Tunku Abdullah meninggal dunia

Mantan MP Rawang Tunku Tan Sri Abdullah Tuanku Abdul Rahman telah kembali ke rahmatullah. Beliau telah menghembuskan nafas terakhir apabila tiba di KLIA untuk perjalanan dari luar negara pagi tadi.

Tunku Abdullah merupakan salah seorang pengerak utama membawa Tun Dr. Mahathir Mohamad kembali kedalam UMNO setelah dipecat pada 1969 oleh Presiden UMNO ketika itu, Tunku Abdul Rahman Putra Al Haj. Beliau bersedia untuk mengosongkan kerusi Parlimen Rawang ketika itu untuk memberikan laluan kepada Tun Dr. Mahathir untuk kembali kepada persada politik perdana. 

Beliau menjadi seorang tokoh korporat yang berjaya apabila meninggalkan kareer sebagai seorang diplomat. Syarikat beliau, Kumpulan Melewar telah disenaraiakan di Bursa Malaysia dalam sektor perkhidmatan kewangan.

Al fatihah.

 

Published in: on August 20, 2008 at 11:13  Comments (7)  

Petrol price may come down to RM 2.10/litre

 

The retail of price for petrol and diesel in Malaysia ought to come down in the near future. This is because at the moment, the price of crude oil in the international market is much lower than what it was at the end of May, when Government abruptly announced the retail price of petrol and diesel drastically increased to RM 0.72 and RM 1.00 respectively.

On the 5 June 2008, the RM 1.92 per litre of petrol was increased to RM 2.70. Crude oil price was trading at almost USD 140 per barrel. Today, the price of crude oil went down to just below USD 113 per barrel. It is expected that it will go down to USD 105 per barrel by end of the year.

This is because the real demand of crude oil has significantly dropped these past two months. As oil is a very elastic raw material, the shift in demand strongly affect the price of the traded commodity.

The speculators, especially rogue traders decided to abandon their position and went into near panic selling of late. Especially financial firms like Goldmann Sachs and Morgan Stanley. They are now heavily exposed and no longer able to hold their position, especially considering their financial backing for their earlier mopping exercises. Other traders might go for the short selling when this happens.

The fundamental demand for oil, especially for diesel has fallen. For one, the much anticipated Beijing Olympics has already kicked off. Two, the supply of oil production has been increased with the Americans’ announcement of their increased in production, these past two months. This actually triggered the gradual selling, which is relatively steep. The drop has been quite significant.

The retail price of petrol has shed USD 25-30 per barrel.

The forward market is also coming down as well. If the price is weak, on the front end it seemed that it is going up. In actual, it is not. The market premium should be observed. It has actually gone negative. It is now at USD 2.00 lower than the actual posted price, which actually pushing the retail price down. That is indicative that the price is going down.

This is actually a physical trade. Bottomline, the fundamentals of supply and demand still rules. The demand has ‘collapse’. As such, the physical trade is significantly reduced.

Most of the speculators are not ditching wholesale market yet. However, it is moving towards the trigger level where a supportive level is expected to be breached soon. Then the wholesale ‘collapse’ could be expected.

The fair price to speculate for retail petrol at the moment is RM 2.35 and could go as low to RM 2.10 within this year. The actual effect on the economy as a whole maybe be inelastic. However, any significant reduction will definitely give the much needed positive economical psychology to the rakyat.

Thus DPM Dato’ Seri Mohd. Najib Tun Razak might be right after all.

*Updated 310pm

Also consider reading a former trader’s hunch on the downtrend movement of the black gold.

 

 

Published in: on August 20, 2008 at 00:15  Comments (19)