OXY Earnings Bring iShares U.S. Oil & Gas Exploration & Production ETF Into Focus

ETF Database submits: As world population levels have surged along with developing economies, an increased focus as been put on natural resource development and production in order to increase the average standard of living for the world’s nearly 7 billion people. This rapid increase–along with a variety of natural disasters, such as the devastating wheat crisis in Russia earlier this summer–has put a premium on the world’s natural resources and the companies that harvest or develop them.

By Peter Pham:Marthan Oil (MRO) and Occidental Petroleum Corporation (OXY) recently announced their Q4 results with both companies reporting a decline in earnings. Marathon's earnings dropped by 41%, while Occidental reported a whopping 79% decline in its earnings.

ETF Database submits: Equity markets stayed flat in much of Tuesday’s trading session with the Dow sneaking by with a gain and the S&P 500 and the Nasdaq both posting modest losses. However, despite the neutral nature of today’s equity markets, the 10 Year T-Bill finally broke back through the 3% barrier to finish the day at 3.05%. Commodity markets also struggled with oil and gold both falling close to 2% as the precious metal dropped close to $25/oz. in today’s trading.

ByUlfberht Capital:Occidental Petroleum (OXY) is a large U.S. oil and gas production/exploration company with a relatively small chlor-alkali chemicals business that accounts for about 7% of earnings. Occidental's oil and gas business operates in three regions; the US accounting for 63% of revenues, Middle East/North Africa accounting for 33% of revenues, and Latin America accounting for 4% of revenues.

By Cris Frangold: Falling commodity prices led Occidental Petroleum Corporation (OXY) to report lower second quarter earnings this year against the comparable period last year, as did most other exploration and production companies hit by declining realizations on natural gas and oil.

Kevin Grewal submits: Supply concerns pushed crude futures contacts north of $90 per barrel on Tuesday, providing positive price support to the US Oil Fund (USO), PowerShares DB Oil Fund (DBO) and the iShares Dow Jones US Oil & Gas Ex Index (IEO).

ETF Database submits: Although many investors have been focused in on oil markets and major oil producers such as ExxonMobil (XOM) this week, many of the oil service companies have also been surging as well. Broad ETFs tracking this market segment have risen by more than 4% in just three days of trading, as many investors have bought up these companies in anticipation of a wave of new projects thanks to near $100/bbl.

Dr. Stephen Leeb submits:With tax cuts and unemployment benefits extended, things are looking brighter for the US economy in the near-term. The renewed activity is surely being felt in energy markets, with the largest oil consumer (the US) getting its legs back under it. Crude oil prices are hovering just under $90 per barrel, and the focus is again turning back to the tight gap between production and consumption.