Displaying items by tag: Commodities

Monday, 18 April 2022 19:57

U.S. Ramping Up Oil Production

Oil prices have begun to stagnate just a hair, but they are still high enough to spur lots of production. U.S. oil output is expected to be 12.86 million barrels a day according to East Daley Capital, which is a 23% increase from their December forecast. Most of the increased production will come from shale Fields in the Permian Basin, as elevated prices can sustain drilling and production here. Additionally, supply chains are relatively more lubricated, the Russia-Ukraine conflict looks ongoing, and a massive Covid resurgence seems like a small probability. The Dallas said profits are more than sustainable to continue drilling in the Permian Basin and other shale sites.


Finsum: This increased production could be enough to finally cap the upward moving gas prices, but that effect could take some time.

Published in Eq: Energy
Tuesday, 12 April 2022 06:41

JPMorgan Calls for Commodities Surge

According to analysts at JPMorgan Chase & Co commodities could hit record territory and climb as high as 40% in the upcoming months. Investors tilting their portfolios into commodities are doing so in response to rampant inflation. Commodities might be at relative highs but there is lot of reason these prices could further elevate. Russia’s invasion pushed commodities prices higher as grains, metals, and fossil fuels were all affected. Goldman Sachs has also pushed raw materials as an inflation hedge.


FinsumThe trickle-down effect of oil prices alone could further boost commodities in the coming months.


Published in Eq: Total Market
Monday, 11 April 2022 07:50

Will ESG Be Hurt By a Commodities Surge?

According to analysts at JPMorgan Chase & Co commodities could hit record territory and climb as high as 40% in the upcoming months. Investors tilting their portfolios into commodities are doing so in response to rampant inflation. Commodities might be at relative highs but there is lot of reason these prices could further elevate. Russia’s invasion pushed commodities prices higher as grains, metals, and fossil fuels were all affected. Goldman Sachs has also pushed raw materials as an inflation hedge.


Finsum: The trickle-down effect of Oil prices alone could further boost commodities in the coming month.

Published in Eq: Total Market
Wednesday, 16 March 2022 19:55

Goldman’s Bullish on These Oil Stocks

Oil demand isn’t diminishing anytime soon, and while Russian Oil companies may suffer from sanctions and political pressure other oil companies are in a position to benefit. Goldman upgraded three oil companies that could capitalize. The first is Diamondback Energy from Texas; they have strong production and great revenues/earnings. Next up was Ovintiv which moved from Canada to the US two years ago but also has strong revenues and a half dozen consecutive quarterly gains in earnings. Rounding out the bunch is Hess which is a hydrocarbon extraction company which will benefit from the elevated prices in its shale search.


Finsum: These options look promising, remember fringe producers really benefit the most on the margins from elevated prices.

Published in Eq: Energy
Tuesday, 15 February 2022 19:11

Coal: The Resilient Energy to Keep an Eye On

Coal is the forgotten younger child in the fossil fuel categories and in the age of ESG that has been exacerbated. Demand in the U.S. and Euro area has fallen drastically. For example, it's about half what it was a year ago in the U.S., However coals price has steadily grown as it averaged $168 per metric ton in January which is higher than $119 from all of 2021. What's driving that price increase is the shift in usage from West to East. Coal power is expected to grow by 4.1%, 11%, and 12% in China, India, and SEA respectively over the next three years. In many ways, it was the only available energy in developing countries and has prompted changes in supply chains in both Russia in Indonesia.


Finsum: Just because the U.S. has forgotten about coal doesn’t mean it won’t be a critical part of energy production in the next decade.

Published in Eq: Energy
Page 2 of 17

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…