Materials Up as Dollar Weakens - Materials Roundup

Published June 22, 2017
Dow Jones Newswires

Shares of energy producers edged down and the rout in oil futures paused.

One brokerage said the latest slide in oil prices has sparked worries about another round of bankruptcies. Oil's slide below $40 a barrel last year left a trail of bankruptcies.

"Our base case is that demand for oil remains firm," said analysts at brokerage Jefferies, in a research note. "However, in the short-term, non-commercial (speculative positioning) was high while increases in non-OPEC supply has meant that the OPEC production agreements have to some extent been undermined. Investors have started to worry that a re-run of the 2015 oil collapse will provoke a 'credit event.'"

The Energy Information Administration was the latest federal authority to weigh in on the links between fracking and earthquakes. "Before 2009, Oklahoma might have experienced one to two low-magnitude earthquakes per year," the EIA said. "Since 2014, Oklahoma has experienced one to two low-magnitude earthquakes per day."

(-By Rob Curran,

Shares of mining companies and other commodities producers rose as the dollar gave back some of its recent gains against other currencies.

The dollar hit a one-month high against its peers on Wednesday before falling back Thursday. That boosted the price of gold and copper, which continues to get a bid from labor disputes at Freeport McMoRan's Grasberg mine in Indonesia.

(-By Rob Curran,

(END) Dow Jones Newswires

June 22, 2017 16:30 ET (20:30 GMT)