cairo is near Tahrir Square, where Egypt's uprising began and the scene of many protests since. Youths danced and chanted football songs. A Reuters reporter said they appeared to climb into the embassy compound almost as an afterthought.

"We sacrificed dozens and hundreds during the uprising for our dignity. The Prophet's dignity is more important to us and we are ready to sacrifice millions," said mosque preacher Mohamed Abu Gabal who joined the protest.

(Additional reporting by Samia Nakhoul in Beirut, Marie-Louise Gumuchian in Tripoli,Hadeel Al Shalchi in Tripoli, Sarah N. Lynch and Arshad Mohammed in Washington, and Reuters reporters in Cairo and Benghazi; Writing by Peter Millership and Ralph Boulton, editing by)