Oil Jump More Than $6 on US's NYMEX.

Are the world getting themselve ready for high oil price with the oil peak period? (The long ever Oil crisis). This is not everyone like to see it happen but it really happen.

The news is retrieve from Bloomberg on Aug. 21:--
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Crude oil rose more than $6 after the signing yesterday of a missile-shield agreement between the U.S. and Poland bolstered concern that Russia may disrupt the flow of oil, and as a weaker dollar increased the appeal of commodities.

The U.S. missile shield in Europe, which has ``a real anti- Russian potential, won't increase the continent's security,'' Russia's Foreign Ministry said. Russia is the world's second- biggest oil producer. Energy and metals futures also climbed as the dollar fell to the lowest against the euro in a week.

``The tensions between Russia and the West were supposed to be simmering down but they are now ratcheting up because of Poland's agreement with the U.S.,'' said Gene McGillian, an analyst at TFS Energy LLC in Stamford, Connecticut. ``The fall of the dollar is sending a huge investor flow into commodities.''

Crude oil for October delivery rose $5.72, or 5 percent, to $121.28 a barrel at 12:01 p.m. on the New York Mercantile Exchange, the biggest increase since June 6. Oil rose as much as $6.48 to $122.04 a barrel, the highest since Aug. 4. Futures are down 17 percent from a record $147.27 reached on July 11. Prices are up 75 percent from a year ago.

Brent crude oil for October settlement rose $6.02, or 5.3 percent, to $120.38 a barrel on London's ICE Futures Europe exchange.

``The dollar has been the big driver of both the rally and the pullback,'' said Kevin Kerr, president of Kerr Trading International in Wilton, Connecticut.

The dollar fell to $1.4875 per euro, from $1.4747, and touched $1.4891, the weakest since Aug. 14. The U.S. currency has climbed versus the euro since touching an all-time low of $1.6038 on July 15.

Hard Assets ``The dollar's rise was too swift to have faith in,'' said John Kilduff, senior vice president of risk management at MF Global Inc. in New York. ``The resumption of the currency's fall has increased the appeal of hard assets.''

The UBS Bloomberg Constant Maturity Commodity Index, which tracks 26 raw materials, gained 3.6 percent to 1503.858 today, the highest since Aug. 1.

Russia has defied calls by U.S. President George W. Bush and other Western leaders for an immediate withdrawal from Georgia since a cease-fire agreement last week ended five days of fighting.

The Baku-Supsa pipeline, which pumps more than 100,000 barrels of oil a day from Azerbaijan to the Georgian port of Supsa on the Black Sea coast, is still shut on security concerns following fighting between Georgian and Russian troops, Toby Odone, a London-based spokesman for BP, said today by telephone. Railway transportation to Georgia's Black Sea ports has also been suspended because of a damaged bridge.

The Baku-Tbilisi-Ceyhan pipeline, which transports oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, will be fully operational this week and tanker loading will resume next week, officials said. The pipeline has a capacity of 1 million barrels a day.
`Geopolitical Worries'

``I've been waiting for the gathering geopolitical worries to pump up the security premium,'' Kilduff said. ``The increase in tension with Russia will probably spell the end of cooperation on the Iran nuclear front.''

The U.S. and its European allies are trying to persuade Iran to halt its uranium enrichment program, saying it's a cover for developing nuclear weapons. Iran is the world's fourth-biggest oil producer.

``The hope was that Russia's fields would be developed and the barrels made available,'' Kerr said. ``If you are a multinational, you are already afraid of nationalization of your assets. Now, with the recent problems between Russia and its neighbors, nobody is going to invest there.''
TNK-BP, a 50-50 venture between BP Plc and a group of billionaires known collectively as AAR, is embroiled in a dispute over strategy and management. BP, which relies on the company for almost a quarter of its output, is struggling to maintain control amid pressure on foreign employees.

Gasoline Supplies U.S. gasoline supplies fell 6.2 million barrels last week, the U.S. Energy Department said in a report yesterday, more than double analysts' predictions. Crude-oil stockpiles rose 9.39 million barrels to 305.9 million barrels, the biggest gain since March 2001, the report showed. Stockpiles fell the previous week when Tropical Storm Edouard hit Texas.
Refineries operated at 85.7 percent of capacity in the week ended Aug. 15, down 0.2 percentage point from the week before and the lowest since the week ended May 2, the report showed.
``The market shrugged off the big crude build because they attributed it to delayed imports that couldn't arrive during the week of Edouard,'' McGillian said. ``More attention was paid to the drop in gasoline stocks and refinery runs. If refiners continue to operate at this level we won't be able to build product inventories.''

Gasoline for September delivery rose 13.69 cents, or 4.7 percent, to $3.0472 a gallon in New York.

Pump prices haven't increased since July 19, according to the AAA, the nation's largest motorist organization. Regular gasoline, averaged nationwide, fell 1.5 cents to $3.702 a gallon, the AAA said today on its Web site. Prices reached a record $4.114 a gallon on July 17.

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Is the coming future oil supply depend on Russia? If let's say Saudi lost the world oil producer title with the weak oil proved reserves figure that put up by them.

Russia maybe the potential country that able to replace Saudi's world Top oil producer position.
Most scientist may will said, "the Russia is the world largest land in this earth got the most potential in conventional oil recovery."

Will Russia use Oil as a weapon in the future? If that really happen the world will have to suffer the ever crisis that never seen before. no one know what Russia thinking now and also the future.

How much you know about Russia Govt. and the country?

NOTE: The above facts are come without any proof to proof them but the facts can be found from it's fundamental figure that are come from the internet. I will try my best to find the fundamental figure and some facts to support for this article that I posted.

http://en.wikipedia.org/wiki/Russia

https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html

Who is Boris Berezovsky?
http://en.wikipedia.org/wiki/Boris_Berezovsky

The show for Boris Berezovsky in "The Russian Godfathers (BBC) Ep 1" - The Fugitive.
There six parts of them, will take sometime for watching them, please enjoy watching.

http://www.youtube.com/watch?v=thy3C_rlUGc

http://www.youtube.com/watch?v=-_KB6mOCrSE

http://www.youtube.com/watch?v=cwPXpr1rr8Y

http://www.youtube.com/watch?v=sgftWsKABlc

http://www.youtube.com/watch?v=2e8irtXUkBs

http://www.youtube.com/watch?v=mPeMuBcG4ok

Please enjoy watching those videos they are filmed by BBC with the real facts story.

Hot money come to China in march 2008.

What is Hot money in economy term?

In the economics, hot money refers to funds which flow into a country to take advantage of a favourable interest rate, and therefore obtain higher returns. They influence the balance of payments and strengthen the exchange rate of the recipient country while weakening the currency of the country losing the money. These funds are held in currency markets by speculators as opposed to national banks or domestic investors. As such, they are highly volatile and will be shifted to another foreign exchange market when relative interest rates make this more profitable.

This kind of hot money fund can be may come from various way, it can be borrowing of huge fund from bank while the interest is very low for an example 0.5% prime lending rate.

Hot money is a major factor in capital flight and the ability of developing nations to finance their debt. As large sums of money can move very quickly to take advantage of small fluctuations in interest rates and currency values, countries which have difficulty raising money through the sale of long-term bonds are particularly susceptible to short-term interest rate pressure, particularly during periods of rapid inflation. These types of transactions were largely responsible for the currency crises in Mexico and Asia during the 1990s. See 1994 economic crisis in Mexico and East Asian financial crisis.

In part to reduce the influence of hot money on a nation’s economy, a few nations have minimum time requirements for investment. For example, Chile requires all foreign investments to be put in a one-year-locked account. Although this sort of control reduces investment in a country, it also makes its economy less susceptible to currency flight.

Hot Money is a form of fund that come in vey sudden with huge amount and is undetectable by government or market, it also goes very sudden and quickly.

alright below is the news that I retrieve from Chinadaily dot com.

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Foreign investments and international hedge funds, some of which are speculative hot money, are now elbowing into the China market. They're lured by the Chinese people's emerging consumption power, and expectations of the Chinese yuan appreciating higher.

The Ministry of Commerce said on Wednesday that China drew $18.13 billion in overseas investments in January and February, shooting 75.2 percent year-on-year.

Chinese Commerce Minister Chen Deming, who was promoted to the post late last year, said at a news conference in Beijing that the reason for the big increase of overseas capital in the first two months was due to the big increase in large-scale investing projects and a stronger yuan.

Chen's ministry, which oversees foreign trade and domestic consumption, said that during the first two months, investments from the European Union countries rose a whopping 109 percent, while investments from the United States increased 44 percent.

Wild expectations abroad that the yuan will continue to rise in value against major world currencies has led to money coming to China.

"When you bring US dollars to invest in China, you need to change it into the yuan. Naturally you would like your funds to enter China at an earlier date. Because, if you are late, the same amount of dollars will turn out to be less yuan bills," Chen told reporters.

China's foreign exchange administration, under the auspices of the People's Bank of China, the central bank, said in its latest report that the country's total foreign exchange reserve has reached nearly $1.59 trillion by the end of January, the world's largest.

China's currency, also called the renminbi, has been constantly rising in value. The People's Bank of China, set the medium parity trading price at 7.0970 against one US dollar on Thursday, a new record high. The yuan has gained 3 percent against the dollar in value since the beginning of 2008.

The sharp increase in the stock of hard currencies has triggered another round of concern on speculative hot money flowing into China, posing potential risks to China's financial system stability.

Wu Xiaoling, deputy head of the National People's Congress's Finance Committee, who was a former central banker, said that the American subprime crisis and the rising trend of the yuan's value will make world speculative funds come to the China market to seek profits.

When asked by reporters whether the hot money has arrived in the name of foreign direct investments, Minister Chen Deming said: "I can hardly tell their entering channels, and their volume. It belongs to the management of the foreign exchange administration."

Economist Suggests Quick Appreciation.

Liang Hong, economist at the Goldman Sachs, argued in a written article published by a major Chinese financial newspaper on Thursday that Chinese monetary authorities should consider quickening the appreciation pace of the yuan, to fight domestic inflation, which approached to 8.7 percent in February.

Others have suggested another "one-off" big rise of the value of the yuan, possibly 5 percent against the greenback by the central bank, to block more hot money from flooding in.

Liang said in her article that "allowing a marked rise in the yuan value is the most opportune policy instrument to curb inflation, as well as rectify the foreign trade imbalance".

She also argued for immediate interest rate hikes to thwart inflation, otherwise the Chinese economy faces an increasing risk of a hard-landing.

Singapore cuts growth forecast to 4%~5% for the 2008 GDP!

Singapore Prime Minister Lee said in his National Day message, that he has cut the 2008 GDP growth forecast to between 4 per cent and 5 per cent from an earlier estimate of between 4 per cent and 6 per cent.

Prime Minister Lee said the country faces a tough time in the year as it is beginning to feel the impact that affect by the US economy slowdown.

"For the whole year, Prime Minister Lee expect growth to be between 4 and 5 per cent," Prime Minister Lee said in his annual message, which was televised on the eve of Singapore’s 43rd birthday.

Prime Minister Lee said the Singapore economy had expanded by 4.5 per cent in the first six months of 2008.

"Singapore’s economy has so far been partly buffered, because singapore economy have been carried along by the vibrancy of the Asian region. But Asian economies are starting to feel the impact of America’s problems, and so are Singapore. Singapore must therefore prepare themselves for a bumpy year ahead," as Prime Minister Lee said.

Prime Minister Lee also acknowledged the problems Singaporeans are facing are due to global inflation. And while the government cannot prevent prices from going up as they are worldwide, it is trying to lighten the burden on Singaporeans through schemes like Workfare and ComCare.
"The government are doing the next best thing: to put in place effective relief measures, and provide the poor and the needy with the help they need. Singapore government must look beyond immediate problems like the cost of living, to understand what is happening in the world around us, discover new opportunities and tackle Singapore's longer term challenges," he said.
The annual message is seen as a prelude to the National Day Rally, where the Prime Minister goes into further detail on the long term challenges facing the country.

In the televised message on Friday, Prime Minister Lee highlighted three other points.
First, the upgrading of Singapore’s economy: to do so, there must be investment in its people. One way is through education. To that end, Singapore is building a fourth university which will take its first batch of students in 2011, well ahead of the original target of 2015. The publicly—funded university will have its campus in Changi.

The second point Prime Minister Lee highlighted was how to encourage Singaporeans to have more children to boost the country’s total fertility rate, which currently stands at only 1.29
Prime Minister Lee said: "The government can create an environment where Singaporeans see them (children) as a natural and important part of life, and where young couples get support in starting families. The government have looked at this comprehensively and will take further steps to address the practical problems which couples face."

Prime Minister Lee also spoke of adapting Singapore to be able to educate and engage what he called "cyber—citizens".

Prime Minister Lee said: "Singapore must adapt themselves to it, and use it to educate and engage their cyber—citizens. The government will evolve their policies and rules, Singapore economy and society, to take full advantage. The government will continue to open up their system progressively."

Prime Minister Lee hinted that the country will continue to open up space for political and societal debate, saying it is the "right way to go". But he also said that as the country continues to open up, its new generation of citizens need to understand that all freedoms come with responsibilities.

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Be prepare for the tough time to come, the impact I believe will last for two to three year down the road. there is an example to see is Japan's property bubble in 90s.

we in the world of globalisation, the impact of US economy slowdown will spread around the world.

Just hope that the credit crunch crisis will over soon and the economy will have a bull run again.

There is news list for reviewing:-

Italy economy contracts, bringing recession close.
http://www.channelnewsasia.com/stories/afp_world_business/view/366035/1/.html

OECD sees growth easing in top economies.
http://www.channelnewsasia.com/stories/afp_world_business/view/365915/1/.html

Japan's longest post-war economic recovery over.
"It is possible that the economy may already be in a recession,"
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/365596/1/.html

Singapore banks sound warning after mixed results.
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/365581/1/.html

Barclays says net profit slides 35% in first half. (Barclays is the 18th largest company in the world according to Forbes.)
http://www.channelnewsasia.com/stories/afp_world_business/view/365498/1/.html

AXA reports 32% profit slump on sub-prime damage. (The 15th largest company in the world by Fortune.)
http://www.channelnewsasia.com/stories/afp_world_business/view/365534/1/.html

Freddie Mac's rising losses bode ill for US housing crisis.
http://www.channelnewsasia.com/stories/afp_world_business/view/365456/1/.html

BNP Paribas second quarter profits down 34%
http://www.channelnewsasia.com/stories/afp_world_business/view/365221/1/.html

Societe Generale reports quarterly profit slump, but shares rally.
http://www.channelnewsasia.com/stories/afp_world_business/view/365008/1/.html

Greenspan warns US governments may have to bail out more banks.
http://www.channelnewsasia.com/stories/afp_world_business/view/364947/1/.html

Analysts say Asian economies yet to feel real impact of US subprime crisis.
http://www.channelnewsasia.com/stories/economicnews/view/364863/1/.html