tag:blogger.com,1999:blog-2335748440449035592.post2848662971043236541..comments2008-06-23T09:10:25.761-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2335748440449035592.post-18843650697146107592008-06-23T09:10:00.000-04:002008-06-23T09:10:00.000-04:00loki, thanks - just a typo.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-86132842152091259492008-06-23T08:54:00.000-04:002008-06-23T08:54:00.000-04:00Oil price rises to above $136 a barrel despite Saudi Arabia's pledge<BR/>By Angela Monaghan<BR/>Last Updated: 1:20pm BST 23/06/2008<BR/><BR/><BR/><BR/>The price of crude oil rose to more than $136 a barrel, $3 dollar's shy of a record, today over fears that Saudi Arabia's pledge to increase production would not make up for the amount lost in Nigeria after pipelines in the country were bombed and production halted.<BR/><BR/>At an emergency summit of the world's oil powers in Saudi Arabia yesterday, the country confirmed well-trailed plans to raise production by 200,000 barrels to 9.7m barrels a day - a 30-year high - at yesterday's emergency summit.<BR/><BR/> <BR/>Saudi Arabia's King Abdullah and Gordon Brown at yesterday's summit in Jeddah<BR/><BR/> <BR/>However, oil traders warned that a lack of other concrete measures, threats by other OPEC members to decrease production in response to Saudi Arabia's move and news that Nigeria's production had been further hit by rebel attacks on pipelines could drive prices up even further.<BR/><BR/>"There is the danger that the markets will be disappointed and the price will increase again," said Germany's economy minister Michael Glos.<BR/><BR/>West is paying political price in oil<BR/>Treasury is one of few UK winners from oil<BR/>Oil prices: The complete Q&A<BR/>OPEC president Chakib Khelil dismissed Saudi Arabia's pledge to increase oil production, saying that it was not a lack of supply that was driving prices up but speculative investment. Asked if he thought that oil prices would fall after the meeting, Mr Khelil, the Algerian oil minister, said: "I don't think so."<BR/><BR/>Jeroen van der Veer, chief executive of oil giant Royal Dutch Shell, agreed that there would be no "silver bullet" solution to curb spiralling oil prices. "What I've heard so far are basically all good ideas, but it will probably not change the price tomorrow morning," he added.<BR/><BR/>Signs of a growing split between OPEC countries were clear, with Venezuela, Libya, Algeria, Iran and Qatar opposed to an increase in oil production on the grounds that speculative investment in financial markets was to blame for the price hikes, not a lack of supply. Libya said that it would consider reducing production in response to Saudi Arabia's statement that it would increase supplies. Kuwait, however, suggested that it would follow Saudi Arabia and increase production.<BR/><BR/>advertisement<BR/>Venezuela's finance minister Ali Rodriguez, a former head of OPEC, also said that he expected prices to rise further.<BR/><BR/>The meeting in Jeddah was attended by 35 countries, seven international organisations, and 25 oil companies. It was called by the Saudi government to discuss spiralling oil prices, which have doubled to almost $140 a barrel in the past year. Prime Minister Gordon Brown and US energy secretary Sam Bodman were among the high-level delegates who attended.<BR/><BR/>Christopher Bellew, a broker at Bache Commodities, said: "The decision in Jeddah really just confirmed what Saudi Arabia had already said they'd done."<BR/><BR/>A large number of delegates at the urgently convened meeting called for greater regulation of oil investors.<BR/><BR/>The head of Libya's national oil company said that it was unrealistic to come up with a quick fix to such a major issue: "We are coming to discuss a very important subject, supposedly, and expected to get an important decision in three hours," he explained. "That's impossible."<BR/><BR/>Mr Brown called for greater market transparency, and reiterated the view, shared by the US, that oil-producing countries should produce more.<BR/><BR/>He also called for an increase in the supply of alternative energy sources, including nuclear power, and invited foreign oil producers to invest in renewable energy production in the UK, and the next generation of nuclear power.<BR/><BR/>Mr Brown also offered to host a follow-up meeting in the UK before the end of the year.<BR/><BR/>While Saudi Arabia, the world's largest exporter of oil, is seeking to increase oil production, it emerged that Nigeria, Africa's second largest oil producer, is producing at its lowest level in 25 years after rebel attacks on facilities operated by Royal Dutch Shell and Chevron.<BR/><BR/>It is estimated that Nigeria's output has been cut by around 300,000 barrels a day as a result of the violence. "Onshore production has been shut in order to protect the environment. We're hopeful that production can be restored as soon as possible," said Chevron.<BR/><BR/>Over the weekend Chevron said its Abiteye-Olero pipeline had been attacked by rebels on Thursday, halting the shipment of about 120,000 barrels of crude oil a dayDr. Baugushttp://www.blogger.com/profile/03051515116594443127noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-31398541124214967462008-06-23T08:49:00.000-04:002008-06-23T08:49:00.000-04:00UP YOUR SHORTS!<BR/>RBS issues global stock and credit crash alert<BR/>By Ambrose Evans-Pritchard, International Business Editor<BR/>Last Updated: 12:19am BST 19/06/2008<BR/><BR/><BR/><BR/><BR/>The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks. <BR/><BR/>"A very nasty period is soon to be upon us - be prepared," said Bob Janjuah, the bank's credit strategist. <BR/><BR/>A report by the bank's research team warns that the S&P 500 index of Wall Street equities is likely to fall by more than 300 points to around 1050 by September as "all the chickens come home to roost" from the excesses of the global boom, with contagion spreading across Europe and emerging markets. <BR/><BR/> <BR/>RBS warning: Be prepared for a 'nasty' period <BR/>Such a slide on world bourses would amount to one of the worst bear markets over the last century.<BR/><BR/>RBS alert: Quotes from the report<BR/>Fund managers react to RBS alert<BR/>Support for the euro is in doubt<BR/>RBS said the iTraxx index of high-grade corporate bonds could soar to 130/150 while the "Crossover" index of lower grade corporate bonds could reach 650/700 in a renewed bout of panic on the debt markets.<BR/><BR/>"I do not think I can be much blunter. If you have to be in credit, focus on quality, short durations, non-cyclical defensive names.<BR/><BR/>advertisement"Cash is the key safe haven. This is about not losing your money, and not losing your job," said Mr Janjuah, who became a City star after his grim warnings last year about the credit crisis proved all too accurate.<BR/><BR/>RBS expects Wall Street to rally a little further into early July before short-lived momentum from America's fiscal boost begins to fizzle out, and the delayed effects of the oil spike inflict their damage.<BR/><BR/>"Globalisation was always going to risk putting G7 bankers into a dangerous corner at some point. We have got to that point," he said.<BR/><BR/>US Federal Reserve and the European Central Bank both face a Hobson's choice as workers start to lose their jobs in earnest and lenders cut off credit.<BR/><BR/>The authorities cannot respond with easy money because oil and food costs continue to push headline inflation to levels that are unsettling the markets. "The ugly spoiler is that we may need to see much lower global growth in order to get lower inflation," he said.<BR/><BR/>Morgan Stanley warns of catastrophe<BR/>More comment and analysis from the Telegraph<BR/>"The Fed is in panic mode. The massive credibility chasms down which the Fed and maybe even the ECB will plummet when they fail to hike rates in the face of higher inflation will combine to give us a big sell-off in risky assets," he said.<BR/><BR/>Kit Jukes, RBS's head of debt markets, said Europe would not be immune. "Economic weakness is spreading and the latest data on consumer demand and confidence are dire. The ECB is hell-bent on raising rates.<BR/><BR/>"The political fall-out could be substantial as finance ministers from the weaker economies rail at the ECB. Wider spreads between the German Bunds and peripheral markets seem assured," he said.<BR/><BR/>Ultimately, the bank expects the oil price spike to subside as the more powerful force of debt deflation takes hold next year.Dr. Baugushttp://www.blogger.com/profile/03051515116594443127noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-75035651924221236292008-06-23T04:54:00.000-04:002008-06-23T04:54:00.000-04:00Additions: Powershares DB Agriculture Fund (DBA), Ciena (CIEN)<BR/>Removals: Powershares DB Agriculture Double Long ETN (DAG), Morgan Stanley (MS)<BR/><BR/>I was about to follow your footstep of moving my DBA to DAG, but now I see that you gone back to DBA. Any particular reason for that?Lokihttp://www.blogger.com/profile/03254274164653089173noreply@blogger.com