Oil dips in Asian trade

Updated at: 0721 PST, Wednesday, February 03, 2010

SINGAPORE: Oil prices dipped in Asian trade on Wednesday bucking a recent trend as the market braced for a larger-than-expected rise in crude inventories, analysts said.New York's main futures contract, light sweet crude for delivery in March, fell 42 cents to 76.81 dollars a barrel. London's Brent North Sea crude for March delivery was down 31 cents to 75.75 dollars. Analysts said rallies on the oil market experienced over the past few days had been stemmed by numbers released by the American Petroleum Institute (API) on Tuesday indicating a build-up in US crude stockpiles. "I think it's because of the API (American Petroleum Institute) numbers.... They showed a build-up of 4.7 million barrels of crude which was unexpected," said Clarence Chu, an oil trader with Hudson Capital Energy in Singapore. Analysts had expected US inventories to rise by a median of only 400,000 to 500,000 barrels, Chu added. Market sentiment had been buoyant as equities markets put in strong performances and manufacturing data from the United States hinted at a global economic recovery.But the market was spooked when the API report was released late Tuesday. "The minute the API number was released, the market dropped by around 30 cents," Chu said.The API report serves as the precursor to the US Department of Energy's weekly inventories report out every Wednesday, which provides a snapshot of global energy demand by showing the size of crude stockpiles in the world's largest energy consumer.

LPG price likely to be stable in Feb

Updated at: 1502 PST, Tuesday, February 02, 2010
KARACHI: The LPG prices are expected to remain stable in February as the gas price went down by $3 per tonne in monthly contracts in international market, Geo News reported Tuesday.According to LPG industry sources, the LPG price may scale down by 25 paisa in view of the price slump by $3 in international market.However, diesel price is expected to remain pegged at the present level, as the fuel price surged in international market.The LPG is still being imported into the country, as a ship carrying 33,000 tonnes of the gas anchored at Port Qasim. While, another ship is expected to arrive here during the current month.

Loans worth Rs256b written off in 38 years

Updated at: 1351 PST, Tuesday, February 02, 2010

ISLAMABAD: The State Bank of Pakistan told the Supreme Court that various government banks and financial institutions written off loans worth over Rs256 billion during last 38 years, Geo News reported Tuesday.Of them, there are borrowings upto a limit over Rs500,000 worth Rs213 billion and Rs43 billion upto a limit below Rs500,000.The central bank tabled a report to the apex court bench in this connection in a suo motu case being heard by a three-judge bench headed by Justice Sardar Muhammed Raza.According to the report, the loans amounting to Rs11.22 billion with a limit of Rs500,000 and above were written off to at least 1424 people during a span from 1971 to 1996.Another 22021 people got loans worth over Rs202 billion written off from 1997 to 2009. Similarly, in the period from 1971 to 2009, at least 640,000 people got their loans worth below Rs500,000 written off.According to the SBP report, there is no record of Indus Bank and Banker Equity among the defaulters.The SBP said in its report that these loans include the capital, markup and other various charges.The committee comprising the presidents of the five banks requested the court to become party to the case. On this, the court issued notices to the parties and adjourned the hearing sine die.

Govt charges 39pc tax on a liter of petrol

Updated at: 1229 PST, Monday, February 01, 2010
KARACHI: The government is receiving a juggernaut of 39 percent tax on a liter of petrol that becomes Rs19.82/lit.The government yesterday rocketed the petrol price by Rs6.10 to Rs71.21/lit.In December 2009, the ex-factory price of petrol was Rs42.72/lit tagged with Rs4.42 as transportation charges, Rs2.36 as dealers’ commission and Rs1.89 as profit for the oil marketing company, totaling at Rs51.39/lit.Besides, the government charges Rs10 as Petroleum Development Levy and 16 percent as Sales Tax amounting to Rs19.82/lit, which add up to Rs19.82/lit; it means that government is charging 38.57 percent on the per liter of petrol. Experts said the government can slash its taxes to impart relief to the people at large and the business community, which will be instrumental in affording relief to the common man and it will help control the inflation rate as well.

Bulls return as KSE regains 9,600 level

Updated at: 1903 PST, Friday, January 29, 2010

KARACHI: Positive activity was witnessed on the last trading day of the week as benchmark-100 index crossed 9,600 psychological barrier.The local bourse kicked-off the day in green zone and maintained the positive stance till the closing bell. Investors, however, avoided taking new positions amid upcoming monetary policy announcement by the central bank on Saturday.Stocks ended 34 points above at 9,614 points on Friday.Market turnover stood at 180 million shares. Lotte Pak proved itself a true volume leader as it remained on top, adding Rs1/share to close at Rs11.35.Meanwhile, parallel KSE-30 index closed at 10,056 points with a gain of 38 points. Experts said market could post some gains next week after a technical correction.

Oil edges higher in Asian trade

Updated at: 0859 PST, Friday, January 29, 2010
SINGAPORE: Oil rose in Asian trade Friday, but remained below 74 dollars as concerns about demand and a strengthening US dollar kept a hold on prices. New York's main futures contract, light sweet crude for delivery in March, was up 15 cents to 73.79 dollars a barrel. London's Brent North Sea crude for March delivery gained 17 cents to 72.30 dollars. The euro lost more ground against the dollar in Asian trade Friday as worries deepened about the state of the European economies in light of Greece's debt woes, dealers said. The European currency fell to 1.3939 dollars in Tokyo morning trade from 1.3966 in New York late on Thursday, and to 125.34 yen from 125.56. The dollar was flat at 89.92 yen. Oil is traded in US dollars and a rise in the currency makes the commodity more expensive to holders of weaker units.

China pulls out of $40 billion Australia gas deal

Updated at: 1240 PST, Tuesday, January 05, 2010
SYDNEY: Chinese energy giant PetroChina Co. Ltd. has pulled out of a $40 billion deal to buy natural gas from a project off Australia, leaving Woodside Petroleum Ltd. looking for new customers. Reasons for letting the preliminary agreement lapse were not given, but analysts said Tuesday it was probably because PetroChinahad become dissatisfied with the cost in the two years since the deal was signed. Woodside informed Australia's stock exchange on Monday that an early stage agreement for the Browse Basin liquefied natural gas project off Western Australia state had not been settled by a Dec.31 deadline and had now lapsed.

Oil stays above 81 dollars in Asian trade

Updated at: 0854 PST, Tuesday, January 05, 2010

SINGAPORE: Oil prices edged up in Asian trade Tuesday, supported by higher consumption of heating fuel due to a cold snap in the northern hemisphere, analysts said. Data showing that the US manufacturing sector posted its strongest pace of activity since April 2006 also bolstered prices, with analysts saying that a firmer recovery in the world's biggest economy is good for energy demand. New York's main futures contract, light sweet crude for delivery in February, was up 32 cents to 81.83 dollars a barrel in morning trade. Brent North Sea crude for February delivery gained 11 cents to 80.23 dollars. "It's an encouraging sign to see quite reasonable declines in the stockpiles of distillates... so you've got a bit of momentum in the market," said Mark Pervan, senior commodities analyst at ANZ bank in Melbourne. Prices were also lifted by news of robust activity in the US manufacturing sector, in a further sign that the US economy, a key engine for global growth, is well on its way to recovering from a deep recession. The Institute for Supply Management said its manufacturing index, also known as the purchasing managers index, climbed to 55.9 percent in December from 53.6 percent in November, for a fifth consecutive month of expansion. The figure was stronger than the consensus estimate of a modest rise to 54.3 percent. Any number above 50 percent indicates growth. "Most analysts are brushing over their 2010 outlook and I think most of the market is taking a more favourable outlook on demand than last year," Pervan said. London-based consultancy Capital Economics said the rebound in the US manufacturing index "should restore some faith in the sustainability of the industrial recovery." However, its said "the continued decline in construction spending illustrates that the recovery is still far from being an economy-wide phenomenon."

Most Gulf stocks rebound in 2009

Updated at: 0301 PST, Friday, January 01, 2010

KUWAIT CITY: Most Gulf stock markets on Thursday ended 2009 higher following massive losses in the previous year because of the global economic downturn, but their rebound was halted by the Dubai debt crisis.After slumping to a year low in the first three months, five of the seven markets made a strong comeback in the third quarter that continued into the fourth with the Saudi, Dubai and Abu Dhabi bourses each adding more than 30 percent.Barring Kuwait and Bahrain, the remaining five bourses ended the year in positive territory, led by Saudi Arabia which gained 27.5 percent.Capitalising on a high oil price and signs of global recovery, most of the bourses in the energy-rich region reached their highest point of the year in October, after which they started to decline on news of Dubai debt woes and profit-taking sales.The seven bourses added around 80 billion dollars to their capitalisation which ended the year at 680 billion dollars from 600 billion dollars at the end of 2008.That is still far below their end-2007 value of 1.116 trillion dollars, however.The Saudi Tadawul All-Shares Index (TASI), the most capitalised Arab bourse, ended the year 27.5 percent higher at 6,121.76 points after slumping 56.5 percent in 2008.The market-leading petrochemicals industries sector, which includes petrochemicals giant SABIC, surged an impressive 70.2 percent, while banks, the second largest sector, rose 15.3 percent.TASI hit its year's high of 6,548.47 points in late October after plunging to its lowest point of the year at 4,130.01 points in early March.The Saudi market was the least affected by the Dubai crisis after state-owned Dubai World requested a standstill on repayment of billions of dollars in debt.Kuwait Stock Exchange, the second largest Arab bourse, ended the year 10 percent lower at 7,005.30 points after slumping 38 percent in 2008.The Kuwaiti bourse has been severely impacted by political instability and the debt problem of many of its investment firms.The two United Arab Emirates bourses of Dubai and Abu Dhabi made modest increases in 2009 after shedding most of their gains in the last six weeks of the year on Dubai debt woes.The Dubai Financial Market closed the year 10.3 percent higher at 1,803.58 points after rising by more than 46 percent up to mid October. The market dropped massively when Dubai World sought to delay repayment of its debt.In 2008, the Dubai bourse was the biggest loser in the Gulf, falling 72.4 percent.The Abu Dhabi Securities Exchange added 14.8 percent to close the year at 2,743.61 points after shedding 47.5 percent in the previous year. Before Dubai's credit problems, Abu Dhabi bourse had increased 33 percent.The Qatar Securities Market -- the least affected in the Gulf last year with a drop of just 28.1 percent -- increased a modest 1.06 percent to close 2009 at 6,959.17 points.But at the end of the year, the Doha bourse capitalisation of 88 billion dollars surpassed both Dubai and Abu Dhabi to become the third largest stock market in the Gulf.The tiny Bahrain Stock Exchange was the biggest loser, shedding 19.2 percent to close 2009 at 1,458.24 points, after slumping 34.5 percent in the previous year.The other small Muscat Securities Market rose 17.00 percent to close the year at 6,368.80 points. In 2008, it dipped 39.8 percent.

Notification on hike in power tariff withheld

Updated at: 1143 PST, Friday, January 01, 2010

ISLAMABAD: The notification on raising power tariff by 13.6 percent has been withheld due to difference between government and coalition parties on the issue. Under an agreement with International Monetary Fund (IMF), government has to raise the power tariff by 13.6 percent. The government had allocated Rs 66 billion for power subsidies in the ongoing budget with an additional allocation of Rs 55 billion after an approval from the IMF. Sources said the tariff for lifeline consumers would now be increased from Rs 1.6 to Rs 2 per unit and for agricultural tube wells by up to Rs 1.5 per unit. They said the government provided Rs 14.6 billion subsidy for lifeline customers and Rs 42.2 billion for agricultural tube wells.Under IMF’s conditions, the government has agreed to raise the power tariff by 24 percent during the current fiscal year in three phases – six percent in the October-December quarter, 12 percent in January-March and six percent in the April-June period. A 4.4 percent tariff increase was announced in October, and the current tariff hike of 13.6 percent will achieve the targeted 18 percent tariff hike in the two periods.The government is also under pressure from the IMF to reduce transmission and distribution losses and improve the efficiency of the power supply system. During the current quarter, the Pakistan Electric Power Company (PEPCO) acted against 54,320 customers, including 28,200 reports lodged with the police, and recovered Rs 3.1 billion, the sources said.

Property of tax defaulters will be auctioned: FBR

Updated at: 1421 PST, Tuesday, December 22, 2009

KARACHI: The chairman Federal Board of Revenue (FBR) said list of 921 tax defaulters and details of their moveable and immoveable assets has been handed over to IRS commissioner.Talking to Geo News, Chairman FBR Sohail Ahmad said first time in eight years, the property of tax defaulters will be auctioned, their accounts will be freeze and arrest will be made. He said tax evolution will be made on the income of tax defaulters from January 1 to March 31. The additional tax of Rs. 75 billion will be recovered from tax defaulters till June 2010, he added.

CNG stations closed twice a week; people suffer

Updated at: 1411 PST, Sunday, December 13, 2009
ISLAMABAD: The people are facing problems as a result of twice-a-week holidays for CNG stations at the bidding of the federal government, Geo News reported Sunday.The people voiced severe criticism of the weekly two-day closure of CNG sale and termed it tantamount to snatching livelihood of people.The people said wherever they go for the gas, they are met with barriers with boards put up ‘CNG sale closed down’.The domestic gas consumers said they are suffering greatly owing to the non-availability of gas for two days in a week.The gas consumers stressed the CNG pumping stations should be permanently shut down in the country, if the vehicles are to be run on petrol. Meantime, the employees said they have been directed against gas sale; accordingly, they are turning people away.

Provinces to collect VAT on services: Tarin

Updated at: 2207 PST, Saturday, December 12, 2009

KARACHI: Finance Minister Shaukat Tarin said Saturday that Value Added Tax (VAT) will replace General Sales Tax (GST) as it was the next step to GST. He was talking to media at Karachi Airport alongwith Interior Minister Rahman Malik. "The federation will collect VAT on goods while the provinces will collect VAT on services," he added. He said the consensus of federation and provinces on National Finance Commission (NFC) Award is a "historic achievement". On this occasion, Interior Minister congratulated Finance Minister Shaukat Tarin for his efforts on securing consensus on NFC Award. Responding to a question, Malik said the government would take action whenever its writ was challenged. We would never allow anybody to work against national integrity, he added. He said that "target action" will continue in Waziristan. Replying to another question, he said that diplomats were "exempted" from security checks and therefore they cannot be arrested."If we start arresting diplomats, Pakistani diplomats would face the similar fate in their places of postings", he told the questioners who insisted that US diplomats were using tinted glasses and fake number plats in their vehicles.

Forex reserves decline by $147.9 mln

Updated at: 1940 PST, Thursday, December 10, 2009
KARACHI: The total liquid foreign reserves held by the country stood at 13.57 billion dollars, showing a decline of 147.9 million dollars during a week ended Dec 5, State Bank of Pakistan said here on Thursday.According to break up, the Foreign reserves held by the State Bank of Pakistan amounted to 9.93 billion dollars while net foreign reserves held by banks (other than SBP) stood at 3.64 billion dollars.

Oil lower in Asia

Updated at: 1327 PST, Friday, December 04, 2009
SINGAPORE: Oil was lower in Asian trade Friday as investors fretted about energy demand in the US, the world's largest oil user, analysts said.New York's main contract, light sweet crude for January delivery fell 63 cents to 75.83 dollars a barrel. Brent North Sea crude for January delivery was off 44 cents to 77.92 dollars a barrel.This week's US Department of Energy (DoE) report of a rise in oil stocks has renewed fears over weak American demand for oil as the country struggles to mount a strong recovery from a deep recession, analysts said.

PSO floats tenders to buy 750,000 tons furnace oil

Updated at: 1814 PST, Friday, December 04, 2009

KARACHI: Pakistan State Oil (PSO) has issued tenders for purchasing 750,000 tons furnace oil.PSO sources said purchase transaction for 585,000 tons furnace oil will be made on immediate basis while the final decision for purchase of 130,000 tons oil will be made after receiving the bids.The purchase of furnace oil in such a large quantity is being made for meeting the requirement for January-February during which use of furnace oil for power generation increases.

Int’l palm oil rate climbs to six-month high

Updated at: 1905 PST, Friday, December 04, 2009

KUALA LUMPUR: Palm oil climbed to the highest level in six months after analysts predicted prices may increase 20 percent in the first half of next year as drought disrupts supplies and demand grows in China and India, the biggest users. The cooking oil advanced 3.4 percent to 2,562 ringgit ($758) a metric ton, the highest price since June 4. Prices may soar to 3,000 ringgit a ton by March, said Dorab Mistry, director of Godrej International Ltd., one of India’s biggest edible oil buyers. He previously predicted 3,000 ringgit by the end of 2010. His forecast compared with 2,493 ringgit at the end of morning trading in Kuala Lumpur. Palm oil, used in cooking and as an alternative fuel, advanced 50 percent this year as investors bought commodities as a haven from a declining dollar. Vegetable oils climbed about 20 percent in November from a year earlier, the first gain this year, according to the UN Food & Agriculture Organization’s Food Price Index. The gauge rose to a record last year after concerns over food shortages spurred exporters to curb shipments. “We must fear for crude palm oil production in 2010,” Mistry said at a conference in Bali. “I expect palm oil prices to rise at the fastest pace in relation to all other vegetable oils. The spread between soybean oil and palm oil will undoubtedly narrow.” The premium for cash Argentine soybean oil over Indonesian palm oil will narrow to $50 a ton by April next year, from about $150 now, he said. Output in Malaysia, the second-largest producer, may drop to 17.5 million tons this year from last year’s record 17.7 million tons, Mistry said. Tree stress and dry weather from the developing El Nino has created a “pessimistic outlook” for output in the second half of 2010, he said. Ocean temperatures in the Pacific are “increasingly consistent with past El Nino events,” the Australian Bureau of Meteorology said on Nov. 25. These conditions will persist into the first quarter of 2010, the bureau said. India imported a record 8.7 million tons of vegetable oils in the year ended Oct. 30, the Solvent Extractors’ Association said Nov. 16. Palm oil accounted for 80 percent. China’s soybean imports in December may exceed the June record of 4.71 million tons, the China National Grain & Oils Information Center said in a statement today. Chinese soybean purchases in the 12 months to July may exceed a previous forecast of 41 million tons, Thomas Mielke, chief executive of Oil World, said in Bali yesterday. Palm oil for February delivery on the Malaysia Derivatives Exchange increased as much as 4.8 percent in intraday trading, the most since Aug. 3. “Market sentiment was influenced by the bullish forecasts coming out” of the Bali conference, said Ryan Long, a trader at OSK Investment Bank in Kuala Lumpur. The gains “triggered a massive short-covering spree,” he said. Prices may reach 2,950 ringgit by June if crude oil trades at $75 a barrel, James Fry, managing director of LMC International Ltd., said in Bali today. “Palm oil seems to be reinforcing its leading role as the main player in the world vegetable oil market, doing much more than others to determine prices,” Fry said. “There is a feedback on prices from crude oil.” The commodity will be supported early next year by lower- than-expected soybean supply before coming under pressure as the South American harvest gets under way from March, Mielke said. “January-February soybean supplies are tight as stocks are still low,” he said yesterday.

Pakistanis forced to buy expensive LPG

Updated at: 1108 PST, Saturday, December 05, 2009

KARACHI: The LPG price in the country is Rs10 to 34 ahead of the gas price in the international market.According to the industry sources, the price of the imported LPG is Rs76/kg at Karachi Port.The sources said the gas is being sold at Rs90/kg in Lahore, Rs100 in Peshawar, Rs105 in Murree and the Gilgit people are buying the gas at Rs110/kg.The sources said the local production price of gas rocketed from Rs17 to 75 per tonne during the last four years in the country and a case in this connection is being heard in the Supreme Court (SC). He also informed that 95 percent LPG is indigenously prepared; but, its sale on the international prices is injustice to the people.

Crude oil lower in Asian trade

Updated at: 1240 PST, Saturday, December 05, 2009

SINGAPORE: Crude oil futures were slightly lower in Asian trade Saturday, as high inventories continued to weigh amid doubts about global economic recovery. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $76.17 a barrel at 0650 GMT, down 29 cents in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell 21 cents to $78.15 a barrel. "As far as today goes, all eyes will be on November's unemployment rate, which the crowd forecasts at unchanged, 10.2%," said Stephen Schork in The Schork Report. Recent data from the U.S. continued to reflect weak demand in the world's largest energy consumer, and a widening crude futures contango makes increased crude storage very likely. Normally, an expanding contango would drive outright crude values sharply lower, possibly into the $65-$70-a-barrel zone, but with supporting financial factors, "sustaining downside crude price moves in the face of aggressive hedge fund buying interest is proving to be an arduous process," said Jim Ritterbusch of Ritterbusch and Associates. The oil market was also pressured by the Institute for Supply Management report yesterday that said its service industry index for November fell to 48.7, from 50.6 in October, indicating a contraction in the industry--in contrast to an expansion predicted by economists.

Oil higher in Asian trade

Updated at: 0854 PST, Thursday, December 03, 2009

SINGAPORE: Oil was higher in Asian trade Thursday, bouncing back from overnight falls as investors digested key US inventory data, analysts said.New York's main contract, light sweet crude for January delivery rose 20 cents to 76.80 dollars a barrel. Brent North Sea crude for January delivery added 42 cents to 78.30 dollars. Oil prices fell sharply in US trade Wednesday after news of a larger-than-expected rise in gasoline or petrol supplies in the United States, the world's biggest energy consuming nation.