Crude oil has fallen, transport cos / PTC please respond
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Opec move sparks slide in oil price
Published: September 11 2006 20:44 | Last updated: September 11 2006 20:44
Oil prices fell on Monday to their lowest level since the end of March after the Organisation of the Petroleum Exporting Countries agreed to keep production quotas unchanged.
But members of the cartel signalled they might reduce output later this year to limit any further fall in world oil prices.
The European benchmark, Brent, dropped $1.09 to $64.24 a barrel in late afternoon London trade, and near its lowest level in more than five months. It is now more than 18 per cent down on its record high of $78.65, touched just over a month ago.
Falling crude prices sparked sharp declines in other commodity markets. Gold traded below the key $600-an-ounce threshold for the first time since late June, while copper fell 4.5 per cent to $7,460.50 a tonne.
Edward Morse, chief energy economist at Lehman Brothers, said oil prices were unlikely to carry on falling. “We have had the perfect lull, but it is not a turning point when prices will continue to decline,” he said.
Mr Morse said the fall reflected the easing of tension between the west and Iran over its nuclear ambitions, the end of the Israel-Lebanon conflict, lack of hurricanes in the Gulf of Mexico region and an end to the US summer driving season.
Ali Naimi, Saudi Arabia’s energy minister, shrugged off the fall in prices, calling it “a blip”.
Opec ministers agreed to keep the cartelÂ’s official production at 28m barrels a day, even though the 10 members that abide by quotas are producing 500,000 b/d less. With the cartel producing below official limits, analysts said Opec may cut at its next meeting in Nigeria in December.
“The process is starting now. It’s been several years since they’ve had to cut back,” said Carl Calabro, analyst at PFC energy, the Washington based consulting firm. Mr Calabro said there was already a surplus of fuel oil in the market, in particular in Singapore, but also in the US, where inventories are 25 per cent higher than normal.
Mr Morse said the focus on inventories was overdone, as global inventories in absolute terms will have to continue to grow in order to maintain the “comfort level” of between 50 and 55 days of forward demand cover.
He said oil demand had risen by about 10m b/d in the past six years, which translates to another 500m barrels of oil needed in storage.
Oil traders expect prices to rise by the end of the year.
The US benchmark oil price, the West Texas Intermediate, is quoted at more than $67 a barrel for December, compared with the current spot price of $65.50.
Oil traders said concern about the fall in oil prices may be overdone, given that US benchmark oil prices are 7 per cent lower than the record peak of $70.85 reached in August last year in the wake of Hurricane Katrina. -
FAT HOPE if you think PTC will reduce all public transport fares!
Our gov is addicted to money! -
sorry har...its call fat hope slim chance.
u din noe meh, its not only due to oil price increase that bus fares / taxi fares hve to rise mah, its the primary reason but not the sole and whole reason. There are other factors like, er, er, aiya, too chim to explain lah.
in singapore, certain things rise but dun fall like bus fares, taxi fares, utilities bills,etc. But also certain things once fallen, won't rise, like your pay, service standards of tpt companies, telco, service hotlines, etc.
so dun be disillunisoned by the fall in oil prices ok, why dun you go buy some shares of SBS, Trans Island and SIA instead, their share price will also rise and give you some relief... -
“The process is starting now. It’s been several years since they’ve had to cut back,” said Carl Calabro, analyst at PFC energy, the Washington based consulting firm. Mr Calabro said there was already a surplus of fuel oil in the market, in particular in Singapore, but also in the US, where inventories are 25 per cent higher than normal"
how come so much fuel surplus still can increase fare. Arent we using the fuel we bought at the time when it much cheaper when we raise the taxi-fare during the Lebanon war. -
aiya, very soon the crude oil price will rise again.
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they will conveniently missed out on this piece of news.
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Originally posted by red_amoeba:sorry har...its call fat hope slim chance.
u din noe meh, its not only due to oil price increase that bus fares / taxi fares hve to rise mah, its the primary reason but not the sole and whole reason. There are other factors like, er, er, aiya, too chim to explain lah.
in singapore, certain things rise but dun fall like bus fares, taxi fares, utilities bills,etc. But also certain things once fallen, won't rise, like your pay, service standards of tpt companies, telco, service hotlines, etc.
so dun be disillunisoned by the fall in oil prices ok, why dun you go buy some shares of SBS, Trans Island and SIA instead, their share price will also rise and give you some relief...
Falling oil prices is a fact not an illusion -
PTC credibility would be undermined if fare of public transport get approved at this juncture.
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you mean they werent undermined already?Originally posted by qpicanto:PTC credibility would be undermined if fare of public transport get approved at this juncture. -
They would be severely undermined for the fact that the basis for fare increase put forward by the taxi/bus cos has vanished.Originally posted by dragg:you mean they werent undermined already? -
impossible. they will juz act blur and refer to other new reasons.
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So this few months the oil prices drop, the fares should drop. Then next few months the oil prices rise again, fares increase again.
There should be some hedging mechanism built into fare adjustments. -
Any one know PTC stands 4???? same as PAP lah!!!! -
PTC stands for Public Transport Council but i think hor, its should stand for Public tekanning Council...Originally posted by foomwee88:Any one know PTC stands 4???? same as PAP lah!!!!
The bus company service level so bad also neber take action and penalise them. And the irony is that i am sure the members all own cars loh. So if they dun use public transport, how will they know at first hand, how good / bad the public transport are ? How many of them use buses and MRTs ? Do they know how crowded it is on bus #6 in the morning ? Do they know how long ppl have to wait for buses only to find that it is super crowded? or do they ever find out why the stupid bus comes in single decker during morning peak hours when a double decker should be more efficient ? Or do they check why some the mobile TV neber work (and in the first place, why allow companies to install mobile TVs ?Aren't they suppose to generate advertisement revenues to offset operation costs ?) -
this coming IMF meeting, all of us should book a spot in the indoor protest area and protest against the fare hike.
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Sporeans commuters should not be penalised when these public cos exposed themselves to business risks and competition overseas.Originally posted by Parka: So this few months the oil prices drop, the fares should drop. Then next few months the oil prices rise again, fares increase again.
There should be some hedging mechanism built into fare adjustments.
If they want to grow their business overseas, Sporeans' pockets money should NEVER be a hedge against their overseas endeavour.
As such overseas risk as a reason for fare increase should not be entertained by the PTC because not every Singaporeans benefit from their profits like the shareholders. -
the publice transport fee probably also needs to be checked up seasonaly or twice per year...like the ERP...Originally posted by qpicanto:Opec move sparks slide in oil price
Published: September 11 2006 20:44 | Last updated: September 11 2006 20:44
Oil prices fell on Monday to their lowest level since the end of March after the Organisation of the Petroleum Exporting Countries agreed to keep production quotas unchanged.
But members of the cartel signalled they might reduce output later this year to limit any further fall in world oil prices.
The European benchmark, Brent, dropped $1.09 to $64.24 a barrel in late afternoon London trade, and near its lowest level in more than five months. It is now more than 18 per cent down on its record high of $78.65, touched just over a month ago.
Falling crude prices sparked sharp declines in other commodity markets. Gold traded below the key $600-an-ounce threshold for the first time since late June, while copper fell 4.5 per cent to $7,460.50 a tonne.
Edward Morse, chief energy economist at Lehman Brothers, said oil prices were unlikely to carry on falling. “We have had the perfect lull, but it is not a turning point when prices will continue to decline,” he said.
Mr Morse said the fall reflected the easing of tension between the west and Iran over its nuclear ambitions, the end of the Israel-Lebanon conflict, lack of hurricanes in the Gulf of Mexico region and an end to the US summer driving season.
Ali Naimi, Saudi Arabia’s energy minister, shrugged off the fall in prices, calling it “a blip”.
Opec ministers agreed to keep the cartelÂ’s official production at 28m barrels a day, even though the 10 members that abide by quotas are producing 500,000 b/d less. With the cartel producing below official limits, analysts said Opec may cut at its next meeting in Nigeria in December.
“The process is starting now. It’s been several years since they’ve had to cut back,” said Carl Calabro, analyst at PFC energy, the Washington based consulting firm. Mr Calabro said there was already a surplus of fuel oil in the market, in particular in Singapore, but also in the US, where inventories are 25 per cent higher than normal.
Mr Morse said the focus on inventories was overdone, as global inventories in absolute terms will have to continue to grow in order to maintain the “comfort level” of between 50 and 55 days of forward demand cover.
He said oil demand had risen by about 10m b/d in the past six years, which translates to another 500m barrels of oil needed in storage.
Oil traders expect prices to rise by the end of the year.
The US benchmark oil price, the West Texas Intermediate, is quoted at more than $67 a barrel for December, compared with the current spot price of $65.50.
Oil traders said concern about the fall in oil prices may be overdone, given that US benchmark oil prices are 7 per cent lower than the record peak of $70.85 reached in August last year in the wake of Hurricane Katrina. -
Aiyaa.. they will only respond to oil price increments lah!!!Originally posted by Parka: So this few months the oil prices drop, the fares should drop. Then next few months the oil prices rise again, fares increase again.
There should be some hedging mechanism built into fare adjustments.
Oil prices goes up, and they'll jump right into increasing transport fares.
Oil prices goes down, they act as if they're blind.... -
Blinded by profits. -
You obviously haven't been living in singapore long enough to know that prices that go up, never come down.
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Not by profit but greed!!!Originally posted by qpicanto: Blinded by profits.
13 billion write off 4 Singtel!!!
My God!!! wat is happening in Spore!!!!
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One thing for sure to go down are the number of votes for them next GE!
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Oh they can do whatever they want and we need not be informed about it.. not in detail that is.Originally posted by foomwee88:Not by profit but greed!!!
13 billion write off 4 Singtel!!!
My God!!! wat is happening in Spore!!!!
It's none of our business - we're only supposed to be diligent in paying our bills and taxes. -
Well, there you have it; they went and bluddy approved fare increases!
WTF!
No wonder they disallow public deomstrations and protests - if it is, they'd have their hadns full of angry citizens! -
i wonder how to PTC reach the conclusion of approving fare hikes. they should publish the reasons which propel them to give the green lights for fare hikes. their decisons affected every1 of us and i think they should b accountable to each and every1 of the bus users. everytime the jus say bus hikes due to blah blah but there is no reports gives to support their reasoning. i would suggest PTC to publish their report whenever bus fares are reviewed whether bus fare increase or not.