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Archive for October 24th, 2008

OPEC AGREES TO CUT OIL PRODUCTION – OIL FALLS DESPITE PRODUCTION CUTS

Posted by Gilmour Poincaree on October 24, 2008


Page last updated at 11:59 GMT, Friday, 24 October 2008 12:59 UK

World oil prices have fallen further, undermining oil cartel Opec’s efforts to steady prices by cutting output by 1.5 million barrels a day.

The decision to cut about 5% of the cartel’s total daily output came after an emergency Opec meeting in Vienna.

But the move did not halt the sliding oil price, with US sweet light crude dropping more than $3 to $64.75. London Brent fell a similar amount.

Recession fears have pulled oil down from a high of $147 a barrel in July.

Dramatic collapse

In a statement after the meeting, Opec said it had cut output because supply outpaced demand, and prices had collapsed dramatically in recent weeks.

The cut will take effect from 1 November.

The 13-nation producers group, responsible for producing about 40% of the world’s total supply, said it would continue to provide the market with the crude oil volumes required by consumers.

Analysts had expected Opec to cut output by at least one million barrels a day and some producers – such as Venezuela and Iran – wanted greater cuts.

More cuts?

OPEC President Chakib Khelil said because Opec members produce about 300,000 barrels a day more than the official quota of close to 29 million barrels, the total reduction by the end of the year would be about 1.8 million barrels a day.

Mr Khelil rejected the suggestion that the decision would hurt the global economy.

“There’s not going to be any impact on inflation, there’s not going to be any impact on growth.”

Opec oil ministers said that they would review their decision at their next meeting in December, leaving open the possibility of further cuts beforehand if necessary.

Revenue worries

Ahead of the meeting, some of the cartel’s members called for a reduction in output to stop the fall in prices: Venezuela wanted production to be cut by a million barrels a day, while Iran had called for a cut twice that size.

The two countries are thought to be most in need of a relatively high oil price – around $100 a barrel – to finance government spending, says the BBC’s economics correspondent, Andrew Walker.

Iran relies almost entirely on its oil exports for government revenue: for every dollar off the price of a barrel of oil, the country loses roughly $1bn a year in revenue.

But British Prime Minister Gordon Brown warned that any reduction made in a bid to push up oil prices would be “scandalous” at a time when major economies were close to tipping into recession.

Motorists benefit

Oil prices hit an all-time high of $147 a barrel in July, but have since fallen back steadily.

Prices now stand at levels not seen since last spring, amid fears a global economic recession will cut demand.

The price that motorists have been paying for petrol at forecourts has been falling recently.

A price war has broken out among leading UK supermarkets with Asda, Sainsbury’s, Tesco and Morrisons all announcing cheaper petrol on Friday.

But some observers believe moves to reduce production could reverse that trend.

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PUBLISHED BY ‘BBC NEWS’ (UK)

Posted in COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENERGY, FINANCIAL CRISIS 2008/2009, INDUSTRIAL PRODUCTION, INTERNATIONAL, OPEC, PETROL | Leave a Comment »

OPEC GATHERS IN EMERGENCY MEETING AS OIL PRICES EVAPORATE; TALK OF 2M BARREL PRODUCTION CUT (Algeria)

Posted by Gilmour Poincaree on October 24, 2008


Last update: October 23, 2008 – 1:28 PM

by George Jahn, Associated Press

VIENNA, Austria – Iran and Venezuela on Thursday urged OPEC to quickly slash output and stem a Workers check the size on pipes at the Freeze Wall test site at Shell Oil Company's Mahogany Oil Shale Research Project near Meeker, Colo., on Wednesday, May 31, 2006. Shell Exploration & Production Co., which is poised to snap up a 160-acre experimental lease on federal lands rich in oil shale, gave a delegation of senators a progress report Wednesday on its efforts to bake shale oil from the ground in western Colorado (AP Photo - Ed Andrieski)steep slide in prices that has left crude at its cheapest in 15 months — and some member countries scrambling to balance their books.

But OPEC’s power to raise prices by cutting supply may be fading amid a global economic crisis that has evaporated demand for oil.

The latest weekly report from the U.S. Department of Energy shows that demand has fallen in 38 of the past 42 weeks. U.S. demand is down nearly 10 percent during the past four weeks year on year. The U.S. still consumes one out of every four barrels of oil produced.

“This is not a supply issue,” said trader and analyst Stephen Schork. “OPEC can affect supply but they can’t touch the demand side, which right now is a house of cards.”

Iranian oil minister Gholam Hossein Nozari told reporters, on the eve of an emergency OPEC meeting to address evaporating prices, that a cut of “two million (barrels per day) will stabilize” the market. And Rafael D. Ramirez, his Venezuelan counterpart, also left little doubt on where he stood.

“We have to take some action now, now,” said Ramirez, telling reporters that the 13 OPEC oil ministers meeting Friday will reach “consensus to take a very, very, very fast action.”

Both he and Iraq’s oil minister said their nations may be forced to rethink or cut spending next year.

Other oil ministers of the Organization of Petroleum Exporting Countries also said output cuts had to be on the table during their meeting Friday — but were well aware that if production is tightened too much, the resulting price spikes could knock a wobbling global economy even further out of kilter.

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PUBLISHED BY ‘STAR TRIBUNE’ (Argélia)

Posted in AFRICA, ALGERIA, ASIA, COMMERCE, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENERGY, FINANCIAL CRISIS 2008/2009, INDUSTRIAL PRODUCTION, INTERNATIONAL, IRAN, NATURAL GAS, OPEC, PETROL | Leave a Comment »

COMÉRCIO ENTRE CHINA E PAÍSES DA CPLP ULTRAPASSA OS 53 MIL MILHÕES DE DÓLARES (Angola)

Posted by Gilmour Poincaree on October 24, 2008


Ano 8 – Edição Online nº 2529 – Sexta, 24 de Outubro de 2008

A balança comercial entre a China e a Comunidade dos Países de Língua Portuguesa (CPLP) ultrapassou em Agosto os 53 mil milhões de dólares, passando o objectivo dos vários governos para o final de 2009 (50 mil milhões de dólares).

Segundo o documento , Angola é o segundo parceiro lusófono da China, com trocas comerciais de 18,6 mil milhões, mais 133,1 por cento do que no mesmo período de 2007, e correspondentes a vendas de 16,89 mil milhões e compras de cerca de 1,77 mil milhões.

O comércio de Angola com a China continua em alta e a favor do primeiro país, à luz das trocas dos oito últimos meses, cujos dados foram publicados quarta-feira pelo Gabinete de Apoio ao Secretariado Permanente do Fórum para a Cooperação Económica e Comercial entre a China e os Países Lusófonos.

Em Agosto passado, as trocas comerciais somaram exactamente 53,3 mil milhões, 92,9 por cento a mais do que no mesmo período de 2007, no fim do qual se fixaram a 46,3 mil milhões.

A China comprou dos oito países de língua oficial portuguesa produtos no valor de 37,288 mil milhões de dólares e vendeu o equivalente a 16 mil milhões de dólares. Convém ressalvar a situação de São Tomé e Príncipe, o qual não está directamente ligado ao Fórum por ter relações diplomáticas com Taiwan, mas integra a lista de trocas comerciais.

O Brasil, que viu o comércio com a China aumentar 82,2 por cento, manteve-se como principal parceiro lusófono de Pequim, tendo exportado para o continente bens no valor de 20,1 mil milhões e importado o equivalente a 12,66 milhões, fechando as trocas comerciais globais com negócios no valor de 32,7 milhões.

Portugal é o terceiro parceiro lusófono da China, registando um comércio bilateral de 1,7 mil milhões relativos a vendas de 234,2 milhões e compras à China de 1,47 mil milhões de dólares.

O comércio entre a China e Portugal registou uma diminuição de 17,6 por cento nas importações chinesas e um aumento de 24,5 por cento nas importações de Portugal, o que corresponde a um acréscimo global das trocas de 16,3 por cento.

Portanto, o comércio entre a China e os países lusófonos mantém uma forte tendência de crescimento iniciada em Outubro de 2003, com o estabelecimento do Fórum para Cooperação Económica e Comercial entre a China e os Países Lusófonos, que tem na Região Administrativa Especial de Macau uma base de apoio de contratos e promoção.

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PUBLISHED BY ‘JORNAL DE ANGOLA’

Posted in AFRICA, ANGOLA, ASIA, BRASIL, CAPE VERDE, CHINA, COMMERCE, COMMODITIES MARKET, ECONOMY, INTERNATIONAL, MOZAMBIQUE, PORTUGAL | Leave a Comment »

LOCAL STOCKS SUCKED INTO PIT OF DESPAIR (South Africa)

Posted by Gilmour Poincaree on October 24, 2008


October 24, 2008

by Palesa Motloung

Johannesburg – The JSE opened deeply in the red on Friday, as panic gripped Asian and European markets, which went into free fall despite a firmer close on Wall Street overnight.

The JSE opened 4.08 percent lower in a continuation of Thursday’s trend when it ended down 3.4 percent. The local bourse continued to be weighed by heavy losses in mining and resources stocks as precious metals prices continued to tumble.

At 9.16am, the JSE’s all share index had fallen 4.25 percent, weighed down by platinum stocks which fell 7.77 percent, gold miners which were down 7.45 percent and resources which lost 6.39 percent. Banks gave up 4.49 percent, financials lost 2.50 percent and industrials gave up 2.86 percent.

The rand was bid at R11.37 to the dollar from R11.14 when the JSE closed on Thursday. Dealers said the currency would experience another volatile day of trade as the dollar continues to surge and equity markets remain weak.

Gold was last quoted at $704.57 per ounce from $726.15 at the JSE’s last close. Platinum was at $787.50 per ounce, down 1.87 percent from Thursday’s close of $802.50. Brent crude was at $65.15 from its previous close of $65.92.

A trader said that even though the Dow ended up 2 percent overnight, the local market was following events in Asia. The trader added that although the US managed to recover, this did not have much of an impact in the light of recent losses.

He said that the weak rand was not having an effect because metals and resources prices continued to come under pressure and were weighing on the market.

The Nikkei closed 9.60 percent and the Hang Seng was last down 7.75 percent. In London the FTSE was last down just over 4 percent.

Dow Jones Newswires reported that European stocks fell, tracking losses in Asian markets overnight on continued concerns over health of the global economy.

“The fall is led by a broad-based sell-off with miners leading the declines and a host of warnings from companies are weighing heavily,” says a trader.

On the JSE, Anglo American fell R19.70, or 8.61 percent, to R209.05 and BHP Billiton gave up R8.28, or 5.44 percent, to R143.97. ArcelorMittal shed R6, or 7.23 percent, to R77 while Highveld Steel added R1.49, or 2.18 percent, to R69.99.

Petrochemical giant Sasol was down R11.99, or 4.41 percent, to R260.01.

AngloGold fell R16.99, or 9.39 percent, to R164, Gold Fields gave up R4.25, or 6.72 percent, to R59 and Harmony shed R3.94, or 5.34 percent, to R69.81. Platinum miner Anglo Platinum plummeted R35, or 8.24 percent, to R390, Impala Platinum gave up R7.55, or 7.06 percent, to R99.45 and Lonmin came down R19.22, or 8.94 percent, to R195.78.

Brewer SABMiller was down R4.10, or 2.73 percent, to R146.11, Barloworld lost R2, or 4 percent, to R48 and Tiger Brands fell R4.68, or 3.72 percent, to R121.

Standard Bank shed R3.52, or 5.03 percent, to R66.47, Nedbank shed R2.81, or 3.53 percent, to R76.69, Absa fell R2.05, or 2.51 percent, to R79.75 and First Rand was down 58c, or 4.95 percent, to R11.14.

RMB Holdings was down 70c, or 3.78 percent, to R17.80, but Investec gained R3.60, or 8.91 percent, to R44.

In the retail sector, JD Group gave up R1.50, or 6.12 percent, to R23, Foschini was down R1.95, or 6.08 percent, to R30.10 and Shoprite was down R2.01, or 4.28 percent, to R44.99.

Packaging group Astrapak lost 40c, or 6.67 percent, to R5.60 and construction group Aveng gave up R2.79, or 6.52 percent, to R40.01 and Group Five lost R1.21, or 3.13 percent, to R37.40.

MTN Group fell R4.66, or 5.62 percent, to R78.33 and Telkom was down R4, or 4.14 percent, to R92.70.

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PUBLISHED BY ‘BUSINESS REPORT’ (South Africa)

Posted in AFRICA, COMMODITIES MARKET, ECONOMIC CONJUNCTURE, ECONOMY, ENERGY, FINANCIAL CRISIS 2008/2009, FINANCIAL MARKETS, INTERNATIONAL, PETROL, PRECIOUS METALS, SOUTH AFRICA, THE FLOW OF INVESTMENTS | Leave a Comment »