Warren Buffett–the Oracle of Omaha–is one of the world’s most renowned investors, heralded for his simple yet effective valuation methods. As such, followers of the legendary investor pay close attention to when Buffett places big bets, and they hope that by following his stock picks, they will cash in on Buffett’s guru-like instincts [for more commodity stock news and analysis subscribe to our free newsletter].
The spread between West Texas Intermediate (WTI) and Brent Crude oil has long been under the microscope for energy traders across the world. The past few years have seen this spread heavily favor Brent, as it has been trading at a premium to its western cousin for quite some time. But as 2013 unfolds, the spread has been steadily narrowing, much to the surprise of a number of analysts [for more crude oil news and analysis subscribe to our free newsletter].
For mining and exploration companies, 2013 has been somewhat of a brutal year. Metal miners in particular have been hit significantly this year as falling metal prices, weaker demand, and rising operational costs continue to plague the industry. Popular exchange-traded funds, like Van Eck’s Market Vectors Junior Gold Miners ETF (GDXJ), and other industry giants, such as Barrick Gold (ABX), have suffered significant losses these year; both of these securities have shed more than 45% year-to-date [for more commodity news and analysis subscribe to our free newsletter].
With tensions and violence escalating in Syria, crude oil has once again come into the spotlight, as investors weigh the potential of a U.S.-led intervention on the commodity. And though Syria is not a major oil producer, its close geographic proximity to key sea routes and pipelines has investors understandably concerned over the potential of violence spilling into other countries in the region where roughly one-third of the world’s crude is produced. Though no major decision has been made by the U.S. government, or other major world leaders, support for a U.S. strike on Syria continues to build, which will undeniably affect the crude market [for more oil news and analysis subscribe to our free newsletter].
In the commodities world, oil is undeniably one of the most important resources on the globe. Its price movements are closely tied to nearly every economic factor, as well as both domestic and international conflicts. In recent weeks, the escalating violence in Syria has put significant upward pressure on oil, pushing the fuel over $110 a barrel. While the country itself is not a major oil producer, its close geographic proximity to key sea routes and pipelines has investors understandably concerned over the immediate future of the commodity [for more oil news and analysis subscribe to our free newsletter].
When it comes to commodity production, Mexican oil is perhaps not what first comes to mind. Currently, the country produces roughly 2.55 million barrels of crude a day; compared to the U.S.’s production of over 7 million barrels per day, Mexico’s capabilities seem rather limited. Recent legislation, however, has created the potential for more oil companies to gain access to some of the world’s largest remaining untapped oil reserves [for more oil news and analysis subscribe to our free newsletter].
With the second quarter earnings season winding down, there are only a handful of companies left to report their results. Last week, oil and gas giants Chesapeake Energy Corp (CHK) and ConocoPhillips (COP) managed to beat analyst expectations, even after both companies reported declines in earnings and revenues, respectively. Exxon Mobil (XOM), however, reported a 57% decline in earnings, though revenues managed to top estimates [for more commodity news and analysis subscribe to our free newsletter].