The Federal Reserve officials' cautious stance on inflation has not only delayed potential interest rate cuts but also affected market confidence and cast a pall on the Zacks Oil and Gas - Exploration and Production - United States industry.
The International Energy Agency (IEA) has lowered its oil demand growth forecast for 2024 by 140,000 barrels per day (bpd), citing weak consumption in developed economies. This adjustment takes the expected growth down to 1.1 million bpd.
Given the recent talk about higher interest rates being a headwind for real estate investment trusts (REITs), investors might anticipate that first-quarter operating results could be lackluster or subpar. However, many initial REIT earnings reports are much better than expected, with several REITs beating the analyst estimates on funds from operations (FFO) or adjusted funds from operations (AFFO). Occupancy levels are still high and full-year 2024 FFO guidance looks sound. Take a look at three