Oil Price Rises with All Eyes on Fed

Source: AFP (11/2/10)

"Current oil price levels within a 'very comfortable zone.'"

World oil prices firmed on Tuesday in cautious deals before a crucial U.S. Federal Reserve monetary policy meeting, and following supportive data as well as comments from OPEC kingpin Saudi Arabia.

Brent North Sea crude for delivery in December delivery rose $0.20 to $84.82 a barrel in London trade.

New York's main contract, light sweet crude for December, added $0.41 to $83.36.

International financial markets are on tenterhooks before the U.S. central bank's two-day meeting, which concludes on Wednesday, amid expectations that it could restart stimulus measures known as quantitative easing (QE).

The widely-expected move, dubbed QE2 by traders, has weighed on the dollar in recent weeks and months because new easing measures are expected to dilute the value of the greenback.

"As the U.S. Federal reserve stands by to announce its next round of quantitative easing, this is only likely to push the dollar lower," said analyst Ian Parrett at British consultancy Inenco.

Since June, the European single currency has risen by more than 15% in value against the dollar. A weaker U.S. unit tends to boost dollar-priced oil, which becomes cheaper for buyers that use stronger currencies.

"The dollar was still stuck near recent lows and there is little to be expected here until the Fed delivers its November statement," said analyst Andrey Kryuchenkov at Russian financial services firm VTB Capital.

"Naturally, a smaller-than-expected QE2 (package) would dent sentiment and support the dollar, with oil slipping back," he added.

Meanwhile, the oil market continued to draw strength from Saudi Oil Minister Ali al-Nuaimi, who said on Monday that current oil price levels at above $80 a barrel were within a "very comfortable zone."

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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