Fuel hike: 78 sen more to RM2.70 per litre

breaking news updated 7.44pm The government announces petrol price will go up by 78 sen at midnight - a 41 percent jump from RM1.92 per litre to RM2.70.

• Diesel to go up by RM1 to RM2.58
• RM625 rebate for cars below 2000cc
• Electricity tariffs to increase too

Oil at new record near US$121

Oil stood firm today afer setting a new record of almost $121 a barrel, the latest spurt in an advance that has seen prices double over the past 12 months.

Supply disruptions in Nigeria, where a strike and attacks by militants has hit production, has supported a market that is nervous about any threats to supply.

Tensions with Iran racheted higher when Tehran refused to accept inspections of its nuclear programme.

US light crude for June delivery was up 7 cents at $120.04 a barrel, by 1155 GMT after earlier touching a record high of $120.93.

London Brent crude was up 33 cents at $118.32 a barrel, after an earlier record of $119.07.
"The downward move in oil last week now seems like only a correction," Christopher Bellew, senior vice president at Bache Commodities, told Reuters.

"The effect of the credit crisis in the US is reducing people's disposable incomes and you'd expect this to have an impact on the oil price, but it's not having any impact."

Demand from emerging markets such as India and China is more than compensating for the US downturn, he added.

Goldman Sachs predicted oil could soar towards $150 to $200 a barrel because of a lack of adequate supply growth.

"The possibility of $150 to $200 per barrel seems increasingly likely over the next six to 24 months, though predicting the ultimate peak in oil prices as well as the remaining duration of the upcycle remains a major uncertainty," the bank said.

The US investment bank had predicted back in 2005 that oil was entering a "super-spike" period.

Oil prices further into the future have also risen sharply, with prices out to 2016 above $110 a barrel..

Meanwhile, ExxonMobil said today it had returned oil output in Nigeria to normal levels after an eight-day strike, but Shell said its production there was still down by about 164,000 barrels per day due to recent militant attacks.

"A lot of this is supply-driven, with the market very vulnerable to any disruption in supplies," Mark Pervan, a senior commodities analyst at the ANZ Bank told the news agency.
"We're seeing large oil-producing countries coming up as a question mark," he said.
US President George W. Bush is expected to talk with officials from Saudi Arabia about the effects of high fuel prices on the US economy on his trip to the world's top exporter later this month.

Bush has called on Opec to raise output to help bring down prices.

The US dollar, whose decline in the past months has been driving speculative investments in dollar-denominated crude and other commodities, slipped further today on continued doubts about the health of the US economy despite upside surprises from recent economic indicators.
Tomorrow traders will watch the weekly US government report on fuel inventories, which is expected to show a 1.8 million-barrel build in crude stocks, a 1.1 million-barrel rise in distillate inventories and a 100,000-barrel fall in gasoline stocks.

DJI break 68.1% of

DJI broke 68.1% of Fibonacci retracement line. It means rebound and go further timeing is coming. Time to entry the marktet.

rnz integrated (m) sdn bhd

THE road to success has been much longer and bumpier than its founders anticipated, but oil and gas consultancy RNZ Integrated (M) Sdn Bhd has proven that one need not depend on big corporations to succeed.

Managing director Rozali Ahmad said that unlike some of its peers in the oil and gas business, RNZ started operations with full local capabilities.

“We started from scratch,” he told Business Times.

Rozali, who owns two-thirds of the company, established the group in 1993 with Zulkfley Mansor and Suhaimi Deraman with a start-up capital of RM100,000.
Today, the company has a staff strength of 500 qualified technical personnel, including 50 expatriate eng ineers.

It sees its order book swelling to RM200 million from the current RM150 million as it tenders for projects worth RM200 million.

“So far, we have design jobs at hand of about RM150 million that will last us for a year. On top of that, we are actively tendering for RM300 million worth of jobs, of which 40 per cent are targeted from the overseas market,” Rozali said.

“Based on previous success rate of around 25 per cent, we anticipate that we will be able to top up our order book to RM200 million soon,” he added.

About 60 per cent of RNZ’s ongoing jobs consist of umbrella service contracts with Petronas Carigali Sdn Bhd, Talisman Malaysia Ltd and Murphy Sarawak Oil Co Ltd.

“We have designed a sour gas facility for Petronas Carigali at Tangga Barat Cluster project,” Rozali said.

“We have also designed the first ultra-deep pressured and heat-resistant gas well facilities in the Kinabalu field,” he added.

Overseas, RNZ, jointly with Sime Darby Engineering Sdn Bhd, has to design BE process and BG utility platforms in Qatar waters.

The company has also secured design work for Topaz Development offshore Vietnam and Phase 1 Development of JDA Block B17 fields in Malaysian and Thai waters.

With a high-potential development in deepwater oil and gas project, RNZ moved its strategy to be in line with national oil company Petroliam Nasional Bhd’s (Petronas) objectives to develop local expertise.

“We are partnering France-based deepwater consultant Doris Engineering ,” Rozali said.

“In supporting Petronas’ vision of making Malaysia the regional hub for deepwater centres, we have forged ahead to gain and share the expertise with Doris,” he added.

Considered as the third largest oil and gas consultant after Technip Geoproduction (M) Sdn Bhd and Ranhill Worley Sdn Bhd, RNZ is a 100 per cent Bumiputera company, licensed by Petronas to undertake all design services projects.

RNZ is planning for a listing in the near future.

“By then, we would also want to diversify our business to related oil and gas industries such as manufacturing of one complete process systems,” Rozali said

(adapted from Btimes)

KLCI Rebound

13 Febraury 2008, KLCI's RSI shown signal of rebound. Parliment was dissolved today.

DJI Rebound

On 31-1-2008, MACD and RSI of DJI's daily chart shown rebound signal. This is time to entry market.