Oil prices fell on Friday amid uncertainty over the fate of a proposed US government bank bailout mired in wrangling between the White House and Congress.
New York’s main contract, light sweet crude for November delivery, fell US$1.13 a barrel to close at US$106.89.
In London, Brent North Sea crude for November shed US$1.06 to settle at US$103.54.
US President George W. Bush’s administration and lawmakers struggled on Friday to hammer out a compromise over a US$700 billion plan to buy tainted mortgage-related assets from financial firms.
A deal that appeared on the verge of happening had lifted oil prices by more than US$2 on Thursday, but uncertainty returned after the market closed when the would-be deal disintegrated in the face of a revolt from Bush’s own party in Congress.
“The rhetoric from the president, the Treasury secretary and the Fed chairman is far from calming,” said Sherry Cooper of BMO Capital Markets. “Warnings of financial Armageddon could, in itself, trigger panic.”
Phil Flynn at Alaron Trading said the macroeconomics of the situation “is playing right into the bear oil trader’s hands.”
“It is obvious that the demand growth for oil is going to be severely challenged. With the world’s largest consumer of almost everything ... about to have a financial meltdown, the prospects for demand growth are not that good,” Flynn said.
Oil prices have dropped sharply from record-high levels above US$147 in July on worries that demand will shrink in the faltering global economy.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
RSS