Posts tagged oil prices
CAPE TOWN (Reuters) – Global airlines should post an industry profit of $12.7 billion this year, an increase from a previous $10.6 billion forecast, as lower oil prices and belt-tightening offset difficult economic conditions, industry group IATA said on Monday. However, the International Air Transport Association said margins remained weak amid Europe's ongoing debt crisis. "The day-to-day challenges of keeping revenues ahead of costs remain monumental," IATA director general Tony Tyler said at a meeting of more than 200 airlines in Cape Town. …
Silver prices have slumped to their lowest level since September 2010 and gold prices are down 18% year-to-date leading many market observers to declare that the super-rally in commodities is over.
Jim Rogers, the legendary investor and Chairman of Rogers Holdings, says the commodities bull market continues. He calls the latest slump in prices a correction. “I still don’t see massive new supply coming into the market which will keep prices down,” he tells The Daily Ticker.
Rogers correctly called the commodities bull market that began in 1999 and the housing slump of 2007-2008 well before either occurred.
Despite the decline in precious and industrial metals like copper, not all commodity prices are falling. Oil prices, for example, are actually higher so far this year. WTI crude today is trading at $97.14 a barrel, up 5%. Cotton futures are trading near 11-month highs.
Farmland prices, however, are moderating. The Kansas City Fed reported last week that prices for nonirrigated farmland in its region rose 3.4% in the first quarter—less than half the increase of a year ago. In a separate report, the St. Louis Fed showed a 2.3% decline in first quarter land values compared to the previous quarter.
Rogers has been bullish on farmland and says he’s still optimistic about that market. “Farmland has been extremely exciting for 3 or 4 years now. I hope it’s slowing down…otherwise we won’t have any farm products.”
The slowdown is “only in some parts of America, in Iowa where the farmland got way ahead of itself, “says Rogers. “It hasn’t slowed down in Mississippi.”
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By Peg Mackey and Nerijus Adomaitis LONDON/OSLO (Reuters) – European authorities have raided offices of oil majors Shell, BP and Statoil in an investigation of suspected manipulation of oil prices, one of the biggest cross-border actions since the Libor rigging scandal. Authorities have sharpened scrutiny of financial benchmarks around the world since slapping large fines on some of the world's biggest banks for rigging interest rate benchmarks. …
WASHINGTON (Reuters) – Import prices fell in April due to a drop in oil costs, a positive sign for household finances that also pointed to benign inflation pressures. Import prices slipped 0.5 percent last month, the biggest decline since December, the Labor Department said on Tuesday. March's data was revised to show a 0.2 percent decline instead of the previously reported 0.5 percent drop. Economists polled by Reuters had expected prices to fall 0.5 percent last month. In the 12 months to April, import prices fell 2.6 percent. Stripping out petroleum, import prices dipped 0.1 percent. …
(Reuters) – Lower oil prices hit Chevron Corp's quarterly profit as the second-largest U.S. oil company faced refinery downtime and higher operating costs in its home market, though its shares rose as the earnings topped expectations. Analysts cited foreign currency gains that gave the company a particular boost in the quarter. First-quarter net income fell 4.5 percent to $6.18 billion, or $3.18 per share, from $6.47 billion, or $3.27 per share, a year earlier. Analysts, on average, expected $3.08 per share, according to Thomson Reuters I/B/E/S. The company produced 2. …
By Marc Jones LONDON (Reuters) – World stocks and oil prices edged back up on Friday but remained on course for one of their worst weeks of the year following a sell-off triggered by global economic growth concerns. Surprisingly weak Chinese and U.S. economic data, on top of the International Monetary Fund's decision to trim its global growth forecast, hit commodities from gold to oil this week and brought the recent rally in equity markets to an abrupt halt. Top European shares opened 0.4 percent on Friday, as London's FTSE , Frankfurt's DAX and the Paris CAC-40 rebounded 0.2, 0.1 and 0. …
By Chikako Mogi TOKYO (Reuters) – Asian shares and oil prices climbed on Friday but investors remained cautious after a volatile week that began with a broad sharp sell-off, as more soft U.S. economic data and mixed U.S. earnings results sustained worries over global growth. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.6 percent after falling 0.6 percent the previous session. The index was on track for a weekly loss of 0.8 percent. Chinese shares were the regional outperformers, with a 1.4 percent gain in Shanghai stocks and a 0.9 percent rise in Hong Kong shares . …
* Lower production to further reduce stocks to 2.35 mln tonnes -trader * Prices rangebound between 2,430 and 2,467 ringgit * Palm oil targets 1,953 ringgit in three months -technicals (Updates prices) By Chew Yee Kiat SINGAPORE, March 27 (Reuters) – Malaysian palm oil futures inched up on Wednesday on expectations that lower production may ease stocks further, but worries over the euro zone curbed appetite for risk. Losses in palm oil early in the week may also have lured s
LONDON (Reuters) – European shares, the euro and oil prices all fell on Monday as political stalemate in the U.S. and Italy and China's plans for tighter controls on its property sector hit sentiment. Weak economic data from Europe and China last week was already weighing on major assets markets, which have gained sharply in the first two months of the year on hopes of a gradual global economic recovery this year. …
LONDON (Reuters) – European shares consolidated near two-year highs on Tuesday and oil prices steadied as investors awaited data on the strength of U.S. economy and a Federal Reserve policy decision later in the week. Most markets for riskier assets have risen solidly this year – despite only modest global growth – due to robust corporate earnings reports, signs of an end to the euro zone crisis and renewed momentum in the U.S. and Chinese economies. …