Crude oil prices are at a four-year high and on a trend toward five straight quarters of increases – the longest bull market in more than 10 years. As is often the case with the oil markets, geo-politics is a driving force. U.S. sanctions on Iran are set to go into effect on 4 November, and resulting supply controls by OPEC and Russia are propping up prices. OPEC is especially enjoying the bull ride. Last year net oil export revenues were about $567 billion, up 20 percent from 2016. The U.S. Energy Information Administration (EIA) is projecting they will grow another 30 percent this year to $736 billion, according to its August forecasts. The difference between past periods of OPEC production control, supply interruptions and market...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.