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Tuesday, November 27, 2007

What I'm Reading Now ...

Story #1: This is why I don't recommend stocks in Mongolia (anymore) ...

Khan Resources Inc. stock fell 18% to $1.78 after the Toronto-based mining company (TSX:KRI) warned that political changes in Mongolia could jeopardize its majority stake in the Dornod uranium project.

Story #2: Jellyfish Attack Like a Biblical Plague: Marine biologists are struggling to explain a series of bizarre jellyfish attacks which destroyed the entire fish stocks of a salmon farm in Northern Ireland. "The sea was red with these jellyfish and there was nothing we could do."

Click through on the link and you'll see how the attack is described as "unusual" and "unprecedented" and yet a "natural phenomenon" all in the same sentence. As I've mentioned before on this blog, one of the symptoms of global warming is a massive increase in the jellyfish population.

Story #3: Is Relief on Oil Prices in Sight? The most recent data from the U.S. Energy Information Administration only go through August, at which point Saudi Arabian oil production was still estimated to be at 8.6 million barrels per day. But the latest report from the International Energy Agency estimates that production climbed to 8.75 mb/d in September and 8.85 mb/d in October. And today Reuters quotes Saudi Oil Minister Ali al-Naimi as claiming that November production is up to 9 mb/d. Reuters also reports that the private tanker tracker Petrologistics estimates November Saudi production at 9.15 mb/d.

You know my view on this: Words mean nothing in the oil market. Let's wait and see before we start celebrating.

UPDATE: The new IEA oil market report is out, and it says oil production up by 1.41 million barrels per day in October for new record of 86.43 million barrels per day.

Story #4: Minyanville (a financial site that is also a fun read) is giving a double-sell signal on gold ... based on appearances of Mr. T. I wish I was making that one up. Alternately, you might want to read: Gold: The Crash Market Stock

Story #5: Consumer confidence is falling off a cliff. U.S. consumer confidence fell to its lowest level since Hurricane Katrina in the fall of 2005, the Conference Board reported Tuesday. The index fell almost seven points, to 87.3 from 95.2, well below the 90.2 economists had forecasted. It was also the biggest one-month decline in two years.

Story #6: Fuel Quest May Create Food Crisis. THE world is in danger of running out of basic foodstuffs, according to a leading Australian economist. The shortage will create further dramatic price rises in essential grains such as wheat and corn, accompanied by a tightening of supply, says ABN Amro Morgans chief economist Michael Knox. In the 2004 financial year, corn consumption was 647 million tonnes; this financial year it is expected to be more than 760 million tonnes – an increase approaching 20 per cent in just four years.

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