“Oil fell to the lowest level in seven weeks after a report showed rising U.S. stockpiles and the Federal Reserve Bank of Philadelphia President Charles Plosser said a new stimulus plan probably won’t boost economic growth.

Futures slid as much as 1.6 percent, temporarily falling below $90 a barrel for the first time since Aug. 3 on the New York Mercantile Exchange. The American Petroleum Institute said crude supplies increased 335,000 barrels, a third weekly gain, while Citigroup Inc. cut its global demand forecasts. Bond purchases announced by the Fed this month probably won’t spur expansion or hiring, Plosser said in a speech yesterday. Oil surged to $100.42 a barrel on Sept. 14, its highest this year, after the Federal Open Market Committee said it will undertake a third round of quantitative easing.

“The quantitative easing euphoria has eased,” Ole Hansen, senior manager of trading advisory at Saxo Bank A/S, said by phone from Copenhagen. “Renewed worries, especially in Spain, are putting the focus back onto global growth and the potential for subdued demand for oil.”

Crude for November delivery fell as much as $1.45 to $89.92 a barrel in electronic trading on theNew York Mercantile Exchange and was at $89.96 at 1:16 p.m. London time. Futures slid 56 cents to $91.37 yesterday, the lowest close since Aug. 2. They are down 8.2 percent this year.

Brent oil for November settlement dropped $1.87, or 1.7 percent, to $108.58 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade’s premium to West Texas Intermediate in New York was at $18.62, compared with a close of $19.08.”

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Anglo Gold and Gold Fields have shut down about 39% of their production capacity due to wide spread miner strikes.

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“Copper inventories at bonded warehouses in Shanghai probably climbed to a record as importpremiums dropped to a four-month low, signaling demand in China may not be improving as much as expected after a summer lull.

Reserves were 650,000 metric tons, according to the median of nine estimates from traders, analysts and warehouse managers, compiled by Bloomberg. Five said that this was a record. The amount compared with an estimate of 550,000 tons by Macquarie Group Ltd. on Aug. 20. Fees paid by importers over the London Metal Exchange cash price are about $40 to $60 a ton on a cost, insurance and freight basis, the lowest since May.”

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Black gold rose overnight along with other risk assets. WTI is up a $1.21 @ $93.63

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“Today’s AM fix was USD 1,760.00, EUR 1,360.33 and GBP 1,088.03 per ounce.
Yesterday’s AM fix was USD 1,774.50, EUR 1,361.44 and GBP 1,092.54 per ounce.

Silver is trading at $34.31/oz, €26.61/oz and £21.28/oz. Platinum is trading at $1,619.50/oz, palladium at $663.50/oz and rhodium at $1,225/oz.

Gold fell $0.10 or 0.01% in New York yesterday and closed at $1,770.50. Silver hit $34.958 in Asia and fell to $34.27 in early New York trade and it then bounced back higher, but finished with a loss of 0.49%.

Gold edged down today due to dollar strength and profit taking as speculators and some investors booked profits on 16% price gains from this year’s low.

Gold continues to see smart money diversification as central banks from the ECB and the Fed to the BOJ have all announced ‘stimulus’ or money debasement measures which has led investors to seek gold as an inflation hedge.”

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“The biggest advances in commodities this year may be over because of mounting concern that policy makers aren’t doing enough to bolster economic growth at a time when producers are expanding supply.

The Standard & Poor’s GSCI gauge of 24 raw materials will end the year at 677, 3.1 percent higher than now, based on the median of 10 investor and analyst estimates compiled by Bloomberg. The index is 1.8 percent lower since the European Central Bank announced an unlimited bond-purchase program Sept. 6 and 3.8 percent below its level when the Federal Reserve pledged a third round of debt-buying Sept. 13.”

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“Oil fell to a six-week low after U.S. stockpiles climbed the most since March, Chinese manufacturing shrank and Japanese exports fell, signaling fuel demand may be slowing among the world’s biggest crude users.”

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As U.S. retail gasoline prices once again near $4.00 a gallon, does this pose a threat to the economy and President Obama’s prospects for re-election? My answer is no.

Read the rest and see some nice graphs, here.

In a effort to ease higher oil prices stifling a low growth global economy, The house of Saud has decided to ship more crude to consuming nations.

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“Gold is no longer a commodity trading in step with other commodities against the dollar, but is developing a life of its own as a currency in itself, say Deutsche Bank analysts Daniel Brebner and Xiao Fu.

Global uncertainty tends to have commodities moving in a risk-on, risk-off trading pattern, meaning good news generally sends commodities up and the dollar down, while bad news sends both asset classes in the reverse direction, with some exceptions.

That pattern is quickly becoming a thing of the past where gold is concerned, as the precious metal is becoming less correlated to other commodities and is behaving more like the safe-haven dollar and yen amid market swings.”

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“Gold was seen gaining in London after reaching a six-month high on speculation central banks’ moves to bolster growth will spur demand for the metal as a protection of wealth.

The Bank of Japan (8301) said it will add 10 trillion yen ($127 billion) to its 45 trillion-yen fund that buys assets including government debt. The Federal Reserve announced Sept. 13 a third round of quantitative easing, European Central Bank President Mario Draghi gave details this month of a plan to buy debts of member states and China approved infrastructure spending plans.

“Gold is given a boost on the back of anything that is a form of quantitative easing,” Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance SA in Geneva, said today by phone. “At some point there’ll be some profit-taking but we’ll continue to trend higher.”

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“Oil extended losses amid speculation that crude-producing countries will increase supply, outweighing the impact of Japan’s expanded program of monetary easing and economic stimulus.

Futures fell as much as 1 percent. Saudi Arabia is taking action to reduce the price of oil by pumping about 10 million barrels a day of crude and will produce more if customers demand it, a Persian Gulf official with knowledge of the matter said yesterday. The Bank of Japan (8301)said it will increase its asset- purchase fund to 55 trillion yen ($697 billion) from 45 trillion yen. The BOJ joins the Federal Reserve and the European Central Bank in taking steps to prod the economy.”

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“We are sick and tired of the unions; they are liars,” says Adam Thlolwe, a worker at the world’s second-biggest platinum mining complex near Rustenburg, South Africa.

As Thlolwe and more than 40,000 workers defy the main labor unions and cripple the world’s biggest platinum industry, officials at the Congress of South African Trade Unions gather in Johannesburg today, facing accusations that they are too close to the government and companies to represent members’ interests.”

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Trickle the money down to the 99% yo…..

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Oil pushed over a $100 per barrel on a bond buying plan announced by the fed yesterday.

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Political unrest, strikes, and monetary debasement have the precious metal markets flying high. Still well below inflation adjusted highs. ALL ABOARD !

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Strikes in South Africa are going largely unnoticed by mainstream media. Many are dead over the past few weeks and these strikes risk further damage to many sectors of the global economy.

As a result of yesterday’s events platinum is soaring.

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WTI is up $0.10 while brent is up $0.54….

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“Now that oil’s price revolution – a process that took ten years to complete – is self-evident, it is possible once again to start anew and ask: When will the next re-pricing phase begin?”

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“Oil traded near the highest close in almost three weeks in New York amid speculation the U.S. will add to measures to revive its economy, countering concern that Europe’s bailout plan will falter.

Futures were little changed, paring an earlier decline. U.S. crude inventories probably dropped to the lowest level since March as more than a third of Gulf of Mexico output remained shut 10 days because of Hurricane Isaac, a Bloomberg survey showed. The Federal Reserve starts a two-day meeting tomorrow where it may announce stimulus measures. Goldman Sachs Group Inc. said West Texas Intermediate oil may rise to narrow the gap between the benchmark grade and other regional crudes.

“Prices are likely to break to the upside,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent crude will surpass $116 a barrel in the next week. “Oil fundamentals are balanced. A rise in prices would mostly be fueled by more money flooding in from the Fed.”

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