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Saudis See Recovery in Oil While UAE Urges Cuts by Non-OPEC

The United Arab Emirates and Saudi Arabia reiterated their pledges to maintain the same production of crude, blaming the producers who are non-OPEC for the oil glut that has driven the price down to its lowest of nearly 5 years. Suppliers that are non-members of the Organization of Petroleum Exporting Countries need to cut the irresponsible output, said Suhail Al Mazrouei the Energy Minister from the UAE yesterday in Abu Dhabi. Even if the producers who are non-OPEC were to cutback, OPEC likely would not do the same, said Ali Al-Naimi the oil minister... 
 

German Gas Deal Killed by Russian Crisis

Fallout continues to spread from the crisis in Russia with a big gas deal involving Germany being cancelled. BASF said it dropped its plans to hand complete control of its gas trading and storage business to Gazprom from Russia in exchange for a stake in two gas fields in Siberia. Gazprom, which is state controlled, is the biggest supplier to western Europe of natural gas and has looked at developing its distribution and marketing activities across the region. However, the problem in relations between Russia and Germany killed the swap of assets... 
 

IATA Predicts Record Airline Profit As Price of Oil Plunges

Travelers could soon see ticket prices drop, said the chief of IATA on Wednesday following the prediction of the global airline association that airlines would enjoy record profits because of the plunge in oil prices. It is expected that airlines will now make profits totaling $19.9 billion in 2014 and at least $25 billion during 2014, which is more than double from the 2013 total of $10.6 billion. Stronger growth of worldwide GDP and lower prices for oil are the two biggest drivers behind the industry’s improved profitability said the IATA in... 
 

Goldman Sachs Cuts Forecast for Oil Price in 2015

Goldman Sachs has cut the forecasts for oil prices in 2015 becoming the most bearish amongst the major financial institutions. This follows a fall of close to 25% in prices of crude during the last five months. Analysts at Goldman said during a report just released late Sunday that they were expecting West Texas Intermediate crude, the U.S. benchmark, to drop to about $75 per barrel and that Brent crude would be $85 per barrel sometime during the first quarter of next year. The new prices are $15 below the barrel price forecasted previously of $90... 
 

Alcoa Beats Forecasts on Higher Prices for Aluminum

Alcoa Inc reported an increase in profit for the third quarter that was strong than had been expected on Wednesday as higher prices for aluminum and a reduction in costs helped drive a recovery in its unit that produces its aluminum. Klaus Kleinfeld the CEO of Alcoa said during an interview that the upstream raw material business enjoyed its best quarter since the economic slump of 2008. He added that the performance this quarter is additional proof the strategy we are using is working. The company has traditionally been the first of the S&P... 
 

Exxon Mobil Wants Ban on Exports of U.S. Crude Lifted

During a business conference last week in Houston, Rex Tillerson the CEO at ExxonMobil said that if the government of the U.S. would end the ban on export of crude oil from the U.S. that is decades old, there would be a spike in job creation. Tillerson also said it would boost the energy security via encouraging new investments that would life production. According to a news report last week, dozens of businesses have lined up to export LNG – Liquefied Natural Gas. In addition, a superlight form of crude oil called condensate. The output in the... 
 

Futures in Crude Bounce on Stockpile Use in U.S.

On Thursday, futures in crude oil were recovering some of ground that had been lost the past week on recent news that more of the U.S. stockpile is being uses than over the last few months. September delivery Brent crude was up by 0.32% at $107.51 per barrel on the ICE Futures Europe. At the same time, in New York the August delivery crude was up to $102.06 an increase of 0.85%. The increase in prices has come on news that more of the U.S. backup oil is being used than at any time over the last six months. The large draw off the inventories of crude... 
 

Alcoa to Start Earnings Season Late Tuesday

There is an expectation that the aluminum giant will beat forecasts from analysts when it reports its revenue and earnings on Tuesday after the closing bell on Wall Street. Alcoa, Inc the world’s third largest producer of aluminum has traditionally kicked off the quarterly earnings season. It will announce its results for the second quarter ending June 30, 2014. A consensus of many analysts says the company will see a drop of over 3% in quarterly revenue from the same quarter last year. They predict revenue to be $5.6 billion and the lower revenue... 
 

Close to Half of Oil and Gas Wells in Wyoming Not Inspected

Nearly half of the newly drilled gas and oil well that are considered a high risk for pollution in Wyoming were not inspected during a period of three years, according to a news agency’s review of data from the federal government. Officials at the U.S. Bureau of Land Management did not examine over 40% of the high-priority wells, which shows how the department is struggling to maintain pace with the drilling boom in America over the past 10 years. The bureau released national records that give a snapshot of the inspections between the 2009 and... 
 

Ikea Investing in Illinois Wind Farm

Home goods behemoth Ikea is doing more than designing and building furniture. The company has invested in a wind farm in Vermilion County Illinois about 150 miles to the south of Chicago. The farm will be big enough to ensure that ever store of Ikeas would never need to purchase power again. Ikea U.S. CFO Rob Olson said it was about taking care of our environment and living within one’s means. This is the first wind farm investment by Ikea in the United States. The company is amongst a growing number of businesses that have opted to take care... 
 

Alcoa Shares Increase After Earnings Beat Estimates

Alcoa Inc opened the first quarter earnings season reporting a drop in adjusted profit for the first quarter, as prices on aluminum fell. However, earnings were ahead of expectations by analysts and shares of the aluminum producer were up in afterhours trading. After-tax income was up in the solutions and engineered products segment, which is the area that sells cast metal products such as auto parts. The income was up from $173 million to $189 million. The news was better than Wall Street was expecting, with the top line slightly lower than estimates... 
 

How Natural Disasters Effect Economics

Lightning can strike even in the safest place. Whether you live near a volcano, along a river that floods or in a tornado alley, there’s always a possibility of natural disaster. Once it happened, economy suffers. It might take few years to compensate of what was taken. Besides loss of life, damage to infrastructure if by far the most common effect of catastrophes. That’s why you should take precautions on your valuables. But what’s odd is that natural disasters have negative and positive effects on the local economy as well. With careful... 
 

White House Revise Exports Limits on Crude Oil

On Saturday, the Obama administration left open the door to revisiting the crude exports limits that have been in place for close to four decades. The administration said following a Senate Energy Committee hearing on the current ban that it continues to closely monitor the implications of the surge in oil production in the U.S. Even those advocates in favor of making changes to the export ban, led by Lisa Murkowski, the ranking House Republican on the committee, do not expect the rest of Congress to wade into the volatile issue. They have urged... 
 

Alcoa Posts Loss in Fourth Quarter of $2.3 Billion

Alcoa, Inc. reported a loss in the fourth quarter of $2.3 billion Thursday as lower prices of aluminum caused the company to make a write down in the value of its acquisitions that were made more than 10 years ago. Without those huge charges, Alcoa posted a profit that was still short of Wall Street estimates. Its decline of 5% in revenue was not as severe as analysts predicted. Shares of the American company dropped 4% in afterhours trading to $10.26. Alcoa is currently struggling with a glut worldwide of aluminum that has created weaker prices. During... 
 

Exxon Mobil Stake of $3.7 Billion Purchased by Berkshire

Berkshire Hathaway has reported the purchase of a stake valued at $3.7 in Exxon Mobil Corp. The company, owned by Warren Buffett, disclosed its largest holding since 2011. The company owned as of September 30, 40.1 million Exxon shares it announced on Thursday, in one of its regulatory filings. The largest oil company in the world by market share was up 0.9% on Thursday to $94.07 in afterhours trading, following the disclosure. Berkshire has enjoyed an up year as its picks of stocks have rallied along with the market in general, affirming its strategy... 
 
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