Brazilian oil and natural gas company Petroleo Brasileiro (PBR, quote) (a.k.a. Petrobras) has rebounded recently, up 8.12% for the week and 17.35% for the month. Over the same time periods, the main exchange traded fund for oil, United States Oil (USO, quote), has risen by 2.29% and 8.23%, respectively.
Although there would not seem to be an obvious correlation between natural gas (UNG, quote) and corn (CORN, quote), the record heat in the United States has resulted in one. Both the exchange traded funds for natural gas and corn are up as a result of the heat; both will likely fall once the weather cools.
Tuesday’s best web covers development in the Philippines, India’s difficulty importing gas and oil, an investment idea involving China and Africa, Brazilian central bank efforts to alter their federal public debt profile, and economic headwinds for South Africa.
Monday’s best web covers McDonald’s fight for market share in India, BP’s contract to supply LNG to Israel, Yandex’s foray into Turkey, power supply concerns in Indonesia, and the South American inter-continental highway.
Brazil’s oil industry and Petroleo Brasileiro S.A. (PBR, quote) have great potential. Petrobras shares have floundered in recent trading due to the falling price of oil (USO, quote), but this is still a dividend-paying stock with a huge upside. While Brazil still imports oil, the gap between domestic production and consumption is dwindling.
Natural gas prices got a boost upward after the U.S. Energy Information Administration reported inventory supply climbed by 6 billion cubic feet less than expected last week. Actual results came in at 28 billion cubic feet against expectations of 34 billion cubic feet.
Investors in commodities ETFs largely kept their money in place even as values fell sharply during the second quarter of the year.