Daily FNArena News - Commodities

Rumours abound Russia is attempting to create an OPEC style cartel of natural gas producers, which would control more than 40% of world production and around 70% of global reserves.

With some signs of a tightening in the copper market BHP Billiton has agreed the likely return to a surplus may take longer than expected thanks to supply side delays.

No transactions were recorded in the past week and this week may not be different. Another auction next week could push the price to US$100/lb, experts say.

ABN Amro has revised its nickel price forecasts higher, joining a swag of brokers to have lifted estimates in recent sessions.

A correction in the nickel price is seen likely in coming months as the stainless steel market de-stocks, but prices should remain elevated relative to historical levels.

Expert projections for spot uranium beyond 2007 vary a lot, but everybody seems to agree that things can get a lot hotter in the short term.

Not every expert is equally convinced investing in nickel and copper stocks now is a good idea. But all of them seem to like bulk commodities, and gold.

Following on from the first shortfall in European central bank gold selling in 2006, 2007 has begun even further behind the norm.

Steel prices in Asia are up 5-30% so far this year and Citigroup sees a further 10% upside in coming months thanks to solid demand and tight markets.

Just when it looked like gold would finally break through US$700/oz once more, along came the great risk scare. But there was more to it than that.