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Oil rises above $71 after 2-week sell-off

By ALEX KENNEDY

SINGAPORE – Oil prices rose above $71 a barrel Tuesday in Asia, bouncing back after fears a European debt crisis could halt a global economic recovery sparked a 20 percent sell-off over two weeks.

Benchmark crude for June delivery was up $1.60 to $71.68 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The June contract dropped $1.53, or 2.1 percent, to $70.08, a three-month low.

Crude has plummeted from $87.15 a barrel on May 3 on investor concern that deep government spending cuts and spiraling higher debt obligations will choke off economic growth and oil demand.

A $1 trillion bailout package unveiled last week by the European Union and International Monetary Fund has failed to assuage investor concern, and the euro dropped to a four-year low Monday.

"Sentiment in the market has been so bearish that you can't rule out a further fall," said David Moore, commodity strategist at Commonwealth Bank of Australia. "The markets are spooked by developments in Europe."

A surging U.S. dollar against the euro has helped drag down oil prices as crude has become more expensive to investors not holding dollars.

The euro fell to $1.2388 on Tuesday from $1.2392 on Monday while the dollar rose to 92.81 yen from 92.61 yen.

Global crude demand has rebounded this year from last year's recession, led by consumption in emerging economies such as China and India. Some analysts expect demand in the U.S. to pick up in the second half as the economic recovery takes hold.

"In time we'll see U.S. oil demand, which has disappointed so far, start to lift while China's demand has remained very strong," Moore said.

Investors will be eyeing the latest U.S. crude supply data from the American Petroleum Institute on Tuesday and the Energy Department's Energy Information Administration on Wednesday for signs demand may be improving.

Analysts expect inventories rose 950,000 barrels last week, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Crude stocks have grown 14 of the last 15 weeks and supplies at the key Cushing, Oklahoma storage terminal are at a record high.

"More traders will be looking at this week's fundamental reports for guidance than has been the case for months because the longtime trump-suits of equities and currencies have so clearly lost their ability to push oil prices higher," Cameron Hanover said in a report.

In other Nymex trading in June contracts, heating oil rose 2.25 cents to $2.0077 a gallon, and gasoline gained 3.47 cents to $2.0778 a gallon. Natural gas was up 3.2 cents at $4.430 per 1,000 cubic feet.

In London, Brent crude July contact was up $1.34 to $76.44 on the ICE futures exchange

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18-May-2010 10:50

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Current STI valuation offers buying chance: Citigroup

Written by The Edge

Tuesday, 18 May 2010 10:34

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17-May-2010 16:18

Mermaid Maritime / Mermaid

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Hi, u may look at:

http://www.bloomberg.com/markets/stocks/futures.html

Now Euro seem going back red........yo quite gan-chio (tensed man).

thulasiappan ( Date: 17-May-2010 16:05) Posted:

Hi Dealer0168

Where I can see the real time future market datas?

Thanks

dealer0168 ( Date: 17-May-2010 15:59) Posted:

Majority of the euro are in green now. I guess things not so back.

Future Dow is recovering also, although still in red.

Let continue monitoring.

Cheers.

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17-May-2010 15:59

Mermaid Maritime / Mermaid

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Majority of the euro are in green now. I guess things not so back.

Future Dow is recovering also, although still in red.

Let continue monitoring.

Cheers.

rickyw ( Date: 17-May-2010 15:53) Posted:

faster...empty ur stock, will drop further...

dealer0168 ( Date: 17-May-2010 15:37) Posted:

They are like roti prata cook. When they happy, they flip it high up. When they not happy they flip it down hill.

B4 that quite a few rate it out perform.

Today down, to me seems more like germs infected by the DOW jow <DOW jow virus>. Dow drop last friday, remember.

Anyway hop Mermaid swim its way back.

Cheers.

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17-May-2010 15:37

Mermaid Maritime / Mermaid

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They are like roti prata cook. When they happy, they flip it high up. When they not happy they flip it down hill.

B4 that quite a few rate it out perform.

Today down, to me seems more like germs infected by the DOW jow <DOW jow virus>. Dow drop last friday, remember.

Anyway hop Mermaid swim its way back.

Cheers.

bishan22 ( Date: 17-May-2010 14:54) Posted:

No wonder it was bashed down by DBS valuation today.

Mermaid Maritime: FULLY VALUED S$0.67; Bloomberg: MMT SP

2Q losses wider than expected;
Price Target : 12-Month S$ 0.53 (Prev S$ 0.64)
Jeremy THIA +65 6398 7974


·	2Q10 net loss of Bt190m wider than expected, led by weak day rates and
utilisation on subsea fleet.

·	Newbuild Mermaid Asiana secures maiden job, but largely within
expectations.

·	Cut FY10/11F by a further 20% and 19% respectively.

·	Maintain FULLY VALUED; TP cut to S$0.53.


Mermaid misses again. Mermaid posted a net loss of Bt189.9m for 2Q10,
missing our below-consensus estimate. This was due to lower than expected
day rates on the subsea fleet, and higher than expected opex with the
consolidation of newly acquired Subtech.

Asiana scores first job, but within expectations. The newbuild DP2 Dive
Support vessel has finally secured its maiden contract which commences in
3Q10. Mermaid also revealed that it has US$50m worth of subsea work to be
executed over the rest of 2010 (i.e. 3Q10-1Q11). While positive, these are
largely captured within our forecasts.

Reducing forecasts again. We have lowered our FY10/11 numbers by another
20% and 19% respectively to Bt447m and Bt1.3bn respectively. This takes
into account 1) the weak 2Q10 results; 2) lowered day rates for the subsea
fleet; 3) reduced margins on higher cost structure; and 4) assumption that
MTR-1 will be used as a accommodation unit indefinitely.

Maintain FULLY VALUED; TP cut to S$0.53. We have reduced our TP to S$0.53

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16-May-2010 21:00

China Hongxing / China Hongx

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China stock market in bear market recently, n that affect this counter.........

Anyway, just need to be patience........

Cheers.

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13-May-2010 20:54

Genting Sing / GenSp starts to move up again

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I believe alot of the ppl also feel cheated by the BB.

B4 that we can see lots of ppl chatting here excitely on it....on possible good revenue....etc

Now......u see all gone liao.

They must be very disappointed.

Come on view in long term...............u may feel good. Cheers.

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13-May-2010 20:42

Genting Sing / GenSp starts to move up again

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Lucky my concentration on Genting is very minimum. The recent UP in actual nearly make me add on.

Lucky i resist......heng.

Anyway Genting is a stock that may grew strong in revenue in the future to come (thus i rate it as a long term stock instead). But that i believe maybe next year..........

This year is more for them to recover the losses..........

Let see how market react with this news..............................

Cheers.

rickyw ( Date: 13-May-2010 20:37) Posted:

as a group, they should include...but very bad and evil in this market...dunno will fell how much tomorrow....

i really dun want to see........... Smiley

dealer0168 ( Date: 13-May-2010 20:32) Posted:

why they include the UK operation cost together????

Of course result will be ganna sia ......................

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13-May-2010 20:37

Genting Sing / GenSp starts to move up again

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Genting Singapore posts 1Q loss of $396.3m

Written by Bloomberg

Thursday, 13 May 2010 20:18

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13-May-2010 20:32

Genting Sing / GenSp starts to move up again

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why they include the UK operation cost together????

Of course result will be ganna sia ......................

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13-May-2010 17:51

Mermaid Maritime / Mermaid

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What abt u? Get at what price?

dealer0168 ( Date: 13-May-2010 17:49) Posted:

Miss out at lower price. Get some at 0.655.

rickyw ( Date: 13-May-2010 17:39) Posted:

yes..according DBS 2Q10 announcement, u buy @ what px

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13-May-2010 17:49

Mermaid Maritime / Mermaid

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Miss out at lower price. Get some at 0.655.

rickyw ( Date: 13-May-2010 17:39) Posted:

yes..according DBS 2Q10 announcement, u buy @ what px?

dealer0168 ( Date: 13-May-2010 17:34) Posted:

Btw tomorrow sure is the finanical announcement date?

Bcif the finanical announcement is GOOD ................. POOO.............11111111111>

It may fly like a rocket........cheers. Hope so hope so........

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13-May-2010 17:34

Mermaid Maritime / Mermaid

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Btw tomorrow sure is the finanical announcement date?

Bcif the finanical announcement is GOOD ................. POOO.............11111111111>

It may fly like a rocket........cheers. Hope so hope so........

rickyw ( Date: 13-May-2010 17:25) Posted:

i think so, same like genting, up then slide down, because kanna market push....hope tomorrow better then will dumped all...seems no good this week...

dealer0168 ( Date: 13-May-2010 17:23) Posted:

Ya what a waste.......go up than down. Emm maybe bc lots of stock in market in downstream.......that slight press it down..........

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13-May-2010 17:23

Mermaid Maritime / Mermaid

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Ya what a waste.......go up than down. Emm maybe bc lots of stock in market in downstream.......that slight press it down..........

rickyw ( Date: 13-May-2010 17:07) Posted:

tomorrow will financial announcement, but why px up then going down? haiyah...i dun understand..

Zhiwei ( Date: 13-May-2010 15:36) Posted:

any specific good news to push up this babe high today?

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07-May-2010 13:06

Rotary Engg / Rotary

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Rotary posts 218% rise in net profit of $14m in 1Q

Tags: Rotary Engineering

Written by The Edge

Friday, 07 May 2010 08:36

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04-May-2010 21:53

FSL Trust / FSL Trust - starting to see value in it

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This one is a small issue compare to Rickmer. N i believe FSL will speed up to look for new customer to loan the vessel.

Current case open opportunity fr investor to buy at low. Cheers.

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04-May-2010 08:10

China Hongxing / China Hongx

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yo what scandal u looking for................that jack neo type scandal.......hehe

des_khor ( Date: 04-May-2010 00:36) Posted:

Scandal ???

E-war ( Date: 03-May-2010 17:20) Posted:

Price being depressed for some reason...

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