Commodities

Brent oil was pulverised again last night as it fell as low as $43.57 just one dollar above its low for this move.

From Capital Economics via Fairfax: The renewed weakness in global commodity prices, notably oil and copper, is obviously a concern for producers but the current pessimism looks overdone, says Capital Economics.

From Politico: U.S., JAPAN STRIKE DEAL TO CURB COAL FINANCING: The U.S.

Here are the iron ore charts for November 15, 2015: Qingdao spot was up but Tianjin benchmark fell 40 cents to $47.40.

A little reality is creeping into the local idiot market today with BHP and RIO slammed -2.5% and FMG hit -5%: Dalian is up three points during the day so the damage would be much worse without Samarco.

From The Australian: Mining giants BHP Billiton and Vale will be held accountable for a deadly dam rupture at an iron ore mine in Brazil and face immediate fines of about $US66 million, says President Dilma Rousseff.

With oil tanking last night and headed for $40, the mining GFC has returned with a vengeance as mining credit spreads surge, equity is crushed and, increasingly, the mess delivers nasty damage to wider equity as well.

The Brent oil price smashed through support last night and is targeting its 2015 lows.

Here are the iron ore price charts for November 12, 2015: Spot at new lows.

It’s carnage in big iron ore today with BHP in free fall down another -2.5% and targeting the GFC low: I remains of the view that is going to fall all the way back to 2003 prices.

From Macquarie: Following the Samarco tragedy in Brazil, which has removed 30mtpa of iron ore (pellet) supply from the market, Vale released a statement saying that production at its own Fabrica Nova / Timbopeba operations in the Southeastern mining complex nearby may be negatively impacted, by 3mt in 2015 and 9mt in 2016.

Here are the iron ore price updates for November 11, 2015: Spot OK with Tianjin flat again at $47.70.

From Dumbfax: Meet the one analyst who’s brave enough to slap a sell recommendation on hallowed blue chip BHP Billiton.

From the AFR: BHP has said it is still too early to say what caused the tragedy and there has been speculation that there may have been some sort of seismic event.

From FMG this just now: Sensible enough.

The big news overnight was the release of the 2015 International Energy Agency (IEA) World Energy Outlook.

The Glencore rout is back with the stock down 17.5% in the past week (and 4.2% last night).

The Brent oil price was virtually unchanged last night at $48 despite the rather gloomy oil outlook from the IEA which does not see oil prices rising back towards $80 until 2020.

Big iron is hoping again today, this time for Samarco deliverance, instead of looking just beyond that to prices that are going to sink and sink.