Friday December 28, 2007

Gold, oil rise after Bhutto assassination, platinum hits record

reuters.com :

Gold hit a one-month high on Thursday [27 Dec 2007] as buying picked up after news that Pakistani opposition leader Benazir Bhutto was killed in an attack. Bhutto was killed in a gun and bomb attack after a rally in the city of Rawalpindi, her party said. Police said a suicide bomber fired shots at Bhutto as she was leaving the rally venue in a park before blowing himself up.

Spot gold rose as high as $830.05 an ounce, the highest since November 26. Gold has gained more than 30% this year. Spot platinum set a historic peak, tracking gold prices and supported by positive fundamentals, traders said. Spot platinum rose to a record $1,542.00 an ounce. A weaker dollar after data showing lower-than-expected U.S. durable goods orders in November also supported precious metals. Gold held in New York-listed StreetTRACKS Gold Shares, the world's largest gold-backed fund, rose to a record high of 627.88 tonnes on Wednesday.

reuters.com :

Oil rose on Thursday on falling U.S. crude stocks and mounting geopolitical tensions after the killing of Pakistani opposition leader Benazir Bhutto. U.S. oil settled up 65 cents at $96.62 a barrel after trading up to $97.79 earlier, the highest level since November 26. U.S. government data showed crude oil inventories off 3.3 million barrels in the week to December 21 to the lowest level since January 2005. Analysts had expected only a 1 million barrel draw.

Bhutto was assassinated as she left an election rally in the city of Rawalpindi, putting January 8 polls in doubt and sparking anger in her native Sindh province. "Pakistan is a crucial country in the region and prospects for political uncertainty are leading to some nervousness (which is reflected in) gold, bond and oil prices rising and the dollar dipping," said Audrey Childe-Freeman, European economist at CIBC bank in London.

Oil hit a record $99.29 a barrel on November 21 on concerns about consumer nation supplies ahead of winter and the U.S. dollar's decline against other currencies, which supported commodities denominated in the greenback.

See also :

1. Platinum price hits a record high
2. Crude oil hits $99.29

(2007-12-28 13:08:32 SGT) [Biz] Permalink

Singapore electricity bills to go up by an average 5.94% from 2008

This article belongs to the Singapore inflation watch story arc.

singaporepower.com.sg :

For the quarter 1 Jan to 31 Mar 08, the electricity tariffs will be increased by an average 5.94% or 1.24 cents per kWh due to the higher cost of electricity arising from higher fuel oil prices.

Revision of electricity tariffs from 1st January 2008
Low tension supplies, domestic
Existing Tariff : 21.38 cents/KWh
New Tariff : 22.62 cents/KWh

channelnewsasia.com :

Households and businesses in Singapore will have to pay more for electricity from next year. A statement released on Wednesday [26 Dec 2007] showed that the new rates will hit a six-year high for households and small businesses. SP Services attributed the higher cost of electricity to higher fuel prices. On average, the tariffs will go up by 5.94%. The rates are reviewed and adjusted according to fluctuating electricity costs every quarter.

- From the chart, a few quick calculations :

Year-on-year (from Jan 2007), 20.02 to 22.62 = 13.0% increase
Compared to 3 years ago (Jan 2005), 16.73 to 22.62 = 35.2% increase
Compared to 6 years ago (Jan 2002), 15.02 to 22.62 = 50.6% increase

- Inflation is really taking off. This hike in electricity rates was announced just after the other announcement about the CPI inflation hitting a 25-year high of 4.2% year-on-year.

See also :

1. Singapore CPI inflation hits 25-year high of 4.2% in November

Updated :

1. Singapore electricity rates to increase 4.98% from Jul 2008
2. Singapore : electricity tariffs to increase April 2008 on rising oil prices

(2007-12-28 00:05:22 SGT) [Biz] Permalink

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