INTELLECTUAL TRADING

The Organization of the Petroleum Exporting Countries (OPEC) agreed for a modest output cut during the week. OPEC countries will reduce output to a range of 32.5-33 million barrels per day (bpd) from the present output of 33.24 million bpd.  The deal was struck during talks in Algeria to ease global supply fears.  This is the first such deal since the 2008. Iran too has decided to decrease production by around 0.7 million bpd. Despite these modest production cuts, this move could help oil prices recover.  Until a few years ago, US$100 per barrel was the new 'normal' for oil prices. And then this capricious commodity proved everyone wrong. Early this year, crude oil prices hit US$30 per barrel for the first time in twelve years. The root of this turmoil has been the global supply glut.  OPEC is a major source of the turmoil we've seen in crude oil prices. Crude Oil Surges after OPEC Deal   Crude oil witnessed most of the buying interest during the week. It op...

♥ At a time when foreigners were investing in Indian equities, Indians were boosting their Gold purchases. The gold greedy Indians bought yellow metal worth $267 billion (Rs. 18 lakh crore at 68 rupees per US dollar) over the last 10 years.  ♥ Kotak excluded the gold which is imported for re~export. “Over the last decade, India received net equity foreign institutional investors’ flows of $119 billion, while net foreign direct investment inflow totaled $185 billion. It is this money that has financed the purchase of gold in the country.” ♥ According to World Gold Council (WGC), China and India accounted for close to 45% of total global gold demand during 2015. Full year 2015 saw China (985t) and India (849t) continue their dominance in the global gold market. In India both the investment (60t) and jewellery (173t) sectors were up 6%, boosted by the festival season.