Penny Sleuth’s Tom Bulford says oil explorer BPC Limited (LON:BPC) could be onto big things in the Bahamas. The company has five prospecting licenses off the coast of the Caribbean island, where research suggests it could find major oil deposits. Tom says political stability and a great geographical location give this project serious potential…
Russia’s main stock markets remain closed this morning after a slump in equities prompted the authorities to suspend trading. Falling commodity prices and financial turmoil have hit Russian investors hard. But Money Morning’s Jason Simpkins says Putin-lead Russia has itself to blame for scaring away foreign investment with its heavy-handed policies.
Gas prices have soared in the aftermath of hurricane Ike due to damage inflicted on major Gulf Coast refineries. Unleaded regular has risen 17 cents since the storm hit to reach $3.842 a gallon. Money Morning’s William Patalon III says gas shortages from a tough hurricane season are likely to affect much of the Southern US.
Inflation Still Threatens Japan; Time-Out for Northrop and Boeing; Citi Takes a Hit on Fannie and Freddie; Chinese Inflation Subsides; ImClone’s Secret Admirer; Bank of America Settles; Management Shake-Up at Sanofi-Aventis; Shell Evacuates in Face of Hurricane Ike
After declining for 15 years, U.S. natural gas production is finally on the rise, thanks to new technological developments that make it possible to draw large amounts of gas from deposits previously thought to be unreachable. An increase in natural gas production of the magnitude many industry insiders predict could do wonders for business, the environment and even U.S. energy independence.
The Reuters/Jefferies CRB Index shows commodities jumped 29% in the first six months of this year – the best first half for more than 30 years.
But there is much talk now of a “commodities bear market” and the popping of the so-called “commodities bubble” as prices pull back from their highs.
Jim Rogers, however, remains a commodities bull. “This bull market is not magic,” says Jim, writing in Whiskey and Gunpowder. “It’s not some crazy ‘cycle theory’ I have. It does not fall out of the sky. It’s supply and demand. It’s simple stuff.”
China and Iraq will sign a deal next week to develop the Ahdab oil field, 100 miles southeast of Baghdad. The move comes at time when political gridlock and security concerns have cast doubt over several pending short-term contracts, says Jason Simpkins in Money Morning.
Yesterday, oil was back up on a weaker dollar.
Crude oil futures gained $1.66 to settle at $114.53 a barrel on the Nymex. The euro, meanwhile, inched up 0.1% against the buck, off a six-month low of $1.4630.
Energy and oil expert Byron King says investors can expect oil to continue to head northward for all the familiar reasons. Oil’s long-term fundamentals are little changed since hit spiked to $147 a barrel at the end of July. And you can now pick up resource plays in 2008 at 2005 prices…
With oil down more than 20% from its record high, Canadian energy stocks have been beaten down to more affordable levels. But as concerns over demand and refining margins grow, it can be hard to determine which Canadian energy stocks are still viable profit plays.
Strong oil exports helped to boost Canada’s trade surplus in June. The trade surplus increased to $5.4 billion (C$5.8 billion) from $4.8 billion (C$5.2 billion) in May, the national statistics office announced earlier this week. But a large part of that increase was due to higher prices, not higher volumes. Oil reached a record of $147 per barrel on July 11. Since then, oil has dropped to below $115 a barrel.
The drop in oil prices coupled…
U.S. Federal Reserve Chairman Ben S. Bernanke and his fellow central bank policymakers will be back in the spotlight this week as the group convenes for its monthly monetary-policy meeting.
