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HIGH Oil Prices.

 

What the chinois garbermen just did was to reduce fuel subsidy like what had happened lately in malaysia/indonesia. So cost of petrol will go up. Will not benefit motorists in china, to benefit the oil companies like petrochina. Measure has indirect effect of reducing domestic comsumption level which should lead to soften short term global traded CO prices. On the other hand, the measure will stoke inflationary pressure which will not be good for china-related stocks, just witness the carnage in the SSE today.

Last week, a nihonji man has invented a water H2O car which can run up to 80kmph with one litre of water lasting up to an hour. That water car real cool man. It can use any kind of water, clean/dirty water will do according to the inventor. I think the world, china and india especially, should adopt the nihonji invention and rely less on fossil fuel. More power to a Green Planet.

 

Good? I thought raising fuel prices will affect China companies. Not sure. Push-pull effect.
Definitely good for motorists.  Hope the petrol kiosks will follow suit.

 

oil now down by 2.88...px now is 133.80....looks good for sti, hsi n nikkei 2morrow.

 

oil fell by 1.83/barrel to 134.85 from 136.68 reported AP business writer, john wilen at 9.58 a.m. (USA time), due to china is raising fuel prices.....cud cut asia nation's consumption!!!

 

CheongWee,
        Thanks. What a good consolation in this bad time. I've the same view. I got a feeling the 2nd half will have small rally but not materialised yet. Still waiting. i've been accumulating slowly for the big bang.  Oil cannot stay high forever, people are cutting back now. Oil should retreat! The qn is when?

cheongwee      ( Date: 18-Jun-2008 23:19) Posted: Oil Px Now 133.2 ..i believe it will be even cheaper tomorrow.. The correction have begin, Market pose to rise like Davig Nicho This guy is fantastic He is right abt gold and now he is going to be right abt stock. Cheer up guy. Market to soar soon.

 

You would be happy to read this.

http://www.kitco.com/ind/nichols/jun122008.html

Good time comimg soon.

 

Oil Px Now 133.2 ..i believe it will be even cheaper tomorrow..

The correction have begin, Market pose to rise like Davig Nicho

This guy is fantastic He is right abt gold and now he is going to be right abt stock.

Cheer up guy. Market to soar soon.

 

There was a rumour saying some anti US states are behind the rise in oil px. But i think oil correcting soon.tonite may end below 133.,,current at 134.15

 

interesting article UPDATE 5-Market full of oil, price trend "fake"-Ahmadinejad Here the link http://www.reuters.com/article/marketsNews/idUSDAH72129220080617?feedType=nl&feedName=usbeforethebell

 

Interview with Arjun N Murti

1.    Long term, what's driving crude to such high levels?

 

Spare capacity throughout the energy complex seems very limited, whether for OPEC crude oil, natural gas or refining, In all those areas, capacity is limited. It's getting very difficult for companies and countries to boost supply - something that became increasingly apparent to over the first half of this decade. Oil producing regions like Mexico and the North Sea, are declining, There are growth areas such as Brazil and Angola. But when we add up all those pluses and minuses, non OPEC supply looks like it is not growing very much  

 

 

2.    So, essentially, there is constrained supply, along with

 

      increasing demand?

 

Demand has been consistently growing. On the supply side, we don’t subscribe to the peak oil view. We don’t think the world has run out of oil. We do think the places that have large quantities of recoverable oil, notably Saudi Arabia, Iraq, Iran, Venezuela and Russia, aren’t on track to grow their supply. It is growing at a very moderate rate and so the remaining oil resources are concentrated. And to some degree, high prices are disincentivising some of these countries to either open up their industry or spend the money themselves.

 



 

3.    What is keeping them from producing more?

 

These countries don’t need the incremental revenue. They are getting the revenue through price: they don’t need it through volume.

 



 

4.    What markets are you referring to?

 

That would include China. The Middle East is a big demand driver, though it is often under appreciated. In aggregate, Middle East demand is about the same size as China’s and it’s growing at about the same rate. Demand from Latin America is also increasing.

 



 

5.    There is been a lot of discussion about speculators driving up commodity prices
Oil markets are driven by fundamentals. Our response to the notion it is merely a bubble is that you are still seeing no supply growth. If the price isn't real, where is the supply.

 

 

 

 

 

 

Kuwait Says Oil Over $100 Is Too High; Support Saudis

June 17 (Bloomberg) -- Kuwait followed Saudi Arabia in saying crude oil prices are too high as evidence mounts that energy costs are restraining growth and accelerating inflation.

``I think it's high,'' Kuwait Finance Minister Mustafa Al- Shimali said in an interview in Isfahan, Iran, today. A reasonable oil price would be ``more or less $100,'' he said.

Crude oil for July delivery fell 50 cents to $134.11 a barrel on the New York Mercantile Exchange at 10:59 a.m., after touching a record $139.89 yesterday.

Saudi Arabia, the world's largest oil exporter, has said the surging price of the commodity is ``unjustified'' and will host a meeting of producers and consumers in the coastal city of Jeddah on June 22 to help stabilize prices. Saudi Arabia will increase oil output by 200,000 barrels a day next month, King Abdullah told United Nations Secretary-General Ban Ki-Moon on June 15, according to a UN spokesman.

Oil prices fell 2.7 percent last week as Saudi Oil Minister Ali al-Naimi began to organize the meeting between producers, major industrial consuming nations and banks. State-owned Saudi Aramco said June 13 that it would start pumping oil from its 500,000 barrel-a-day Khursaniyah field within a month, a project that's been delayed since December.

``I would like to see these prices go down and in parallel also have the price of goods we import go down,'' Kuwait's al- Shimali said.

Kuwait's Inflation

Kuwaiti inflation accelerated to a record 10.1 percent in February as the cost of housing soared. Inflation rates have risen above 10 percent in five of the six Gulf Cooperation states, including Saudi Arabia and the United Arab Emirates, this year.

Kuwait pumped 2.59 million barrels a day last month, according to Bloomberg estimates, trailing behind Saudi Arabia, Iran and the United Arab Emirates. Saudi Arabia said it will produce 9.7 million barrels of crude a day next month, according to the UN's Ki-Moon. That represents a 450,000 barrel-a-day increase from the amount it pumped during May, according to Bloomberg estimates.

The Organization of Petroleum Exporting Countries doesn't have an official price target for crude oil, though officials from the group's 13 member nations have repeatedly said prices are too high. The group kept official production quotas steady at its last three meetings in December, February and March.

Iran, OPEC's second-largest producer, objects to an increase by Saudi Arabia without prior consultation with other OPEC members.

Iran's Objections

``Any increase in oil production should be validated in this body's ministerial meeting,'' Iran's OPEC governor, Mohammad Ali Khatibi, said on the state television Web site. ``If Saudi Arabia undertakes to raise output unilaterally, it will be a wrong action.''

 

NEW YORK (MarketWatch) -- Crude-oil futures tipped a new record high Monday, supported by weakness in the U.S. dollar.

 

Quotes:

Crude oil rose in Asia on Tuesday despite a call by the world's leading producer, Saudi Arabia, for talks with consumer nations on soaring prices.

New York's main oil futures contract, light sweet crude for July delivery, gained 57 cents to $134.92 a barrel. The contract slid $4.19 to close at $134.35 a barrel on Monday at the New York Mercantile Exchange.

Brent North Sea crude for July delivery rose 44 cents to $134.35 a barrel, after a fall of $3.78 to $133.91 in London on Monday.

On Friday, the two benchmark crude oil futures contracts hit record all-time highs of $139.12 in New York and $138.12 in London.

The New York contract had its largest price jump on record -- $10.75 -- to settle at $138.54.

Global pressure is building to cool oil prices which are stoking inflation and fuelling unrest.

Saudi Arabia on Monday called for talks with consumer nations on the problem and reiterated its readiness to meet any increase in demand.

At a meeting chaired by King Abdullah, the Saudi cabinet restated its view that the leap in prices was unjustified by fundamentals.

But it added it had asked Oil Minister Ali al-Nuaimi to "convene a meeting soon of representatives of producer and consumer nations and firms operating in the production, export and trading of oil to discuss the jump in prices, its causes and how to deal with it objectively." The cabinet statement, carried by the official SPA news agency, also said Saudi Arabia has notified oil companies with which it does business, as well as consumer nations, "of its readiness to provide them with any additional quantities of oil they need."

 

 

US happy too as commodities in US can sell at higher price, one of the world largest exporters. So far US makes little noise., right?

 

 latest is at $134.35 (-3.02%)

des_khor      ( Date: 10-Jun-2008 10:25) Posted: How much the oil now ?

 

How much the oil now ?

 

Haiz....... there they go again.....

KUALA LUMPUR (Reuters) - Oil prices are likely to hit $150 a barrel this summer season, the global head of commodities research at Goldman Sachs said on Monday, as tighter supplies outweigh weakening demand.

"I would suggest that the likelihood of that happening sooner has increased tremendously ... sometime in summer," Jeffrey Currie told an oil and gas conference in the Malaysian capital, referring to oil at $150 a barrel.

Goldman Sachs, the most active investment bank in energy markets and one of the first to point to triple-digit oil more than two years ago -- a once unthinkable level -- said last month oil could shoot up to $200 within the next two years as part of a "super spike."

Forecasts that oil could head towards $150 and above have multiplied over the past month as prices broke through several records, the latest being last Friday, when oil soared more than $11 a barrel on Friday, its biggest one-day gain ever.

Oil hit an all-time high of $139.12 on Friday on the back of a weak U.S. dollar and mounting tensions between Israel and Iran.

Goldman Sachs forecast almost a month ago that U.S. crude would average $141 a barrel in the second half of 2008, up from a previous projection of $107, due to tight supplies.

"Demand for oil is weak but supplies are even weaker," Jeffrey Currie told the conference, citing supply disruptions in Nigeria and struggling output rise in Russia.

Investment bank Morgan Stanley, another big Wall Street energy player, said on Friday that crude may reach $150 by July 4 due to robust Asian demand and falling inventories.

(Reporting by Chua Baizhen, writing by Maryelle Demongeot; Editing by Ben Tan)

 

Oil eases back to $130 a barrel

Crude prices fall ahead of a report expected to show U.S. inventories of petroleum products grew last week; prices stay volatile on threats against Nigerian oil facilities.

BANGKOK, Thailand (AP) -- Oil prices fell back Thursday ahead of a report expected to show U.S. inventories of crude and petroleum products grew last week.

Prices remained volatile, though, buffeted about by threats against Nigerian oil facilities, worries about falling gasoline demand in the U.S. and a strengthening U.S. dollar.

By midday in Europe, light, sweet crude contract for July delivery was down 65 cents at $130.38 a barrel in electronic trade on the New York Mercantile Exchange.

In London, July Brent crude fell 86 cents to $130.07 a barrel on the ICE Futures exchange.

The Nymex July contract dipped below $126 a barrel Wednesday in New York before recovering to finish at $131.03, up $2.18. At its low in the floor session, oil was more than $9 off the record high it hit last week above $135 a barrel.

"Fears that soaring oil prices could damage demand continue to weigh on sentiment," said a report from research firm JBC Energy in Vienna, Austria.

The reversal from the floor session's close came with a renewed strengthening of the dollar and ahead of the U.S. Energy Department's inventory report, to be released later Thursday.

In the last couple of days, the dollar has rebounded against both the euro and yen, receiving some support Wednesday when the U.S. Commerce Department said orders to American factories for big-ticket manufactured goods fell by a smaller-than-expected amount in April.

That was taken as a possible signal of a rebound in the slumping U.S. manufacturing sector and the dollar strengthened back above the 105 yen level, while the euro dropped below $1.56.

When the dollar declines, investors tend to buy commodities such as oil as a hedge against inflation. But a stronger dollar makes oil more expensive to investors dealing in other currencies, and the tendency usually reverses.

Also, a survey of analysts by Platts, the energy research arm of McGraw-Hill Cos., indicated that U.S. crude oil stocks were expected to have grown 750,000 barrels in the week ended May 23.

The Platts survey also indicated analysts were expecting a build in U.S. gasoline stock of 400,000 barrels, and a build in distillate stocks, which include heating oil and diesel fuel, of 800,000 barrels.

Prices were still being supported, though, by further threats against Nigerian oil facilities. Those threats led investors in the U.S. to at least temporarily set aside concerns about falling gasoline demand.

On Wednesday, the Nigerian rebel group The Movement for the Emancipation of the Niger Delta threatened new attacks on oil installations to mark the one-year anniversary of President Umaru Yar'Adua's inauguration. A weekend attack by the group on an oil facility cut about 130,000 barrels of the nation's oil production, according to Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut, in a research note.

News of disruptions in Nigeria, one of Africa's largest producers and a major U.S. supplier, have helped push oil prices higher over the past year.

That contended Wednesday with the growing belief that U.S. demand for gasoline is falling as the average retail pump prices approaches $4 a gallon. That belief was supported by two new surveys showing Americans consuming less gasoline.

Demand for gasoline fell 5.5% last week compared to the same week last year, according to the weekly MasterCard SpendingPulse survey. The survey also found that, on average, demand over the past four weeks is off 6.3% compared to the same period last year.

A separate CreditCards.com survey of about 1,000 people found that more than half have cut back on their driving due to high fuel prices.In other Nymex trading, heating oil futures fell 2.08 cents to $3.8035 a gallon while gasoline prices were down 1.31 cents to $3.4345 a gallon. Natural gas futures rose 1.9 cents to $12.014 per 1,000 cubic feet.

 

 

i think the jail will be overloaded leh...hahah`

tanglinboy      ( Date: 29-May-2008 21:19) Posted: The only way to lower the oil price is to jail all the speculators!  cyjjerry85      ( Date: 29-May-2008 14:44) Posted: there have been protests worldwide and pressure being added to the governments to do something