March 2, 2011 Leave a comment
March 15, 2010 Leave a comment
Opec fears that its grip on the global supply of oil is being threatened by the rising output of Iraq’s oilfields and the prospect of billions of dollars of multinational investment in the world’s leading untapped oil resource. Read more of this post
October 7, 2009 Leave a comment
In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars. Read more of this post
September 8, 2009 Leave a comment
Oil futures rose above $69 a barrel on Tuesday, as sharp weakness in the U.S. dollar boosted commodities and energy traders eyed the upcoming meeting of the OPEC oil cartel.
Light sweet crude for October delivery gained $1.55, or 2.3%, to $69.59 a barrel in electronic trading on Globex. Nimit Khamar, analyst at Sucden Financial Research in London, said that the oil market is focused on the meeting of the Organization of the Petroleum Exporting Countries that will begin on Wednesday in Vienna.
“It appears likely that they will be discussing compliance with existing production quotas,” Khamar said, adding that OPEC compliances rates are falling.
“It seems that they all very much share the view that quotas are likely to remain on hold,” he said. Khamar also said that there could be discussion of possible future output cuts since “inventory levels are still very high and the economic recovery is still very fragile.”
The sharp weakness in the U.S. dollar and rising global equities also boosted dollar-denominated commodities on Tuesday, according to Khamar.
The greenback fell sharply against its major rivals on Tuesday. The euro surged 0.9% to $1.4466 and the British pound soared 1.3% to $1.6551. The dollar fell 1% against the Japanese yen. Elsewhere in the commodity markets, gold futures soared above $1,000 an ounce, buoyed by dollar weakness
October 17, 2008 1 Comment
Drivers have received an early Christmas gift. Just when motorists were getting use to the reduced drop in fuel prices nearly eight days ago, Santa Claus came a calling again with a further 26 cents reduction in gas & diesel prices at the pump. Starting from midnight.
Such was the end result after Government worked out a formula under a new pricing structure to determine the final retail petrol prices to consumers based on the volatile world market oil prices. With oil prices now below $70/barrel, we can then expect these prices to stick around for some time even before the price of oil skyrocket upwards again. Maybe, it may be a good idea to stock up on gas heh?
Price Decrease As Follows:
From $$2.48 to $2.29 per litre
From $2.55 to $2.29 per litre
- Oil $88/Barrel Barbadians To Pay Less At The Pump
October 10, 2008 Leave a comment
Italian Premier Silvio Berlusconi told reporters today that stock markets might be suspended in response to the financial meltdown. He was quoting as saying that the solution to the crisis will have to be global and innovative.
The solutions to the crisis will have to be “global and innovative,” Berlusconi said. “There is talk of suspending the markets” while international financial rules are “rewritten.”
Lord Help Us.
On Another Note
Jamaica is on the World Bank List of financially strain states. Does that means Jamaica may be the one most vulnerable to feel the effects of this global financial meltdown first in the Caribbean?
A new World Bank report on Thursday named 28 countries in Africa, Asia and the Middle East facing financial strains due to high food and fuel costs and now from a cascading credit crisis.
Among the “fiscally vulnerable” countries are Jordan, Cambodia, Lebanon, Jamaica, Eritrea, Ethiopia, Tajikistan, Madagascar, Nepal, Sri Lanka, Rwanda, Malawi, Ivory Coast, Eritrea, Fiji, Haiti, Seychelles and Mauritania.
October 10, 2008 Leave a comment
A sight of relief over the land tonight.
The majority of bajans from tomorrow will pay 9 cents less for diesel and 12 cents less for gasoline at the pump. But there is a catch. The change from midnight applies only to comsumers only. No special interest groups. It was only a few weeks ago that bajans including this writer bemoaned the fact that it was taking to long to see any drop in fuel costs. Even Oppostion MP William Duguid was told he was watching too much television by the Prime Minister when he too made a call for oil price decreases to be passed on to Barbadians!.
Price Decrease As Follows:
From $2.57 to $2.48 per litre
From $2.67 to $2.55 per litre
October 7, 2008 Leave a comment
Pakistan’s foreign exchanges reserves are so low that the country can only afford one month of imports and faces possible bankruptcy.
Officially, the central bank holds $8.14 billion of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion — enough to buy about 30 days of imports like oil and food.
Nine months ago, Pakistan had $16 bn in the coffers. The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.
September 26, 2008 2 Comments
We congratulate Hander Callender on his most incentive and promising venture. With a vision he took the bull by the horns and conceptualized a biodiesel operation, Native Sun NRG, with the primary purpose of reducing the costs of fuel to small business and vehicles owners.
Unlike some businesses that go begging to government for everything under the sun, a little exposure in the media landed him a deal with an American company with like interest resulting in a new company called Amelot Oil Barbados Ltd.
However as is usually the case, governments are always slow when it comes to these sort of things. By that I mean small man operations. The kind of thing that will made a different in people’s lives. Oh wait. No big dollars there. Never mind the the big speech on increasing the % of entrepreneurs in Barbados. A little encouragement goes a long way. Makes a man feel good. Expressing keen interest is not sufficient. Let’s hear publicly government endorsing of such a project and be serious on reducing our reliance on fossil fuels. Anything short of that would give bajans the wrong impression!
BTW, did anyone close to Mr Callender read the article on the blog or is the Nation just being facetious?
September 24, 2008 Leave a comment
The price of crude oil today is not made according to any traditional relation of supply to demand. It’s controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. How?
Fadel Gheit, senior energy analyst for Oppenheimer & Co., said “people are seeing the bailout [$700b] today as the fleecing of America. They are expecting the dollar to sink even more, and there is no place for the investment money to go except back into commodities and oil.”
Gheit added that the market was back to being driven by something other than traditional forces, at least in the short run. “This is not oil responding to supply and demand fundamentals,” he said.
Is it fair that businessmen who fail in neighborhood stores have to close shop and often sell their homes, while Wall Street titans are spared the consequences of monumental stupidity and greed?
“You had regulators sitting back as loans were being made with no documentation … predatory lenders taking advantage of the situation – that’s how this all unfolded. It’s not a mystery,” Dodd [Democrat chair – senate banking committee] said.
September 18, 2008 1 Comment
Canadians are now buying gas at $1.26 [BDS $2.34], down from $1.40 [BDS $2.60] since oil prices fell to $US 91.00 a barrel from its high of $US147.00 in July.
So when can we expect some relief soon? Oil prices tumbling ever since. We still paying $2.67 a litre. Or is the government planning to buy a surplus of oil now at this low price to buffet bajans when the price skyrocket again?. Or somebody mekking money offa we?
“What a lot of people overlook is not what it costs to make gasoline, but also it depends on what the market can bear,” said David Thompson, research associate with the Parkland Institute in Edmonton. “If the companies think people will buy their gasoline, even at a high price, they’ll set the prices high.”
Maybe so but if government have a policy to pass on direct costs to consumers regardless of the price of oil on the world market, then I expect to see a drop at the pump if oil prices drop!
So who mekking money offa we?
August 19, 2008 Leave a comment
The Barbados Labour Party’s blog have written an article concerning the disconnection Barbadians feel towards the Thompson- led government after only seven months in office.
Taking it lead from the Nation’s newspaper unscientific polls [which could rather be inflated figures for all I care] the Opposition and subsequently the Nation would have us to believe that these results represent the vast majority of the electorate!
For instance the blog author quotes some percentages:
- 55 per cent feel the Government’s position on flyovers is wrong; – 55% of what? 500? 5000?.
- 71 per cent gave the Government a failing grade for its first 100 days performance; – 71% of what? 700? 7000?. I am yet to see a government make sweeping changes in the first 100 days in office. Unless it is a dictatorship, legislative would have to be already prepared and ready to be sign on the dotted line to greet the new government upon arrival. Other than that most things usually start from scratch.
And the piece de resistance
- 85 per cent gave it a failing grade on the petroleum price increases; – sensible bajans know it is better to adjust their fuel bills than for a government to continue to subsidy petroleum prices indefinitely given the viotile petroleum market.
It amazes me how small countries like ours always want to subsidised or its citizens always want its governments to subsidised every iota! Agriculture [which is actually the lifeblood of any economy] and education I have no problem with. The general consensus of international financial agencies is that the economy will slow down. Not forgetting also the contracting of the economy due to last year’s massive spending on the 2007 Cricket World Cup. I don’t mind these polls. There give a basic idea on some people’s thoughts on political & social issues but I also know there are mischievous in themselves [and will be used for mischievous purposes] lacking scientific data to confirm results. If this is the closest thing the Nation can come too, for investigative journalism it is a crying shame.
Show me a country whose citizens are in complete agreement with its leaders decisions and I would show you propaganda machinery.
I have some questions for a Nation poll.
- Do you believe a woman should lead a political party?
- Do you believe Mia Mottley should lead a political party into elections?
- Should government secure bajan’s help oversees to promote Barbados?
- Are you concern regarding the frequent power outages?
There are more question I could asked but then I would be mischievous. Another observation. With 105,357 visitors to its site, where are the floodgate of comments from its supporters?
July 31, 2008 1 Comment
Petroleumworld.com, a Latin American energy, oil and gas newsletter, suggested that two of the blocks – Bottom Bay Ad I and Ad II – were in Venezuelan waters. Source: The Nation
The bidding process for rights to offshore blocks for oil and gas exploration in Barbados continues to heat up with Venezuela challenging the Barbadian Government’s right to what Venezuela perceive to be “the possible violation of Venezuela’s sovereignty in the Caribbean Sea.”
Notes from the margin lays out an excellent case for Barbados legal right to it’s southernmost waters but this of course will mean nothing to Venezuela. Given the aggressive nature of Venezuela, there is that possibility of this escalating out of hand, of which oil companies wouldn’t want to be caught between a David and Goliath scenario.
The two blocks in question are the two southernmost blocks that are up for bid (Highlighted in red in the illustration).
Source: Notes from the margin
From Yahoo Finance
Venezuela’s government wants to know if Barbados plans to grant licenses for offshore oil drilling within Caribbean waters claimed by the South American country.
Oil Minister Rafael Ramirez says foreign ministry officials plan to contact Barbados to discuss the possible violation of Venezuela’s sovereignty in the Caribbean Sea.
“Things are put back in place by conversing directly,” Ramirez said Tuesday.
Ramirez was responding to newspaper reports that Barbados plans to issue offshore drilling licenses to international oil companies within waters claimed by Venezuela along the eastern Caribbean.
Barbados has not joined Venezuela’s Petrocaribe program, which supplies cheap fuel to over a dozen Caribbean nations.
July 23, 2008 Leave a comment
Light, sweet crude for August delivery fell US$3.80 at US$127.24 a barrel on the New York Mercantile Exchange. Earlier, the contract dropped as low as US$126.26. In London, September Brent fell US$3.74 to US$128.89 a barrel on the ICE Futures exchange.
The declines offered further evidence that investors who only a week and a half ago drove prices to a new record above US$147 a barrel are now pulling money out of the market. There are also indications that the price of oil is killing demand, especially in the U.S., which consumes far more oil than any other country.
“This is more of the long exit from the market by the hedge funds,” said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. “A lot of these investors who have been supporting prices are hitting the road”
Ah the citizens of the world have had their roller coaster ride slow down.
July 15, 2008 1 Comment
Venezuelan President Hugo Chavez said last night oil prices could hit $300 per barrel if US oil company Exxon Mobil again freezes Venezuelan assets in a dispute over a nationalized oil project.
Exxon won court orders freezing $12 billion in assets held by Venezuelan state oil company PDVSA after the OPEC nation took over a multi-billion dollar oil project, heightening tensions with the United States and helping to raise oil prices.
A London court later overturned Exxon’s temporary asset freeze, but Chavez said the company could seek further action against Venezuela.
“If they freeze us there will be no more oil for the United States, and the price will go to $300,” Chavez said during a televised meeting with Caribbean and Central American leaders as part of an energy cooperation scheme called Petrocaribe.
Chavez also said oil prices were being influenced by a “speculative bubble”, the collapse of which could send prices as low as $70 per barrel.
This contrasted with his Saturday statements that geopolitical tensions, particularly the threat of an invasion against Iran, could push oil prices to $200 per barrel.
“Years ago I said oil was going to go to $100 per barrel, now it looks like it is headed toward $200,” he said.
Source: Irish Times
July 14, 2008 Leave a comment
Venezuelan President Hugo Chavez on Sunday touted a pact delivering fuel to Caribbean nations and loosened the financing terms to aid countries struggling with high oil prices.
Chavez said nations taking part in the Petrocaribe initiative will now be required to pay just 40 percent of the bill within 90 days — down from the current 50 percent. He said the rest can be paid over the next 25 years at a fixed interest rate of 1 percent as long as oil prices are above US$100 a barrel.
“That could compensate for the horrible curve of the jump in oil prices,” Chavez said.
He added that 70 percent of payments may be deferred if oil rises above US$200 a barrel.
Chavez said Venezuela aims to continue strengthening the Petrocaribe accord and make it into an “anti-hunger shield” for countries in the Caribbean and Central and South America.
Three years after Petrocaribe began, though, figures released by officials show the initiative is still not operating at full strength because of transportation and storage problems.
Oil Minister Rafael Ramirez said member countries other than Cuba are receiving a total of 86,000 barrels of oil a day — significantly less than their quota of 125,000.
Ramirez said Venezuela expects performance will improve with the expansion of an oil distribution network in the Caribbean.
St. Vincent and the Grenadines expects to complete construction of a storage facility next year with Venezuelan help, allowing it to boost the 300 barrels a day it currently receives — less than a third of its Petrocaribe quota, said Thornley Orsino Myers, who heads a St. Vincent electrical utility and accompanied his country’s delegation.
[Antigua/Barbuda, Bahamas, Belize, Cuba, Dominica, Dominician Republic, Grenada, Guyana, Jamaica, St.Kitts/Nevis, St.Lucia, St.Vincent/Grenadians, Suriname and Venezuela are signatories to the Petrocaribe Agreement]
Adapted From Taipei Times
July 7, 2008 Leave a comment
The recent spate of leaks and reports from Washington about whether Israel will, or should, take military action against Iran, and what that would mean for the US, is a reflection of deep divisions on the matter inside the Bush administration, Israeli diplomatic and defense officials said Sunday.
The officials said that the two sides of the argument, the “hawkish camp,” led by US Vice President Dick Cheney, and the “dovish camp,” led by Defense Secretary Robert Gates, are leaking assessments about Israeli intent to further their own agendas, and in this regard using Israel as a “pawn” in their own political battles.
For instance, one official said, the recent remarks made by US Chairman of the Joint Chiefs of Staff Admiral Michael Mullen to the effect that an attack on Iran and a “third front” would be bad for US interests were aimed not merely at deterring Israel from action, but also at “handcuffing” those inside the administration who are supportive of military action.
One Israeli diplomatic official said that as the debate rages in Washington, it was clear that Israel would be unable to take military action without a green light from the US. Read more of this post
July 4, 2008 Leave a comment
Source – Wikipedia
Concern over the possible role of speculators in driving record crude oil prices has prompted the House of Commons’ Treasury select committee to hold its first hearing into regulation of London’s oil markets, John McFall, the committee’s chairman, said on Thursday.
The development is a sign that the intense political pressure to address – or, at least, be seen to address – the causes of high oil prices are emerging in Britain after initially appearing in the US. In recent weeks, Congress has held multiple hearings on the issue.
The US House of Representatives last week passed by a big margin legislation requiring the US futures and commodities watchdog, the Commodity Futures Trading Commission to “utilise all its authority, including emergency powers, to take steps to curb excessive speculation in the energy futures markets”.
Mr McFall, a Labour MP for West Dumbartonshire, said that the two US presidential candidates, Republican John McCain and Democrat Barack Obama, as well as independent senator Joseph Lieberman, all had expressed concern about the role of speculation in oil markets.
He said he planned to hold a hearing into the issue – set for July 15.
Mr McFall told a meeting of the UK’s parliamentary liaison committee: “There is a real problem here. We really need to some action because it’s reported there is $260bn of speculative money in the oil futures market.”
June 21, 2008 1 Comment
The United Nations nuclear watchdog has warned that a military strike on Iran to prevent it developing atomic weapons would turn the region into a “fireball”.
Mohamed ElBaradei said unilateral military action, which has not been ruled out by Israel or the US, would push the Islamic republic into a “crash course” of developing nuclear weapons and threatened to resign if an attack took place.
“What I see in Iran today is a current, grave and urgent danger,” said Mr ElBaradei. “If a military strike is carried out against Iran at this time … it would make me unable to continue my work.” Read more of this post