Gold has traded between $1,057 and $1,064 on this final day of 2015…as of 9:00 am Pacific, bullion is flat at $1,061…Silver is off a nickel at $13.82…Copper has shed 2 pennies to $2.12…Crude Oil has recovered 74 cents to $37.36 while the U.S. Dollar Index has climbed half a point to 98.68…
Copper prices closed at their highest level in nearly 7 weeks yesterday as an unwinding of short positions continued…the metal has lost nearly a quarter of its value this year, battered by a supply glut and weak demand from China, the world’s biggest Copper consumer…
In their 2016 Silver outlook report, commodity analysts at ScotiaMocatta (part of Scotiabank Global Banking and Markets) said that on a technical basis, they could see Silver futures test support around $12 an ounce…however, they added, “we would expect such a move to be short-lived. The long-term outlook for Silver’s use in industry is exciting. There are numerous new applications for the metal that have the capacity to make a big difference to demand – in time,” the firm stated. “Many of these new applications are using nano-technology in which tiny amounts of Silver are used per application, but they have potential to be used extensively.”
Crude Oil Update
U.S. Crude inventories rose by 2.6 million barrels in the week ended December 25, the U.S. Energy Information Administration reported yesterday, which put further downward pressure on Oil prices…analysts polled by The Wall Street Journal had expected a decline of 1 million barrels…
The unexpected increase was due to higher imports and an uptick in production…the EIA reported that U.S. Crude production rose by 23,000 barrels a day last week to 9.2 million barrels a day…while U.S. output is down from a peak in April, production has fallen more slowly in response to low prices than many investors initially expected…companies have been able to cut costs and increase efficiency, keeping output high in a low-price environment…
“A big gap is forming in Oil-industry investment,” Claudio Descalzi, chief executive of Italian energy company Eni, recently told reporters. “That will lead in two to three years to an imbalance between supply and demand that will push prices higher.”
Tudor, Pickering & Holt, an energy-focused investment bank, has tallied 150 projects that have been delayed, resulting in an estimated 13 million barrels a day of Oil production deferred indefinitely…that is equal to 15% of total global output…a chunk of the deferred Oil – 20% – comes from projects in Canada’s Oil sands deposits, where extracting Crude is particularly expensive…Arctic production and complicated deep-water projects in the Gulf of Mexico and Africa have also suffered, according to Tudor Pickering…
Still, despite the significant drop in investment, the IEA sees prices rising no higher than $80 a barrel by 2020, in part because shale production could fairly quickly meet new demand…
WTIC 3-Year Weekly Chart
While the RSI-price divergence is encouraging for the longer-term, WTI has given every indication – technically and fundamentally – that it needs to test lower levels in 2016 and that likely means a further move to the downside to at least $30…Fib. levels have been extremely accurate, and the next major Fib. support on this 3-year weekly chart is $30.24…
An “A-B-C” pattern formed in late 2014…the “B” wave was the recovery to around $60 a barrel…the “C” wave has further to go with prices dropping at least in half from the “B” wave high…still too early to be jumping in aggressively on Oil stocks…
In today’s Morning Musings…
1. The Venture aims for its first positive 4th quarter in 4 years…
2. Updates on EQT, DVN, ICG, NMX and CGC…
3. Despite major summer sell-off, China is top performer among Asian markets in 2015…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
Hi Jon, any updates on ELT coming up? The volume seems to have picked up this morning for some reason after a very quiet couple days.
Comment by Danny — December 31, 2015 @ 10:11 am
Yes, Danny…ELT has been consolidating in a healthy way recently…looks good for Q1.
Comment by Jon - BMR — December 31, 2015 @ 10:22 am
Top up at 12.5,, thankyou.
Comment by Tombc — December 31, 2015 @ 10:35 am
Was going to say that myself George, rite on! good finish to the v, onward and upward from here, look forward to your analysis on the latest core pics Jon, have a happy new year…..
Comment by Tombc — December 31, 2015 @ 1:19 pm
TSX-V closes at 525.59 – this good enuff John?? 🙂
Comment by Jeremy — December 31, 2015 @ 1:25 pm
The CDNX closed the year on an up note @ 525 breaking the 50 dma. A good sign to begin 2016.
Comment by Les — December 31, 2015 @ 1:27 pm
Dave – it was a good rant wasnt it..:) but so freakin true… remember guys like Greg McCoach??? he rode the wave… and like most newsletter writers (and I use that term loosely) were and are nothing more than snake oil salesguys and gals… getting paid for stuff… and almost fabricating the story..
we are in a world of huge distrust.. and it is well deserved..
Happy New Year to all!! may we reap some benefits of being here, and having a recovering market
Comment by Jeremy — December 31, 2015 @ 1:29 pm
Anyone notice the uraniums starting to run? They could be serious as they are moving up even while oil is at multi year lows and world leaders are targeting climate change as something to be worried about again. DML ran through the .62 level pretty quick with next stop and big test at .72. Todays close is a 42% gain in one month. EFR and FCU also sporting nice gains.
Comment by DBReese — December 31, 2015 @ 1:35 pm
Rof heating up??
timminspress.com/2016/01/01/canadian-company-considers-building-a-rail-corridor-to-ring-of-fire
Comment by Tony t — January 1, 2016 @ 5:38 pm
Hi, Jeremy…Happy New Year
Yes, I do think it will be a much better year for the CDNX and our stable of stocks.
The CDNX did a turnaround in Q4 relative to individual commodities and our stock selections are starting to look stronger after the seasonal weakness in December. GGI spent almost all of Nov. and Dec. forming the downsloping Wave #4, which was expected, but the trend indicator, ADX, shows it remains in a bullish Uptrend. This shows why it is so important to include TA in every stock DD.
I notice in the “Comments” there are more and more positive posts about stocks….Yes indeed, we are going to see an upward move in our stocks in 2016…
Just don’t get greedy.
Comment by John - BMR — January 2, 2016 @ 3:48 am
Hi, Jeremy…Happy New Year
Yes, I do think it will be a much better year for the CDNX and our stable of stocks.
The CDNX did a turnaround in Q4 relative to individual commodities and our stock selections are starting to look stronger after the seasonal weakness in December. GGI spent almost all of Nov. and Dec. forming the downsloping Wave #4, which was expected, but the trend indicator, ADX, shows it remains in a bullish Uptrend. This shows why it is so important to include TA in every stock DD.
I notice in the “Comments” there are more and more positive posts about stocks….Yes indeed, we are going to see an upward move in our stocks in 2016…
Just don’t get greedy.
Comment by John - BMR — January 2, 2016 @ 4:17 am
Jon, previous days posts have gone wonky after post 50, so I am posting here.
Martin, are you sure hole 5 is located as per the original plan? I think they moved the drill over the mound to the adjacent ”valley”. Check out the 2 maps and look at the scale for distances:
original plan:
garibaldiresources.com/s/Photo_Gallery.asp?ReportID=604184
actual location:
garibaldiresources.com/i/maps/Grizzly/Grizzly-Central-Magnetics.pdf
Comment by Tom UK — January 2, 2016 @ 5:26 am
Note to readers: The intermittent problem we’ve been having with the comments section over the last 10 days or so has been fixed. We isolated the technical glitch that was occurring after 50 or more comments to a daily post, and it should not occur again. We appreciate our readers’ patience with this issue since late December.
Comment by Jon - BMR — January 2, 2016 @ 9:12 am
TMX group admits Venture needs help;
Four ways to fix the ‘broken’ TSX Venture Exchange
http://business.financialpost.com/news/energy/revitalizing-the-tsx-venture-has-high-priority-in-2016-for-broken-exchange?__lsa=d64d-4fb1
Comment by Tony T — January 3, 2016 @ 10:26 am
Trading back to normal tomorrow. I wonder what 2016 will bring. Hopefully gold will rally and the venture will finish the year higher than it starts.
In the short term when will we get GGI results, same for DBV results and hopefully start drilling again. GBB might come to life if it gets the CoA that has been awaited for what feels like ages.
Comment by Tom UK — January 3, 2016 @ 11:06 am
We wait in anticipation for DBV to return to the Hat and continue hole #25 to a much greater depth. Let’s hope the drill program starts a lot sooner than last year. We should get the results from both GGI and DBV before the end of January.
Comment by Les — January 3, 2016 @ 12:30 pm