Commodities Are Mixed, Crude Oil Rose Due to Renewed Optimism
At 6:00 AM EST on February 21, the WTI crude oil futures contract for April 2017 delivery was trading at $54.65 per barrel—a rise of ~1.6%.
After maintaining stability for three consecutive trading days amid mixed sentiment, crude oil prices are weaker in the early hours on February 17.
After brief profits on Tuesday, crude oil prices are trading lower in the early hours on Wednesday. The stronger dollar is weighing on oil prices.
Freeport-McMoRan and the Indonesian government have economic interests in keeping the Grasberg mine running.
Freeport’s geographical production mix is expected to change in 2017. It expects to ship 1.5 billion pounds of copper from its North American mines.
Freeport has missed consensus earnings estimates in the last two quarters, mainly due to lower copper and gold production from the Grasberg mine.
Earlier this year, Freeport’s Indonesian export permit expired. The Indonesian government is revising its guidelines for exporting unprocessed ore.
Earlier this year, Freeport-McMoRan’s Indonesian export permit expired, and it hasn’t been able to export copper concentrates since January 12, 2017.
The last three years have been full of turmoil for Freeport-McMoRan’s (FCX) Indonesian operations.
As of February 12, 2017, Freeport-McMoRan is barred from exporting copper ore from the Grasberg mine in Indonesia.
During Teck Resources’ 4Q16 earnings call, markets will watch the management’s commentary on commodity markets, especially coking coal.
Teck Resources (TECK) (TCK) has been one of the best-performing companies in the metals and mining space in 2016.
Analysts expect Teck Resources (TECK) (TCK) to post adjusted EBITDA of 1,748 million Canadian dollars in 4Q16.
Analysts expect Teck Resources (TECK) (TCK) to post revenue of 3.4 billion CAD (Canadian dollars), or ~$2.6 billion, in 4Q16.
Teck Resources (TCK) (TECK) is expected to release its 4Q16 earnings on February 15, 2017.
Commodities are mixed in the early hours on February 10. After rising for two consecutive trading days, crude oil prices are rising in the early hours.
After a brief pullback on Tuesday, copper prices regained strength amid signals of output cuts at the world’s largest copper mine.
Copper started the week with a positive tone. However, it pulled back in the early hours today. The stronger dollar is weighing on copper prices.
Metals are stable in the early hours amid weakness in the dollar. The weaker dollar supports the prices of dollar-denominated commodities.
Freeport-McMoRan (FCX) owns the Grasberg copper and gold mine in Indonesia (EIDO). Rio Tinto (RIO) (TRQ) is Freeport’s partner in this mine.