BIZ

Oil plunges to lowest level since Jan.

Published

2 years ago

September 24, 2022

editor

The price of U.S. benchmark West Texas Intermediate slid roughly 5% to trade at $79 per barrel, reaching its lowest point since January amid mounting recession fears.

Meanwhile, the price of international benchmark Brent crude fell below $87 per barrel, also on track for its lowest close since January.

Both WTI and Brent crude were in technically oversold territory, posting a fourth straight week of declines on Friday and marking the worst losing streak since last December.

Widespread recession fears have been weighing on energy prices but also slammed the stock market recently, with the S&P 500 and Dow Jones Industrial Average falling back into bear market territory on Friday. Both major indexes also set a new low point for the year amid the broad selloff.

Contributing to oil’s decline was also continued strength in the U.S. Dollar, which is considered a safe-haven asset. The ICE U.S. Dollar Index, which tracks the Dollar against a basket of other currencies, rose nearly 1% and reached its highest level since 2002.

With the Federal Reserve raising interest rates by 75 basis points for a third consecutive policy meeting in a row on Wednesday, central banks around the world have been doing the same by announcing rate hikes. Global economic growth concerns have “hit panic mode given a chorus of central bank commitments to fight inflation,” says Edward Moya, senior market analyst at Oanda.

“Central banks are poised to remain aggressive with rate hikes and that will weaken both economic activity and the short-term crude demand outlook,” he describes, adding, “the dollar rally is about to enter another level that could keep the pressure on commodities.”

The S&P 500 energy sector fell more than 6% on Friday for its worst day since May, adding to losses in recent weeks. Still, the sector has far outperformed the benchmark S&P 500 index this year (down 23%), rising over 20% thanks to a surge in oil prices earlier this year.

But some investors may now be looking to cash out as oil prices have fallen back down to earth. “Not only are there worries about consumption given rising recession risks, but this is a pretty crowded space with a lot of nervous longs sitting on healthy year-to-date gains that they’re eager to lock in,” says Vital Knowledge founder Adam Crisafulli.

(Excerpts : Forbes)

BIZ

CBSL urged to seek overseas travel ban against Dharmasena

Published

7 hours ago

April 25, 2024

editor

Chairman of the ‘Magen Ratata’ organization – Sanjaya Mahawatta has submitted a formal complaint to the Governor of the Central Bank of Sri Lanka (CBSL), with regard to the “Pintanna Plantation” cultivation project founded by former cricketer – Kumara Dharmasena.

In his complaint, Mr. Mahawatta says that the project is accepting investment deposits from the public without a license from the CBSL to do so.

Noting that this project has misled the public and accepted deposits violating the provisions of the Part II of the Finance Business Act. No. 42 of 2011, Mr. Mahawattha’s complaint further notes that the project is being advertised on print media and on Facebook.

Overseas travel ban

Noting that there is a possibility of Mr. Dharmasena fleeing with these funds, Mr. Mahawatta has also urged the CBSL to seek an overseas travel ban against Mr. Dharmasena.

In a recent media briefing, the CBSL had stated that it is illegal to obtain investments from the public for cultivation projects such as Agarwood, Vanilla, Mango, Teak etc. in the promise of high interest rate returns. The CBSL added that their Non-Banking Financial Institutions Supervision Department has initiated a comprehensive investigation on such companies.

Speaking, Assistant Governor of the CBSL – K.G.P. Sirikumara had said that it was a criminal offense to go against the rates implemented by the CBSL and accept deposits from the public.

Only companies authorized by the CBSL are legally allowed to accept such deposits, he pointed out.

The CBSL further disclosed that they are looking into details pertaining to the former cricketer’s project.

BIZ

Imported milk powder prices slashed

Published

22 hours ago

April 24, 2024

editor

The price of imported milk powder will be reduced with effect from tomorrow (April 25), the Milk Powder Importers’ Association states.

Accordingly, the price of a 01 kg pack will drop by Rs. 250 – Rs. 300 while the price of 400g pack will be slashed by Rs. 100ත් – Rs. 130.

BIZ

CBSL names 8 more companies conducting prohibited schemes

Published

3 days ago

April 22, 2024

editor

The Central Bank of Sri Lanka has named 08 more entities that conduct and/or have conducted prohibited schemes.

“Participating in Pyramid Schemes is a Punishable Offence” Central Bank said in a notice to general public.

The named entities are :
1. Beecoin App/Sunbird Foundation
2. Fast Win (Pvt) Ltd
3. Fruugo Oline App/ Fruugo Oline (Pvt) Ltd
4. Genesis Business School/ Era Miracle (Pvt) Ltd
5. Isimaga International (Pvt) Ltd
6. Ledger Block
7. Qnet/Questnet
8. Ride to Three Freedom (Pvt) Ltd