Archive for March, 2008

Esso selling out to Total

Tuesday, March 18th, 2008

There is a report in the Jamaica Gleaner on March 11, 2003 that Esso has signed an agreement to sell it fuel operations in Jamaica. The agreement has been signed with Total SA Limited getting the nod of Simpson Limited.

The dealers are not happy as they have been repeatedly told that there no sale pending. According to the report, the Esso Brand will continue for at least 12 months until the 12 month contract with the current dealers expire.

http://www.jamaica-gleaner.com/gleaner/20080311/business/business1.html

In September 2007, there were rumors that Simpson Limited would be the likely buyer but it seems not quite so. That story can be found here http://www.jamaicagleaner.com/gleaner/20070923/business/business1.html

When once again, in Jamaica “if it no go so, if near so”

111 That is new high for Oil

Thursday, March 13th, 2008

I will keep it short except to say that today Oil hit the US $111 mark.  In Jamaica for the period March 2007- February 2008 inflation is running at 18.2% compared with 2006/2007 where inflation was 11.4%.

Serious times lie ahead. We need to watch this carefully. The world’s economy is in a mess.

US$110.20 the new record.

Wednesday, March 12th, 2008

Another day, another record as the price of Oil hit US$110.20. Finally the price of Oil is getting some more words out of the Government. The problem is it has just been talk about the problem and its effect. There needs to be some talks about what we are going to do.

Here are some suggestions.

1. Remove all duties from Solar Panels and where possible equipment directly related to  Solar Panels

2. Offer low interest loans to persons that that want to purchase SolarPanels

3.  Launch a massive public education program to encourage conservation.  Encourage people to use floursent blubs.

4. Plan a night were we ask people to turn off their lights  for  2-3 hours as a symbolic gesture. If we don’t conserve now, soon it will be lights out.

5. Where is the Ethanol Gas Project?  Let us get it off the ground

There are some hard times ahead as along the high price of Oil, food prices, including corn, have also be hitting record highs.  People should head back to the Bible as there might be some answers there.

Oil Hits US $108 per barrel

Tuesday, March 11th, 2008

As it $US 107 was not enough the price of Oil went through another barrier yesterday. Analysts are claiming that it is the speculators that are continuing to drive up the price as the they move from the troubled US finiancial markets and hedge their bets with commodities. The weaken US dollar has not help the situation while China increase demand for Oil show not decline

The price of Oil is also causing serious issues on the Food Market. According to some UN report, more food is going being used in Bio fuels leaving less for human consumption.  Food stockpiles are at their lowest in 30 years and the prices of corn, wheat and soya have gone up over 40% in the last 9 months.

In Jamaica apart from  a little utterance from Minister Mike Henry, the Minister of Works and Transport, there continues to be silence or poor public relations from the Ministry of Energy of the Petroleum Corporation of Jamaica.  Where is the energy plan as Oil crosses the US $108 per barrel mark?

$107! Where is the price of Oil going?

Monday, March 10th, 2008

Today the price of Oil hit US $107 per barrel of Oil. This is very troubling. With a supposed slowing down of the US economy where is demand coming from. According to a Bloomberg.com article it is from investors who see the returns from Oil trading beating the performance of the financial markets.

What are those returns? Quoting from bloomberg.com, “Oil in New York surged 77 percent over the past year as the S&P 500 and Dow averages dropped. China, the second-biggest oil- consuming country, increased crude-oil imports by 18 percent last month and halted overseas shipments to meet rising demand.”

With that sort of return cash rich investors, hedge fund managers are looking for the best returns. Something will have to give soon as Oil at US$150 a barrel could be a reality soon.

You can read the article here

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayL5dVxkxnes&refer=home