Oil eased on Wednesday after a reassurance from Iran that it had no plans to cut oil exports.
The market had hit a new record of nearly $127 the previous session, after Iranian President Mahmoud Ahmadinejad had said a proposal to cut crude output was under review.
A top Iranian official said on Wednesday Tehran is continuing sell oil to international customers as usual and has no plans to cut exports to world markets.
U.S. light crude for June delivery was down 50 cents at $125.30 a barrel by 1059 GMT. It has hit a string of record highs over the past week and reached a peak of $126.98 a barrel on Tuesday.
London Brent crude was down $1.04 cents at $123.06 a barrel.
The comment from the National Iranian Oil Company official soothed the volatile market.
"There is no plan to cut exports and we keep our promises (to clients) ... and we export as usual," said Hojjatollah Ghanimifard, executive director of international affairs at NIOC.
Concern in the oil market that Tehran's dispute with the West over its nuclear programme may lead to a disruption in its crude exports have helped drive oil to record highs.
DISTILLATES
The market awaited weekly fuel inventory data from the United States, due at 1430 GMT, forecast to show an 800,000 barrel rise in distillate stocks and a 1.8 million barrel increase in crude inventories, their fourth increase in a row.
The view that supplies of distillates such as heating oil and diesel fuel are tightening helped drive U.S. heating oil futures to a record of $3.6989 a gallon on Tuesday, which boosted the entire oil complex.
"Distillates are clearly driving the market and U.S. distillate inventories will have to be watched this week," said Marc Lansonneur, Societe Generale's head of commodities derivatives in Asia.
European middle distillate stocks fell sharply in April to 361.28 million barrels, down 1.4 percent from March and 7.2 percent lower than a year ago, data from industry monitor Euroilstock showed on Tuesday.
Wednesday, May 14, 2008
States wheel in 'green power' into their energy portfolio
12 States firm up renewable purchase obligation .
States are increasingly warming up to the idea of including ‘green power’ in their energy portfolio.
At the last count, power regulators across 12 States had firmed up Renewable Purchase Obligation (RPO), which makes it mandatory for all distribution utilities in that State to source a minimum quantum of electricity annually from renewable sources - a move that could boost installation of ‘green power’ capacities.
Expressed as a percentage of its total consumption, the RPO varies from one per cent to 10 per cent across the States that have implemented it so far, with regulators in States such as Karnataka, Madhya Pradesh and Tamil Nadu pegging the limit at up to 10 per cent.
On an pan-India basis, the total RPO commitment by these 12 States cumulatively adds up to around 35,518 million units (MUs), which is around 5.33 per cent of the total power consumed by in the country during 2007-08 (estimated at 6,66,007 MUs according to latest CEA data).
With the RPO mechanism still in the evolution stage in India, more States are likely to follow the example of the 12 States, where regulators have already implemented the scheme. Coming at a time when prices of hydrocarbon resources across the world are touching all-time highs, the mandatory purchase of ‘green power’ by regulators is expected to give a new lease of life for the renewables sector, according to Government officials.
Rajasthan, where the State regulator has fixed the RPO at 7.5 per cent, has gone a step further to prescribe a renewable energy surcharge payment, under which any short fall to meet the RPO will be subject to payment of surcharge by the distribution licensee. The surcharge collected is to be credited to a fund to be utilised for the creation of transmission system infrastructure of renewable energy projects.
States are increasingly warming up to the idea of including ‘green power’ in their energy portfolio.
At the last count, power regulators across 12 States had firmed up Renewable Purchase Obligation (RPO), which makes it mandatory for all distribution utilities in that State to source a minimum quantum of electricity annually from renewable sources - a move that could boost installation of ‘green power’ capacities.
Expressed as a percentage of its total consumption, the RPO varies from one per cent to 10 per cent across the States that have implemented it so far, with regulators in States such as Karnataka, Madhya Pradesh and Tamil Nadu pegging the limit at up to 10 per cent.
On an pan-India basis, the total RPO commitment by these 12 States cumulatively adds up to around 35,518 million units (MUs), which is around 5.33 per cent of the total power consumed by in the country during 2007-08 (estimated at 6,66,007 MUs according to latest CEA data).
With the RPO mechanism still in the evolution stage in India, more States are likely to follow the example of the 12 States, where regulators have already implemented the scheme. Coming at a time when prices of hydrocarbon resources across the world are touching all-time highs, the mandatory purchase of ‘green power’ by regulators is expected to give a new lease of life for the renewables sector, according to Government officials.
Rajasthan, where the State regulator has fixed the RPO at 7.5 per cent, has gone a step further to prescribe a renewable energy surcharge payment, under which any short fall to meet the RPO will be subject to payment of surcharge by the distribution licensee. The surcharge collected is to be credited to a fund to be utilised for the creation of transmission system infrastructure of renewable energy projects.
Government to pump in US$ 177.22 million in GQ healthcare project
The Golden Quadrilateral (GQ) has emerged as a golden opportunity for the healthcare industry in India. The government plans to invest Rs 750 crore to develop health centres in partnership with health majors such as Apollo Group and trauma care centres like Emergency Management and Research Institute (EMRI), Hyderabad. Nearly 140 trauma care centres will be developed along the 6,500 km long north-south and east-west corridors of the four to six lane express highway.
The health centres will be developed at three levels. Firstly, the government will upgrade existing hospitals along the corridor to the level of multi-speciality medical institutes on the lines of All India Institute of Medical Sciences (AIIMS) and PGI, Chandigarh. “The plan is to create one such facility in each state along the quadrilateral,” a senior government official said.
On the second and third level, the government will set up secondary and primary healthcare centres at every 100 km radius. “These hospitals and healthcare centres are slated to be developed over the next two years. The ministry of health will bear 90% of the costs,” he added.
The ministry of health plans to invest around Rs 730 crore on the golden quadrilateral health project. The ministry of road transport and highways will also chip in Rs 14 crore to provide 70 ambulances this fiscal and an equivalent number the year after.
The trauma care division of Apollo hospitals has expressed interest to run these facilities that will be developed by the government. EMRI, a Hyderabad- based trauma management centre which runs fully equipped ambulances to reach trauma victims within minutes. It also runs a call centre to cater emergencies in Andhra Pradesh. The proposed centres will not only handle medical emergencies on the golden quadrilateral but also provide much needed health services in the hinterland.
Thus with government and private players joining hands, large stretches which hardly had any medical facilities will become accessible to the Indian health industry.
The health centres will be developed at three levels. Firstly, the government will upgrade existing hospitals along the corridor to the level of multi-speciality medical institutes on the lines of All India Institute of Medical Sciences (AIIMS) and PGI, Chandigarh. “The plan is to create one such facility in each state along the quadrilateral,” a senior government official said.
On the second and third level, the government will set up secondary and primary healthcare centres at every 100 km radius. “These hospitals and healthcare centres are slated to be developed over the next two years. The ministry of health will bear 90% of the costs,” he added.
The ministry of health plans to invest around Rs 730 crore on the golden quadrilateral health project. The ministry of road transport and highways will also chip in Rs 14 crore to provide 70 ambulances this fiscal and an equivalent number the year after.
The trauma care division of Apollo hospitals has expressed interest to run these facilities that will be developed by the government. EMRI, a Hyderabad- based trauma management centre which runs fully equipped ambulances to reach trauma victims within minutes. It also runs a call centre to cater emergencies in Andhra Pradesh. The proposed centres will not only handle medical emergencies on the golden quadrilateral but also provide much needed health services in the hinterland.
Thus with government and private players joining hands, large stretches which hardly had any medical facilities will become accessible to the Indian health industry.
Falling Re adds to Oil Cos’ woes
The oil companies, which are already bleeding on account of surging crude prices, have in the past 10 days suffered more due to depreciation of Indian rupeeagainst dollar.
The value of rupee, which stood at Rs 40 a dollar about 10 days ago, has tumbled to 42-level, leading to heavy losses on payment of crude, say oil industry officials.
This 5 per cent depreciation of the Indian currency would mean that during this period, if the crude oil worth Rs 1,000 crore was imported, then the loss on account of currency fluctuation would be around Rs 50 crore, added the officials.
Adding to woes is the finance ministry’s indication to issue oil bonds only worth 50 per cent of the under recoveries amounting to Rs 35,300 crore to partially offset the Rs 70,000-crore losses, suffered by oil companies during 2007-08 due to rise in global crude prices.
The oil companies had demanded bonds for 57.1 per cent of the under-recoveries, but that proposal has been turned down.
“The finance ministry is not ready for it, so we have requested the finance minister P Chidambaram to issue as much bond limit as possible”, said petroleum minister Murli Deora after meeting him.
On the tricky question of raising the domestic fuel prices, Murli Deora said there was no discussion on it and that it was a policy decision that could be decided only by the cabinet.
The petroleum ministry officials said it was not discussed in the meeting whether the bonds would be taken as mandatory requirement for banks to park their funds in government securities, known as statutory liquidity ratio.
India imports 73 per cent of its crude oil needs and the cost of imports would spiral as it inches higher, while rupee is trading at a 13-month low.
The value of rupee, which stood at Rs 40 a dollar about 10 days ago, has tumbled to 42-level, leading to heavy losses on payment of crude, say oil industry officials.
This 5 per cent depreciation of the Indian currency would mean that during this period, if the crude oil worth Rs 1,000 crore was imported, then the loss on account of currency fluctuation would be around Rs 50 crore, added the officials.
Adding to woes is the finance ministry’s indication to issue oil bonds only worth 50 per cent of the under recoveries amounting to Rs 35,300 crore to partially offset the Rs 70,000-crore losses, suffered by oil companies during 2007-08 due to rise in global crude prices.
The oil companies had demanded bonds for 57.1 per cent of the under-recoveries, but that proposal has been turned down.
“The finance ministry is not ready for it, so we have requested the finance minister P Chidambaram to issue as much bond limit as possible”, said petroleum minister Murli Deora after meeting him.
On the tricky question of raising the domestic fuel prices, Murli Deora said there was no discussion on it and that it was a policy decision that could be decided only by the cabinet.
The petroleum ministry officials said it was not discussed in the meeting whether the bonds would be taken as mandatory requirement for banks to park their funds in government securities, known as statutory liquidity ratio.
India imports 73 per cent of its crude oil needs and the cost of imports would spiral as it inches higher, while rupee is trading at a 13-month low.
RBI survey pegs growth at 8.1 pc
A forecasters survey carried out by the RBI pegged real GDP growth for the current fiscal at 8.1 per cent, weaker than 8.9 per cent projected three months ago and the inflation between 5.5 and 5.9 per cent.
The third round of the survey, released by the RBI indicated that the real GDP growth in first and second quarter was projected at 8.1 and 8.3 per cent, respectively. During the third quarter of current financial year, the GDP growth is placed at 8.1 per cent. The forecasters saw lower chance (25 per cent) that WPI inflation would fall in the range 5-5.4 per cent against their earlier forecast of 38 per cent. The probability assigned to the range of 5.5 to 5.9 per cent has been revised upwards from 15 per cent in the earlier survey to 19.3 per cent in the current survey.
Median forecasts for real GDP originating from agriculture, industry and services sectors in first quarter of 2008-09 are kept at 3, 8.4 and 10 per cent, respectively. These projections were down from 3, 9 and 10.3 per cent, respectively, in the last survey. For the second quarter also, the sectoral growth forecasts have been revised downwards. For the third quarter of current financial year, the forecasters have kept the growth rates at 2.9, 8.6 and 9.8, respectively.
The survey was the third 'Survey of Professional Forecasters' on major macro-economic indicators of short to medium-term economic developments carried out by RBI to gain from the professional expertise and experience of these forecasters. The Reserve Bank has also introduced such a survey from the second quarter ended September 2007 covering component-wise detailed forecasts of GDP growth, inflation, savings, capital formation, consumption expenditure, export, import, interest rates, Forex reserve, money supply, credit growth, stock market movements and corporate profit.
Long-term forecasts for real GDP during the next five years is projected at 8.5 per cent and 8.9 per cent for the next 10 years. Over the next five years, the forecasters expect WPI inflation to be 5 per cent, which is revised upwards from the last survey. CPI-IW inflation will average to 5.5 per cent, same as expected in last survey. Over the next ten years, the WPI and CPI-IW-based inflation are expected to be 4.5 and 5 per cent, respectively.
The third round of the survey, released by the RBI indicated that the real GDP growth in first and second quarter was projected at 8.1 and 8.3 per cent, respectively. During the third quarter of current financial year, the GDP growth is placed at 8.1 per cent. The forecasters saw lower chance (25 per cent) that WPI inflation would fall in the range 5-5.4 per cent against their earlier forecast of 38 per cent. The probability assigned to the range of 5.5 to 5.9 per cent has been revised upwards from 15 per cent in the earlier survey to 19.3 per cent in the current survey.
Median forecasts for real GDP originating from agriculture, industry and services sectors in first quarter of 2008-09 are kept at 3, 8.4 and 10 per cent, respectively. These projections were down from 3, 9 and 10.3 per cent, respectively, in the last survey. For the second quarter also, the sectoral growth forecasts have been revised downwards. For the third quarter of current financial year, the forecasters have kept the growth rates at 2.9, 8.6 and 9.8, respectively.
The survey was the third 'Survey of Professional Forecasters' on major macro-economic indicators of short to medium-term economic developments carried out by RBI to gain from the professional expertise and experience of these forecasters. The Reserve Bank has also introduced such a survey from the second quarter ended September 2007 covering component-wise detailed forecasts of GDP growth, inflation, savings, capital formation, consumption expenditure, export, import, interest rates, Forex reserve, money supply, credit growth, stock market movements and corporate profit.
Long-term forecasts for real GDP during the next five years is projected at 8.5 per cent and 8.9 per cent for the next 10 years. Over the next five years, the forecasters expect WPI inflation to be 5 per cent, which is revised upwards from the last survey. CPI-IW inflation will average to 5.5 per cent, same as expected in last survey. Over the next ten years, the WPI and CPI-IW-based inflation are expected to be 4.5 and 5 per cent, respectively.
MARKET PREDICTION
MARKET WILL BE VERY VOLATILE OR MAY BE NEGATIVE COZ OF OIL CONCERN..
PUT CALL RATIO IS AROUND 1.43
OPTION DATA
CALL OPTION WRITING @ 5000/5100
PUT OPTION WRITING @ 4800/4900
MARKET WILL MOVE B/W 4800-5100
TODAY'S VIEW
@ 4900 LONG POSITION CAN BE BUILT WITH SL OF 4880
SHORT POSITION CAN BE BUILT @ 5000 WITH SL 4880...MAINLY IN ENERGY SECTOR..
SECTOR TO WATCH
MIDCAPIT
HAVE A NICE TRADING DAY...
-MR. SAM
PUT CALL RATIO IS AROUND 1.43
OPTION DATA
CALL OPTION WRITING @ 5000/5100
PUT OPTION WRITING @ 4800/4900
MARKET WILL MOVE B/W 4800-5100
TODAY'S VIEW
@ 4900 LONG POSITION CAN BE BUILT WITH SL OF 4880
SHORT POSITION CAN BE BUILT @ 5000 WITH SL 4880...MAINLY IN ENERGY SECTOR..
SECTOR TO WATCH
MIDCAPIT
HAVE A NICE TRADING DAY...
-MR. SAM
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