Monday, January 25, 2010

Oil price rise nears $80 a barrel

Traders work on the floor of the New York Mercantile Exchange




Oil prices have climbed to more than $79 a barrel, reaching the highest levels for five weeks.
During Monday's trading in London, US crude touched $79.12 a barrel before falling back later to $78.77.
Heating oil futures led the gains, while London Brent crude rose by more than a dollar to $77.32 a barrel.
Prices rose following forecasts of colder weather in the United States, and the expectation of increased consumption and falling reserves.
That would indicate that demand was rising and signal an improvement in the US economy.
The north-east of the US is also the world's largest heating oil market.
On Thursday last week, benchmark crude rose $1.38 to settle at $78.05. Oil markets were closed on Friday for Christmas.
Falling supplies?
Inventory figures detailing the amount of oil held in stock are expected later this week from the Energy Information Administration.
News of low stock levels could push oil prices above $80 a barrel by the end of the year, according to Clarence Chu, a trader with Hudson Capital Energy in Singapore.
Better employment figures in the US last week also helped to lift hopes of economic recovery and raised expectations of stronger consumer spending and oil consumption.

Sunday, January 24, 2010

Afghanistan parliamentary election postponed


Afghan election posters in August 2009
Last year's presidential election was marred by fraud
Afghanistan is to postpone its parliamentary elections by four months until September, the country's election commission has confirmed.
Elections were to take place before 22 May under the constitution but a new date of 18 September has been set.
The commission cited a lack of funds and security concerns for the delay.
Last year's presidential election was marred by fraud, and Western nations have been pushing for reforms ahead of the parliamentary vote.
'Sensible decision'
Fazil Ahmad Manawi, a senior election commissioner, told reporters in Kabul: "The Independent Election Commission, due to lack of budget, security and uncertainty and logistical challenges... has decided to conduct the [parliamentary] election on September 18, 2010."
United Nations funds are available to fund the elections but have been made contingent on reforms to the system.
The US and other Western nations have said that another election marred by fraud could undermine their strategy in the country.
The chief UN envoy Kai Eide said this month that Afghan law did provide for a delay to the polls, although President Hamid Karzai had wanted the original date to be met.
One international diplomat told the Reuters news agency the postponement was "a pragmatic and sensible decision which will allow time for reform of the key electoral institutions to enable cleaner parliamentary elections".
Underlining the continuing security concerns, Nato said that three US service members were killed in two separate bomb attacks in southern Afghanistan on Sunday.
London conference
Afghanistan is also facing ongoing political uncertainty, with a number of cabinet posts still vacant following the re-election of Mr Karzai as president.

Hamid Karzai, file pic
Hamid Karzai had wanted to observe the original election date
Parliament has twice rejected many of Mr Karzai's nominations for a new cabinet, forcing the president to direct deputy ministers or other caretaker figures to run their ministries.
The uncertainty comes ahead of a key conference on Afghanistan in London next week.
Improving the governance of Afghanistan will be a key issue at the conference, along with security.
Western nations will try to cement their strategy both for increased foreign troops and a strengthened Afghan force.
US envoy for Pakistan and Afghanistan Richard Holbrooke said last week the "strategy for Afghanistan is settled" and the London summit would implement it.
A panel of officials from Afghanistan, the UN and countries contributing troops recently agreed to increase the size of the Afghan National Army from the current figure of about 97,000 to 171,600 by the end of 2011.
Last year, US President Barack Obama announced a review of strategy, saying he would send 30,000 more troops to Afghanistan.
Nato allies agreed to send at least 7,000 extra troops to support the US surge.

The commission earlier said it needed about $50m from international donors to part fund the estimated $120m election budget.
United Nations funds are available to fund the elections but have been made contingent on reforms to the system.
The US and other Western nations have said that another election marred by fraud could undermine their strategy in the country.
The chief UN envoy Kai Eide said this month that Afghan law did provide for a delay to the polls, although President Hamid Karzai had wanted the original date to be met.
One international diplomat told the Reuters news agency the postponement was "a pragmatic and sensible decision which will allow time for reform of the key electoral institutions to enable cleaner parliamentary elections".
Underlining the continuing security concerns, Nato said that three US service members were killed in two separate bomb attacks in southern Afghanistan on Sunday.
London conference
Afghanistan is also facing ongoing political uncertainty, with a number of cabinet posts still vacant following the re-election of Mr Karzai as president.
Parliament has twice rejected many of Mr Karzai's nominations for a new cabinet, forcing the president to direct deputy ministers or other caretaker figures to run their ministries.
The uncertainty comes ahead of a key conference on Afghanistan in London next week.
Improving the governance of Afghanistan will be a key issue at the conference, along with security.
Western nations will try to cement their strategy both for increased foreign troops and a strengthened Afghan force.
US envoy for Pakistan and Afghanistan Richard Holbrooke said last week the "strategy for Afghanistan is settled" and the London summit would implement it.
A panel of officials from Afghanistan, the UN and countries contributing troops recently agreed to increase the size of the Afghan National Army from the current figure of about 97,000 to 171,600 by the end of 2011.
Last year, US President Barack Obama announced a review of strategy, saying he would send 30,000 more troops to Afghanistan.
Nato allies agreed to send at least 7,000 extra troops to support the US surge.

North Korea responds angrily to South's talk of strike

North Korean soldiers with UN honour guard at border with South Korea
North Korea's nuclear programme has heightened regional tensions
North Korea has responded angrily to the South's suggestion that it could launch a pre-emptive strike against Pyongyang's nuclear facilities.
South Korea's defence minister had said this could occur if there were indications that the North was preparing a nuclear attack.
The North's official news agency said any attempt to do so would be treated as a declaration of war.
It added that it would be met with swift and decisive military action.
Tensions between the two nations rose after Pyongyang pulled out of six-party talks on its nuclear programme last April following widespread condemnation of a long-range missile launch.
International pressure grew following a nuclear test in May - which drew UN sanctions and further missile tests.
Conditions
The six-party talks, involving the two Koreas, plus the United States, China, Japan and Russia, began in 2003.
They seek to convince Pyongyang to give up its nuclear programme in return for aid and security guarantees.
Late last year, North Korea said it may be willing to return to the talks.
But earlier this month Pyongyang set down conditions, saying it would not return to the stalled talks until sanctions against it were lifted.