China secure $60 billion contract for Russian oil

Highlights:

• China seals $60bn deal for oil from Rosneft

• Commodities & Energy fall across the board

• Precious metals at their lowest in for more than 2 years

Russian Pres. Vladimir Putin has announced that China have secured a deal with Rosneft to be for a figure believed to be in the region of $60 billion, ensuring that China have a healthy supply of crude oil. Russia is the world’s largest producer of oil and gas, delivering its products to nations across the globe via a series of pipelines. In fact, the nation and holds a monopoly on the world’s gas supplies.

Rosneft all of the world’s biggest oil producer and loosing the company delivers some 37 million metric tons of oil to the People’s Republic of China per year on an ongoing basis from the year 2018. As part of the agreement the company of also said that they would increase the amount of oil sent to China for a designated pipeline to just under 16,000,000 tons in the very near future.

Despite this “unprecedented” deal, China is currently in the middle of an economic slowdown of epic proportions – the very same slowdown that today caused a variety of commodity prices to plummet in conjunction with the Federal Reserve’s announcement that they will begin to slow down monetary stimulus within the next six months.

The world’s famous precious metals, gold, silver and nickel or registered declines today. Golden nickel declined to their lowest prices in 2 1/2 years or more, while the Devils metal slumped by 9.7%. The cold decline would of caught many investors out as the price usually moves inversely to equities, which have been plummeting today to sit potentially being pulled on the feds $85 billion a month and of quantitative easing – affectionately referred to by investors as QE3.