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Crude
touches US$68 - IMF warns of impact on Asian economic
growth
New
York: Crude oil prices have increased nearly 60 per
cent since the start of the year, as the cost of a barrel
of oil yesterday hit US$68.
The
October crude contract hit a new record high of US$68
in early morning trade, but dropped to US$66.60 a barrel,
as analysts expected tropical storm Katrina to miss the
bulk of oil and natural-gas facilities in the Gulf of
Mexico. The contract was at $67.49, up 17 cents, in late
trading on the New York Mercantile Exchange.
October
Brent on London's International Petroleum Exchange was
26 points higher at US$66.27 a barrel.
A
sharp increase in early Asian trade came after China released
data showing that its crude imports were up 15 per cent
on the year in July, when crude on the New York Exchange
hit US$60 for the first time. Petroleum data from Beijing
showed China imported 11.1 million tonnes of crude oil
in July, an average of 2.62 mpd. In the first seven months
of this year, China's crude oil imports are up by 5.4
per cent year-on-year.
Yesterday,
the US energy department said domestic inventories of
petrol fell by 3.2 million barrels last week to 194.9
million barrels, or 7 per cent below year-ago levels.
US supplies of crude oil grew by 1.8 million barrels to
322.9 million barrels, or 13 per cent above year-ago levels,
the agency said. The supply of distillate fuel, which
includes heating oil and diesel, increased by 1.4 million
barrels to 132.5 million barrels, or 4 per cent above
last year's level.
The
International Monetary Fund (IMF) said that Asian economic
growth could now be derailed by high oil prices, and warned
of high inflation in Indonesia and the Philippines.
IMF
managing director Rodrigo de Rato warned that high oil
prices posed a significant risk to global economic expansion,
and said they were not likely to fall in the near term.
The
price rises of the past week have now forced the International
Energy Agency (IEA) to estimate that demand for oil will
increase by 1.6 million barrels per day (mbd) in 2005,
bringing total demand to 83.8-83.9mbd. The IEA estimates
that world demand will further grow in 2006, by another
1.8mbd, to reach 85.6-85.7mbd.
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EU
textile firms close shop in the hundreds
Brussels: Euratex, the Europe-wide industry lobby,
said yesterday that the textile sector was likely to lose
250,000 jobs this year as smaller companies fell deeper
into debt. Almost 200 textile firms are closing each week
across the EU because of surging imports from low-cost
countries, despite quotas imposed on Chinese clothing
last month.
The
group has said that the Chinese had already inflicted
damage by selling goods below cost, in breach of world
trade rules. The group has said that the Chinese are going
for very high market share at abnormally low prices.
Euratex
said few shops and retail chains had switched from Chinese
to EU suppliers since the quotas came into force but insisted
that the entry ban had offered "relief" by raising
overall prices. It said the quotas had also rescued firms
in North Africa, which rely heavily on EU yarns and fabrics.
The
dumping claims were echoed yesterday by Italy, which fears
losing 30,000 textile jobs this year. "The Chinese
are conquering the market by predatory means. They are
selling shirts for five euros, clearly below the cost
of production. Their aim is to wipe out Italian producers
and then raise prices," said an official.
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