World economy talk

[Monseratto]

International pacman...

China eyes Canada oil, US's energy nest egg - Yahoo! News

CALGARY, Alberta – In the northern reaches of Alberta lies a vast reserve of oil that the U.S. views as a pillar of its future energy needs.

China, with a growing appetite for oil that may one day surpass that of the U.S., is ready to spend the dollars for a big piece of it.

The oil sands of this Canadian province are so big that they will be able to serve both of the world's largest economies as production expands in the coming years. But that will mean building at least two pipelines, one south to the Texas Gulf Coast and another west toward the Pacific, and that in turn means fresh environmental battles on top of those already raging over the costly and energy-intensive method of extracting oil from sand.

Most believe that both will eventually be built. But if the U.S. doesn't approve its pipeline promptly, Canada might increasingly look to China, thinking America doesn't want a big stake share in what environmentalists call "dirty oil," which they say increases greenhouse gas emissions.

Alberta has the world's third largest oil reserves, more than 170 billion barrels. Daily production of 1.5 million barrels from the oil sands is expected to nearly triple to 3.7 million in 2025. Overall, Alberta has more oil than Russia or Iran. Only Saudi Arabia and Venezuela have more.

By investing to boost Canadian production the Chinese "are growing the pie to meet their own demand. That's a whole lot better than mopping up supply from the existing pie and creating competition for resources," Goldwyn said.

But China would almost certainly react badly to a rebuff. Alberta Energy Minister Ron Liepert fears Chinese investment will dry up should Canada not approve a pipeline to the West Coast.

Zhang Junsai, China's ambassador to Canada, said his country is willing to invest heavily in Canada. He told The Associated Press that the fact that China's $300 billion sovereign wealth fund, China Investment Corp., chose Toronto as the venue for its first overseas office is a "very good sign." The fund invested $800 million in Calgary-based Penn West Energy last year and $1.5 billion in Canadian mining company Teck Resources in 2009.

William Cohen, who was secretary of defense in the Clinton administration, said any Chinese-Canadian oil partnership must be done "with some diplomacy and care," in a way that isn't "a threat to the United States."

Canada can do whatever it wants, but "Canada knows it has a very close and vital relationship with the United States. I'm sure there will be discussions," he said in Toronto after a public debate about whether China will dominate the 21st century.

Eddie Goldenberg, chief of staff to former Prime Minister Jean Chretien, said in an interview that Canada should care less if some American officials are leery about Canada selling oil to China.

"We're not the 51st state. It's not the business of the United States to decide where Canada sells its resources," he said.

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USDCHF

[safeorigin]

hmmm...

Greeks Turn Savings to Gold and Perth Mint Silver Coin Sales Surge to Record on Haven Demand
Published in Market Updates Precious Metals Update on 22 June 2011

Gold is trading at $1,544.31/oz, €1,072.96/oz and £957.30/oz.

Gold is lower in dollars but higher in euros and has reached new record highs in pounds sterling at £958.25/oz. Gold is being supported by strong and increasing demand internationally.

Sterling has fallen after the BoE minutes raised concerns of further quantitative easing and currency debasement. The Bank of England looks increasingly likely to maintain its ultra accommodative monetary policies. Interest rates may continue to remain at multi century lows and the BoE is again considering more printing of money to buy government debt.

Greeks Turn Savings to Gold and Perth Mint Silver Coin Sales Surge to Record on Haven Demand | www.goldcore.com

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U.S. Repo Close: Current 5-Year Note at Lowest Rate, Minus 0.1% - Bloomberg

Lowest Repo Rate as of 10 a.m. New York time:

The 5-year note closed at the lowest repo rate: negative 0.1 percent, unchanged.

[uls]

oil rallied last night

Brent futures now higher than spot

CBY00 (Cash) 104.73s
CBQ11 (Aug '11) 108.22
CBU11 (Sep '11) 108.10
CBV11 (Oct '11) 108.26
CBX11 (Nov '11) 108.39
CBZ11 (Dec '11) 108.48

[Ry_Tower]

oil rallied last night

Brent futures now higher than spot

Parang na-feel lang nila na masasave Greece bawi agad sa oil ah. Tama ba?

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ya the market is expecting Greece parliament to pass the austerity plan

kaya risk on

stocks up, commodities up, bonds down (price down yield up)

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Nike



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US 10 yr yield back to 3%

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Greece austerity vote 2PM Athens time

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so much for IEA's 60 million barrel weapon

the effect is gone

[Ry_Tower]

so much for IEA's 60 million barrel weapon

the effect is gone

Sabi na nga ba eh, this won't last long kasi kunti lang naman vs actual demand for this year. Price hike sa weekend, bawi lang.