Aug
30
Stocks at the Karachi share bazaar slid a further 2.4 per cent on Friday, recording a sharp plunge of 30 per cent in equity values over the eight months since January this year.
The KSE-100 index clinging to four figures of 9,994 points just four months down the road from its record high at 15,750 on April 18, looked especially gory.
Many stock brokers shook their heads when asked if they were on the sell side. But foreign investors were clearly the panic prone herd.
“Net foreign selling since January stands at $350 million with sell orders flying across trading rooms of brokerages aggregating to a huge $20 million in the past two days”, says Mohammad Sohail at JS Capital.
The sinking value of the rupee which hit the pit at Rs77.15 to a dollar on Friday, weak economic numbers including depletion in foreign exchange reserves and the political wrangling among coalition partners were believed to have prompted Moody’s to issue a note of caution on Wednesday, which foreign funds took as a signal to take to a flight.
Foreigners who had entered the equity market in droves to grab advantage of the previous seven years of the country’s outperformance as one of the best markets in the world, still hold $3 billion worth of stocks and 25 per cent of the free float.
But over the past four months, value of Pakistani equity market has sunk to $41 billion, from $75 billion, reflecting a loss of $34 billion. Converted at the current currency value that worked out to a drain of staggering Rs2.6 trillion! Market capitalisation at close of trading on Friday stood at Rs3.1 trillion.
Tariq Iqbal Khan, chairman and MD of NIT, the country’s largest mutual fund and the manager of the recently constituted “Equity Market Opportunity Fund” of the size of Rs20 billion says, he never sells in a falling market.
He reiterated that the Opportunity Fund had been created to capture value buying for its contributors, which in turn could stabilise the market. He said that the ‘concept paper’ of the Opportunity Fund clearly laid down that approvals had to be sought from the federal government and the SECP and that the Fund could sell “only if it is satisfied that such sale would not in any manner destabilise the market and that it is not detrimental to the basic objective of never acting against public interest”.
Nadeem Naqvi, who recently stepped down as the CEO of AKD Securities to venture into more challenging tasks, asks for a look at the global picture. “Stock markets”, he says “are taking the blow everywhere because both the US and Europe are experiencing sharp economic slowdown; Japan posted negative GDP growth in the last quarter and Indian economy growth has slid from 9 to 7 per cent”.
China is expected to face a meltdown after the glowing economics of Olympics are over. “Due to the global slowdown, inflation is rising and interest rates are likely to edge higher in the future, pushing down asset values including that of stocks all across the world”, says Nadeem.
But for the KSE, he has something cheerful to say. “Historically over the 10 to 15 years, the Pakistani stocks have traded at the forward price-to-earnings (p/e) ratio of 8.5 to 9 times and the equities are now down to a multiple of 6.7 times, which means the downside is limited”.
He, however, adds that the upside too is capped at the index level of 11,000 points, given the political uncertainty, high interest rates, economic worries and the erosion in the value of rupee”.
Several market pundits agreed that the KSE might continue to trade in the range of 9,000 to 11,000 points until the winter this year.
Aug
30
Prices stay firm on cotton market
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Cotton prices on Friday remained stable at the previous levels amid an actively traded session for third session in a row as spinners are not inclined to take even a technical breather.
The interesting feature was that spinners major buying thrust was again on the central Sindh lint owing to its better quality, while its Punjab counterpart was available at slightly lower rates, floor brokers said.
Some of the Punjab types were traded as lower as Rs4,075 but Sindh variety was not available below Rs4,125, sustaining a premium over its Punjab counterpart, they said.
They said price differential of Rs75 per maund between the two reflects very badly on the central Punjab lint, which in normal seasons is sold at a premium over the former.
Cotton analysts failed to pinpoint the reasons behind this phenomenon but some others said late rain and the current pest attack in the entire cotton belt may have damaged its fibre content.
Meanwhile, reports trickling in from the cotton belt indicate that second picking of phutti in the early growing areas is well in progress and should have pushed prices lower but strong mill support keep them on the higher side.
News from the export front were a bit bearish as local prices are higher than the foreign ones and that is perhaps why exporters are out of the market for the last couple of sessions.
Official spot rates were remained firm at the previous level of Rs4,125 per maund and bulk of the ready business was done around them.
New York cotton futures, on the other hand, failed to sustain the overnight run-up as both the contracts fell by 1.29 and 1.27 cents per lb at 67.16 and 69.36 for the ruling October and the distant December.
Mill intake was on the higher side as another 20,000 bales changed hands as under:
SINDH TYPE: 3,000 bales, Shahdadpur at Rs4,125 to 4,150, 2,000 bales, Tando Adam at Rs4,125 to 4,135, 1,000 bales, each Khipro, Hyderabad and Sanghar, 600 bales, Shahpur Chakkar,400 bales, each Jhoke and Nawabshah at Rs4,125,and 1,000 bales, Mirpurkhas at Rs4,100 to 4,125.
PUNJAB VARIETY: 1,000 bales each, Chichawatni and Burewala at Rs4,100 to 4,125, 1,000 bales, Mian Channu, 400 bales, Gojra and 200 bales, Muridwala at Rs4,100, 600 bales, Pak Pattan, at Rs4,075 to 4,100, 600 bales and 400 bales, Bahawalnagar and Arifwala at 4,075.
Source
Aug
29
Stocks at the Karachi share bazaar slid a further 2.4 per cent on Friday, recording a sharp plunge of 30 per cent in equity values over the eight months since January this year.
The KSE-100 index clinging to four figures of 9,994 points just four months down the road from its record high at 15,750 on April 18, looked especially gory.
Many stock brokers shook their heads when asked if they were on the sell side. But foreign investors were clearly the panic prone herd.
“Net foreign selling since January stands at $350 million with sell orders flying across trading rooms of brokerages aggregating to a huge $20 million in the past two days”, says Mohammad Sohail at JS Capital.
The sinking value of the rupee which hit the pit at Rs77.15 to a dollar on Friday, weak economic numbers including depletion in foreign exchange reserves and the political wrangling among coalition partners were believed to have prompted Moody’s to issue a note of caution on Wednesday, which foreign funds took as a signal to take to a flight.
Foreigners who had entered the equity market in droves to grab advantage of the previous seven years of the country’s outperformance as one of the best markets in the world, still hold $3 billion worth of stocks and 25 per cent of the free float.
But over the past four months, value of Pakistani equity market has sunk to $41 billion, from $75 billion, reflecting a loss of $34 billion. Converted at the current currency value that worked out to a drain of staggering Rs2.6 trillion! Market capitalisation at close of trading on Friday stood at Rs3.1 trillion.
Tariq Iqbal Khan, chairman and MD of NIT, the country’s largest mutual fund and the manager of the recently constituted “Equity Market Opportunity Fund” of the size of Rs20 billion says, he never sells in a falling market.
He reiterated that the Opportunity Fund had been created to capture value buying for its contributors, which in turn could stabilise the market. He said that the ‘concept paper’ of the Opportunity Fund clearly laid down that approvals had to be sought from the federal government and the SECP and that the Fund could sell “only if it is satisfied that such sale would not in any manner destabilise the market and that it is not detrimental to the basic objective of never acting against public interest”.
Nadeem Naqvi, who recently stepped down as the CEO of AKD Securities to venture into more challenging tasks, asks for a look at the global picture. “Stock markets”, he says “are taking the blow everywhere because both the US and Europe are experiencing sharp economic slowdown; Japan posted negative GDP growth in the last quarter and Indian economy growth has slid from 9 to 7 per cent”.
China is expected to face a meltdown after the glowing economics of Olympics are over. “Due to the global slowdown, inflation is rising and interest rates are likely to edge higher in the future, pushing down asset values including that of stocks all across the world”, says Nadeem.
But for the KSE, he has something cheerful to say. “Historically over the 10 to 15 years, the Pakistani stocks have traded at the forward price-to-earnings (p/e) ratio of 8.5 to 9 times and the equities are now down to a multiple of 6.7 times, which means the downside is limited”.
He, however, adds that the upside too is capped at the index level of 11,000 points, given the political uncertainty, high interest rates, economic worries and the erosion in the value of rupee”.
Several market pundits agreed that the KSE might continue to trade in the range of 9,000 to 11,000 points until the winter this year.
Aug
27
Oil prices rebound above $117
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Oil prices rebounded briefly above $117 on Tuesday, erasing earlier losses as attention switched to a hurricane that could threaten US energy facilities in the Gulf of Mexico, traders said.
New York’s main contract, light sweet crude for delivery in October, jumped $1.72 to $116.83 per barrel, after earlier reaching $117.89.
London’s Brent North Sea crude for October added $1.23 to $115.26.
Oil bounced higher as Tropical Storm Gustav grew into a hurricane on Tuesday.
“Gustav continues to represent a potential threat to oil and gas installations in the Gulf region and will be watched with vigilance,” warned Barclays Capital analysts in a note to clients.
Anglo-Dutch energy giant Royal Dutch Shell meanwhile said it was planning to evacuate some staff from its Gulf facilities because of Gustav.
“Given the current track for Gustav and the expectation that it might enter the Gulf of Mexico this weekend, we are making logistical arrangements to evacuate staff who are not essential to production or drilling operations,” Shell said in a statement.
Aug
24
Stocks at the Karachi share bazaar slid a further 2.4 per cent on Friday, recording a sharp plunge of 30 per cent in equity values over the eight months since January this year.
The KSE-100 index clinging to four figures of 9,994 points just four months down the road from its record high at 15,750 on April 18, looked especially gory.
Many stock brokers shook their heads when asked if they were on the sell side. But foreign investors were clearly the panic prone herd.
“Net foreign selling since January stands at $350 million with sell orders flying across trading rooms of brokerages aggregating to a huge $20 million in the past two days”, says Mohammad Sohail at JS Capital.
The sinking value of the rupee which hit the pit at Rs77.15 to a dollar on Friday, weak economic numbers including depletion in foreign exchange reserves and the political wrangling among coalition partners were believed to have prompted Moody’s to issue a note of caution on Wednesday, which foreign funds took as a signal to take to a flight.
Foreigners who had entered the equity market in droves to grab advantage of the previous seven years of the country’s outperformance as one of the best markets in the world, still hold $3 billion worth of stocks and 25 per cent of the free float.
But over the past four months, value of Pakistani equity market has sunk to $41 billion, from $75 billion, reflecting a loss of $34 billion. Converted at the current currency value that worked out to a drain of staggering Rs2.6 trillion! Market capitalisation at close of trading on Friday stood at Rs3.1 trillion.
Tariq Iqbal Khan, chairman and MD of NIT, the country’s largest mutual fund and the manager of the recently constituted “Equity Market Opportunity Fund” of the size of Rs20 billion says, he never sells in a falling market.
He reiterated that the Opportunity Fund had been created to capture value buying for its contributors, which in turn could stabilise the market. He said that the ‘concept paper’ of the Opportunity Fund clearly laid down that approvals had to be sought from the federal government and the SECP and that the Fund could sell “only if it is satisfied that such sale would not in any manner destabilise the market and that it is not detrimental to the basic objective of never acting against public interest”.
Nadeem Naqvi, who recently stepped down as the CEO of AKD Securities to venture into more challenging tasks, asks for a look at the global picture. “Stock markets”, he says “are taking the blow everywhere because both the US and Europe are experiencing sharp economic slowdown; Japan posted negative GDP growth in the last quarter and Indian economy growth has slid from 9 to 7 per cent”.
China is expected to face a meltdown after the glowing economics of Olympics are over. “Due to the global slowdown, inflation is rising and interest rates are likely to edge higher in the future, pushing down asset values including that of stocks all across the world”, says Nadeem.
But for the KSE, he has something cheerful to say. “Historically over the 10 to 15 years, the Pakistani stocks have traded at the forward price-to-earnings (p/e) ratio of 8.5 to 9 times and the equities are now down to a multiple of 6.7 times, which means the downside is limited”.
He, however, adds that the upside too is capped at the index level of 11,000 points, given the political uncertainty, high interest rates, economic worries and the erosion in the value of rupee”.
Several market pundits agreed that the KSE might continue to trade in the range of 9,000 to 11,000 points until the winter this year.
Source
Aug
22
LPG prices may fall to Rs70 per kg
Filed Under Business, News | Leave a Comment
Liquefied petroleum gas (LPG) retail prices are expected to fall in the next few days to Rs70 per kg with the availability of extra supplies, the LPG Association of Pakistan announced here on Thursday.
“The prices are expected to fall nationwide next week,” said Fasih Ahmed, a spokesman for the association.
“The initial import of 2,500 metric tons of LPG by the Jamshoro Joint Venture Limited would help drive down end-consumer prices,” he said.
The Oil and Gas Regulatory Authority had advised the marketing companies on Aug 3 to ensure that end-consumer prices do not exceed Rs800 per 11.8kg cylinder or about Rs68 per kg. However, LPG is being sold at Rs80 per kg in Karachi and Rs75 per kg in Punjab.
“LPG is being sold at Ogra-recommended rates by most of the member companies of the association, but retailers are exploiting the market by charging unreasonable prices especially in Karachi,” said Fasih Ahmed, adding, “this comes to an end next week, and we remain committed to enforcing reasonable retail rates in Ramazan.”
Aug
20
Prices of ghee, oil decline
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The prices of ghee and cooking oil in the local market have fallen after palm olien rates declined in international market. However, the producers of branded ghee and oil have not reduced their rates.
The price of 16 kg ghee and cooking oil tin plunged to Rs1,950 from Rs2,100 in Punjab two weeks ago.
In Karachi, the rate of 16 kg ghee tin is quoted at Rs1,820 as compared to Rs1,900 on Tuesday.
The palm olien rate fell to $1,000 per ton from $1,200 two weeks back.
Its price in local market also dropped to Rs3,850 per maund (37.25 kg) from Rs4,200 in the last two weeks.
The branded ghee and cooking oil producers also did not pass the impact of the falling palm olien prices in the world market to consumers in March this year.
The Pakistan Vanaspati Manufacturers Association (PVMA) chairman Abdul Wahid told Dawn from Islamabad that the falling crude oil prices had made an impact on various commodities, including palm olien.
He said the 16 kg tin’s rate fluctuates almost on daily basis keeping in view the palm olien rates in Malaysia and Indonesia.
When asked as to why the branded ghee and cooking oil producers, who are also PVMA members, have been reluctant in cutting the rates, he said that being the chairman he urged them to follow suit but so far there had been no response.
He was of the view that the branded product producers might come out with some discount schemes in Ramazan to show their sympathy with the consumers.
According to Mr. Wahid Pakistan consumes 3.2 million tons of ghee and cooking oil per annum, in which the share of oil ranges between 35-40 per cent while ghee holds the share between 65-70 per cent.
He said that the government was still pocketing Rs30 per kg in terms of taxes and duties.
A leading branded product producer ruled out any decline in the prices of 2.5 to 5 litre/kg tins in the coming days by saying that the falling rupee value against the dollar, one per cent raise in GST and income tax, 30 per cent rise in gas prices, higher wages and transportation cost on inflating petroleum prices have nullified the impact of declining palm olien rate on the local rates.
Branded ghee and cooking oil prices have surged substantially in the last two years. In Sept 2006, five kg Dalda ghee tin was priced at Rs395 while it is now quoted at Rs775.
He said as a result of the rising price of 2.5 and 5 kg/litre tins, the market share of one kg pouch, which was five to 10 per cent a year ago, has surged to 30 per cent as consumers prefer to buy smaller quantity as per their requirement.
The packer said that if the palm olien rate would have not fallen then the local rates would have surged by Rs10-15 per kg.
He said that the workers in the factories had been demanding increase in wages after persistent increase in prices of essential items and higher utility, petrol and diesel rates.
Surprisingly, the government had not asked the branded packers as to why the rates had not been brought down despite a cut in palm oil rates in March and in the last two weeks.
A PVMA member said that there was a need to cut the sales tax and import duty on palm oil so that consumers could get an immediate relief. A sizable quantity of palm olien has been arriving from Malaysia following a 10 per cent duty cut on its imports from Jan 1, 2008, under the Free Trade Agreement (FTA) with Malaysia. However, its impact on the price was just Re1 per kg.
Palm oil imports in 2007-08 surged by 3.28 per cent in quantity and 76 per cent in value to 1,766,471 tons ($1.6 billion) as compared to 1,710,437 tons ($916 million) in 2006-07.
According to figures of Federal Bureau of Statistics (FBS), soyabean oil imports also rose by 123 per cent in quantity and 154 per cent in value to 108,382 tons ($103 million) in 2007-08 as compared to 48,492 tons ($140 million) in 2006-07.
Source
Aug
15
Prices of ghee, oil decline
Filed Under Business, News | Leave a Comment
The prices of ghee and cooking oil in the local market have fallen after palm olien rates declined in international market. However, the producers of branded ghee and oil have not reduced their rates.
The price of 16 kg ghee and cooking oil tin plunged to Rs1,950 from Rs2,100 in Punjab two weeks ago.
In Karachi, the rate of 16 kg ghee tin is quoted at Rs1,820 as compared to Rs1,900 on Tuesday.
The palm olien rate fell to $1,000 per ton from $1,200 two weeks back.
Its price in local market also dropped to Rs3,850 per maund (37.25 kg) from Rs4,200 in the last two weeks.
The branded ghee and cooking oil producers also did not pass the impact of the falling palm olien prices in the world market to consumers in March this year.
The Pakistan Vanaspati Manufacturers Association (PVMA) chairman Abdul Wahid told Dawn from Islamabad that the falling crude oil prices had made an impact on various commodities, including palm olien.
He said the 16 kg tin’s rate fluctuates almost on daily basis keeping in view the palm olien rates in Malaysia and Indonesia.
When asked as to why the branded ghee and cooking oil producers, who are also PVMA members, have been reluctant in cutting the rates, he said that being the chairman he urged them to follow suit but so far there had been no response.
He was of the view that the branded product producers might come out with some discount schemes in Ramazan to show their sympathy with the consumers.
According to Mr. Wahid Pakistan consumes 3.2 million tons of ghee and cooking oil per annum, in which the share of oil ranges between 35-40 per cent while ghee holds the share between 65-70 per cent.
He said that the government was still pocketing Rs30 per kg in terms of taxes and duties.
A leading branded product producer ruled out any decline in the prices of 2.5 to 5 litre/kg tins in the coming days by saying that the falling rupee value against the dollar, one per cent raise in GST and income tax, 30 per cent rise in gas prices, higher wages and transportation cost on inflating petroleum prices have nullified the impact of declining palm olien rate on the local rates.
Branded ghee and cooking oil prices have surged substantially in the last two years. In Sept 2006, five kg Dalda ghee tin was priced at Rs395 while it is now quoted at Rs775.
He said as a result of the rising price of 2.5 and 5 kg/litre tins, the market share of one kg pouch, which was five to 10 per cent a year ago, has surged to 30 per cent as consumers prefer to buy smaller quantity as per their requirement.
The packer said that if the palm olien rate would have not fallen then the local rates would have surged by Rs10-15 per kg.
He said that the workers in the factories had been demanding increase in wages after persistent increase in prices of essential items and higher utility, petrol and diesel rates.
Surprisingly, the government had not asked the branded packers as to why the rates had not been brought down despite a cut in palm oil rates in March and in the last two weeks.
A PVMA member said that there was a need to cut the sales tax and import duty on palm oil so that consumers could get an immediate relief. A sizable quantity of palm olien has been arriving from Malaysia following a 10 per cent duty cut on its imports from Jan 1, 2008, under the Free Trade Agreement (FTA) with Malaysia. However, its impact on the price was just Re1 per kg.
Palm oil imports in 2007-08 surged by 3.28 per cent in quantity and 76 per cent in value to 1,766,471 tons ($1.6 billion) as compared to 1,710,437 tons ($916 million) in 2006-07.
According to figures of Federal Bureau of Statistics (FBS), soyabean oil imports also rose by 123 per cent in quantity and 154 per cent in value to 108,382 tons ($103 million) in 2007-08 as compared to 48,492 tons ($140 million) in 2006-07.
Aug
9
Prices of ghee, oil decline
Filed Under Business, News | Leave a Comment
The prices of ghee and cooking oil in the local market have fallen after palm olien rates declined in international market. However, the producers of branded ghee and oil have not reduced their rates.
The price of 16 kg ghee and cooking oil tin plunged to Rs1,950 from Rs2,100 in Punjab two weeks ago.
In Karachi, the rate of 16 kg ghee tin is quoted at Rs1,820 as compared to Rs1,900 on Tuesday.
The palm olien rate fell to $1,000 per ton from $1,200 two weeks back.
Its price in local market also dropped to Rs3,850 per maund (37.25 kg) from Rs4,200 in the last two weeks.
The branded ghee and cooking oil producers also did not pass the impact of the falling palm olien prices in the world market to consumers in March this year.
The Pakistan Vanaspati Manufacturers Association (PVMA) chairman Abdul Wahid told Dawn from Islamabad that the falling crude oil prices had made an impact on various commodities, including palm olien.
He said the 16 kg tin’s rate fluctuates almost on daily basis keeping in view the palm olien rates in Malaysia and Indonesia.
When asked as to why the branded ghee and cooking oil producers, who are also PVMA members, have been reluctant in cutting the rates, he said that being the chairman he urged them to follow suit but so far there had been no response.
He was of the view that the branded product producers might come out with some discount schemes in Ramazan to show their sympathy with the consumers.
According to Mr. Wahid Pakistan consumes 3.2 million tons of ghee and cooking oil per annum, in which the share of oil ranges between 35-40 per cent while ghee holds the share between 65-70 per cent.
He said that the government was still pocketing Rs30 per kg in terms of taxes and duties.
A leading branded product producer ruled out any decline in the prices of 2.5 to 5 litre/kg tins in the coming days by saying that the falling rupee value against the dollar, one per cent raise in GST and income tax, 30 per cent rise in gas prices, higher wages and transportation cost on inflating petroleum prices have nullified the impact of declining palm olien rate on the local rates.
Branded ghee and cooking oil prices have surged substantially in the last two years. In Sept 2006, five kg Dalda ghee tin was priced at Rs395 while it is now quoted at Rs775.
He said as a result of the rising price of 2.5 and 5 kg/litre tins, the market share of one kg pouch, which was five to 10 per cent a year ago, has surged to 30 per cent as consumers prefer to buy smaller quantity as per their requirement.
The packer said that if the palm olien rate would have not fallen then the local rates would have surged by Rs10-15 per kg.
He said that the workers in the factories had been demanding increase in wages after persistent increase in prices of essential items and higher utility, petrol and diesel rates.
Surprisingly, the government had not asked the branded packers as to why the rates had not been brought down despite a cut in palm oil rates in March and in the last two weeks.
A PVMA member said that there was a need to cut the sales tax and import duty on palm oil so that consumers could get an immediate relief. A sizable quantity of palm olien has been arriving from Malaysia following a 10 per cent duty cut on its imports from Jan 1, 2008, under the Free Trade Agreement (FTA) with Malaysia. However, its impact on the price was just Re1 per kg.
Palm oil imports in 2007-08 surged by 3.28 per cent in quantity and 76 per cent in value to 1,766,471 tons ($1.6 billion) as compared to 1,710,437 tons ($916 million) in 2006-07.
According to figures of Federal Bureau of Statistics (FBS), soyabean oil imports also rose by 123 per cent in quantity and 154 per cent in value to 108,382 tons ($103 million) in 2007-08 as compared to 48,492 tons ($140 million) in 2006-07.
Source
Aug
9
Oil prices fall to $114
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Crude prices continued their dizzying spiral down on Friday, shedding nearly four dollars to trade below 114 dollars a barrel as the US currency strengthened amid concerns about energy demand, dealers said.
Brent North Sea crude for September delivery hit an intra-day low of 113.55 dollars a barrel. It recovered slightly to stand at 114.06 dollars, down 3.80 dollars, at about 1420 GMT
New York’s main contract, light sweet crude for September stood at 116.28 dollars a barrel, down 3.74. Oil futures have shed more than 20 per cent in value since hitting record highs above 147 dollars per barrel on July 11.
Oil prices are “getting more and more pressure from dollar strength and it doesn’t seem reversible for now,” said Serge Laureau, commodities strategist at Saxo Bank in Copenhagen, quoted by Dow Jones Newswires.
The dollar struck a five-month high point against the euro on Friday on fading prospects of an interest rate rise by the European Central Bank, dealers said.
A strong dollar makes goods prices in the US unit more expensive for holders of weaker currencies.
In a move that sparked hope of an increase in oil supplies in the future, Iraq said it was resuming exploration activities after a break of nearly 20 years owing to crippling UN sanctions.
Iraq said it hoped to double its proven reserves of crude, adding that it wanted to ramp up output by 500,000 barrels per day from the current average production of 2.5 million bpd, about equal to the amount being pumped before the US-led invasion of March 2003.
Exports of 2.11 million bpd currently form the bulk of the war-torn nation’s revenues, and the oil ministry is keen to raise capacity over the next five years to 4.5 million bpd.
World oil prices had on Thursday risen towards 120 dollars a barrel on news that a pipeline carrying crude from Central Asia to the West would remain shut for about 15 days after a recent explosion.
On Friday, separatist Kurdish rebels claimed responsibility for Tuesday’s blast on the Baku-Tbilisi-Ceyhan pipeline in eastern Turkey which is expected to leave the pipeline shut for two more weeks. Despite modest price gains on Thursday, the oil market has dived lower this week on mounting concern that slower economic growth in the United States would translate into lower global energy demand.-AFP