Views on commodities and energy
Commodities Agenda: Offshore damage and what’s next for diversification?
On the second day of financial services turmoil, CNBC keeps a live update of the crude oil price on lower-right of the screen. An interesting choice for a sentiment indicator, particularly with the benchmark stock indices little changed.
Lehman Brothers, Merrill Lynch and American International Group all are clearing members on major commodity exchanges. All three had been active in getting clients to invest in the rally that made commodities the best performing asset class of the past few years, Barani Krishnan writes in an analysis on the apparent breakdown in relationships in asset classes.
(U.S. crude traded down $3.96 to $91.75 a barrel by 9:55 a.m. EDT in what’s seen as a move to cash. The Reuters-Jefferies CRB Index, a global commodities benchmark, neared eight-month lows on Monday.)
Some other stories we’re watching in commodities today:
- Hurricane Ike did not appear to inflict heavy damage on oil refineries, FEMA told reporters. Nonetheless, several offshore platforms in the Gulf of Mexico — including BP’s big Mad Dog facility — were damaged. It’s a sign a full recovery of oil and natural gas production in the region could be a long way off.
- Farm Foundation Forum on rural health insurance issues.
- Expecting Mexico and Central American coffee exports data and Nicaragua coffee figures
- Venezuelan Oil Minister Ramirez and Chile’s Mining Minister on a visit to sign exploration contracts
And the question for the day… What now for the pension funds and commodities diversification theory?