In this article, Anil Selarka or Kalidas (His nick name), describes the folly or Americans, Brits and Europeans in imposing economic sanctions on Arabic and Muslim nations as and when they pleases and freeze their FOREX reserve lying in United States and United Kingdom. It has become self-defeating exercise for them. The Arab nations have started quoting in EURO to obviate $ freezing actions with the result that oil prices have started rising with double speed. The buyer nation of oil has to buy Euro first (and sell dollar) to settle the trade in Euro. The oil prices are therefore getting double boost. One rising oil price due to QE2 program by FED and another forced selling of dollar in favour of Euro. The Author has provided valuable insight into whole affairs for which there is simple solution – De-Freeze National Reserve of any country – lying in United States. Read more…
Tag: Oil Prices
How good is the Reliance Petroleum (RPL) for Investors?
The Author tried to address the hypes on one of India’s most premium business house – Reliance Induustries Ltd, and its presently promoted Reliance Petroleum Ltd. (RPL) a massive green refinery, ranked 6th largest in the world. The refinery, in which Chevron holds 5% stake, comes on production stream in December 08 (now delayed to Jan 09). The stock price of this unborne child went on as high as 259. Currently trading at Rs 82, the author argues that the stock of this prized company could drop to 30 to 60 level due to host of factors, including hitherto unknown Rs 77oo crores of derivatives outstanding (US$ 1.6 billions). Too many shares – 4.5 billions are too much to digest in the market, although 70% is owned by its parent RIL – first ever Fortune 500 Indian company.