FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

Oil prices falling but CPC signs long-term deal Vote_lcap68%Oil prices falling but CPC signs long-term deal Vote_rcap 68% [ 178 ]
Oil prices falling but CPC signs long-term deal Vote_lcap18%Oil prices falling but CPC signs long-term deal Vote_rcap 18% [ 47 ]
Oil prices falling but CPC signs long-term deal Vote_lcap13%Oil prices falling but CPC signs long-term deal Vote_rcap 13% [ 35 ]

Total Votes : 260

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» ACCESS ENGINEERING PLC (AEL.N0000)
by C.THARANGA Today at 12:38 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Captain Yesterday at 11:12 pm

» EXPO/BILL/LOLC
by Stockbull Yesterday at 9:39 pm

» EDEN HOTEL LANKA PLC (EDEN.N0000)
by Stockbull Yesterday at 2:06 pm

» The fate of NIFL .. CLC .. LOFC under LOCH
by svkiruba8@gmail.com Yesterday at 1:39 pm

» LOFC AND CLC Target Price??
by svkiruba8@gmail.com Yesterday at 1:36 pm

» Bitcoin could trigger financial meltdown, warns Bank of England deputy
by Sunimal Yesterday at 10:21 am

» VFIN super performance
by chandike73 Fri Oct 22, 2021 6:03 pm

» Today is the Best - Day to buy CLC ..!
by Sapudev Fri Oct 22, 2021 5:45 pm

» Thoughts on SINS
by Bakka1988 Fri Oct 22, 2021 2:52 pm

» LGL.N_UPDATES
by thananjey Fri Oct 22, 2021 2:43 pm

» Rubber prices hit 4-month high; here are key driving factors
by ResearchMan Fri Oct 22, 2021 2:13 pm

» Lubricant oil Prices increases for third time.. Keep eye on Industry
by rukshan1234 Fri Oct 22, 2021 1:40 pm

» Bad news, bulls: Bank of America sees stocks flatlining through 2022
by ResearchMan Fri Oct 22, 2021 1:28 pm

» Dusit Thani Sri Lanka project halted?
by js71 Fri Oct 22, 2021 12:59 pm

» China-US freight rates plunge
by ResearchMan Fri Oct 22, 2021 12:16 pm

» Europe Gas: Prices fall as drop in coal markets offsets higher demand
by ResearchMan Fri Oct 22, 2021 12:13 pm

» Maharaja after long time
by Wickyz Fri Oct 22, 2021 11:59 am

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by Wickyz Fri Oct 22, 2021 11:50 am

» LOLC gets balance $ 225 m from Cambodia PRASAC stake sale
by stockchaser Fri Oct 22, 2021 10:45 am

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Oil prices falling but CPC signs long-term deal

Oil prices falling but CPC signs long-term deal

+2
D.G.Dayaratne
SHARK aka TAH
6 posters

Go down  Message [Page 1 of 1]

SHARK aka TAH

SHARK aka TAH
Expert
Expert
Against the backdrop of plummeting world crude oil prices, the Ceylon Petroleum Corporation is extending forward contracts with two Singapore-based companies for the import of fuel. This is being done on the basis that long-term arrangements are essential to ensure supply stability in view of turmoil in West Asia and procurement issues arising from United States’ sanctions on Iran.

Two Cabinet memorandums in this regard were presented by Petroleum Industries Minister Anura Priyadharshana Yapa. They sought to extend the existing term contracts with Petrochina International (Singapore) Pte Ltd by one year and Emirates National Oil Company, Singapore by 15 months.

Specified quantities of gas oil, gasoline and jet fuel will be bought by CPC at fixed prices throughout this period. The long-term contracts are being entered into against the backdrop of plummeting crude oil prices caused by a variety of factors, including oversupply in the world market. According to the Cabinet memorandum, the price of oil is fixed on the basis of the monthy average price in the Singapore market plus a premium ranging from US$ 1.72 to US$ 3.72 per barrel. The move would mean that Sri Lanka will not benefit of a possible drop in oil prices.

Oil-price.net, an online resource, predicts that current price falls are set to continue. “A fall to $80 (per barrel) seems likely over the next year,” it states. “A rush to develop oil production in Europe could even see the oil price fall to $60 a barrel if Denmark is going to find a market for all its Arctic oil.”A term contract explicitly describes a fixed duration that the agreement will be in effect. The signing parties are obligated to adhere to the terms and conditions within the contract until expiration, or end date, of the contract.

Mr. Yapa told Cabinet, “It was considered that the current turmoil in the Middle East (West Asia), in particular, the conflict in Iraq, in addition to sanctions related issues affecting Iran, has created supply instabilities in general. Therefore, it is important to have long-term contracts for petroleum supplies to ensure supply stability and to avoid supply interruptions.”
The Government earlier took a policy decision to increase oil procurements based on term contracts “since world oil markets prices face continued variations and sometimes high premiums have to be paid for spot purchases”, according to the CPC’s 2013 Performance Report, presented to Parliament recently.
“The uninterrupted fuel supply will also be ensured through the procurements based on term contracts,” the report said. “Therefore, long-term agreements have been signed with several companies to procure the petroleum products.”
With the expiry of earlier term contracts, the two Singaporean companies had made proposals to the CPC to extend the agreements. The memorandum pertaining to Petrochina reveals that the CPC Managing Director had been instructed by the Special Standing Cabinet Appointed Procurement Committee to negotiate with the company “for further price reduction”.
Petrochina accordingly reduced its premium for gas oil and gasoline but “increased interest rate marginally”. Twelve combined cargoes of gas oil and gasoline will be purchased in this manner. With regard to Emirates National Oil Company, the fixed premiums indicated in the earlier contract in respect of gas oil and Jet A-1 “remain unchanged”. The premiums are not specified. Twelve combined cargoes of gas oil and jet fuel will be delivered during the contract period.
The two companies in question have had issues about previous supplies to Sri Lanka. In October last year Sri Lanka returned 30,000 tons of gasoline supplied by Petrochina as the quality of the cargo did not meet the specifications while in 2011 a stock supplied by ENOC was found to be contaminated.

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
May be another hedging deal ?

How can we believe present ministers

Most of them work for personal gains than the country

Even they do genuine work how can we believe them ?

This type of cabinet peppers usually initiated by local agent of foreign suppliers That is my experience in the public sector

Stop Loss

Stop Loss
Equity Analytic
Equity Analytic
An interesting article on oil price movements, from Bloomberg:

http://www.businessweek.com/articles/2014-10-23/oil-saudi-arabias-risky-price-play#r=rss.

NC

NC
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

I will expose more corruption: Champika


Energy Minister Champika Ranawaka said that he was prepared to expose more large scale frauds and corruption in detail, in the electricity and petroleum sectors involving billions of rupees.
Addressing a gathering at the launch of his book Power and Power at the Blue Sky Hotel in Kurunegala on Saturday, he said that government was unable to give concessions to the people in respect to the petroleum prices and the electricity cost due to a few people who dominate these sectors.

He said that he has not included some details of corruption in the electricity and petroleum sectors in his 1060 page book.

He said that he had the opportunity now to reveal those withheld parts after certain remarks made by certain people recently.

The meeting was organised by the Kurunegala District Organisation of the Jathika Hela Urumaya, the Minister stated that not all in the Ceylon Electricity Board (CEB) or Ceylon Petroleum Corporation (CPC) were corrupt, though there seems to be such a perception among the people in the country.

However, he added that large scale fraud and corruption that could harm the national economy had been taken place in these two institutions and that he had exposed them in his book.  

“An issue has been cropped up on the importation of coal to Sri Lanka which I have not included in my book, but now I have the opportunity to expose the matter, since certain officials, the politicians who run behind those officials, casino owners and certain media run by those casino owners are of the view that they could control the politics of the country and assassinate the characters of national leaders,” the Minister stated.

Mr. Ranawaka said that the slogan of the people in any election should be that “we will pay only our bills and not those of others’.” Electricity consumer is not prepared to pay others’ bills and bear the burden of others’ sins, he added.

The Minister said that one would be able to plunder five billion rupees by setting aside one rupee per one litre of petroleum through manipulation, since the country used five billion litres of petroleum per year.

He therefore stressed the need to have a powerful technical audit process and a process to end the state of impunity in economic field.(Pushpakumara Jayaratne)

http://www.dailymirror.lk/55165/i-will-expose-more-corruption-champika

NC

NC
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@NC wrote:This Sunday Divaina Editorial Column; Good Article.

ලෝකය තෙල්වලින් දුවද්දී අපි සුළංවලින් දුවමුද?

ලෝක වෙළෙඳපොළේ බොර තෙල් මිල ගතවූ මාස පහක කාලය තුළ ඉතා වේගයෙන් පහළ ගියේය. මේ අවුරුද්දේ මැයි මාසයේදී බොර තෙල් බැරලයක මිල ඩොලර් 105 කි. පසුගිය මාසයේ ඒ මිල ඩොලර් 90 කි. අද වන විට ඩොලර් 70 කි. ලෝක තෙල් මිල පහළ යැමට ප්‍රධාන හේතුව වන්නේ ලිබියාව, ඇන්ගෝලාව, ඉරාකය යන රටවල බොර තෙල් නිෂ්පාදනය ඉතා වේගයෙන් ඉහළ යැමය. ලිsබියාව සහ ඉරාකය යන රටවල් මේ මොහොතේදී ඉතා බිහිසුණු සිවිල් යුද්ධ දෙකකට මුහුණ පා සිටිති. ඒ යුද්ධ දෙකම ධනපති ලෝකයේ අවශ්‍යතාව මත දිග්ගැසෙමින් පවතින ඒවාය. ඇන්ගෝලාවේ සිවිල් යුද්ධය මෙයට වසර විසිහතරකට පෙර නිමාවට පත් වූ නමුදු පාලකයන්ගේ අදක්‌ෂකම හෝ වැසියන්ගේ කරුමය නිසා හෝ රටට කිසිදු වගතුවක්‌ නැත. පිටරටින් ආ තෙල් කොම්පැණිකාරයෝ රට සූරා කති. එහෙත් මේ සියලු කලබැගෑනි අස්‌සේ පසුගියදා එරට මුහුදින් ද තෙල් උල්පත් මතු විය. ලෝක තෙල් මිල අඩු වීමට තවත් හේතුවක්‌ වන්නේ ඇමරිකාවේ තෙල් පරිභෝජනය අඩු වීමය. ඇමරිකාව, සාමාන්‍යයක්‌ වශයෙන් ගත් කල වසරකට බොර තෙල් බැරල් බිලියන 6.89 ක්‌ පරිභෝජනය කරයි. එනම්, දිනකට තෙල් බැරල් එක්‌කෝටි අනූ ලක්‌ෂයකි. ලංකාවේ දෛනික තෙල් බැරල් පරිභෝජනය බැරල් අනූ දෙදහසකි. මේ දත්ත සඳහන් කරන්නේ ලංකාවේ හිඟනකම පෙන්වීමට නොව ඇමරිකාව කොතරම් විශාල ආර්ථික සාධකයක්‌ද යන්නත් කොතරම් විශාල පරිභෝජන සාධකයක්‌ද, යන්නත් පැහැදිලි කිරීමටය. ඇමරිකාවේ ඛනිජ තෙල් පරිභෝජනය අඩු වූයේ ඇයි? හේතුව එරට විකල්ප ඉන්ධන පරිභෝජනය වැඩි කිරීමය. එයින් පළමුවැන්න ඛඡ ගෑස්‌ හෙවත් ඛසුමසා ඡැඑරදකසමප ය. දෙවැන්න පුනර්ජනනීය (Reජහජකැ) බල ශක්‌තියක්‌ වූ සූර්ය විදුලියය. තෙවැන්න දැව දහනය වඩා හොඳින් කළමනාකරණය කර වැඩි තාපයක්‌ ලබා ගැනීමය. ගල් අඟුරු ද තාප උත්පාදන මාධ්‍යයක්‌ වුවද තීරණාත්මක සාධකයක්‌ ලෙස මෙකල ගණන් ගනු නොලැබේ. ඉහත සඳහන් ගණන් හිලවු සහ විෂයබද්ධ කරුණු කියෑවීමට සිදු වීම ඉතා නීරස අත්දැකීමක්‌ ලෙස පාඨකයාට දැනෙන බව අපි දනිමු. එහෙත් අප මෙතැන් සිට ගොඩනගන තර්කය සඳහා මෙකී ගණන් හිලවු අත්‍යවශ්‍යය.

කුමක්‌ද අපේ තර්කය? ලෝක තෙල් මිල මෙපමණ බැස තිබියදීත් එහි සහනය ආණ්‌ඩුව අපට දී නැති බවය. තෙල් මිල බැස ඇති බවක්‌ එක්‌කෝ ආණ්‌ඩුව දන්නේ නැත. එහෙමත් නැත්නම් ලෝක තෙල් මිල බැස ඇති බව ආණ්‌ඩුව පිළිගන්නේ නැත. එසේ නම් ආණ්‌ඩුව තවමත් අලුත් තෙල් ගන්නේ පරණ මිලටද? මෙවැනි Zත්‍රාසජනකZ අවස්‌ථාවලදී ආණ්‌ඩුව කියන සුප්‍රසිද්ධ කතාවක්‌ තිබේ. එනම් තවමත් තමන් විකුණන්නේ ඉහළ මිලට තිබියදී ඕඩර් කළ තෙල් බවය. තෙල් මිල පහළ යන්නට පටන් ගන්නේ පස්‌ මසකට පෙරය. එසේනම් ආණ්‌ඩුව තෙල් නිෂ්පාදනය කරන රටවලින් බොර තෙල් මිලට ගන්නේ මෙයට හය මාසයකට පෙර විය යුතුය. එහෙත් නැවකින් නොව තෙල් බැරල් ඔලුවේ තබාගෙන පිහිනාගෙන ආවත් ලෝකයේ කවර මුල්ලක සිට හෝ ලංකාවට එන්නට දෙමසකට වැඩි කලක්‌ ගත වන්නේ නැත. සාමුද්‍රික කාලගුණික තත්ත්වය යහපත් වුවහොත් ඊටත් කලින් තෙල් නැවකට මෙහි ළඟා විය හැකිය.

ලෝක තෙල්මිල ඉහළ පහළ බැසීම යනු ලෝක ආර්ථිකය ඉහළ යැම හෙවත් ජයක්‌ වාර්තා කර ගැනීම බව ඇමරිකාවේ ඊකදදපඉeරට ඊමිසබැssඇeන නමැති වෙබ් අඩවියේ පළවී තිබේ. එහෙත් ඒ සටනිනුත් අපි පරාජයට පත් වීමු. දන්නා ඉතිහාසයේදී අප ජයගත් සටන් ඇත්තේ දෙකකි. එයින් පළමුවැන්න විජිතපුර සටනය. දෙවැන්න 2009 අවුරුද්දේ පැවැති හතරවැනි ඊළාම් සටනය. (මේ දෙවැනි සටන ජයගැනීම ජීවිත කාලයටම ප්‍රමාණවත් බව කෙනකු කියතොත් අප එයට විරුද්ධ වන්නේද නැත.) එහෙත් ජීවිත සටන ජය ගැනීමට නම් තෙල් මිල පහළ යැම අත්‍යවශ්‍යය. ලෝකය දුවන්නේ තෙල්වලිනි. එසේ තිබියදී අපට හුළං වලින් දිවිය නොහැක. සමහර විට මේ අයවැයෙන් ඉන්ධන මිල අඩුවීමට ඉඩ තිබේ. එසේ නම් මෙපමණ කලක්‌ ඒ සහනය අපට ලබාදීමට ආණ්‌ඩුවට බැරි වූයේ ඇයි?

http://www.divaina.com/2014/10/26/editorial.html

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Exposing large scale frauds & corruption related to imports, processing & distribution of raw oil, is insufficient. Revelation should be presented to public identifying real culprits & disclosure of names & position held before the conviction together with entire loss to nation coffers. Sooner the better, later culprits will reside abroad having a new citizenship.

Ash99


Stock Trader
scratch

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum