Rand plunges below R7.50/$

mikef

Expert Member
Joined
Sep 14, 2005
Messages
1,940
Next months petrol increase expected to be over 60c per liter mainly caused by the rands weakness
 

Claymore

Executive Member
Joined
Jan 20, 2004
Messages
7,758
What I'm curious about - seeing as oil is mentioned, is how come Nigeria's
oil doesn't help Africa much. I think some 15% of Shell's total global profit,
comes from Nigeria alone. Funny that neither it, nor any other African countries, seem to be benefiting.

Wanna see the US Military 'discover' Al Qeada in Africa, and move forces
and warships in? Let people start suggesting nationalizing Nigeria's oil. There'll be a shock and awe campaign real fast, to hunt down the 'terrorists'
methinks.
I think oil should be discovered in Zim...
 

Jerrek

Senior Member
Joined
Jul 26, 2003
Messages
617
But it is in the form of tar sand and not in crude oil ... to expensive to extract on a commercial basis since you need specialized refineries to process them.
Did you miss the part where I said it costs $25/barrel to extract? Did you know Alberta has such a boom in the economy now because the oil price is so high? McDonalds pay $13/hour! There is a severe labor shortage. The province has more money than God these days, all from oil.

Sorry, but my point stands. The oil sands in Alberta has about 300 billion barrels of oil and over the next 10 years will make Canada the largest exporter of oil in the world.
 

CooperS

Well-Known Member
Joined
Jan 24, 2007
Messages
143
Did you miss the part where I said it costs $25/barrel to extract? Did you know Alberta has such a boom in the economy now because the oil price is so high? McDonalds pay $13/hour! There is a severe labor shortage. The province has more money than God these days, all from oil.

Sorry, but my point stands. The oil sands in Alberta has about 300 billion barrels of oil and over the next 10 years will make Canada the largest exporter of oil in the world.
Can't see it when people like CABGOC, Angola (Chevron) is getting oil to the SBM for $3.00 a bbl

Sure there are a lot of reserves in the oil sands, more likely to exploit cheap crude deposits first, surely. Keep the sand deposits till the price is up!

Who has the concession for the sands and is it year round or seasonal.
 

RompelStompel

Senior Member
Joined
Nov 17, 2005
Messages
985
Rand firms as panic subsides

http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-21_2080739

Johannesburg - The rand extended gains against the dollar on Thursday in line with other emerging markets, which firmed as investors' anxiety over risky markets eased.

The rand was trading at R7.3895/US$ at 16:30, about 0.9% stronger than the New York close of R7.4450.

"The rand has strengthened somewhat today, and I think this is due to the weakness we've seen in the yen. It looks like some of the carry trade nerves have been averted," said Danny Pienaar, Nedbank currency trader.

Global investors use the low interest rates in Japan to borrow from the yen and invest in high interest rate, high-risk markets such as South Africa.

But traders reconsidered their appetite for risk last week, and pulled out of high-risk markets after a huge fall in Chinese stock markets.

Some calm has returned to the markets in the past few sessions and most emerging markets have posted some gains.

The JSE all share index extended its gains from early this week by more than 1% to 25 565.85 points.

"Most of the panic has slipped out the market. Most of the stock exchanges have been fairly stable over the past 24 to 48 hours. It's given a little bit of confidence back to the rand," said Pienaar.

As the most-traded currency in emerging markets, the rand is particularly vulnerable and tends to bear the brunt of any changing moods towards emerging markets.

Traders said yen moves were the main driver of the currency in the session, and it brushed aside the euro - currency of South Africa's main trading partner.

The euro was earlier at $1.3123 after the European Central Bank lifted interest rates by an expected 25 basis points to 3.75% and ECB President Jean-Claude Trichet later said interest rates in the eurozone were moderate.

"There's not much that's been happening with the euro to drive the rand at the moment, maybe the US figures will," said another trader.

The US is due to release non-farm payrolls data on Friday at 13:30 GMT, which may have some influence on the dollar.

But with the rand, traders are divided on whether its gains will continue into next week, with some expecting some weakness to creep in.

Other traders were, however, very optimistic that the local currency will maintain its firmer tone way into next week.

The local economic calendar was bare so traders said the currency will continue to be driven by international factors.

Government bonds also strengthened on Thursday, in step with the improved mood on equities and forex markets.

Yields on the most-traded R153 bond fell by four basis points to 7.975% from Wednesday's closing levels, while those on the benchmark R157 were down five basis points to 7.615%.
 
Top