Should we Continue to Shed Tears?
The latter state of affairs is expected to continue if WE THE CITIZENS DON'T WAKE TO THE FACT WE HAVE BEEN FED LIE, AFTER LIE, AFTER LIE, like what mGf Blogger "A VOICE" said. To Be Led Down To the Slaughter House by the Barisan Nasional Leaders-cum-NinComPoops and their ar(SE)dent followers like "bigmac"?
Oil rises jump almost $7, closing in on record
By ADAM SCHRECK, AP Business Writer
About 15 minutes ago
(Msian time now 12.26AM Saturday)
NEW YORK - Oil prices shot up nearly $7 a barrel Friday, extending big gains from the previous day and racing toward an all-time high after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July.
A further weakening of the dollar helped keep prices high by enticing overseas buyers armed with stronger currencies and other investors looking for a hedge against the greenback.
Light, sweet crude for July delivery jumped as much as $6.96 to $134.75 on the New York Mercantile Exchange, before easing slightly to trade at $134.40, up $6.61.
Prices pushed sharply higher Friday after Morgan Stanley analyst Ole Slorer said he expected strong demand in Asia could drive prices to $150 by Independence Day, when millions of Americans are expected to take to the roads. Shipments from the Middle East are mimicking patterns seen in the third quarter last year, when Morgan Stanley based its "oil price spike" predictions on falling supplies in the Atlantic, he said.
"We made the same call using the same parameters, but now we are starting from much lower inventory levels," Slorer said.
Friday's surge builds on a $5.49 gain Thursday, which was the biggest single-day price increase in the history of the Nymex crude contract. That spike came as the dollar fell after the European Central Bank suggesting it could raise interest rates.
"We had a rally of something like $12 in about 24 hours. It makes no fundamental sense," said Stephen Schork, an analyst and trader in Villanova, Pa. "With oil pushing back up to the mid-$130s, it's the make it or break it point. If we go past that, we set the course for uncharted waters and head up toward $150."
Meanwhile, U.S. gas prices at the pump continued to hover just shy of an average $4 a gallon, easing only 0.3 cent from Thursday's record.
Drivers are now paying an average of $3.99 for a gallon of regular gas nationwide, according to AAA and the Oil Price Information Service; in many parts of the country, consumers are already paying well over $4. Retail diesel slipped a penny overnight to $4.76.
Pump prices are bound to rise even further if oil sustains its advance. James Cordier, president of Tampa, Fla.-based trading firm Liberty Trading Group, predicted prices could rise to $4.25 as early as the end of the month.
"Unfortunately, drivers cutting back isn't going to lower the price of gasoline any time soon," he said.
The dramatic reversal in what had been a weakening oil market began Thursday after ECB President Jean-Claude Trichet suggested the bank could raise interest rates and the euro climbed against the dollar. When interest rates rise in Europe, or fall in the U.S., the dollar tends to weaken against the euro.
Many investors tend to buy commodities such as oil as a hedge against inflation when the dollar is falling. Also, a weaker dollar makes oil less expensive to investors dealing in other currencies. Analysts believe the dollar's protracted decline has been a major reason why oil prices have nearly doubled in the past year.
The euro strengthened further against the greenback Friday. A Labor Department report showing the U.S. unemployment rate jumped half a percentage point to 5.5 percent last month — its biggest monthly increase since 1986 — could drag the greenback even lower in the days ahead.
"Unemployment jumping as it did today will be in the market for a long time and will continue to pressure the U.S. dollar," Cordier said.
Growing tensions in the Middle East may also have helped prop up oil prices. Israel sent aircraft, tanks and ground troops into the Gaza Strip on Friday, and a Cabinet minister hoping to replace embattled Prime Minister Ehud Olmert was quoted as saying Israel will attack Iran if it doesn't abandon its nuclear program.
In other Nymex trading, heating oil futures rose 21.54 cents to $3.8962 a gallon while gasoline prices rose 12.32 cents to $3.4577 a gallon. Natural gas futures rose 24.8 cents to $12.767 per 1,000 cubic feet.
In London, July Brent crude shot up $5.65 to $133.19 a barrel on the ICE Futures exchange.
UPDATEd at 2.18PM, Saturday, June 7, 2008, C&P from the Malaysian Insider:
Anwar says fuel price hike ‘unconscionable’
MANILA, June 7 — Malaysian opposition leader Anwar Ibrahim said his government's decision to sharply raise fuel prices was "unconscionable”.
In a move to end decades of heavy subsidies that have kept Malaysian fuel prices among Southeast Asia's lowest, the Malaysian government recently jacked up the pump price of gasoline by 41 per cent to RM2.70 (US$0.87) a litre, or RM10.23 (US$3.30) a gallon.
Diesel prices shot up 63 per cent to RM2.58 (US$0.80) per litre.
Speaking at a forum in Manila yesterday, Anwar noted that Malaysia is a net exporter of petroleum, which annually generates "huge resources and profit."
"To decide summarily, without regard to the plight of the vast majority, particularly the poor and the marginalised, to me, is unconscionable," he said.
In Kuala Lumpur, Domestic Trade Minister Shahrir Samad said yesterday that the government will not revise the price increases despite opposition protests, but gave an assurance that there would not be further hikes anytime soon.
Like some other Asian countries, Malaysia had faced a spiralling fuel subsidy bill that could have been more than RM56 billion (US$17 billion) this year due to rising world oil prices.
Anwar, a former deputy prime minister and finance minister who now leads an opposition coalition, said: "We cannot opt for any other thing except for market economy ... but this cannot be done without regard to the issues of good governance and accountability."
Anwar was fired by then-Prime Minister Mahathir Mohamad in 1998 in a power struggle. He was expelled from the ruling party and convicted of sodomy and corruption, charges he says were politically motivated.
He was released from prison in 2004 after the sodomy conviction was overturned, but the corruption conviction barred him from holding political office until April 15, 2008.
He was invited to Manila by former Philippine President Joseph Estrada, whom he considered a loyal friend and "part of my family."
Anwar and his wife Wan Azizah had dinner late yesterday at Estrada's suburban San Juan residence with former President Corazon Aquino.
Estrada was ousted amid massive anti-corruption protests in 2001 in what he says was a conspiracy of the elite, some military officers and Roman Catholic church leaders.
He was convicted of plunder last year and sentenced to life in prison but was pardoned a month later by President Gloria Macapagal Arroyo. — AP
DESIDERATA: I hope the ilks of "bigmac" raed the above and still believe Malaysians should NOT ask of Petronas WHERE THE NATIONAL OIL CORPORATION'S ANNUAL REVENUES AND PROFITS OF MULTI-BILLION RINGGIT GONE, then Desi tells these BUGGERS: "GO EAT SHIT AND DIE!", borrowing a phrase from one mGf-cum-saucyy mariner I often celebrate wit' at LINGAM'S CURRY HOUSE, the frf=requency of which VVE NOW MUST CUT DOWN.Looking at the bright side, IT"S GOoD FOR HEALTH!:)
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