junior's toks

Oil price ah...oil price....

Asian stocks fell on Friday as oil prices resumed their record-breaking rally, underscoring investor concerns that high energy prices will hurt corporate earnings. The share market falls followed the biggest drop in U.S. stocks in nearly a year.

Oil hit $44.73 a barrel, the highest since New York crude futures were launched in 1983, after a fire at a big U.S. refinery underlined the vulnerability of supplies at a time when global demand is accelerating at its fastest pace in more than 20 years. (Reuters 6 Aug 2004)

I went to pump my petrol full tank this morning. If they allowed me to bring my bath tub, I would have brought it along. I am not that old, I did not live in the early 80's era where oil price was so high (at that time the GDP per capital of Suadi was US$ 30 k...now around US$ 6k...dai sei). I am more used to the US$ 22 a barrel pricing.

Now, it is a whopping $44.73.

I notice that while the financial world was talking about this oil thing like there is no tomorrow, Malaysian media seems 'bo chap' with the increase of oil price. Except a few lines, no major commentary was made. Issit because we are net oil exporter? or we are too ignorant of the threat? My fellow punters are still talking about stock and fingers damn itchy to punt.

I don't know about you. I sideline. I am damn worried about this oil price increase (Petrol. Not Rafidah). The impact on the world and China will one day come to haunt us.

Let's listen to what some have to say:-

UBS Walburg:- The worry is that higher energy costs are sapping U.S. household buying power. Higher oil prices, which rose about $10 per barrel in the year ended July, certainly hurt
consumers. Jim O’Sullivan has estimated that each $10 per barrel rise in oil prices lowers household spending power by $35 billion (-0.4%). And prices are already up $4 per barrel from the July average, threatening another .15% drop in spending power. (I also read another article saying that every $10 increase in oil price, the economy GDP is affected by 0.5% or some shit like that...)

Asia Times:- Even for net oil exporters such as Malaysia, the strong export prices of crude oil have posed as a double-edged sword. Malaysia has reaped huge foreign earnings from oil exports since the last half of 2003, but it also has been saddled with huge internal subsidy bills as the prices of refined products have escalated in world markets. Malaysia spends about US$2.4 billion in subsidies each year, which allows the government to keep oil prices at relatively low levels compared with prices in other countries in the region. But all that is about to change, as the government announced last week that it plans to raise oil prices, the second in a matter of weeks, by cutting subsidies in order to channel the funds to finance other development projects. (U know why we don't care? well, because non of us know how our national budge was drafted and spent)

Bank Negara Malaysia:-Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz also told the press when announcing the first- quarter GDP growth last month that the impact brought about by high crude oil prices on the country's economy was expected to be “minimal” given that Malaysia was a “marginal net oil exporter”. (she knows nuts)


Sammy Vellu:- How do we make money from this?

Mahathir:- Kita orang Malaysia, bukan orang ganas. If the world need more ....apa ni....petrol, we produce more laah..we can work harder.....we will not keep the oil price high for nostalgia reason......apa ni...(I deleted 200+ words)

Ling Liong Sik:- What oil price?

Having said that, my fingers and toe are all crossed. I still believe that the oil price will come down despite fundamentally someone said it is heading $50 a barrel. (Junior, u did your research ah? ...er....er...no...I just guess)......

Someone must be hiding all the oil....is it you Rafidah? is it you????

Junior :D

posted by Junior @ 10:54 AM