Talks about reduction in oil Prices

Hawk Eye · 1 Talks about reduction in oil Prices Sun Jun 10, 2012 7:43 pm

Hawk Eye

Expert

Posts : 896
Equity Stars : 7042
Reputation : 44
Join date : 2011-03-13

There are rumours that the oil prices would be reduced in comming days, which is something positive for the manufcaturing sectors. Where energy cost takes larger portion of RCL,GLAS.LWL ect.. this is good news. but dont know byhow much th price reduced

If this happens the wheel may start turning the other way

VISA · 2 Re: Talks about reduction in oil Prices Mon Jun 11, 2012 7:20 am

VISA

Senior Manager - Equity Analytics

Posts : 396
Equity Stars : 6397
Reputation : 27
Join date : 2012-04-20

NOT IMMIDIATLY BUT BEST FIRST HALF OF NEXT MONTH. IRAN SACTIONS WILL START END OF THIS MONTH. WITH THIS THERE IS A CHANCE OF OIL PRICE WILL GO UP. BUT WITH OTHER EU CONCERNS OIL WILL GO DOWN FURTHER. BUT ALL THIS WILL HAPPEN BY END OF THIS MONTH. BUT DIIFINITHLY BRFORE THE PC ELECTION WHICH WILL SHEDULE AROUND SEP'2012

Rapaport · 3 Re: Talks about reduction in oil Prices Mon Jun 11, 2012 2:57 pm

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Equity Stars : 5928
Reputation : 55
Join date : 2011-02-01

I hope there are no reductions in fuel prices. CPC is in heavy debt and the govt should use the opportunity to cover some losses.

People and industries are adjusting to the prices which were raised in March and reducing the prices will create more disaster.

Govt will then borrow more and CPC will not turn around ever.

Also Global oil prices are too volatile and we must stick to this high fixed price since we do not use a formula system. Constant meddling of prices disturbs business planning as well.

Two related articles to read showing continuing heavy govt borrowing and CPC loss:

http://www.lbo.lk/fullstory.php?nid=1964553873

http://www.lbo.lk/fullstory.php?nid=1536980373

We need to improve our economy by reducing govt debt and stop manipulation of energy prices, rupee/dollar balance and interest rates. (All this is done to keep a few people in power repeatedly over the last 50-60 years). We might have to sacrifice some growth. With this if the Euro crisis turns around then foreigners may look at the attractive CSE in a strengthening economy.

Cheers!