Swift Energy, Fasken Shale, and PGN
Shares of oil and gas company PT Perusahaan Gas Negara (PGAS) Tbk collapsed 7% Monday (Dec 14). Hours later, Swift Energy Co tumbled 8.1% in New York as WTI crude oil stays around US$35 per barrel. Investors continue to wonder the future of PGAS’ investments in Fasken Shale Gas developed by Swift Energy Co.
Coal Falls Further, So?
Coal producers have to wait longer to see recovery of coal prices in the seaborne market due to persistent weakness of crude oil, falling demand in China, and oversupply in coal producing countries. Reference price of Indonesian thermal coal (6322 Kcal/Kg) for December 2015 is set at US$53.51 per ton, down 1.7% from last month.
Commodities & Shares
WTI crude oil fell to its new low at US$35.35 per barrel on Nymex Friday (Dec 11), while Brent crude dropped 5.2% to US$37.67 per barrel. Metals, however, were mixed because copper gained 1.53%, while aluminium lost 2.86%. Soybean oil also lost 1.14%, but crude palm oil (CPO) gained 2.7% earlier on the Bursa Malaysia Derivatives.
Barramundi Producers in Indonesia (1)
SeafoodSource.com reported more than five years ago that PT Fega Marikultura, claimed as the largest barramundi fish (Asian sea bass) producer in Indonesia, planned to boost its production from 3000-4000 tons per annum to 40,000 tons by 2013. Back then barramundi price was only around A$8/Kg (whole fish basis).
Metals Price & Mining Shares
Most metals, except tin, ended higher in London Metal Exchange (LME) Friday (Dec 4). Nickel ended at US$9025 per ton, reflecting 10.6% gain from its recent low, after losing almost 21% in the period of October 20 to November 23rd, 2015. Have metals been bottoming out?
CPO & Plantation Shares
Soybean oil jumped almost 4% on the Chicago Board of Trade Friday (Dec 4) to close at its highest in months even though WTI crude oil retreated to below US$40 per barrel on Nymex. Soybeans also advanced 0.9%, while corn gained 1.35%. All of these have prevented crude palm oil (CPO) from tracking crude oil.
Coal & Optimism on 35000MW Program
State-owned electricity provider PT Perusahaan Listrik Negara (PLN) plans to kick off tender for the construction of Jawa-3 coal-fired power plant with 800 MW of capacity soon, while final decision on Jawa-5 (2000 MW) and Jawa-7 (2000 MW) is scheduled this month.
Commodities & The Budget Deficit
Coordinating minister for the economy Darmin Nasution has reminded everybody about widening of the State Budget deficit this year due to difficulties in achieving target of tax collections. The deficit is now at an alarming level, which might expose the government to new tensions with the House of Representatives (DPR).
Potential Impacts of Freeport Lobbying Scandal (2)
Luhut Pandjaitan, coordinating minister for politics, security, law & human rights affairs, has finally revealed about his three meetings with James ‘Jim Bob’ Moffet, chairman of Freeport McMoRan Inc amidst political tensions surrounding the so-called Freeport lobbying scandal implicating House Speaker Setya Novanto and Mohammad Reza Chalid (businessman).
Eagle High-Felda Global: New Mode
Shares of Felda Global Ventures Holdings Berhad jumped 4.52% in Kuala Lumpur Tuesday (Dec 1), while Eagle High Plantations (BWPT) lost further by 1.42% in Jakarta. Investors are still figuring out the exact meaning of Felda Global’s new statement about ongoing talks with Rajawali Corpora.