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Crude
prices touch US$65 before closing at US$64.90 a barrel
San Francisco: Ongoing concerns over conflicts
in the oil-rich Middle East lifted crude oil futures to
a new intra-day record of US$65 a barrel Wednesday, even
though US data reflected ample domestic supplies, with
imports at their second-highest weekly average ever.
Crude
for September delivery climbed as high as US$65 a barrel
on the New York Mercantile Exchange. That was the first
time a benchmark contract has ever reached a level that
high. The contract closed up US$1.83 or 2.9 per cent,
at US$64.90 a barrel — the highest close ever for
a benchmark.
Though
the markets show that crude stocks have indeed increased,
and that the US is building a comfortable cushion in inventories,
instead, traders are pricing in the worst fears from the
Middle East tensions and have made Iran's nuclear program
an issue. The underlying instability in Iraq is also adding
to the instability in the prices, analysts said.
Analysts
are pointing out that crude stocks are almost 13mn barrels
above the high end of the normal range. Several refineries
are back on line and most of the reasons given for the
recent price spike have gone away or are significantly
diminished. Analysts warned that prices are overextended
and are very vulnerable for a sharp sell-off.
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News
Corp ammounces bumper annual profit of US$2.1bn
New York: News Corporation's chief executive and
chairman Rupert Murdoch has said that strategic acquisitions
had left the company in its strongest financial position
even as it turned its focus to the Internet.
Murdoch
said News Corp was in advanced talks to buy a controlling
interest in an online search company, but did not identify
the target.
On
the Internet strategy Murdoch said: "Make no mistake.
Our commitment to this space will constitute a major part
of this company's growth, profits and asset building over
the next several years."
The
global media group posted a third consecutive year of
double digit revenue and operating income growth and a
bumper annual net profit of US$2.1bn. The result compared
to a US$1.5bn profit in the previous year, after restatement
under new US accounting standards.
Murdoch
said he was pleased with the company's performance over
the year in which it shifted its home base from Australia.
"Over the past year we completed our reincorporation
to the United States, as well as obtained full ownership
of several key assets, including Queensland Press, the
Fox Entertainment Group, SKY Italia and several regional
sports networks," Murdoch said.
He
declined to discuss succession in the wake of his son
Lachlan Murdoch's recent resignation as News Corp's deputy
chief operating officer, saying the company's succession
planning would be up to the board. Nor would he comment
on speculation that the resignation arose from a dispute
over the future of the Murdoch family trust.
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Lakshmi
Mittal receives dividend payout of US$61.6mn
London: Lakshmi Mittal, the world's third richest
man, has received a dividend payout of US$61.6mn from
his Mittal Steel empire for the second quarter of the
year.
Mittal,
the chairman and chief executive who is said to be worth
£12billion, owns an 88 per cent stake.
The
company reported profits for the half year of $2.24billion,
against $1.82billion last time, on sales 44 per cent higher
at US$14bn. However, profits were flat on the first quarter
at $1.1billion. Mittal also indicated that profits would
fall in the third quarter as oversupply puts pressure
on prices.
In
a statement, Mittal said: "The industry has been
experiencing an inventory de-stocking in Europe and the
US, as a result of which demand and prices have softened.
Looking ahead to the third quarter, we are expecting conditions
to remain difficult."
The
world's top steelmakers have been reducing output in a
bid to shore up prices, which have come off recent highs
as China - the driving force of a three-year price surge
- has stepped up production.
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