Floating currencies – Last Jeudi http://lastjeudi.org/ Sun, 19 Sep 2021 23:27:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://lastjeudi.org/wp-content/uploads/2021/03/cropped-icon-1-32x32.png Floating currencies – Last Jeudi http://lastjeudi.org/ 32 32 Universal Music spin-off to test investor appetite for music https://lastjeudi.org/universal-music-spin-off-to-test-investor-appetite-for-music/ https://lastjeudi.org/universal-music-spin-off-to-test-investor-appetite-for-music/#respond Sun, 19 Sep 2021 15:58:32 +0000 https://lastjeudi.org/universal-music-spin-off-to-test-investor-appetite-for-music/ The world’s largest music company, behind stars such as Taylor Swift, Drake and The Beatles, will debut on Amsterdam’s Euronext stock exchange with shares that will be distributed to Vivendi investors. The move comes amid growing interest in the resurgent music industry as an investment and following a recent boom in the value of music […]]]>

The world’s largest music company, behind stars such as Taylor Swift, Drake and The Beatles, will debut on Amsterdam’s Euronext stock exchange with shares that will be distributed to Vivendi investors. The move comes amid growing interest in the resurgent music industry as an investment and following a recent boom in the value of music catalogs, music streaming companies and technology to creators.

Analysts put Universal Music at over 40 billion euros, which equates to about 46.9 billion dollars, more than recent estimates and transactions indicate. In August, the company was valued at 33 billion euros, when billionaire William Ackman bought a 10% stake through his hedge fund Pershing Square Holdings Ltd. The purchase came after Mr. Ackman abandoned his ambitious plan to use his specialist acquisition company, or SPAC, to invest in Universal, citing concerns from the Securities and Exchange Commission.

Last year, Chinese internet conglomerate Tencent Holdings Ltd. doubled its stake in Universal to around 20% in a deal that valued the company at around € 30 billion.

When the shares are listed, the Tencent-led consortium will hold a 20% stake, and Mr. Ackman and Vivendi’s entities will each have 10%. The remainder will be distributed to each Vivendi shareholder. Thus, the French investor and former president of Vivendi Vincent Bolloré will hold 18% of the capital. There are no restrictions for investors that would prevent them from selling the shares upon receipt.

Tencent and Mr. Ackman have expressed interest in owning Universal for the long term. Vivendi said it would retain its stake for at least two years to remain a partner and for tax reasons. Whether Mr. Bolloré chooses to retain his stake – which would be worth around 6 billion euros for a valuation of 33 billion euros – will be closely watched by investors and analysts.

Given that Mr. Bolloré controls Vivendi through a 27% stake, this means that he will directly or indirectly control some 28% of Universal. Relatives of Mr Bolloré said it was not clear what the mogul would do with his stake, although they expect him to keep it for some time.

Mr Ackman presented a bullish case for music, saying it is a better streaming business than video and drawing comparisons to the software industry. “You need food and water to live, but the music comes next,” Mr. Ackman said. “If you own UMG, you own a royalty on people who listen to music.”

In its presentation to analysts on Capital Markets Day last month, executives at Universal said they expected revenues to grow by more than 10% this year at constant exchange rates, and that profits increase by double that amount.

The targets led Barclays to increase its valuation of the company to 41.4 billion euros, from 38.5 billion euros. JPMorgan analysts have said they believe their benchmark of € 54 billion “will prove to be conservative.”

Once public, analysts say, Universal will be the best way to participate in the music market. Competitor Sony Music Entertainment is only accessible as a small piece of Japanese conglomerate Sony Group Corp .; Warner Music Group Corp. has less than 15% of its shares listed on the stock exchange and is controlled by billionaire Len Blavatnik.

Universal’s prospectus describes growth prospects for the music industry, in which it has a market share of around 40%. The more large groups it has under its umbrella, the more Universal gets from its licensing deals with music streaming services, such as those offered by Spotify Technology SA, Apple Inc. and Amazon.com Inc. Nine of Top 10 Artists. 2020 record, by sales – and 10th installments – are on its list, according to the International Federation of the Phonographic Industry.

After years of decimation due to piracy and falling CD sales, the music industry has been growing since 2016, thanks to the boom in music streaming. “Even with its strong growth in recent years, UMG believes streaming is still in the early stages of its global penetration,” the music company said, highlighting technological innovations in devices and formats such as voice-activated speakers and connected cars. the intersection of music with social media and games; and licensing opportunities in the digital health and fitness industries.

Vivendi benefits from its long-standing assets. The French company, which dates from the mid-19th century, will find itself with companies such as the French pay-TV group Canal Plus, the advertising company Havas and the publishing company Editis, as well as small divisions like the maker of Gameloft video games. . (On Wednesday, Vivendi reached an agreement to increase its stake in French media group Lagardère SA to 45.1% and indicated its intention to take over the entire company.)

Vivendi has owned Universal since 2000, when it bought the media assets of Canadian conglomerate Seagram Co., then controlled by the Bronfman family.

Mr. Bolloré has made his fortune over the past three decades by taking control of companies, often without paying a premium. It took Mr. Bolloré less than two years to effectively take control of Vivendi after trading in some pay-TV operations he owned for a small stake. Although his holding company remains Vivendi’s No. 1 shareholder, Mr. Bolloré was replaced on Vivendi’s board of directors by his son, Cyrille, in 2019, a year after another son, Yannick, succeeded him. to the presidency.

Mr. Bolloré’s management of Universal has further strengthened his reputation as one of the most skilled, though at times unpredictable, corporate tacticians in Europe. Since Mr. Bolloré took the reins, Vivendi has rejected Universal’s offers, while the music company was much less valued than it is today.

In 2015, Vivendi ignored calls from US hedge fund P. Schoenfeld Asset Management to sell all or part of Universal and use the funds to increase cash returns. In 2013, Vivendi rejected an $ 8.5 billion offer for Universal from Japan’s SoftBank Corp.

Internally, Universal’s management benefited from a hands-off approach, according to people familiar with the matter. Mr Bollore backed chief executive Lucian Grainge on the acquisitions and let the company’s results, which outperformed any other Vivendi unit in terms of sales and profits, speak for themselves, people said.

As streaming revenues have increased in recent years, Vivendi has repeatedly teased the idea of ​​floating all or part of Universal, arguing that the growing value of the music business is not reflected in its own stock price. . Pre-listing sales of Vivendi’s holdings in Universal added about € 10 billion to the company’s coffers.

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The story of the struggle between the CBN and the abokiFX exchange rate platform https://lastjeudi.org/the-story-of-the-struggle-between-the-cbn-and-the-abokifx-exchange-rate-platform/ https://lastjeudi.org/the-story-of-the-struggle-between-the-cbn-and-the-abokifx-exchange-rate-platform/#respond Sat, 18 Sep 2021 12:59:10 +0000 https://lastjeudi.org/the-story-of-the-struggle-between-the-cbn-and-the-abokifx-exchange-rate-platform/ abokiFX, a popular and web-based mobile Platform which collects black market exchange rates in Nigeria on Friday announcement it will temporarily suspend the publication of rates on all its platforms, hours after receiving threats from the Central Bank of Nigeria (CBN). The umbrella bank had announced that it would shut down the platform, which Governor […]]]>

abokiFX, a popular and web-based mobile Platform which collects black market exchange rates in Nigeria on Friday announcement it will temporarily suspend the publication of rates on all its platforms, hours after receiving threats from the Central Bank of Nigeria (CBN).

The umbrella bank had announced that it would shut down the platform, which Governor Godwin Emefiele called “illegal and criminal” and accused of carrying out “illegal activity that undermines the economy”.

After the two-day Monetary Policy Committee meeting in Abuja, Emefiele confirmed that the umbrella bank also plans to prosecute the alleged owner of abokiFX, Olusegun Adedotun Oniwinde, for “illegal currency exchange” and “economic sabotage”.

“I have given instructions to our experts to go after his website and make it clear that we are going to prosecute him because we cannot allow this to continue,” Emefiele said, adding that the CBN does not recognize any window on the foreign exchange market. outside the Investors and Exporters (I&E) window.

Why Nigeria Has Different Exchange Rates

Nigeria is Africa’s largest producer of oil, a commodity that brings in over 90% of the country’s foreign exchange earnings. Between 2014 and 2016, the fall in global oil prices caused a tightening of the dollar which led to an economic recession.

But rather than an outright devaluation of the naira, the CBN has adopted a multiple exchange rate regime. This involved maintaining a higher rate indexed to the US dollar for official transactions and a lower floating rate for investors and exporters, known as the NAFEX window.

Other rates have been introduced for travelers and small and medium enterprises (SMEs) while there is also the parallel or black market, where foreign currencies are traded informally and the naira is often valued below the level. NAFEX rate.

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A historic drop in oil prices triggered by the Covid-19 pandemic last year has caused a more severe shortage of hard currency in Nigeria. The CBN was forced to devalue the naira twice last year, among other measures intended to stabilize the exchange rate, such as limiting over-the-counter deposits and withdrawals of foreign currency and banning the sale. currency at exchange offices.

In March, the umbrella bank also replaced the official counter exchange rate of 379 / $ 1 with the NAFEX rate of 410.25 / $ 1, as part of efforts to abandon the exchange rate system. multiples which would distort the market and frustrate foreign investors, in favor of a single rate system. This left Nigeria with just two rates – the NAFEX rate and the parallel market rate – out of nearly five different rates at the start of 2020.

Where abokiFX comes into play

Prior to abokiFX, Nigerians wishing to exchange currencies on the unofficial black / parallel market could only obtain rate information manually, for example through phone calls to exchange offices.

However, the platform, which was launched in 2014, has grown in popularity as a go-to source of information on the value of the naira against major foreign currencies on the black market. It is used by market operators for commerce and news organizations for reporting.

In recent weeks, and particularly after the CBN halted sales of foreign exchange to Bureau De Change (BDC) operators a month ago, the value of the naira has fallen sharply as the gap widens further between parallel rates. and NAFEX.

Before the ban, the local unit was trading around $ 520/1 but fell to $ 570/1 on Friday. The day before, the naira had recorded its biggest one-day drop in the parallel market in several months, falling 8.00 or 1.42% from $ 562/2 on Wednesday to $ 570/1 per data abokiFX .

Meanwhile, data on the FMDQ securities exchange window, where the forex is officially traded, showed the naira closed at 412.88 / $ 1 on Friday. Currency speculators take advantage of this difference between the black market and official rates through round trip and other forms of currency manipulation practices that negatively affect the value of the local currency.

Allegations of economic sabotage

According to CBN Governor Oniwinde, who is based in the UK, publishes arbitrary rates without contacting BDCs and uses his website for forex manipulation and speculation, taking advantage of the large disparity between quoted rates on abokiFX and the official exchange rate.

Emefiele added that apex bank has been studying the platform’s activities for the past two years. “There was a time when we asked our colleagues to call the abokiFX to ask how it handled the rates.”

“Section 2 of the CBN Act makes it clear that only the central bank can determine the value of the naira, and yet a single individual living in England continues to manipulate the exchange rate and make a huge profit which he withdraws through an ATM. automatic in London.

A screenshot from the abokiFX website.

“This is economic sabotage and we will pursue it wherever it is, we will report it to international security agencies, we will hunt it down, Mr Oniwinde, we will find you, because we cannot allow you to continue to lead illegal activity, which is killing our economy, ”Emefiele said.

The CBN official also alleged that Oniwinde was an illegal currency dealer with more than 20 bank accounts in eight banks teeming with money from speculative activity and he sold “tens of millions of currencies” to several Nigerian companies, violating the country’s foreign exchange laws.

abokiFX Debunks Claims

abokiFX in a statement released Friday refuted CBN’s claims and said not all allegations against its director were confirmed.

“All allegations against our director have yet to be confirmed, but at abokiFX we do NOT trade currencies or manipulate parallel market rates,” the statement said. “Apart from the media allegation, we have not received any communication from any government agency and our accounts are not closed as stated in the media.”

The company has, however, temporarily suspended rate updates on all of its platforms to “get more clarity on the situation”, adding that it “sincerely hopes the suspension will lead to the appreciation of the Naira from next week. “.

“The final tariffs were released tonight, but the news section of abokiFX and the crypto tariffs section will still be active,” the statement added. “With our decision to temporarily suspend online pricing publication, we recognize that there will be limited visibility of parallel pricing information, which will impact decision making for many. “

The abokiFX statement. Image credit: TechCabal

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financial: Hyper Fund cryptocurrency under government scanner https://lastjeudi.org/financial-hyper-fund-cryptocurrency-under-government-scanner/ https://lastjeudi.org/financial-hyper-fund-cryptocurrency-under-government-scanner/#respond Sat, 18 Sep 2021 09:10:00 +0000 https://lastjeudi.org/financial-hyper-fund-cryptocurrency-under-government-scanner/ NEW DELHI: The government is keeping a close watch on the cryptocurrency floating in the market based outside the country following the alert that agencies responsible for verifying financial fraud are monitoring a company called Hyper Fund. According to some sources, Hyper Fund, a DEFI of Hyper Tech Group went under the radar recently. The […]]]>
NEW DELHI: The government is keeping a close watch on the cryptocurrency floating in the market based outside the country following the alert that agencies responsible for verifying financial fraud are monitoring a company called Hyper Fund.

According to some sources, Hyper Fund, a DEFI of Hyper Tech Group went under the radar recently. The Group claims to have launched the Hyper Fund to provide decentralized financial infrastructure. Hyper Fund was announced mid-2020.

According to the company’s website, it is led by Ryan Xu, however, with the Multi-Level Marketing (MLM) model, Hyper Fund has attracted investors with higher returns and such offers, a common practice in part of the Ponzi schemes, which alerted the authorities in the first place.



According to sources, complaints against these funds have started pouring in in several states. In India, the RBI, the Union Ministry of Finance and the SEBI had warned people against trading in cryptocurrency. The RBI plans to launch India’s official digital currency, the E.

The Ministry of Finance clarified that virtual currencies are not legal tender either. Therefore, VCs are not currencies. The RBI also clarified that it has not given any license / authorization to any entity / company to mine or deal with Bitcoin or any virtual currency.

In June 2018, Amit Bhardwaj was arrested at Delhi Airport by Pune police along with his brother Vivek Bhardwaj as part of an alleged Ponzi scheme. Bhardwaj, launched his own bitcoin mining operations and allegedly deceived more than 8,000 people for an amount of Rs 2,000 crore nationwide.

He filed a complaint with the Delhi Police Special Cell, alleging that he received an extortion call and was asked to pay a sum of money for protection on September 6, 2021. He had set up a multi-level marketing (MLM) scam by tricking investors into giving him Bitcoins. in exchange for the higher promised returns, police alleged.

UK regulators have issued a warning against this fund and the Financial Conduct Authority (FCA) has issued warnings for Hyper Fund and Fund Advisor.

On its website, which was first published on March 23, 2021 and updated later on August 31, FCA said: “We believe this company can provide financial services or products in the UK without our permission. Almost all businesses and individuals offering, promoting or selling financial services or products in the UK must be licensed or registered by us. This business is not authorized by us and targets people in the UK. ”

Warning investors about this fund, he added: “You will not have access to the Financial Ombudsman Service nor be protected by the Financial Services Compensation Scheme (FSCS), so it is unlikely that you will get your money back if the things go wrong.

The websites used by these companies according to FCA are http://thehyperfund.online, https://thehyperfund.com/

Providing decentralized financing (DEFI) via blockchain technology from the Hong Kong-based HyperTech group, according to sources, Indian regulators and authorities have started to monitor the situation.

As a result of actions taken by financial regulators such as the US Security and Exchange Commission and the UK Financial Conduct Authority, Indian regulators and enforcement authorities have started monitoring investments in Hyper Fund, a decentralized financing offer via HyperTech Group’s blockchain technology.

Globally, financial regulators recognize that the organizers of the Ponzi scheme often use the latest innovations, technologies, products or growth sectors to attract investors and give their program the promise of high returns. Potential investors are often less skeptical of an investment opportunity when they are evaluating something new, new or “cutting edge”. On its website, Hyper Fund claims to be “the most powerful rocket in blockchain finance”


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Hyper Fund cryptocurrency under government scanner https://lastjeudi.org/hyper-fund-cryptocurrency-under-government-scanner/ https://lastjeudi.org/hyper-fund-cryptocurrency-under-government-scanner/#respond Sat, 18 Sep 2021 08:01:31 +0000 https://lastjeudi.org/hyper-fund-cryptocurrency-under-government-scanner/ New Delhi, September 18 (IANS): The government is closely monitoring the cryptocurrency floating in the market based outside the country following the alert that agencies responsible for verifying financial fraud are monitoring a company called Hyper Fund. According to some sources, Hyper Fund, a DEFI of Hyper Tech Group, went under the radar recently. The […]]]>

New Delhi, September 18 (IANS): The government is closely monitoring the cryptocurrency floating in the market based outside the country following the alert that agencies responsible for verifying financial fraud are monitoring a company called Hyper Fund.

According to some sources, Hyper Fund, a DEFI of Hyper Tech Group, went under the radar recently. The Group claims to have launched the Hyper Fund to provide decentralized financial infrastructure. Hyper Fund was announced mid-2020.

According to the company’s website, it is led by Ryan Xu, however, with the Multi-Level Marketing (MLM) model, Hyper Fund has attracted investors with higher returns and such offers, a common practice in part of the Ponzi schemes, which alerted the authorities in the first place.

According to sources, complaints against these funds have started pouring in in several states. In India, the RBI, the Union Ministry of Finance and the SEBI had warned people against trading in cryptocurrency. The RBI plans to launch India’s official digital currency, the E.

The Ministry of Finance clarified that virtual currencies are not legal tender either. Therefore, VCs are not currencies. The RBI also clarified that it has not given any license / authorization to any entity / company to mine or deal with Bitcoin or any virtual currency.

In June 2018, Amit Bhardwaj was arrested at Delhi Airport by Pune police along with his brother Vivek Bhardwaj as part of an alleged Ponzi scheme. Bhardwaj, launched his own bitcoin mining operations and allegedly deceived more than 8,000 people for an amount of Rs 2,000 crore nationwide.

He filed a complaint with the Delhi Police Special Cell, alleging that he received an extortion call and was asked to pay a sum of money for protection on September 6, 2021. He had set up a multi-level marketing (MLM) scam by tricking investors into giving him Bitcoins. in exchange for the higher promised returns, police alleged.

UK regulators have issued a warning against this fund and the Financial Conduct Authority (FCA) has issued warnings for Hyper Fund and Fund Advisor.

On its website, which was first published on March 23, 2021 and updated later on August 31, FCA said: “We believe this company can provide financial services or products in the UK without our permission. Almost all businesses and individuals offering, promoting or selling financial services or products in the UK must be licensed or registered by us. This business is not authorized by us and targets people in the UK. “

Warning investors about this fund, he added: “You will not have access to the Financial Ombudsman Service nor be protected by the Financial Services Compensation Scheme (FSCS), so it is unlikely that you will get your money back if the things go wrong.

The website used by these companies according to FCA is http://thehyperfund.online, https://thehyperfund.com/

Providing decentralized financing (DEFI) via blockchain technology from the Hong Kong-based HyperTech group, according to sources, Indian regulators and authorities have started to monitor the situation.

As a result of actions taken by financial regulators such as the US Security and Exchange Commission and the UK Financial Conduct Authority, Indian regulators and enforcement authorities have started monitoring investments in Hyper Fund, a decentralized financing offer via HyperTech Group’s blockchain technology.

Globally, financial regulators recognize that the organizers of the Ponzi scheme often use the latest innovations, technologies, products or growth sectors to attract investors and give their program the promise of high returns. Potential investors are often less skeptical of an investment opportunity when they are evaluating something new, new or “cutting edge”. On its website, Hyper Fund claims to be “the most powerful rocket in blockchain finance”


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The Dangerous Ideology Called Neoliberalism: Part II https://lastjeudi.org/the-dangerous-ideology-called-neoliberalism-part-ii/ https://lastjeudi.org/the-dangerous-ideology-called-neoliberalism-part-ii/#respond Fri, 17 Sep 2021 16:00:00 +0000 https://lastjeudi.org/the-dangerous-ideology-called-neoliberalism-part-ii/ “This anomalous system backfired and hit the US economy hard.” When the neoliberals deregulated currency and equated that policy with a policy of economic liberation, they did so without understanding the nuances of inflation; why prices are rising and they have not understood the intricacies of supply and demand in the economy. Quantitative easing or […]]]>

“This anomalous system backfired and hit the US economy hard.”

When the neoliberals deregulated currency and equated that policy with a policy of economic liberation, they did so without understanding the nuances of inflation; why prices are rising and they have not understood the intricacies of supply and demand in the economy. Quantitative easing or printing money was done arbitrarily to maim the US economy to achieve its political goals.

In fact, the loan of Treasuries to support the deceptive quantitative easing policy was taken from the reserve currencies of World Bank member countries and used by the US Federal Reserve to secure short-term mortgages, making so countries like the Philippines, part of the consortium of reluctant lenders.

When the United States decoupled the dollar from the gold standard, Nixon never thought that his decision would primarily reduce the budget deficit as agreed in 1946 during the Bretton Woods accords. The arrogance of the United States was exuding as it was the only industrial power not affected by war and holds over 70 percent of total world manufacturing output to dominate the world economy. Thereupon, the United States measured the value of the dollar against its GDP.

The switch to GDP in 1973 was caused by its involvement in the Vietnam War. The formula gave the United States a breather to experience financial easing to reignite another adventurism even as the Cold War with Russia has yet to be concluded. The neoliberals have sought to revive the US economy by relying on the validity of the unlimited flow of capital. The theory was based on the strength of America’s GDP, which then represented more than 70 of the world’s total manufacturing industries.

This was followed by their global campaign for globalization or free trade by reducing tariffs. Countries were forced to open their doors more widely instead of simply accepting the most-favored-nation (MFN) clause. Many were prompted to join the World Trade Organization (WTO) after the United States and its European allies made sure their version of free trade was passed.

Many underdeveloped countries have joined, believing that tariffs will be reduced. Instead, it resulted in the revaluation of their currency, allowing the United States to increase imports while exporters decrease the value, not the volume, of their goods.

China has been pressured into joining the WTO and believing that free trade will work to its advantage. The currency and wages were low, and Chinese workers had skills, efficiency and a level of production acceptable to American and European standards. China has interpreted free trade to its advantage as giving socialism Chinese characteristics to advance economically.

Neoliberals never predicted that the unequal trading system would change not only in the value of currency and goods due to the gradual improvement in the country’s exports, viz. by the concomitant increase in the value of their currency. Neoliberals have remained obsessed with the huge profit from outsourcing.

When the bad side of outsourcing and offshoring production plants began to affect their economy, such as incurring a huge trade deficit, the United States began accusing China of violating trade patents and laws on trade. copyright, forcing foreign countries to reveal their trade secrets, increasing their royalties, and unilaterally imposed trade sanctions for allegedly participating in unfair competition or defying its trade policy. The case against Huawei is based on fears that China is on the verge of overtaking the United States in the area of ​​5G technology.

Globalization has turned into an exception policy in the United States. Most appalling was the demand to devalue or revalue the currency. Consumers are required to pay more for their purchase while reducing their exports. To avoid resistance from most wage earners, the neoliberals have called rising inflation a normal situation in the economy that consumers should not worry about.

The decoupling of the dollar was followed by the deregulation of commodity prices, including those classified in utilities such as fuel, electricity and water. The neoliberals have even repealed the local anti-usury law.

Either way, the US economy may have recovered slightly. The dollar rose against other currencies. Monetarists have called the devaluation a “floating rate” to indicate that the price increase is only temporary even though the policy has been imposed against the will of the monetary authorities. The public had to accept a depreciation of more than 100 percent of its currency.

Some say that the shift from gold to GDP initially helped increase excess capital and that the United States used it as capital to invest and engage in the nefarious practice of outsourcing. What the neoliberals didn’t know was that they opened Pandora’s Box to the early demise of capitalism through the unique process of deindustrialization.

The neoliberals had a smile on the new economic order. The modus operandi allowed the US dollar to automatically increase its imports due to the decline in the value of foreign exports. The trade imbalance between the United States and the underdeveloped countries has grown considerably.

Many countries began to look for an alternative market that would price their exports well to allow local consumers to buy more imported goods, and allow some of their currency to save and grow their economy.

This allowed China to rapidly expand its market to Africa and Latin America. It was not the Marxist ideology that prompted countries to move closer to China, but the need to adopt one that could offer higher prices for their exports.

As the neoliberals increased the value of money, they forgot that the domestic cost of labor and services, as well as the cost of living, would also increase. The prices of imported goods negated the gains obtained through outsourcing.

To ward off the danger, the neoliberals once again coined a new economic term called “real wage” to differentiate it from “nominal wage”. Critics of neoliberal ideology like Jeffry Sachs, Richard Wolff and Chris Hedges complain that since 1973 American workers have not received a real pay rise. As the practice continued, people realized that they had been harmed for years by their legitimate income. The US economy has evolved into a plutocratic economy, with a handful deciding economic policies while the vast majority of Americans languish in poverty.

Today, China has accumulated enough surpluses starting with a low value of the renminbi. Slowly, it is preparing to reach parity with the US dollar. The neoliberals have committed a monstrous crime of financial injustice because the open valuation of currency has turned against it to ensure that the tenet of Marxist economics is the creation of wealth through production.

President Trump has applied his pagan “America First” nationalism by imposing excessive tariffs on US imports, mainly from China. But in its rush to make up for the trade deficit, it actually imposed tariffs on U.S. imports. The tariffs increased the value of US imports which was added to the cost price.

There is no way for the neoliberals and their monetarist cabal to escape the trap they have created. The deindustrializing system of the American economy has reduced their glamorous metropolis to a city of tents, retarded intellectual growth due to unaffordable tuition fees, shortened the lives of the poor due to the high cost of medical services and l hospitalization, multiplied the number of homeless. , has skyrocketed drug sales and intensified racial discrimination and social unrest due to income inequality.

The disparity between the value of the US dollar and other currencies resulted in a financial collapse. Some call this “state of economic imbalance” as what happened in 2008. Often times, this happens when investment does not match output and through volatility in the currency. This anomalous system backfired and hit the US economy hard.

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Could a flood-prone metropolis win the battle against climate change? https://lastjeudi.org/could-a-flood-prone-metropolis-win-the-battle-against-climate-change/ https://lastjeudi.org/could-a-flood-prone-metropolis-win-the-battle-against-climate-change/#respond Thu, 16 Sep 2021 18:00:00 +0000 https://lastjeudi.org/could-a-flood-prone-metropolis-win-the-battle-against-climate-change/ Deadly Storm: Hurricane Sandy, which struck New York City on October 29, 2012, killed 44 residents and inflicted an estimated $ 19 billion in damage across the city, including the destruction of more than 69,000 homes. (Photo credit: Matthew Kraus / Flickr) Imagine New York in 2050 The 2020s were slack years in New York, […]]]>
Deadly Storm: Hurricane Sandy, which struck New York City on October 29, 2012, killed 44 residents and inflicted an estimated $ 19 billion in damage across the city, including the destruction of more than 69,000 homes. (Photo credit: Matthew Kraus / Flickr)

Imagine New York in 2050

The 2020s were slack years in New York, as elsewhere. But the city’s 2022 lawsuit against the Big Five – Chevron, BP, Shell, Exxon and ConocoPhillips – picked up where their 2018 lawsuit failed, seeking to defray the staggering costs of climate adaptation. Dozens of other cities, counties and states had also taken legal action, shaking the oil companies’ defense of denial until it was clear that the oil giants had known for decades that they were deceiving the public about their direct responsibility for global warming. Investors’ unease forced them to ask the State Department to facilitate a major settlement. In 2026, the Greenhouse Gas Settlement Trust Fund received its opening payments of $ 100 billion, an amount payable annually as long as each company generated income from fossil fuel extraction. This sudden disincentive to produce catalyzed the first real commitment of the US energy industry to renewables, far behind their Asian and OPEC counterparts.

New York City used its part of the settlement to channel the streets of Lower Manhattan, making them concave rather than convex – a Danish idea that managed to drain most of the water from subway entrances. The city imposed a progressive carbon tax that allowed developers and billionaires to pay most of the bill for improved sea defenses as well as tax credits to those who included more than 50% affordable housing on land. land more than 3 meters (10 feet) above sea level 2020. Most of the time, citizens and leaders continued as they always had, aware of the need to act but unwilling to not abandon the familiar outlines of their city.

Flood-prone metropolis
Threatened by rising waters: The yellow, orange and red areas of the above map show the 5-meter flood line, with the most vulnerable communities in red. After Hurricane Sandy devastated the U.S. east coast in 2012, then New York City Mayor Mike Bloomberg said in his post-storm speech that more than 800,000 city residents could live in the city. century-old flood zone. Illustration by Christina Conklin, from “Atlas of Endangered Places” (The New Press, 2021). Reprinted with permission.

But the Valentine’s Day flood of 2033 changed public understanding of just how dangerous a storm can be. Rather than a sea wave like Sandy, this unusually warm northeast blew under heavy rains from the upstate, sending more than 6 centimeters (2.5 inches) of water per hour into the rivers, the streets and subway tunnels every hour. The full moon in February brought the highest tides of the year to New York Harbor, sending water deep into areas of the Bronx and Queens that had never experienced flooding before. Many of those who had been out for the night did not receive the text alerts and nearly 20,000 people drowned when the roads turned into rivers.

The rain fell for four days and four nights. Much of the region’s transportation system has been shut down for months. Half a million people have fled upstate and out of state, and thousands without the means to move have settled in makeshift shelters to await the cleanup. Sandy’s lesson – that far-sighted relocation planning could avoid much suffering – had not been learned. The city did not have a comprehensive flood response plan in place and many flood barriers had failed, so a slow recovery response accumulated layers of trauma in a city that had already gone through so much. things.

But some communities on Staten Island, which had a lot of experience with the flooding, had prepared. They had held community meetings since Sandy, where they discussed and debated different approaches to dealing with the Big One they all knew was coming. When it did, they felt clear-headed, informed and empowered. Their block-by-block security teams helped the elderly and disabled evacuate to agreed-upon safe homes, and the rest made their way to the well-appointed shelter they had campaigned a decade earlier, built on the heights of the former Fresh Kills landfill. The borough had the lowest death toll in town, even though it was largely a former swamp.

New Jersey and Connecticut were also devastated, with many smaller rivers breaking their banks and washing away small towns. The three governors crossed political lines to finally implement a plan that was first proposed in 2017, creating a Regional Coastal Commission and giving it regulatory powers to relocate lowland communities and add protection to higher and densely populated places. After two years of thoughtful development, the commission released the new Mannahatta Plan, a vision that more closely realigned the metropolitan landscape with its original 17th-century topography. In Manhattan, Canal Street has become a real canal, and Water Street has become the shore and a flood park. In Staten Island and Queens, entire neighborhoods were rebuilt further inland, buildings were demolished and turned into storm berms along the +2 meter shoreline. All along the tri-state coast, the RCC established floating communities, added ferries and water taxis, converted the most indefensible sites into open spaces, and built even denser urban centers on the heights.

Flood-prone metropolis

They opened Meadowlands National Park as wetlands restored, with great fanfare. As the subway teetered and broke down after repeated flooding, the city raised his trains, bringing them up along Manhattan’s dry spine, from Bowery to Broadway and Central Park. Transformational adaptation had finally reached the banks of the Hudson.

It took more than two decades to be fully implemented, but as the city enters the second half of the century, it has squarely grappled with its difficult geography. Today, New York is indeed the “radically reshaped city” that Daniel Zarrilli, former chief climate policy adviser to New York Mayor Bill de Blasio, predicted decades ago, though his resilience is tinged with notes of sadness, healing and regret.

Key term: economy

Economics once referred to the administration of a single home or community resources, with an emphasis on frugality. Contemporary understanding of “economics” as a unifying national discourse only dates back to the Great Depression, when countries were together in misery. In recent generations, most nations have accepted the maxim that economic growth is the goal of a prosperous society. But climate instability is already creating economic instability as disasters multiply, and various business models are needed to help us. Environmental economics is favored by some because it seeks to value the air, water and land in the current system when calculating costs and benefits. More radically, the steady state economy, first proposed by John Stuart Mill and more recently developed by Herman Daly as an “ecological economy”, imagine an economy which neither increases nor decreases, but lives within the carrying capacity of its environment, with well-distributed wealth and an improvement in living standards thanks to innovation.

How we understand the purpose and objectives of our economy can help us learn to manage the finite resources of a single planet. In the United States, the neighborhood barter savings, sharing economies and local currencies have all grown in response to the “safe-in-place” orders that accompanied the COVID-19 pandemic. Such eco-diversity (like biodiversity) can help communities be more resilient in times of crisis.

Christina Conklin and Marina Psaros
Independent Media Institute

This excerpt has been adapted for the web by Earth | Food | Life, a project of the Independent Media Institute, in partnership with The new press. It is reprinted with permission.


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Increase in international reserves is positive for Malaysia https://lastjeudi.org/increase-in-international-reserves-is-positive-for-malaysia/ https://lastjeudi.org/increase-in-international-reserves-is-positive-for-malaysia/#respond Fri, 10 Sep 2021 23:58:52 +0000 https://lastjeudi.org/increase-in-international-reserves-is-positive-for-malaysia/ MALAYSIA’s international reserves have grown over the past five years, with Bank Negara adding nearly US $ 22 billion (RM 59 billion) to its holdings since 2016. This is an encouraging trend, given that the central bank recovered around 48% of the value of international reserves or US $ 45.25 billion that it lost between […]]]>

MALAYSIA’s international reserves have grown over the past five years, with Bank Negara adding nearly US $ 22 billion (RM 59 billion) to its holdings since 2016.

This is an encouraging trend, given that the central bank recovered around 48% of the value of international reserves or US $ 45.25 billion that it lost between 2012 and 2016.

This was the period when the ringgit had weakened considerably, from just over RM3 per US dollar to over RM4.40, and the reduction in international reserves indicates that Bank Negara may be intervened to stem a decline in the ringgit.

However, over the past five years, Malaysia’s international reserves have further strengthened to reach US $ 116.3 billion (approximately RM 483.6 billion) as of August 30, 2021, although they remain well in good shape. below the record high of US $ 139.7 billion in 2012.

The growth of international reserves is not exclusive to Malaysia. In fact, the current international reserves of Singapore, Indonesia, Thailand and the Philippines have exceeded levels seen in 2012.

As an economy heavily reliant on trade, it is very important for Malaysia to have strong foreign exchange reserves.

Foreign exchange reserves serve as a “relief fund” to support national currencies, or the ringgit in Malaysia’s case, in the event that legal tender undergoes rapid depreciation.

Reserves also act as a buffer against severe episodes of capital flight which can, in turn, trigger financial shocks.

Speaking to StarBizWeek, Center for Socio-Economic Research (SERC) Executive Director Lee Heng Guie said the gradual increase in Malaysia’s international reserves was due to continued current account surpluses (trade and services) , which more than offset the sustained capital outflows.

Since 2013, significant and persistent outflows of portfolio investments have been recorded, mainly from the equity market.

Meanwhile, Malaysian Rating Corp Bhd (MARC) Chief Economist Firdaos Rosli (pictured below) said Bank Negara’s international reserves may have increased due to demand for safe-haven assets, including the US dollar, since the start of the pandemic in early 2020.

MARC Firdaos Rosli

Another possible reason is the anticipation of the US Federal Reserve’s tapering and the possible impact on emerging markets, including Malaysia.

“Lowering expectations will eventually lead to a bullish view of the greenback. In addition, reserves may have increased due to higher crude oil prices and a turbulent global recovery, ”says Firdaos.

In 2019, Malaysia’s international reserves increased by $ 2.2 billion and $ 4 billion in 2020.

In August 2021, international reserves increased by US $ 8.7 billion (RM36.02 billion), largely boosted by an additional allocation of Special Drawing Rights (SDRs) to Malaysia of SDR 3.5 billion. , equivalent to $ 5 billion (RM20.68 billion), from the International Monetary Fund (IMF).

On August 2, the IMF announced an SDR allocation of $ 650 billion (2.69 trillion ringgit) – the largest in its history – to all members, to meet the long-term global need for reserves, to strengthen confidence and foster the resilience and stability of the global economy.

SDRs are international reserve assets, but not cash in the classic sense, as they cannot be used to buy anything.

The value of an SDR is based on a basket of the five major world currencies: the US dollar, the euro, the yuan, the yen and the pound sterling.

Malaysia’s international reserves of US $ 116.3 billion (RM481.48 billion) as of August 30 include foreign exchange reserves (US $ 103.4 billion or RM 428.08 billion), the reserve position of IMF (US $ 1.4 billion or RM 5.8 billion), SDRs (US $ 6.1 billion or RM 25 0.25 billion), gold (US $ 2.2 billion or 9, RM11 billion) and other reserve assets ($ 3.2 billion or RM13.25 billion).

The reserve position is sufficient to finance 8.3 months of retained imports and represents 1.3 times the total short-term external debt.

With the increasing position of the country’s reserves amid the soft ringgit conditions, one wonders whether Bank Negara used its ammunition adequately to strengthen the currency.

After all, the ringgit has remained mostly above the RM4 per US dollar level for the past six years.

As for this year, the performance of the ringgit was affected by the strengthening of the US dollar.

According to Firdaos, Bank Negara has less incentive to intervene because the country’s non-ringgit debt is very low.

“In addition, a flexible ringgit is helping net exports to become an engine of economic growth during the current crisis.”

Malaysia has a floating exchange rate regime managed for its ringgit, which allows the central bank to intervene to support the exchange during times of extreme fluctuations.

Lee says the demand for and supply of currencies will determine the level of foreign exchange reserves by accumulation or depletion.

“Bank Negara has taken short term positions to manage the ringgit liquidity of the market. In July 2021, the net short forward position was US $ 7.5 billion (RM 31.05 billion).

“We believe that the central bank will focus on building up external reserves and gradually unwind net foreign exchange short positions, depending on the size and speed of increase in external reserves,” he said.

Meanwhile, Bank Islam Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid (pictured below) points out that Bank Negara has been consistent in not targeting any specific level of ringgit but rather to ensure l order and stability in foreign exchange markets.

MARC Firdaos RosliMARC Firdaos Rosli

“In this sense, the value of the ringgit is always a reflection of the state of the country’s economy as well as the state of global monetary policy which is mainly influenced by the US Federal Reserve,” he said. declared.

A strong reserves position secures the country’s salary for months of imports and covers the short-term external debt obligation, thus signaling credibility and financial soundness while building investor confidence.

Mohd Afzanizam believes Malaysia’s reserves remain sufficient to deal with any volatility in the forex market which can be very persistent and unpredictable.

“According to the IMF’s Reserve Adequacy Assessment (ARA) guidelines, the rule of thumb for foreign exchange reserve adequacy would be between 100% and 150% of the ARA metric.

“So far, Malaysia has recorded over 100% of ARA metrics from 2016 to 2020,” he said.

In 2020, Malaysia’s foreign exchange reserve adequacy was 118% of the ARA metric, compared to 114% in 2018 and 115% in 2019.

Regarding the additional SDR allocation by the IMF, SERC’s Lee said it would supplement Malaysia’s foreign exchange reserves, support liquidity and reduce debt dependency.

“We believe that Bank Negara will manage and make the best use of the SDR allocation space of total foreign exchange reserves within the macroeconomic stability framework of the IMF.

Members of the IMF may also use SDRs in a range of other transactions permitted among themselves (such as loans, payment of bonds, pledges) and in operations and transactions involving the IMF, such as payment of bonds. interest and loan repayments, or payment for quota increases, ”he said.

Meanwhile, MARC’s Firdaos doesn’t think the central bank would need to dip into SDRs right now, given the country’s plentiful liquidity amid high savings.

“All the government needs to do for now is reopen the economy quickly and allow the market to self-correct more quickly,” he said.


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Why closing Lebanon’s electricity deficit is also a problem for regional gas supply https://lastjeudi.org/why-closing-lebanons-electricity-deficit-is-also-a-problem-for-regional-gas-supply/ https://lastjeudi.org/why-closing-lebanons-electricity-deficit-is-also-a-problem-for-regional-gas-supply/#respond Thu, 09 Sep 2021 04:31:43 +0000 https://lastjeudi.org/why-closing-lebanons-electricity-deficit-is-also-a-problem-for-regional-gas-supply/ A cross-regional effort to help Lebanon meet its electricity needs by connecting the country to an existing gas supply network is a viable short-term solution, depending on the sustainable production of fuel in Egypt. Lebanon, which has an energy deficit, which mainly depends on fuel oil and diesel to supply its electricity network, is increasingly […]]]>

A cross-regional effort to help Lebanon meet its electricity needs by connecting the country to an existing gas supply network is a viable short-term solution, depending on the sustainable production of fuel in Egypt.

Lebanon, which has an energy deficit, which mainly depends on fuel oil and diesel to supply its electricity network, is increasingly turning to gas as an alternative.

However, even as Lebanon straddles the gas-rich Eastern Mediterranean, accessing uninterrupted fuel supplies, seen as a cleaner source of transition in the Middle East, can prove to be a challenge.

The country wants to tap supplies from the 1,200-kilometer Arab gas pipeline, which supplies Egyptian gas to Syria via Jordan.

“It’s doable in the medium term, but in the longer term it depends on the gas balance in Egypt,” said Siamak Adibi, senior consultant and head of Middle East Gas at Facts Global Energy, a London-based consultancy firm.

The regional gas race accelerated after Egypt discovered the giant Zohr gas field through Italian company Eni in 2015. However, subsequent discoveries in the region have not been so prolific.

“There are aging fields facing rapid decline and relatively new developments like the West Nile Delta project,” Adibi said.

Egypt, which has sought to position itself as a regional hub for liquefied natural gas, may find it difficult to maintain its own production if Lebanon demands more of its supply.

In addition to exporting lucrative LNG to international markets, Egypt also supplies gas to neighboring Jordan via a pipeline while meeting its own domestic needs.

Egypt is North Africa’s second-largest gas producer after Algeria and accounts for around 1.1% of global proven reserves, according to BP’s 2021 Energy Statistical Review.

Gas consumption in the most populous country in the Arab world increased 3.7% between 2009 and 2019.

The difference between gas production and consumption in the country continues to narrow as domestic demand for electricity increases.

Egypt produced 58.5 billion cubic meters of gas in 2020, with consumption close to 57.8 billion cubic meters.

Egypt will seek to prioritize domestic supply, as the power outages have already proved politically sensitive. The country can be a sustainable supplier to Lebanon via the Arab gas pipeline if it replenishes its own supplies through imports from other producers in the eastern Mediterranean.

“They need to have more imports, via existing infrastructure from Israel or even new infrastructure like another offshore gas pipeline connecting Israel to Arish in Egypt or even Cypriot gas,” Adibi said.

Arish, located in the Sinai Peninsula, is the originator of the Arab Gas Pipeline.

In the Levant Basin, the Cypriot Aphrodite deep-water gas field is closely related to Israel’s massive Leviathan field, which supplies fuel to Egypt.

A Wednesday meeting in Amman of energy ministers from Lebanon, Egypt, Syria and Jordan agreed on a roadmap to supply gas to Beirut.

The four countries will examine “the readiness of the infrastructure”, which has been the subject of various sabotage attempts since its inception in 2003.

However, rehabilitating the pipeline can also prove to be a challenge.

The Lebanese Ksara electricity transmission substation, which is connected to Damascus, could receive electricity from Jordan via Syria, said Jessica Obeid, an independent energy policy consultant and non-resident academic at the Middle East Institute.

The damage suffered during the Syrian conflict would need reinforcements that can be obtained “in the short term”, she added.

A trade deal, if there is no serious damage to the pipe network, could arrive within three to six months, according to FGE’s Adibi.

Syria and Jordan will expect payment, in kind or in cash, for the gas transfer to Lebanon, Syrian economist Samir Aita said.

“Syria has weak financial means, especially in terms of hard currencies,” he said.

“He can use the multilateral agreement to rehabilitate the facilities and get gas or electricity as payment for the passage,” he added.

However, the sanctions imposed by the United States on the Syrian regime could prove to be a stumbling block on the path to greater interconnection of the Lebanese and Syrian supply networks.

“It will be a very difficult decision for the United States because it is a big, big step backwards from the foreign policy of the last 10 years and especially when it comes to the Biden administration whose point of Vue is very close to the Obama administration, which imposed sanctions on Syria, ”said Homayoun Falakshahi, oil and gas equity analyst at Kpler.

Private businessmen aligned with Lebanon’s Iranian-backed Hezbollah group are importing fuel oil from Tehran to help meet the country’s immediate energy needs, a move that is also likely to fall under US sanctions.

However, a regional deal to import gas from Egypt via the Arab pipeline could prove to be the lesser of two evils for the United States and its ally, Israel.

“I think Israel would rather see this kind of deal come to fruition than Iran directly supplying products. I think it seems to be possible,” Falakshahi said.

For now, Lebanon, which previously tried unsuccessfully to search for hydrocarbons in its territorial waters and import LNG via floating regasification storage units, will continue to depend on regional allies.

“Egyptian pipeline gas can be supplied at $ 5-6 per million btu [British thermal unit] which is a friendly price for Lebanon, around $ 35 a barrel, fuel equivalent. It is an attractive price, ”Mr. Adibi said.

Update: September 9, 2021, 4:30 a.m.


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Clean-up boats at the scene of a large oil spill in the Gulf following Hurricane Ida, Energy News, ET EnergyWorld https://lastjeudi.org/clean-up-boats-at-the-scene-of-a-large-oil-spill-in-the-gulf-following-hurricane-ida-energy-news-et-energyworld/ https://lastjeudi.org/clean-up-boats-at-the-scene-of-a-large-oil-spill-in-the-gulf-following-hurricane-ida-energy-news-et-energyworld/#respond Sun, 05 Sep 2021 01:49:00 +0000 https://lastjeudi.org/clean-up-boats-at-the-scene-of-a-large-oil-spill-in-the-gulf-following-hurricane-ida-energy-news-et-energyworld/ FILE PHOTO: Unused oil rigs lie in the Gulf of Mexico near Port Fourchon, La. August 11, 2010. REUTERS / Lee Celano / File Photo WASHINGTON: The US Coast Guard said on Saturday that cleanup crews were responding to a large oil spill in the Gulf of Mexico following Hurricane Ida. The spill, which is […]]]>
FILE PHOTO: Unused oil rigs lie in the Gulf of Mexico near Port Fourchon, La. August 11, 2010. REUTERS / Lee Celano / File Photo

WASHINGTON: The US Coast Guard said on Saturday that cleanup crews were responding to a large oil spill in the Gulf of Mexico following Hurricane Ida.

The spill, which is ongoing, appears to have originated from an underwater source in an offshore drilling concession about three kilometers south of Port Fourchon, Louisiana. The reported location is near the site of a mile-long brown and black oil slick, visible in aerial photos first released by The Associated Press on Wednesday.

So far, the growing oil slick appears to have stayed offshore and has not impacted the Louisiana coastline.

Coast Guard spokesman Lt. John Edwards said the source of the pollution is located at Bay Marchand, Block 4, and is believed to be crude oil from an undersea pipeline owned by Talos Energy.

Brian L. Grove, spokesperson for the Houston-based energy company, said it had hired Clean Gulf Associates to respond to the spill, although the company does not believe it is responsible for the oil in the water. .

Clean Gulf Associates, a non-profit oil spill response cooperative that works with the energy exploration and production industry, responded to the scene on Wednesday. Its workers have placed a containment dam in the area to mitigate the spread of the oil. The company’s ships also use skimmers that can extract oil from the water, although the Coast Guard said only about 42 gallons (about 160 liters) have been removed so far.

Talos is investigating the cause of the leak, but a statement provided by Grove says observations on the ground indicate company assets are not the source. Talos previously leased Bay Marchand, Block 5, but ceased production there in 2017, plugged its wells, and removed all pipeline infrastructure by 2019.

Talos said two 95-foot (29-meter) response vessels were dispatched to the scene to conduct oil recovery operations. A lift boat equipped to conduct diving operations has also been mobilized and is expected to arrive on Saturday to help determine the source of the spill.

“Talos will continue to work closely with the US Coast Guard and other state and federal agencies to identify the source of the release and coordinate a successful response,” the company statement said. “The main priorities of the company are the safety of all personnel and the protection of the public and the environment.


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Oil posts biggest weekly gains in more than a year before hurricane https://lastjeudi.org/oil-posts-biggest-weekly-gains-in-more-than-a-year-before-hurricane/ https://lastjeudi.org/oil-posts-biggest-weekly-gains-in-more-than-a-year-before-hurricane/#respond Sat, 28 Aug 2021 16:25:00 +0000 https://lastjeudi.org/oil-posts-biggest-weekly-gains-in-more-than-a-year-before-hurricane/ Oil prices rose 2% on Friday, posting their largest weekly increases in more than a year, as energy companies began shutting down US production in the Gulf of Mexico ahead of a major hurricane expected to strike early of the next week. Brent futures rose $ 1.63, or 2.3%, to $ 72.70 a barrel, while […]]]>

Oil prices rose 2% on Friday, posting their largest weekly increases in more than a year, as energy companies began shutting down US production in the Gulf of Mexico ahead of a major hurricane expected to strike early of the next week. Brent futures rose $ 1.63, or 2.3%, to $ 72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 1 , $ 32, or 2.0%, to settle at $ 68.74. This was the highest close for Brent since August 2 and for WTI since August 12. For the week, Brent gained over 11% and WTI rose over 10%, which was the biggest percentage of weekly gains for the two since June 2020.
Oil producers shut down 59% of Gulf of Mexico crude production on Friday as the ninth storm of the season neared major U.S. offshore oil fields, according to the Bureau of Safety and Environmental Enforcement (BSEE).
Oil prices were also supported by a drop in the US dollar to a one-week low against a basket of other currencies following comments from US Federal Reserve Chairman Jerome Powell. A weaker US dollar makes oil cheaper for holders of other currencies. Powell, in a speech that asserted an economic recovery underway in the United States and explained why there was no rush to tighten monetary policy and offered no signal as to when the central bank was considering cutting its asset purchases beyond saying it could be “this year”.
U.S. oil rigs rose five to 410 this week, their highest level since April 2020, energy services firm Baker Hughes Co. said In August, drillers added 25 oil rigs, the most in a month since January, increasing the number of oil rigs for 12 consecutive months for the first time since July 2017.
Going forward, Opec + will meet on September 1 to discuss its plan from July to increase production by 400,000 barrels per day each month for the coming months.

Gas
Asian liquefied natural gas (LNG) prices rebounded last week to their highest level since January, as spot demand emerged even as inventories remained low. The average LNG price for October delivery in North East Asia was estimated at around $ 17.20 per million British thermal units (mmBtu), up $ 1.70 from the previous week, industry sources said. Still, demand growth for China’s LNG imports this winter is expected to be stable from the previous winter amid an economic slowdown and high gas prices, sources said. Demand from Turkey was also strong, with state-owned energy company Botas seeking 30 shipments to deliver between September and March, sources said. Yet several tenders capped price gains last week. Novatek offered cargo for October delivery to Northeast Asia, while Petronas in Malaysia sold cargo from its floating platform for October delivery, sources said. Oman LNG has offered a shipment to be delivered in late September, they added.
U.S. natural gas futures jumped more than 4% on Friday to hit a new 32-month high on forecasts that the weather will stay warmer than normal through mid-September and fears that the Hurricane Ida is shutting down production in the Gulf of Mexico when it hits the Louisiana area as the main storm early next week. On its last day as a first month, gas futures for September delivery rose 18.6 cents, or 4.4%, to $ 4.37 per mmBtu, their close highest since December 2018 for the second day in a row. The October contract, which will soon be the first month, rose about 17 cents to $ 4.39 per mmBtu. Analysts have noted that storms in the Gulf of Mexico like Ida can reduce gas prices and demand by causing power outages and the closure of LNG terminals, but they can also increase prices by shutting down production. from the Gulf Coast. According to federal data, about 2% of total US gas comes from the federal offshore Gulf of Mexico, while another 8% comes from Louisiana on- and offshore. With European and Asian gas both trading at over $ 16 per mmBtu, compared to just over $ 4 for U.S. fuel, analysts said buyers around the world would continue to buy all the LNG that United States can produce.

This article was provided by the Abdullah bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development.


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