• OPEC production fell 411,000 barrels per day to 29,343 million bpd.
• Libya's production fell 343,000 barrels per day, from 1,396,000 bpd.
• Nigeria fell 107,000 barrels per day due to Royal Dutch (RDS) Oil maintenance.

Continue reading Brent Crude Oil Explodes to $120 Per Barrel

Brent Crude Oil Explodes to $120 Per Barrel originally appeared on BloggingStocks on Mon, 04 Apr 2011 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Oil at $80: Overpriced or Underpriced?

Oil at $80: Overpriced or Underpriced? originally appeared on BloggingStocks on Mon, 19 Apr 2010 17:40:00 EST. Please see our terms for use of feeds.

In a case of buy low, sell high, Kuwait's sovereign wealth fund just unloaded its $4.1 billion stake in Citigroup (C). In doing so, the fund scored a $1 billion profit -- and a 37% rate of return on its investment -- according to the Kuwait Investment Authority (KIA).

The fund invested in Citigroup in January 2008, before the financial industry came to the brink of collapse last year, but well after the impact of the mortgage crisis had been identified. The fund also invested $2 billion in Merrill Lynch, which was acquired by Bank of America (BAC) in September 2008.

Continue reading Kuwaiti fund rakes in $1 billion profit on Citigroup sale

Kuwaiti fund rakes in $1 billion profit on Citigroup sale originally appeared on BloggingStocks on Sun, 06 Dec 2009 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Oil rises despite OPEC decision

Oil rises despite OPEC decision originally appeared on BloggingStocks on Mon, 16 Mar 2009 16:30:00 EST. Please see our terms for use of feeds.

I recently put together a report of stocks to avoid in 2009. In compiling the list, I used general themes that I thought would struggle during the coming year. At the top of the list were chemical companies.

Though not on the list of specific stocks to avoid, I certainly did consider calling out Dow Chemical (NYSE: DOW) as a stock to avoid in the coming year. That would have been insightful, as shares of DOW lost nearly 20% of their value due to the termination of a joint venture project in Kuwait

The proposed K-Dow Petrochemicals was formed to help Dow reduce exposure to the highly cyclical petrochemical plastics business. More importantly, the $17.4 billion venture was slated to provide Dow some much needed cash, including $7 billion up front.

That cash was going to be needed in Dow's yet-to-be-closed acquisition of Rohm and Haas Company (NYSE: ROH). That deal is currently valued at just over $15 billion and would have been much easier to swallow with the K-Dow deal intact.

Now, legitimate questions are being raised as to whether the Rohm and Haas deal will close. Dow is claiming, and had previously claimed, that it did not need the Kuwait deal to fund the acquisition.

Continue reading Does 20% haircut make Dow Chemical attractive?

Does 20% haircut make Dow Chemical attractive? originally appeared on BloggingStocks on Tue, 30 Dec 2008 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Before the Bell: Stocks up as violence rages in Middle East, GMAC looks for financing

Before the Bell: Stocks up as violence rages in Middle East, GMAC looks for financing originally appeared on BloggingStocks on Mon, 29 Dec 2008 08:03:00 EST. Please see our terms for use of feeds.

There is an illusion afoot that the record July drop in oil prices is significant. It is not. As long as oil is well above $100, the inflationary effects will be damaging, and the ability of key industries, including the automotive and airlines, to recover will be significantly compromised.

The only real hope for parts of the economy that depend on a lower price of crude is that much of the run-up has indeed been caused by speculation. If so, crude may have much further to drop.

One of the key oil officials in Kuwait has commented that oil will not returned to over $144, but that it will not drop below $100. According to Reuters, "I don't think that prices will return to the record level, nor will they fall below $100 per barrel," Khaled Boodai told al-Seyassah newspaper. If he is right, a sustainable economic recovery is far off.

Much of the recent recovery of the stock market is based on the drop in oil. That means it is a mirage. Oil at $144 would have undermined all economic growth in the U.S. very quickly. As long as crude stays above $100, the process will still occur. It will just be a bit slower.

Douglas A. McIntyre is an editor at 247wallst.com.

Kuwait: Oil to stay above $100 originally appeared on BloggingStocks on Sun, 03 Aug 2008 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Kuwait's finance minister says oil price too high, should be near $100

Kuwait's finance minister says oil price too high, should be near $100 originally appeared on BloggingStocks on Tue, 17 Jun 2008 13:31:00 EST. Please see our terms for use of feeds.

Continue reading Amid $90 oil, OPEC weighs production cut for spring

Amid $90 oil, OPEC weighs production cut for spring originally appeared on BloggingStocks on Thu, 31 Jan 2008 17:27:00 EST. Please see our terms for use of feeds.

Citigroup (NYSE: C) is about to raise $14 billion, but the press is a bit unclear about who is putting in the money.

The Wall Street Journal reports that Prince Alwaleed bin Talal, currently one of Citi's largest investors, will put in capital along with the China Development Bank. The CDB piece is probably $2 billion.

According to the FT.com "Under the proposal being discussed, the bulk of the money -- roughly $9bn -- would be most likely to come from China, people familiar with the negotiations say. The Kuwait Investment Authority would contribute about $1bn, while $2bn to $4bn would be raised through a public placement of shares."

Leaving aside the fact that two big newspapers have different accounts of the same news, Citigroup may be faced with a challenge from Congress over whether it is OK for such a large U.S. financial institution to have big blocks of its stock owned by foreign entities. Citi's role in lending, underwriting, and trading might be considered "strategic" by the U.S. government.

To investors, that matter of who owns what is hardly important. The big bank's market cap is down to $142 billion. Another $10 billion is significant dilution. In theory, it could push the Citi shares from $29 to $25 of below. The shares have a 52-week high of $55.55.

If the federal government is against having investors from overseas, the Fed should lend Citi $10 billion on its own.

Douglas A. McIntyre is an editor at 247wallst.com.

Citigroup gets big bucks originally appeared on BloggingStocks on Sat, 12 Jan 2008 13:10:00 EST. Please see our terms for use of feeds.

The Associated Press is reporting that Dow Chemical Company (NYSE: DOW) will sell a 50% interest in five of its global businesses to a Kuwaiti company, Petrochemical Industries Co, for about $9.5 billion to form a new petrochemicals joint venture.

The joint venture will be based in the U.S. and will employ more than 5,000 people worldwide, mostly current Dow employees and will be 50% owned by Dow and PIC.

This will put cash in play that can be used for a wide range of activities. Dow may choose to slash long-term debt, which this tidy sum would eliminate almost entirely. It also may choose to expand other ventures that have a promise of higher returns or diversify into businesses that are less dependent on oil as feedstock and thereby increase potential growth while reducing volatility.

Continue reading Dow Chemical in $9.5 billion venture with Kuwaiti company

Dow Chemical in $9.5 billion venture with Kuwaiti company originally appeared on BloggingStocks on Thu, 13 Dec 2007 11:11:00 EST. Please see our terms for use of feeds.

Kuwaiti investment firm starting Islam-friendly fund originally appeared on BloggingStocks on Mon, 22 Oct 2007 18:36:00 EST. Please see our terms for use of feeds.