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Feb 8 - Fitch Ratings has today said, in a just publishedSpecial Report, that the outlook for India's Edible Oil sectoris stable, due to continuing improvement in demand, fuelled byIndia's growing per capita GDP. Companies with conservativehedging and inventory policies, strong raw material sourcingarrangements, and geographically dispersed plants (which keeplogistical costs optimal), are likely to have stable creditprofiles in 2010. However, many are entering the branded edibleoil segment, where margins will be lower during the entry phasedue to the associated sales and marketing expenses. This entrycould also result in higher working capital requirements. Someoperators, anticipating higher prices, are believed to havebuilt up inventories, which could constrain liquidity and couldbe adversely impacted should edible oil prices decline.Aggressive inventory strategies would remain a rating concern.

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The oil seed deficit in the Indian market will likelycontinue, since production remains short of the strong growthin demand. To meet this increased demand, the government hasreduced duties on crude edible oils - a trend that the agencybelieves will be sustained. Fitch believes that the higherduties on refined oils (in the range of 7.3% to 7.75%) relativeto crude oil (nil import duties) will continue to support themargins of edible oil refiners. Profile , Research ) (KSO,'BBB+(ind)'/Stable/'F2+(ind)') will eventually have theflexible capacity to process both palm and soya oils which,together with mustard oil, accounts for around 70% of India'sedible oil consumption.

Full Story: TEXT-Fitch: India Edible Oil outlook stable in 2010 - Reuters India

Calcutta Telegraph

Parikh report is bad for the country, worse for aam aadmi Times of India A recent news story on the just-released Kirit Parikh committee report on pricing of petroleum products had a headline suggesting that “Parikh's bold oil ... Parikh charges up private oil retailersCalcutta Telegraph Start preparing for oil at $200 a barrelEconomic Times Why oil control freaks are wrong - IFinancial Express The Hindu -Business Standard -Financial Express all 49 news articles »

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Full Story: Parikh report is bad for the country, worse for aam aadmi - Times of India

New Delhi, Feb. 7: Private refiners Reliance, Essar and Shell plan to re-enter the petrol pump business in a big way if the government goes ahead with the Kirit Parikh panel’s recommendation to have free market pricing in petrol and diesel.

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The private refiners had shut their pumps down when crude oil jumped to $147 a barrel and the state-owned refiners compensated for selling fuel below costs by the government. “Private refiners are closely watching the government move. Free market pricing of petrol and diesel now is the most appropriate as it is around $70 to $80 a barrel,” industry sources said.

Full Story: Parikh charges up private oil retailers - Calcutta Telegraph

TEHRAN, Feb 7 (Reuters) - Iran has established an energyfund backed by the Central Bank and other Iranian banks to helpfinance investments in the sector, Oil Minister MassoudMirkazemi said on Sunday.

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"The National Energy Fund, with the help of the resources offour local banks and the Central Bank, has been established tohelp finance major parts of the oil industry's activities," theofficial IRNA news agency quoted Mirkazemi as saying. "Several rounds of talks were held in this regard and it wasapproved by the president (Mahmoud Ahmadinejad)," he said.

Full Story: Iran sets up national energy fund, oil minister says - Reuters UK

Rediff

Start preparing for oil at $200 a barrel Economic Times Yet the key issue is not whether petrol and diesel prices should reflect today's oil price of $75/barrel. It is that booming Asia will in a decade push oil ... Oil and gas: Changing paradigmBusiness Standard Implement Parikh Committee report, says CAREThe Hindu Oil & gas: the Kirit dreamFinancial Express Hindu Business Line -mydigitalfc.com -Times of India all 40 news articles »

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Full Story: Start preparing for oil at $200 a barrel - Economic Times

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BY BRIAN BASKIN A steep drop in crude-oil prices triggered declines across the commodities spectrum, as investors nervous about the pace of the economic recovery gravitated back to the dollar. "People are buying the dollar," said Michael Gross, broker and futures analyst with OptionSellers.com. "Funds are liquidating everything else." The week's wild commodity price swings underscore how investors aren't totally committed to betting that the world economy is on an upward track.

Full Story: Crude Oil Leads A Broad Selloff - Wall Street Journal

Oil slid 2.7 percent on Friday to $71 a barrel in record daily trading volumes for the front month crude contract, which extended losses in the biggest three-day percentage loss since September.

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U.S. crude oil for March delivery settled down $1.95 at a seven-week low of $71.19 per barrel, after earlier hitting a session low of $69.50. U.S. crude on Thursday closed down 5 percent. Friday's session, in which trading volume hit a record of 540,000 positions, ended the fourth week in a row of oil price declines as demand concerns in the United States, the world's top oil consumer, pressured prices.

Full Story: Oil hits 7-week low in record volume trade - Reuters South Africa

MUMBAI, Feb 4 (Reuters) - Shares in Indian oil retailersrose in a weak Mumbai market on Thursday, a day after agovernment panel recommended freeing pricing of fuels fromadministrative controls, a move that would improve earnings ofthe companies.

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, Research ) were up between 0.6-1.1 percent, while the mainindex .BSESN was down 0.8 percent at 0440 GMT. The government sets retail prices of petrol, diesel,cooking gas and kerosene to help control inflation and protectconsumers, particularly the poor, from sharp fluctuations inenergy prices.

Full Story: Indian oil retailer shares up on fuel pricing hopes - Reuters India

The case in favour of decontrolling oil prices has been made on a number of occasions in these columns. At an intellectual level, it is hard to argue against it. But more than the argument, the problem lies in the lack of political will displayed by the government to carry out the necessary reform. The recommendations of the long-awaited Kirit Parikh committee report on oil prices, submitted to the petroleum minister on Wednesday—the committee endorses decontrol—provide the government yet another political opportunity to finally abolish the administered pricing mechanism. Of course, the finest political moment for decontrol may have passed. The global slowdown had pushed the global oil prices to well below the $60-65 per barrel mark—that is the price at which oil marketing companies break even. If the government had seized the moment of its re-election to push decontrol while global oil prices were still moderate, there would have been no immediate (or at least sharp) rise in prices. Now, with global oil prices hovering at around $75 per barrel, decontrol will mean a sharp rise in prices. The Parikh committee has suggested an immediate Rs 100 hike in the price of LPG and Rs 6 rise in the price of kerosene. Subsequent, periodic revisions should be linked to ability to pay, with rise in agriculture GDP as one indicator of that. Petrol and diesel prices, when completely decontrolled, are likely to rise by between Rs 2 and Rs 5 per litre.

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Still, it makes sense for the government to bite the bullet now rather than postpone it for another day. For one, there are no elections around the corner. Second, global oil prices will only rise from here as economic recovery gathers steam—three-month oil futures are already hovering at around $90 per barrel. In such a situation, oil marketing companies will continue to make losses in the near future. They will then expect the government to foot this bill, either in cash or in bonds. Either way, this will be an unnecessary burden on the fiscal bill, something the government ought to be worried about in the run-up to the budget. Remember, also that disinvestment hasn’t been scaled up enough to strengthen the revenue side of the budget’s equation, and 3G auctions are now postponed to the next financial year. In this scenario, the government ought not continue providing subsidies to the largely middle-class consumers of petrol, diesel and... The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

Full Story: FE Editorial: Oil can be well - Financial Express

Oil prices dipped in Asian trade on Wednesday bucking a recent trend as the market braced for a larger-than-expected rise in crude inventories, analysts said.

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New York's main futures contract, light sweet crude for delivery in March, fell 42 cents to $76.81 a barrel. London's Brent North Sea crude for March delivery was down 31 cents to $75.75. Analysts said rallies on the oil market experienced over the past few days had been stemmed by numbers released by the American Petroleum Institute (API) yesterday indicating a build-up in US crude stockpiles.

Full Story: Oil dips in Asian trade on higher inventory spook - NDTV.com