This column highlights some of the best financial commentary on commodities in emerging markets from around the Web.
“New Oil Find by Pemex Could Hold 1 Billion Barrels”
A hot find for the world’s fourth largest oil producer in Mexico’s Tabasco state. Outgoing President Felipe Calderon announced the country’s state-owned oil company Petroleos Mexicanos will expand operations into what’s estimated to be a 1 billion barrel oil reserve. This is the third significant oil find for Pemex in the past three months. Read more at PetroleumWorld.com
Yes, Pemex is a private, government-controlled operation, but Royal Dutch Shell
(NYSE:XOM), and BP
(NYSE:BP), the world’s largest
publicly traded oil companies, certainly aren’t.
“India’s ONGC to Pay $5bn for Conoco’s Kashagan Stake”
India’s state-owned Oil and Natural Gas Corporation
(NSE:ONGC) will purchases ConocoPhillips’s
(NYSE:COP) 8.4% share in Kazakhstan’s Kashagan project for $5 billion, pending approval. The deal would supply ONGC with 1 million barrels to its annual production for the next 25 years. Read more at BBC News
“Oil, Reforms Make Nigeria Top Pick in Frontier Markets”
The addition of Nigeria to the JPMorgan Government Bond Index in October will likely drive hearty capital investments in the emerging African nation, according to a Societe Generale analyst. More cash will strengthen the Nigerian debt market and boost the country’s currency, the Naira. Read more at EmergingMarkets.org
“South Africa GDP Growth Slows as Mining Production Slumps”
GDP in Africa’s largest country pulled back over the past quarter when compared to the three months prior, now 2.7% down from 3.2%. However, South Africa’s manufacturing sector, which comprises 15% of the country’s economy, grew by 7.7% versus 4.2% in the previous quarter. Mining production took a notable hit, shrinking 16.8%. Read more at Bloomberg
Investors seeking exposure to the South African mining industry might take a look at Exxaro Resources Limited
(PINK:EXXAY), Gold Fields Limited
(NYSE:GFI), and Harmony Gold
No positions in stocks mentioned.
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