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Energy Prices
| Commodities | Price | Change | Change % |
| PETROLEUM ($/bbl) | |||
| Nymex Crude Future | 68.47 | .45 | .66 |
| Dated Brent Spot | 66.81 | .33 | .50 |
| WTI Cushing Spot | 68.02 | .06 | .09 |
| PETROLEUM (¢/gal) | |||
| Nymex Heating Oil Future | 173.29 | 1.24 | .72 |
| Nymex RBOB Gasoline Future | 177.34 | -.29 | -.16 |
| NATURAL GAS ($/MMBtu) | |||
| Nymex Henry Hub Future | 2.67 | -.06 | -2.27 |
| Henry Hub Spot | 1.88 | -.18 | -8.74 |
| New York City Gate Spot | 2.00 | -.27 | -11.89 |
| ELECTRICITY ($/megawatt hour) | |||
| Mid-Columbia, firm on-peak, spot | 31.98 | 2.03 | 6.78 |
| Palo Verde, firm on-peak, spot | 24.17 | -2.69 | -10.02 |
| BLOOMBERG, FIRM ON-PEAK, DAY AHEAD SPOT/ERCOT HOUSTON | 23.88 | 1.40 | 6.23 |
| BLOOMBERG, FIRM ON-PEAK, DAY AHEAD SPOT/ERCOT HOUSTON | 23.88 | 1.40 | 6.23 |
Dubai, Big Dreams..............
Recently a lot of the news coming out of Dubai has been grim. The high flying Arab Emirate seemed to be diving head-first into the recession at the same pace at which it had ascended into the business firmament. Grand plans were put on ice, the owners of real estate agencies were suddenly unemployed and managers from around the world planned their escape from the region, leaving luxury cars, only half paid for, in the airport parking lot. But now it looks like the global recession is nearing its end and that is why, this autumn, the sheiks are revisiting one of their ambitious projects from the past. And with a carefully planned marketing campaign too. On Wednesday, at 9:09 p.m. on the ninth day of the ninth month of 2009, the first train went into service on the brand new Dubai Metro
US Economy Facing Death
The US economy faces a difficult time ahead as consumers stop spending and the fallout escalates from the collapse of the commercial real estate market, economist Nouriel Roubini told CNBC.
Repeating his prediction that the economy faces a threat of a "double-dip" recession and at best a slow-growth U-shaped recovery, Roubini said in a live interview that more banks will fail and residential real estate prices have more room to decline. Additionally, non-government bonds will face pressure, the securitization market is all but dead, the credit markets are still frozen and consumers will continue to save more rather than spend and boost growth. "It's going to be death by a thousand cuts," said Roubini, chairman of RGE Monitor and economics professor at New York University's Stern School of Business. "The financial system is severely damaged, and it's not just the banks."Roubini predicted more than 1,000 financial institutions could fail before all is said and done. At the same time, he said housing prices are likely to fall another 12 percent in the next year—40 percent overall since the market began its steep decline—and about half of all homeowners will owe more on their mortgages than their houses are worth. "The gap between supply and demand is so huge we could stop producing new homes for a year to get rid of all the inventory," he said.
Repeating his prediction that the economy faces a threat of a "double-dip" recession and at best a slow-growth U-shaped recovery, Roubini said in a live interview that more banks will fail and residential real estate prices have more room to decline. Additionally, non-government bonds will face pressure, the securitization market is all but dead, the credit markets are still frozen and consumers will continue to save more rather than spend and boost growth. "It's going to be death by a thousand cuts," said Roubini, chairman of RGE Monitor and economics professor at New York University's Stern School of Business. "The financial system is severely damaged, and it's not just the banks."Roubini predicted more than 1,000 financial institutions could fail before all is said and done. At the same time, he said housing prices are likely to fall another 12 percent in the next year—40 percent overall since the market began its steep decline—and about half of all homeowners will owe more on their mortgages than their houses are worth. "The gap between supply and demand is so huge we could stop producing new homes for a year to get rid of all the inventory," he said.
Pakistan, WB sign $350 million loan package
Pakistan will get USD 350 million loan from World Bank that would be spent on promoting higher education, social security and other sectors in the country, report said. Government of Pakistan and World Bank signed three agreements in this connection here Tuesday
which will enable Pakistan of receiving the concessional loan to be paid back in 35-year time span at zero point five per cent interest rate. According to the agreements, $200 million would be spent on developing social security net, $100 million on promoting higher education and remaining $50 million on development of irrigation system in Sindh.
Foreign investment down 36pc in 2 months
KARACHI - Foreign investment in Pakistan has dropped by 36 per cent during the first two months of current fiscal year 2009-10 amid substantial decline in the inflows of foreign direct investment and net outflows from the portfolio investment. Showing negative growth, the net inflow of foreign investment stood at $412.2 million during July-August 2009-10 against $646.4 million during the same period of last financial year. Similarly, the YoY growth in FDI fell by 57.4 per cent negative as Pakistan received a total of 351.4 million dollars worth foreign direct investment during the two months of current financial year from the inflow of 824.7 million dollars in the corresponding months of the last fiscal year. In the same way, portfolio investment at local bourses posted a massively negative growth of 134.1 per cent as recorded at $60.8 million in July-August FY10 against $178.3 million in the said period of FY09. According to the latest break up of foreign investment, the total foreign private investment inflow with privatisation and without privatisation proceeds declined to $412.2 million during respective two months of July-August 2009-10 from $648.0 million in the same course of FY09 by depicting 36.4 per cent negative growth. This turn out shows that it could not improve the deteriorating position of capital and financial account. The deceleration in foreign investment growth has been compensating by an augmentation in long-term loans. Also, prospects of global economic recovery and thus the revival of international investors sentiments remain week leading to uncertainty for Pakistans balance of payments position. It is interesting to note that Pakistan has attracted considerable amount of foreign investment from advanced economies of Western Europe, America, UK, and Germany however, at the same time, the sum up of FDI from most of the developed countries including North America badly suffered during analytical period of current fiscal year on account of domestic structural issues and global factors, such as, economic downturn in western economies, countrys bad law and order situation and some global liquidity constraints.
Palpa pleads Defence Committee to hold fact-finding session
KARACHI (PR) - Current row between Pakistan Airline Pilots Association (PALPA) and PIA management is not over the increase in salaries, the Defense Committee is being misled by the MD PIA. However, listening to one-sided version of management is against the principles of justice, the honourable Defense Committee should give a chance to pilots to state the facts. This was stated by Capt Imran Usman President PALPA in a letter to the Chairman, Senates Standing Committee on Defense. After the MD PIAs briefing to Senates Standing Committee on Monday, the Executive Committee of PALPA met and observed that remarks regarding blackmailing for salary increase were given because only one-sided picture as forwarded to the honourable members of the Defense Committee. The letter sent to the Standing Committee on Defense is signed by members of Executive Committee PALPA Captain Imran Usman President, Captain Suhail Baluch Vice President, Captain Arif Majeed General Secretary, Captain Suhail Ahmed Joint Secretary and Captain Sadiq Rehman Treasurer. Capt Imran said the MD PIA has been cunningly misleading the press and general public about PALPAs demands and now he has gone to an extent that the forum not less than that of Upper House has been misled on record. He said that the Standing Committee is briefed that pilots are getting 2-7 lacs salary monthly, the pilots are certainly ready to accept it from this very month but it will be honourable members responsibility that MD PIA, habitually, does not back out from his statement. The letter said that only last year on his visit to PALPA headquarters after becoming MD of PIA Capt Ijaz Haroon had said that pilots are overworked and underpaid and the salaries are not a problem as they are only 16pc of PIA earning, whereas other airlines are paying up to 35pc.
$2b investment likely through rental power projects
ISLAMABAD (APP) - Managing Director Pakistan Electric Power Company (PEPCO) Tahir Basharat Cheema on Tuesday said that an investment of around US$ 2 billion is expected in power sector through Rental Power Projects (RPPs). In a briefing given to media persons here, he said besides investment in power sector additional electricity of 1675 MW will be added in the system by December 2009 when nine rental power projects will start generation. He added an overall 2250 MW electricity will be generated through RPPs in current fiscal year. He said two rental projects have already started generation included Atlas Power (213MW) and Attock Generation (156MW) while remaining seven will start functioning by December 2009 included Nishat (196 MW), Engro (203MW), Saif Power (213MW), Fauji Foundation (176MW), Sapphire Electric Company (213MW) and Orient Power Company (213MW). He said all proposals of RPPs were accepted only with bid bonds, performance guarantee by sponsors, monthly rental payments are to be made only after commissioning of the plant while penalty will be recovered on delay in commissioning. He said there is no pressure from the government on any bank in the public or private sector to fund any rental project, adding, lenders to rental power companies undertake their own due diligence and take decisions based on their own financial position. He clarified that the rental tariff for the projects is different being dependent on factors including projects are located at different sites as per system requirements and projects have different fuel consumption and different fuels. He added others factors are variation in project cost due to difference in technology and age of machinery and variations in financing and sources and costs. Basharat Cheema said for the first time the idea of starting rental power projects was presented in 2005 when the country was facing acute power shortfall. He added since 2005, every government remained committed to work on RPPs to overcome energy deficit problem. He said it was the only option to have RPPs in the country as shortest possible time is required to generate electricity from RPPs. He said there are several other aspects that favors the idea of RPPs like such projects could be installed at any place as there is no need of large area for its installation unlike IPPs.
Govt may allow private sector to set up sugar refinery
ISLAMABAD: The government is all set to give a go-ahead to the private sector to set up a sugar refinery at the Gwadar port to meet local demand in the wake of high prices of the sweetener in the international market, official and industry sources confided to The News on Tuesday. Yes, the Ministry of Industries is considering allowing the private sector to set up a sugar refinery at the Gwadar Port to deal with sugar crisis in the long run, an official of the Ministry of Industries and Production told The News but requested not to be named. It is not the business of the government to set up an industry or run an industrial unit but we will facilitate and encourage the private sector to do business by setting up industrial units, the official said. The federal cabinet has allowed private sugar millers the import of 0.35 million tons of raw sugar before the start of crushing season in October or November as the food and agriculture ministry anticipates a sugar shortfall of 1.5 million tons in 2009-10. There are 82 sugar mills for crushing cane in the country but no sugar refinery for processing imported raw sugar for public consumption. Imported raw sugar is only processed by mixing it with cane juice during the crushing season. Besides import of 350,000 tons of raw sugar by the Pakistan Sugar Mills Association (PSMA), the government would import 70,000 to 100,000 tons through the Trading Corporation of Pakistan (TCP) which would be processed either by local mills or a refinery in Dubai, said a well-informed official of the food ministry. It is right time that the government gets rid of the shackles of PSMA by allowing the setting up of a sugar refinery for processing raw sugar, the official said.