Commodities Update 10

Commodities Update 10

31 August 2015

Important legal information

Oil prices had jumped over 10% last week. This is the largest one day percentage gain since December 2008 for Brent Crude oil. According to the Wall Street Journal the stronger-than-expected U.S. growth data and a rally in U.S. and Chinese stocks were reasons for this. Analysts don’t expect this price rise to be sustained in the short term, due to the oversupply. Venezuela has asked for a meeting with other members of the Organization of Petroleum Exporting Countries (OPEC), because they fear an ongoing decrease in oil prices. After last week’s increase, oil prices have dropped slightly again today.

Gold prices dropped about 2.3% at the end of last week. Investors reduced their long-positions as the situation in China seemed to relax. From July till August the price for an ounze of gold has risen by 8.3%.

Last week it was announced that fund manager and multi billionaire Carl Icahn has a new 8.5% stake in beleaguered mining company Freeport-McMoRan, which is also operating in oil and gas. He spent more than 1.2 billion USD on this deal. Its stocks have recovered more than 30% since Wednesday close. Icahn seems to bet on a rebound in energy and commodities. According to Icahn “a great amount of profit in the next few years will be made by those who hold positions in energy companies”. However, he was also believing that the situation might get worse, before it will get better.



30/11/2022 07:14:37