Oil & Gas Deficit
Indonesia recorded trade deficit of US$577 million in oil and gas last month, down 33.8% from July. That means deficit in oil and gas trading dropped 46.7% to US$4.58 billion in the first eight months of 2015. This is pretty good in the short-medium term because of the falling prices of oil. The Country, however, still confronts bigger medium-long term problems…
Coal Journal: China Data
Shares of coal-related companies end mixed in the region. Adaro Energy gained 1.8% in Jakarta, while BHP Billiton lost 1.31% in Sydney. Indika Energy lost 3% in Jakarta, while Rio Tinto fell 2.2% in Sydney. But, Adaro, Indika, and other major coal producers are not the ones heavily traded. It is Sekawan Intipratama (SIAP) with volume close to 1 billion shares. For whatever reason, SIAP has been traded heavily since late last year.
Oil & Gas Journal
Special Task Force for Oil and Gas (SKKMigas) has approved revision of plan of development (PoD) for Abadi LNG project developed by Inpex (Japan) and Shell (UK). Final decision is now in the hands of minister of energy & mineral resources Sudirman Said.
Rally of CPO & Plantation Shares
KPB Nusantara, the joint marketing office of state plantations, sold all of five CPO packages auctioned off Monday (Sept 14) at Rp6783-6918 per Kg (VAT 10% included), significantly higher than last Friday’s pricing to tracking rallies in the futures market.
A More Attractive Oil & Gas Regime?
The government has just auctioned off eight conventional oil and gas blocks last week. In a bid to attract investors, amidst worldwide cutting of capital expenditures due to downfall of oil, Jokowi administration offers a more attractive package to investors. Those called themselves ‘nationalists’ might soon accuse the government of leaning too much to liberal approach. But, do we have other alternatives?
Metals: Supply Cuts & The Rally
Nickel retreated to US$10190 per ton in London Metal Exchange (LME) Friday, Sept 11, but recorded 3.5% gain in the week. Dr Copper and aluminium also gained 1.4% each, while tin advanced 2.3%. Supply cuts from major miners contributed to the weekly gains, but sustainability of the rally still subject to real improvements in China’s iron and steel industry.
Crude Oil Outlook & Coal Shares
Unlike Goldman Sachs with its ‘doomsday scenario’ of US$20 per barrel of crude oil, EIA forecasts that Brent crude oil prices will average US$54 per barrel this year and US$59 per barrel in 2016. EIA based its projection on likely declining crude oil output in the US to 8.8 million barrels per day next year from 9.2 million barrels/day this year.
CPO, El Nino & Plantation Shares
The benchmark November contracts of crude palm oil (CPO) retreated RM25 to RM2132 per ton on the Bursa Malaysia Derivatives, ending days of rally. In Jakarta’s physical market, however, weak rupiah continues to support the commodity. Where is El Nino in the equation?
Rally in Metal-Related Stocks
Freeport McMoRan Inc, parent of PT Freeport Indonesia, opened higher by 3.3% in New York Thursday as copper continued its rally. That means Freeport has gained 39% from its recent bottom. Vale SA, parent of Vale Indonesia (INCO), also advanced 4% to make a total 20% gain from recent bottom.
CPO Rally Continues, Shares Retreat
KPB Nusantara, the joint marketing office of state plantations, sold five out of six CPO packages (7500 tons) auctioned off Thursday (Sept 10) at Rp6580 per Kg (VAT 10% included), advanced 1% from Wednesday on falling rupiah against USD and higher prices in the futures market.