Iron Ore: The big surprise

Iron ore’s rally is foxing even the experts. The commodity’s surge to the highest level in more than two years at a time of ample supplies is an enigma for steelmakers globally and prices aren’t sustainable at these levels, according to India’s second-biggest mill.

“Iron pricing is a big puzzle to all of us, as to why it is going up to $81 when there is a robust supply” and port inventories in China are at a record, JSW Steel Ltd. Joint Managing Director Seshagiri Rao said in an interview. “From the stock point of view, from the supply point of view and the demand point of view, we don’t find any reason why iron prices have to be at this level.”

More at Bloomberg

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Crude: OPEC hopes for stability, Venezuela hopes for $70

Crude may finally see some stability in 2017 according to OPEC Secretary-General Mohammed Barkindo. He is back in Caracas for the second time in 2 months meeting with President Nicolas Maduro who over the last two years has been lobbying globally for output cuts. Maduro at the press conference said that he hoped the accord between OPEC, Russia and other non-members reached in late 2016 will help raise Venezuela’s crude basket to $60 in the first half and $70 in the second.

More at Reuters