Oil Price Hike Brings Fears on Food Crisis

The alarming oil price hike has definitely created tension on food crisis, as it recorded a new record nearing to $141 per barrel. If an ordinary citizen cannot anymore afford to bear the current oil price, how much more of the food he eats? What does OPEC do to resolve this problem?

The energy markets have been seriously rattled by comments from a top Pentagon official warning that Tel Aviv may launch raids on Iran's Natanz nuclear facilities to pre-empt its acquisition of Russian air-defence missiles.

The source told ABC News that Israel would not wait until the Ahmadinejad regime had accumulated enough enriched plutonium to make a bomb. "The red line is not when they get to that point, but before they get to that point," he said.

more...

Rising Oil Price Is Hurting Consumers

What would you expect from the oil consumers if its price is no more than the usual? Definitely, they would be infuriated! Costly gas price would mean budget cutting for them.



Despite oil negotiations made by top leaders around the world, still, oil price cannot be stopped from rising. This makes every householder be forced to tighten their budgets, including personal budgets.

The situation could get worse soon. Prices at the pump have been pushed to levels many couldn't conceive of even a year ago, and analysts and the Energy Department are both expecting the cost of gas to rise even further this spring and summer.

more....

Fuel Conflicts Still Increasing

War, cold war, conflict, misunderstanding...whatever you call it, it still creates tension on economy of one's country. This conflict leads to political war and havoc, as the politicians are trying to inject personal and political attachment on the oil issues.


Why is it that oil wealth always fuels conflict among nations, even among oil-rich countries? Its a fact that all countries are craving for oil, as it needs to run the economy. This is why almost all countries are trying to grab possible opportunities on oil industries.

Today, we cannot deny the fact that oil-related conflicts are still growing as we can see the future oil prices are still increasing, making every government to push oil-rich countries to produce more oil and gas. While the oil-rich countries are allegedly hoarding its oil from the oil market, which makes the price escalates.

related topic....

Oil Price Retreats From $126/Barrel

From last week $126.96 a barrel due to weak dollar, oil price is getting its way down, this time, is due to a strong dollar.

The advance at the end of last week came after Colombia said it recovered documents from a slain guerrilla that indicate Venezuelan President Hugo Chavez has offered assistance to Colombian rebels. Some U.S. lawmakers have cited the documents to argue that the White House should add Venezuela to a list of state terror sponsors that includes North Korea, Iran, Syria, Sudan and Cuba.

"We see this as having continued upward pressure on the demand for oil world wide", cited a senior trader at Global Options, one of the largest commodities traders.

Such a move would most likely spur Venezuela to cut off oil exports to the U.S., but analysts believe such a provocative diplomatic step is unlikely.

more...

Weak Dollar Equals High Oil Price?

Last week, oil price set another record at $125.96 a barrel on Friday following the consistent weak dollar. The question is: Does a weak dollar equal equal high price of oil?


“The problem is that the market for dollar-denominated assets is orders of magnitude bigger than the oil market,” Mr. Diwan says, so this hedging can have a disproportionate effect on oil prices. “It’s like a lake and a pond, and the lake is overflowing into the pond.”

While it’s hard to pinpoint the impact, it’s clear that money has been pouring into commodities over the last five years. In the first quarter of 2008 alone, commodity assets under management rose $30 billion, to $225 billion, according to estimates by Barclays Capital.

more...

Energy Market Updates

Oil prices, energy trading, alternative energy updates....


------------------------------------

The Organization of Petroleum Exporting Countries has no plans to hold an emergency meeting before a scheduled September gathering, they said.

----------------------------------

It is a new sunrise at the Reliance empire as the fuel to food conglomerate led by Mukesh Ambani moves into solar energy.

----------------------------------------------

There seems something surreal about the continuing rally in international prices of petroleum crude. In terms of fundamentals, stocks are ‘high’, supply quite ‘satisfactory’, and demand is actually ‘easing’. Yet crude oil prices keep going up and up and up. The sustained rally in oil quotes does call for a closer look at the role of speculation in hardening prices.
-------------------------------

The presumptive Republican nominee, John McCain, and Democratic hopeful Hillary Clinton have both called for a gas tax holiday this summer, eliminating the 18.4-cent-per-gallon tax during the time when Americans rekindle their passionate affair with the open road, from the end of May to Labour Day.
-----------------------------
BRITISH gas giant BG Group has made a $13 billion power play in the Australian market, launching an all-cash takeover bid for Origin Energy.
--------------------------

Additional supplies would have to come from OPEC states because refineries in non-OPEC countries required enormous levels of investment to maintain current production, he wrote.

"In those countries much of the remaining oil in the ground in OPEC is run by National Oil Companies that have, by and large, been starved of investment capital by their own governments, for example Venezuela, Nigeria, Iran," Mr Sieminski wrote.

more energy updates...

A Good News on Still Climbing Oil Price

What the good news? The still escalating oil price is definitely not a good news. As of today, oil price is still at $118 per barrel but the sight of going $120 next month paused. Why? Here comes the good news: the US inventories of oil are said to have a positive response. Find out why....


But U.S. Energy Secretary Sam Bodman has rejected both suggestions, saying the tax revenue is needed to help build and repair U.S. highways and bridges and that the nation needs to build its emergency oil stockpile so it can replace 90 days of crude imports if necessary. The reserve now has only about a 55-day supply now.

Americans spent $100 billion on gasoline in the first quarter of this year, according to a recent survey done for the Consumer Federation of America -- up from $40 billion in the same quarter of 2002. The works out to an increase of about $600 per household, the group said.

more...

JIC Sees Investment Returns in 3 Alternative Energy Projects

The alarming oil price increase has ushered some of the oil firms to try their luck in alternative energy ventures. For instance, the J.I.C Technolgy Company Ltd., which is to be renamed as Hong Kong Energy Holdings Limited, has initiated to venture on three alternative energy projects. Find out how they manage to venture in this projects...

About J.I.C. Technology Company Limited (stock code: 987)

In March 2008, 74.99% interest of J.I.C. Technology Company Limited was acquired by HKC (Holdings) Limited. Following that, all HKC (HOLDINGS)'s new investment in the alternative energy business will be conducted through JIC. The Company is to be renamed as Hong Kong Energy (Holdings) Limited. For more information, please visit website: http://www.hkenergy.com.hk .

more...

Energy Ranks Up Market

Energy market in Australia has helped it share escalates positively due to positive information from US regional banks. Despite high oil prices, Australia share has gain points yesterday afternoon.



Other highlights included strong production numbers from Oxiana this morning, which buoyed the resources sector despite base metals prices being weaker overnight.

''Also, Rio Tinto's quarterly production was as expected, with aluminium production up, boosted by the first full quarter of production from the Alcan acquisition assets." said Albert Turner of Global Options.

Among energy stocks, Woodside Petroleum gained $2.53, or 4.54%, to $58.30, Oil Search firmed 6 cents to $5.05 but Santos bucked the trend, dropping 8 cents to $15.52.

more news...

Energy Roundup: Updates on Energy market

The energy activity has still been creating tensions among energy investors, especially, among small consumers. Here are some of the world's leading nations, highlighting its energy activities, so to keep you update of the oil industry.


The Organization of Petroleum Exporting Countries announced that despite record high oil prices causing a decrease in demand, it will not change its production rate before September.

The weakening U.S. dollar is the primary factor driving crude prices, said OPEC President Chakib Khelil, who is Algeria's oil minister.

Some nations have called on OPEC to increase oil production to ease high prices, but member countries have not budged. Khelil said he and other OPEC leaders expect demand to increase again during the summer months.

more oil updates...

US Senate agrees close monitor on energy markets

Earlier this week, US legislators unanimously agreed to finally give more power to regulators in monitoring energy markets, as loopholes are being reported to them some years ago.

The Senate by unanimous voice vote agreed to include in the farm legislation a provision that gives the Commodity Futures Trading Commission increased authority to detect and prevent manipulation in electronic energy markets, create audit trails and require greater transparency in transactions.

"This closes the Enron Loophole once and for all," said Sen. Dianne Feinstein, D-Calif., one of the measure's co-sponsors.

The provision was offered by Feinstein, Sen. Carl Levin, D-Mich., and Sen. Olympia Snowe, R-Maine.

"It's past time to put the cop back on the beat in U.S. energy markets to stop price manipulation and excessive speculation," said Levin. He said the new authority "will stop speculators from using unregulated energy markets to game the system and distort energy prices in ways that hurt consumers."

more...