(AP) -The price of oil crept up closer to US$97 a barrel today on expectations that the European Central Bank will soon announce new measures to fight the continent’s debt crisis.

 

By early afternoon in Europe, benchmark crude for October delivery was up 47 cents to US$96.94 per barrel in electronic trading on the New York Mercantile Exchange.

The contract rose US$1.85 to finish at US$96.47 Friday. There was no closing price Monday because of a public holiday in the US.

In London, Brent crude was up $1.72 at $116.29 on the ICE Futures exchange.

The ECB’s governing council is meeting Thursday and ECB President Mario Draghi is expected to reveal a new bond-buying programme aimed at easing borrowing cost for countries like Spain and Italy.

The ECB’s awaited announcement “is likely to prompt speculative financial investors to jump on the bandwagon and drive the (oil) price further upward,” said analysts at Commerzbank in Frankfurt.

“The development of prices and the commitment displayed by investors are at odds with the fundamental data, which continue to suggest an oversupply,” analysts at Commerzbank said. If the central banks fail to live up to expectations, oil prices are likely to drop sharply, they added.

Speculation about the ECB’s stimulus measures has helped support the euro against the dollar. After dropping to near two-year lows near US$1.20 at the end of July, the euro has pushed back to near US$1.26. That pushes up oil prices, which is traded in dollars and becomes cheaper for holders of other currencies when the dollar drops.

Oil analyst Stephen Schork said in a report that oil prices could see “increased volatility this week” due to the loss of a trading day Monday because of a holiday in the US.

The release Friday of US nonfarm payrolls for August, a closely watched gauge of employment in the world’s No 1 economy, also could impact prices, Schork said. He attributed recent swings in the oil price to the conflicting influences of a lower dollar and refinery disruptions in the US Gulf Coast that resulted from Hurricane Isaac.

While a substantial amount of oil and gas production remains offline, production is coming back as expected. No major damage to oil platforms or refineries has been reported.

In other Nymex energy futures trading, heating oil rose 2.53 cents to US$3.2055 a gallon and wholesale gasoline was up 2.31 cents at US$2.9959 a gallon. Natural gas fell 2.8 cents to US$2.771 per 1,000 cubic feet

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The first Caribbean International Electric Car Show was launched at the Cayman Motor Museum in West Bay in Grand Cayman.

There it was officially announced that regulations allowing electric cars to be registered in the Cayman Islands had been approved.

A number of different models were on display, including the popular Wheego; a two-seater zippy vehicle that will be one of the cars available for purchase in the Cayman islands.

http://rjrnewsonline.com/business/cayman-hosts-1st-caribbean-international-electric-car-show

KINGSTON, Jamaica – Minister of State in the Ministry of Science, Technology, Energy and Mining (STEM), Julian Robinson, says Jamaica is ripe for investment in renewable energy.

Following a recent assessment of the rates paid to people who generate energy which is then sold to the grid, a recommendation is now on the table that will make it more attractive for investors to invest locally, said Robinson said, adding this will bring significant benefits to the energy consuming public.

Robert Lalah
Robert Lalah

By Robert Lalah

I could scarcely believe my eyes. The sign outside the gas station near Ocho Rios, St Ann, had the price of a litre of 90 octane gas as $135. Surely, this was a mistake. I mean, gas prices are high, and they seem to be rising faster than ever, but there’s no way anyone could be selling it for that much money.

I continued driving along the same roadway, amused at the gas station’s error and wondering how long it would take for them to discover the misdeed. Poor fools, I thought.

Then, my stomach sank. About 100 yards to my left was another gas station, a different company entirely, and looming over the property was a billboard of sorts, ominously displaying the price of a litre of 90 octane gas – $139.

I was stunned.

This happened a couple of weeks ago while I was in St Ann for just a day. In Kingston, a litre of the same gas averages somewhere around the mid to high 120s. St Ann clearly has it a lot worse, but I suspect that no matter where in the country you are, filling up at a gas station these days is more painful than root canal.

I remember when the price of a litre of gas hit triple digits for the first time. Something told me that despite the usual fluctuations in prices, we would never again return to sub-$100 days. I fear I was right.

Everyone hates high gas prices. You could be driving a Corolla or a Range Rover, it really doesn’t matter. We all have things we’d rather do with our money.

Same lousy gas

The most vexing part of it is that whether you’re paying $39 or $139, all you’re getting is the same lousy gas that will only take you from here to there and no further. What’s so great about over there anyway? I’m seriously contemplating just staying here permanently.

But I know I’ll probably have to go to the grocery store at some point, so I need to come up with some sort of low-budget transportation plan. I was near South Camp Road the other day and saw two policemen standing on a sidewalk behind some shrubs while two large brown horses grazed nearby. I used to think it was silly for policemen to be riding around the city on horses in this day and age.

It always seemed awkward, like the horses weren’t sure how to manoeuvre the paved areas and the policemen were just hanging on for dear life, hoping they’d figure it out. But now I see the genius of it. Horses don’t run out of gas. And when they need a top-up on energy, all you have to do is pull up to the nearest grassy area and let them have a go at it.

They are messy, though, and it would likely be a real chore parking one in a garage.

I guess I could always get a scooter. They run on very little gas, can zip through traffic and are a breeze to park. The trouble, though, is that it’s impossible to look cool on a scooter. There’s something about the tiny wheels and perky horn that make them appear less than sophisticated.

Walking is an option, but only within reason. I can’t promise anyone that I’ll be trekking miles-long distances, but perhaps for everyday tasks, this plan could work. Instead of driving around town paying bills and buying this and that, at places relatively close to each other, maybe I could just walk. I certainly wouldn’t have to worry about parking, and refuelling would require little more than a tall glass of water.

But consider how time-consuming this would be. And what if I want to see a late movie at Carib? I don’t want to be walking home near midnight. There are enough crazies in the city during the day.

Hmm. Foiled again. This needs some more thought, but I won’t stop trying. Better to find a way out now than to wait till gas gets to the dreaded $200-per-litre mark which, at the current rate, could be only a few months away.

Robert Lalah is assistant editor – features, and author of the popular ‘Roving with Lalah’. Email feedback to columns@gleanerjm.com and robert.lalah@gleanerjm.com

http://jamaica-gleaner.com/gleaner/20120903/cleisure/cleisure4.html

The big spike in gasoline prices is just about over, but it’s too late to bring much relief for Labour Day weekend.

The national average price for gasoline inched up just 0.3 cents Friday to $3.83 per gallon, ending a string of dramatic increases caused by Hurricane Isaac.

“We’re in the ninth inning of this,” said Tom Kloza, chief oil analyst at the Oil Price Information Service.

Still, drivers will pay the highest pump prices ever for this time of year.

The sky-high prices are keeping people like David Keup of Cedarburg, Wisconsin, home. He was planning to visit a few friends near Coleman, Wisconsin this weekend, but now he’s going to abandon the 285-mile round trip.

“It’s not worth the added expense,” he said.

Isaac, now slowly disintegrating over the middle of the country, forced several Gulf Coast refineries to shut down or operate at lower rates. This has deprived markets of millions of gallons of gasoline and sent prices sharply higher.

The storm pushed the national average gasoline price up 10 cents per gallon in one week, including a 5 cents gain Wednesday that was the biggest one-day gain since February of 2011.

But the price surge appears to be over. Kloza expects average gasoline prices to creep higher during the weekend then start falling after Labour Day, the last big driving weekend of the summer.

Pump prices were on the rise even before Isaac arrived. The average gasoline price rose about 40 cents from July 1 to mid-August because of refinery problems in the Midwest and West Coast, and sharply higher crude oil prices.

Crude has traded between $94 and $97 per barrel for two weeks, after rising from a low near $77 in late June.

AP

http://jamaica-gleaner.com/gleaner/20120903/business/business4.html

Kelly Tomblin, JPS president and CEO
Kelly Tomblin, JPS president and CEO

Since the start of 2012, the Jamaica Public Service Company (JPS) has lost more than US$30 million as a result of electricity theft. This, as the company continues to absorb the cost of the fuel used to produce much of the electricity that is illegally abstracted.

“About 14 per cent of the electricity produced by JPS is stolen, and the cost of this theft is shared by both JPS and our customers,” says Kelly Tomblin, JPS president and CEO. “In addition to the financial losses associated with electricity theft, JPS is spending another US$30 million each year on efforts to curtail the problem. Despite this investment and the dedication of more than 200 employees to fighting losses, the problem persists,” she said.

JPS has utilised a number of strategies in its fight against electricity theft. These include the installation of anti-theft systems in communities with high levels of losses, account audits, investigations, removal of illegal lines, and supporting the police. Since the start of the year, 38 persons have been arrested for illegal abstraction of electricity, more than 5,700 meter irregularities have been discovered, and 14,000 illegal ‘throw-up’ lines removed across the island.

“We continue to explore additional ways of dealing with this problem, as persons are getting more and more innovative in their illegal use of electricity. JPS needs the support of everyone – the Government, customers, the police, and community leaders to address this problem because it affects every sector of society,” the JPS CEO explained.

http://jamaica-gleaner.com/gleaner/20120903/news/news1.html

Petrojam is facing increased pressure to make public its formula for calculating the price of petroleum products.

The Micro, Small and Medium Sized Enterprise, MSME Alliance, says for many of its members, especially taxi drivers, the impact has been devastating and concerns are mounting in the face of persistent questions about the pricing mechanism used by Petrojam.

Their call follows several from Opposition Spokesman on Energy, Gregory Mair who has been strident in his criticisms of the pricing mechanism, labelling it as deeply flawed.

However, despite calls for Petrojam to open up to public scrutiny it has steadfastly remained silent.

President of the Jamaica Solar Energy Association and member of the MSME Alliance, Roger Chang says the information should be made available to dispell doubts that the public is being cheated.

Mr. Chang says he’s now awaiting the outcome of a request for the pricing formula through the Access to Information Act.

He told our newscentre that he decided to go that route after failing to get a satisfactory response from Petrojam’s General Manager, Winston Watson:

Mr. Chang says the MSME Alliance is also questioning whether the concerns raised in two audit reports of Petrojam in 2008 and 2009 have been addressed.

He says among other things the audits said Petrojam’s pricing mechanism is being administered with limited oversight.

The audit pointed out that with Petrojam being one of the market participants it was improper for it to administer the pricing system.

Mr. Chang says the reports also outline a lack of transparency and inefficiencies at the refinery which results in the cost being trickled down to the consumer at the pumps and in their electricity bills.

Yesterday it was announced that motorists would have to pay more for petrol for a ninth straight week as Petrojam hiked prices to just below record levels.

http://rjrnewsonline.com/news/local/petrojam-pressured-over-petroleum-pricing-formula