Petrol Malaysia

Put simply, a contango is what happens when the price of a commodity is anticipated to go up. A commodity is bought in bulk and stored for a period of time, to be resold at a profit. The cost of storing the commodity is taken into consideration in calculating the future sale price. The main thing is that the commodity must be non-perishable. If it is perishable, the commodity does not fit into the concept of contango, because it will grow stale or mature. In short, contango means stockpiling for resale (with profit). From Wikipedia :  Contango is a term used in the futures market to describe an upward sloping forward curve (as in the normal yield curve). Such a forward curve is said to be "in contango" (or sometimes "contangoed"). Formally, it is the situation where, and the amount by which, the price of a commodity for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery. The opposite market condition to...

The facts show that the price of petrol is dropping, and so is the price of crude oil. Some quarters say that petrol prices in the USA could reach USD$1 per gallon. [Source: AP, 5th Dec 2008. Return to $1 gas? Energy prices evaporate ] Tom Kloza , publisher of Oil Price Information Services, speculates that the price of crude oil could dip below USD$40 per barrel. [Source: Speaking of Oil blog, 4th Dec. 2008. Never say never in the oil price business ] More interestingly, Nariman Behravesh , chief economist at IHS Global Insight, was quoted saying, "Every 10 cent drop in the gasoline price is the equivalent of a USD$12 billion tax cut." [Source: CNBC, 3rd Dec. 2008. Oil Likely To Stay At $50, But Don't Celebrate Yet. via Tom Kloza's blog] The main reason that petrol prices are falling is the excess production capacity. According to Ruchir Kadakia , head analyst at Cambridge Energy Research Associates, crude oil spare capacity is currently about 5 billion barrels. He ...

Dear Reader, Thank you for dropping by PetrolMalaysia.com, again. As usual, we will cover a run-down of recent events pertaining to petrol, in Malaysia. The price of petrol has slipped in recent weeks. On the 17th of November, the Government of Malaysia announced that the price petrol has now dropped 15 sen per litre. Accordingly, the prices of petrol in Malaysia are now: RM2.00 per litre forRON 97; RM1.90 per litre for RON 92; and RM1.90 per litre for diesel. (Source: New Straits Times Online, 17 Nov. 2008, Fuel Prices Drop By 15 Sen Per Litre ) The Government has stopped subsidising petrol price at petrol stations. (Source: New Straits Times Online, 20 Nov. 2008, Another Fuel Price Cut? Gov't To Decide Next Month, says Shahrir ) This removal of price subsidy at the petrol pump is probably a good idea for now, as it will save the Government some money. The current price of petrol is not burdensome on the rakyat . However, when prices of petrol shoot up again, will the Governmen...