Oil Price , Rubber and Political unrest in Middle East

Dear Freinds,

Oil Price, Rubber and Political Unrest in Middle east would be an advantage for hike of Natural Rubber price.
The synthetic rubber is made by petrolium by-products.
Political Unrest in Middle East would be effected of Fuel price hike.
Then authomatically the cost for sysnthetic rubber would be higher.
Then there would be an additional demand for Natuaral rubber.
Sri Lanka is exporting Natuaral Rubber.
Then we have concern about Rubber Plantation.
What are the Rubber Plantations in Sri Lanka.

I beleive the following articles would be helpful to think more about my point.
Keep on eye KGAL and other Rubber Plantation stocks.

Dayton-area gas prices jumped nearly a dime this week.

Regular gasoline was $3.11 per gallon Friday, up from $3.02 last week, according to the AAA Fuel Gauge Report. A year ago today, fuel prices in Dayton hovered significantly lower at $2.47.

Oil and gas prices are thought to be on the rise because of escalating political unrest in the Middle East that could disrupt fuel supplies, according to media reports.

Protests that started in Tunisia and Egypt have spread to Yemen, Bahrain, Iran, Libya and Jordan in recent weeks. This week has seen deadly violence in Libya and Bahrain, according to media reports.

Protesters in Libya are seeking to oust Muammar Gaddafi, the longest-ruling Arab leader, following the successful ouster of Hosni Mubarak in Egypt.

Bahrain is where the U.S. Navy bases its Fifth Fleet that patrols the Persian Gulf and Arabian Sea.

The rising oil prices have given a boost to petroleum company stocks, with Chevron Corp. (NYSE: CVX), Exxon Mobil Corp. (NYSE: XOM), Royal Dutch Shell, and Marathon Oil Corp. (NYSE: MRO) posting gains in afternoon trading Friday. BP plc, however, was trading lower Friday afternoon.

Read more: Gas prices, oil stocks climb on Arab unrest | Dayton Business Journal

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Saturday, February 19, 2011
Rubber touches Rs.700
Continuing with the trend, the price of Latex Crepe 1X hit Rs.700 at the latest Public Auction in Colombo, becoming the highest ever price recorded ever for a kilo of rubber in Sri Lankan history.

2000 kilos of Crepe 1X from Diviturai estate managed by Elpitiya Plantions Ltd, were sold at Rs.700 per kilo through broker J D & sons to the exporting company M/S Rajapakse Trading Co.

Latex Crepe No. 1X, is the purest grade of natural rubber produced in the world.

Sri Lanka is the sole producer of this grade of NR. Manufacturing latex Crepe Rubber needs care full supervision, sound infrastructure facilities, and specialized staff unlike in RSS Manufacture.

LC 1X is used for high quality pharmaceutical products and for some special products in Europe and USA.

source - www.dailymirror.lk

Think Twice and Do the investments.Please do not do any investments rely on the above my post.

Thanks.Happy Trading

no argument,KGAL is a good pick for sure....it is still very attractive at current levels....
in plantation sector my good picks are KGAL,KOTA,HOPL,NAMU(because their is much rubber)..............i may be wrong....

this whole peak oil drama happened Just because of this middle east crises . recently U.S dollar declined very sharply but Oil prices have held steady above $80 to 85 a barrel and have recently risen above $90.00 a barrel with this M.E crises .

it is a threat to global recovery efforts . ( U.S economy just started with the long awaited economic recovery with better then expected exports and adding more jobs in the U.S ) however all we want to see is a very sustainable bullish trend with a 15% to 30 % recovery of the U.S doller or a long-term boom in the U.S , European equity markets could force money out of crude causing prices to fall.

So if u go for plantation sector it is very wise to stay alert with the global business news.