X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
US$ 100 barrel, Micro-hoo & more... - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Feb 20, 2008

    US$ 100 barrel, Micro-hoo & more...

    • Crude oil prices made a record yesterday as concerns with respect to a production cut from OPEC and fire at a US refinery led to a barrel's hitting the US$ 100.1 mark for the first time ever, and closing above the three figure mark. The crude oil barrel had indeed hit the US$ 100 mark last month but did not close at these high levels. Further, on the back of 'less' of news flows regarding the US economic slowdown, the barrel had receded to under US$ 90 very recently, only to touch the latest high. Experts believe that OPEC (Organisation of the Petroleum Exporting Countries) plans to initiate a production cut in the April to June quarter, which is a period of low demand. The organisation has also trimmed its forecast of oil demand this year by 100,000 barrels a day.

      While much has been said and discussed about the demand side of crude price spike, the fact that there is very little spare capacity left in the world oil supply and any interruption from hurricanes or armed conflict spikes up prices, needs due attention. There are not enough new projects in the pipeline. And to add to the woes, labour and equipment shortage is delaying those that are on the way. Both BP and Shell, for example, reported recently that they produced less oil in the third quarter of this year than they did in the same period last year. By 2015, supplies will fall short of the requirements by 12.5m barrels per day (Source: International Energy Agency). This might sound warning bells for the unproductive users of crude oil and its derivatives, India and China included.


    • CNN Money's website reports that Microsoft is readying an 'assault' on Yahoo's board in respect of the latter's reluctance to give in to the former's acquisition offer. Microsoft is in fact considering to put up its offer straight to Yahoo's shareholders, thus bypassing any approval from the latter's board of directors, who seem to be concerned about the 'low' price offered by the software giant. It must be noted that, last month, Microsoft had bid for acquiring Yahoo for a consideration of US$ 45 bn with a view of ramping up its share in the Internet market, which is currently led by far by Google.

      Microsoft's aggressive bid indicated the seriousness with which it is pursuing its Internet growth strategy, as the software business growth seems to be tapering off. Interestingly, Yahoo's objection to Microsoft's bid came after Google raised 'competitiveness' issues against the operating system major, terming it as using 'hostile' means to curb competition. As a matter of fact, Google leads the Internet search space by a wide margin, having a share of 62%, compared to a share of 13% of Yahoo and just about 3% of Microsoft. Google has itself been termed as a 'monopolist' when it comes to the Internet business and smaller firms have welcomed Microsoft's proposal for Yahoo as it is seen as a way that will pare the dominance of Google.

     

     

    Equitymaster requests your view! Post a comment on "US$ 100 barrel, Micro-hoo & more...". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 18, 2017 (Close)

    MARKET STATS