Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Reuters reports high crude prices have dented global oil demand in the second quarter according to oil majors BP, Shell and ConocoPhillips, in a trend likely to be repeated in the second half of the year if prices stay high.
Brent oil prices spiked to $127 a barrel in April, close to the all-time high of $147. However, the price oil sands exporters receive weakened further against the global benchmark on Thursday with West Texas Intermediate fetching $97 as the first of 60 million barrels from the Strategic Petroleum Reserve reach markets.
On Thursday Brent crude was trading 0.11% lower at 117.21 while the WTI crude oil price weakened 0.21% to 97.20.
Reuters reports many analysts and fund managers say demand erosion will ultimately help bring oil prices down if producing nations cannot pump more to help support fragile world economic growth.
MoneyControl reports US crude oil inventories unexpectedly rose by 2.3 million barrels last week, boosted by the first releases from the Strategic Petroleum Reserve.
Yesterday BNN quoted Marcel Coutu, head of Canadian Oil Sands as saying the company receives a $11 premium above West Texas Intermediate for its synthetic oil thanks to the company’s upgraders.
