Nov 10th 2011
- Oil price hits the $150 again?
The International Energy Agency (IEA) has said if investment in the Middle East and North Africa (MENA) oil-producing region fell significantly, oil prices could reach $150 per barrel in the near term, Reuters has reported. "If between 2011 and 2015 investment in the MENA region runs one-third lower than the $100bn per year required, consumers could face a near-term rise in the oil price to $150 per barrel," the IEA said in its annual World Energy Outlook.
According to Bloomberg, the Organisation of Petroleum Exporting Countries (Opec) has raised estimates for demand for its crude in 2012 after lowering its projection for supplies from outside the group. Oil prices will be capped this year as Libya restores exports while demand growth in industrialised countries remains weak, Opec said in its monthly oil market report. An Opec's secretariat said: "This upward revision came solely from the downward adjustment in non-Opec supply." (source: Middle East News)
- Iran receives 22 requests from foreign banks to open branches there
The Organisation for Investment, Economic and Technical Assistance of Iran (OIETA) has announced it has received a total of 22 applications from foreign banks expressing their interest to set up branches in the country, Fars news has reported. The organisation is currently in talks with the foreign lenders to finalise the details, said OIETA head Behrouz Alishiri without providing more information. (source: Middle East News)
- Gold enhances your Risk Management
In the current economic environment, low real yields around the globe incentivise investors to look for additional sources of return, while increased uncertainty and market volatility have increased the importance of risk management.
A distinct allocation to gold within a portfolio including alternative assets such as private equity, hedge funds, real estate and commodities, can preserve capital and reduce risk without diminishing long-term returns, concludes the latest research from the World Gold Council.
Even if investors hold alternative assets, they are no substitute for the protection that a distinct allocation to gold can offer.
Findings demonstrate that portfolios with an allocation to gold of between 3.3% and 7.5% (depending on the risk tolerance of the investor and the currency of reference) show higher risk-adjusted returns while consistently lowering Value at Risk (VaR). (source: World Gold Council)
