IBT Commodities reported yesterday that shares of coal miner Hillsborough Resources increased more than 41 per cent to 44.5 cents on Monday, after Vitol Anker International B.V., a wholly owned subsidiary of the Vitol Group, announced its intention to make an offer to acquire all of the common shares of the company that it does not currently own for 45 cents per share.
"Our offer presents compelling value to Hillsborough’s shareholders and creates an immediate opportunity for shareholders to receive cash proceeds for their investment. Our offer price reflects our respect and enthusiasm for Hillsborough’s business,” said Jacobus Sterken, Vitol Anker’s Director.
Friday, July 24, 2009
Friday, July 10, 2009
More Oil Traders
Ari J. Officer wrote an article for TIME magazine arguing the need for more oil traders. He says the Obama Administration can’t stabilize prices by regulating speculators. According to the article, limiting trading would make the oil-futures market smaller than it currently is, something Officer believes is dangerous.
“The oil-futures market is tiny compared with the physical oil market: less than 3% of the world’s oil consumption over the next year is accounted for in the open interest.”
Because oil is an international commodity and the U.S. government can’t regulate the global market, Officer believes that the U.S. “should not outsource markets by placing a divide between America and the rest of the world.”
Check out the article. It is an interesting read.
“The oil-futures market is tiny compared with the physical oil market: less than 3% of the world’s oil consumption over the next year is accounted for in the open interest.”
Because oil is an international commodity and the U.S. government can’t regulate the global market, Officer believes that the U.S. “should not outsource markets by placing a divide between America and the rest of the world.”
Check out the article. It is an interesting read.
Tuesday, July 7, 2009
Oil Prices
The Wall Street Journal reported yesterday on the decrease in oil prices after a year long rally that culminated in its best quarter since 1990. This is interesting given what happened last year after oil reached a remarkable high of $145.29 a barrel only to fall 77% in seven months.
The high price of oil this year is unexpected given the low demand. As Vitol CEO Ian Taylor noted last month, “The recent rise in oil prices [does] not appear to sit comfortably with the currently available supply and demand data."
The downward pressure on oil is so great it could trade for as little as $20 a barrel by the end of the year, according to the Chicago Tribune. This is due to the lessened demand at a time when there is a big surplus, Philip Verleger Jr., an expert on energy markets at the University Calgary, told the Tribune.
It will definitely be interesting to see what happens the rest of the summer.
The high price of oil this year is unexpected given the low demand. As Vitol CEO Ian Taylor noted last month, “The recent rise in oil prices [does] not appear to sit comfortably with the currently available supply and demand data."
The downward pressure on oil is so great it could trade for as little as $20 a barrel by the end of the year, according to the Chicago Tribune. This is due to the lessened demand at a time when there is a big surplus, Philip Verleger Jr., an expert on energy markets at the University Calgary, told the Tribune.
It will definitely be interesting to see what happens the rest of the summer.
Thursday, July 2, 2009
Update on Galoc Oil Field
Production at the Galoc oil field in the Philippines was delayed due to technical problems following the halt in production last week because of adverse weather. UPI and BusinessWorld covered Vitol’s decision to delay production.
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