Daily Archives: September 15, 2009

Kate Mackenzie

The IEA remains concerned that oil prices are going too high for the fragile global economy:

PARIS, Sept 15 (Reuters) – If oil prices continue to rise, they could damage a fragile economic recovery, IEA Executive Director Nobuo Tanaka said on Tuesday.
“If prices move up further, it could create problems, but it depends on how the economic recovery happens,” Tanaka told reporters.

Tanaka gave a similar warning in early June, when oil prices were also in the $65 to $70 range. His language may be somewhat tempered – he does say it depends on how the economy recovers – but it’s interesting that despite the signs of economic improvement that some have leapt on, Tanaka views the risk as still present. Read more

By Miles Johnston

Knight Vinke – thy name strikes fear into the hearts of chief executives across the land.

The activist investor, armed with just a minority stake, has in the past jousted with such dragons of corporate waste as Royal Dutch Shell and its British-Dutch dual board structure, as well as mighty HSBC’s disastrous sojourn into the US mortgage market.

But in its most recent duel with Italian energy conglomerate Eni, the valiant knight appears more quixotic than courtly.

Eni, the argument goes, is worth much more than the sum of its parts. Slice the high octane oil and gas exploration arm from the mundane utility-like power division and the blood of shareholder value will rain down upon the land. Read more

Kate Mackenzie

On FT Energy Source:

Markets: Oil recovers in spite of trade tensions Read more

Crude oil prices made modest gains on Tuesday while base metal prices edged higher as concerns that a trade row between the US and China continued to unsettle investors in commodity markets.

In energy markets, crude oil prices managed a partial recovery after falling in the previous two sessions. Nymex October West Texas Intermediate rose 44 cents to $69.30 a barrel while ICE October Brent traded 3 cents higher at $67.47. Read more

Kate Mackenzie

At last week’s Opec meeting in Vienna, no change was made to production levels – but there were distinct rumblings about whether the amount of crude oil held in storage around the world should be taken more into account.

This seemed to be underlined by the fact that Opec referred to production levels, rather than quota levels – production levels, of course, are higher than the quotas would suggest, and the estimated level of compliance with the quotas has slipped from as high as 90 per cent early this year to around 65 per cent.

Today, Opec has highlighted the oil stocks issue again. Read more

Kate Mackenzie

Is all the fuss about EcoSecurities, a carbon trader and carbon offset developer, a sign of confidence that more countries will introduce cap-and-trade schemes?

Bids from an EDF subsidiary was rejected in June and Swedish company Tricorona dropped out of the running in September. Another offer from Guanabara, a vehicle set up by EcoSecurities’ co-founder Pedro Moura Costa, at 90p a share gained support from shareholders with 25.5 per cent of shares, JP Morgan yesterday announced its 100p bid would be recommended by the company’s directors. Read more

James Fontanella-Khan

GE boosts solar power production
Crucial step to boost its multibillion-dollar renewables business (FT)

Seabed minerals drive India’s naval strategy
Navy has identified future energy resources in Indian Ocean (FT)
 Read more