Resource prices and stock markets rose this week after cliffhanger talks produced an agreement that removes some uncertainty in the world’s biggest economy.
Strong US jobs data has given a much-needed boost to commodity prices across the board, despite continued worries about Europe’s economic outlook.
Investors are shaking off worries about sluggish growth in China and Europe as the United States continues to show signs of steady recovery and leads the way in global commodities demand.
Commodities investors need to balance how the latest economic data plays out when considering the accommodative policies expected from the Federal Reserve which should drive up demand for industrial materials in the longer term.
Commodities are climbing across the board on the back of improved U.S. data, but worries about global risks continue to strain future outlook.
Although Chevron was fined $28 million and had its drilling rights in Brazil suspended for the recent offshore oil spill at their Frade field, some industry experts suggest the company will be able to avoid a long-term ban.
Bloomberg reports that Kosmos Energy Ltd. (NYSE:KOS) announced that damage to Transocean Ltd.’s (NYSE:RIG) Marianas rig may delay drilling of a well off Ghana’s coast.
Oil companies are hoping this latest major find will provide further justification for speeding up the permit issuing process for deepwater drilling in the Gulf of Mexico.
On Tuesday, Richard Bernstein, Chief Executive Officer at Richard Bernstein Advisors LLC (RBA) offered bullish commentary for the broader energy sector for 2011: “if the economy is indeed beginning to enter the mid-phase of the cycle, then energy and materials stocks begin to take leadership positions. We expect both global
British Petroleum (NYSE:BP) has won approval from the U.S. government for the latest step to start pumping cement into its damaged Gulf of Mexico oil well and the company is currently in a disagreement over a regulatory filing that could indemnify or limit the liability of a company’s contract from
Mining companies operating within the nickel; tantalum and potash industries find headlines because of organizational restructuring, while many resources investors continue to watch with interest as the growing oil spill in the Gulf of Mexico generates massive speculation.
The oil spill liability could extend well beyond British Petroleum as Transocean Ltd., Halliburton Co. and Cameron International Corp. all had some exposure to this series of current events.