The New Nation - Internet Edition

A.T.M.Nurun Nabi

TThe world witnessed oil price on Thursday last recorded at 90.02 dollars a barrel supported by tight fuel stocks ahead of winter and a softening U.S. dollar. The Organisation of Petroleum Exporting Countries (OPEC) has expressed concern and vowed to check the upward trend. But that attempt may not be successful in view of the latest threat coming from the US President G. Bush that the 3rd World war could be averted provided Iran was barred from becoming a nuclear power. There is no doubt that the economically advanced countries may start stockpiling oil, diesel, octane, gas and kerosene for future. Since they are united and control a large number of oil fields across the globe, it is easy for the. But the job is hard for the developing country like Bangladesh. In case of a air strike on Iran, the price of oil will rise to minimum 100 dollars a barrel, even more than that, in the world and the price per liter in Bangladesh will have to be re-fixed at much a higher level than the present. The government has already undertaken the liability of BPC to the extent of taka 7583 crore. To this, can the government take more burden of subsidy in this sector?.

It may be said that the government allocated taka 4586 crore (development taka 4557 crore, non-development taka 29 crore) in the oil and energy sector from the national budget 2007-08. If the government does not reduce the subsidy, it will have to bear more burden of BPC.

There is no reason to deny the fact that the modern civilisation depends on energy. Bangladesh has no oil fields but has gas reserves of 8.4 TCF likely to be exhausted by 2011. And when it will be exhausted, the use of oil will increase to keep the power plants and industries on run. In that case too, the government has to stock oil right from now and has to be cautious about future to avert a dump.

Islami Bank Bangladesh Limited organised a day-long Managers’ Conference of Authorised Dealer Branches on Friday at Hotel Purbani International, Dhaka.

Kazi Harun-ar-Rashed, Director & Chairman, Audit Committee of the bank, was present in the function as the chief guest. Presided over by M. Fariduddin Ahmad, Executive President of the bank, the function was addressed, among others, by Engrineer Md. Eskander Ali Khan, Director, & A.T.M. Harun-ur-Rashid Chowdhury, Deputy Executive President of the bank. The session was attended, among others, by Mohd. Shamsul Haque, Mohammad Abdul Mannan & Md. Habibur Rahman, Deputy Executive Presidents and top Executives of the bank.

Kazi Harun-ar-Rashed in his speech as the chief guest urged the branch managers to ensure prompt service through the application of advanced information technology.

He also called upon them to implement the policies related to investment through proper justification.

He said that the goodwill of Islami Bank has reached the international arena of banking as a model. Islami Bank is a partner of National Development. The services of the bank is open to all regardless their religion, colour, caste and creed.

This bank should be upheld by the empolyees of the bank to the people in such way so that the people can feel that Islami Bank is peoples' bank. He advised the branch managers to be more careful compliyng the Shari' ah.

M. Fariduddin Ahmad stressed upon the achievement of assigned aim for the respective branches, development of human resource and increasing efficiency.

He suggests the branch managers to apply modem technology, maintain the banking activities in accordance with the Shari'ah principle and reduce the classified and overdue investment.

Business Desk

Eastern Bank Limited (EBL) has become Premium Partner of Monitor-AKTEL Airline for the year 2007.

In this connection, Kazi Wahidul Alam, Editor of The Bangladesh Monitor, and Ali Reza Iftekhar, Managing Director of EBl signed a memorandum of understanding on October 18 in the HO of the bank.

After signing the MoU, the Editor of Bangladesh monitor said, "We have launched the Monitor-AKTEL Airline for the year 2007 to assess the popularity of the airlines among the travellers in the country and to judge the service standard. We are happy that the EBL has joined us in our endeavour as Premium partner."

The managing director of Eastern Bank Limited said, "The bank is proud to be associated with the awards as we believe in the Bangladesh Monitor's effort to create an atmosphere of competition among the airlines of the country."

Leading cell phone operator AKTEL is the title sponsor of the awards.

Of others, The Westin Dhaka is the Premium Partner, Galileo Bangladesh Limited is Technology Partner and Channel-i and ICE Today are Media Partners.

Reuters, London

Oil eased on Friday, but stayed within sight of its $90 peak, supported by tight fuel stocks ahead of winter and a softening U.S. dollar. U.S. crude slipped 8 cents to $89.39 a barrel by 4:47 a.m. EDT. It hit an all-time high of $90.02 in early trade on Friday. London Brent crude dipped 30 cents to $84.30. Oil's rally-which has seen six straight days of record highs for U.S. crude-has been fuelled by unprecedented weakness in the U.S. dollar, a factor that has supported all dollar-denominated commodities.

The greenback fell to a new record low against the euro on Friday, knocked by sentiment that weak U.S. economic and financial market indicators may force another interest rate cut.

"The dollar weakened further, spurring some investment into oil as a hedge against dollar weakness," said David Moore, commodity strategist from the Commonwealth Bank of Australia. "And there are still concerns that oil market conditions will remain tight over the northern winter."

Oil has averaged just over $67 a barrel this year, but is climbing towards the inflation-adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution. The price run-up has concerned OPEC, which may call for an early formal meeting to discuss a further output increase. An OPEC supply rise of 500,000 barrels per day (bpd), agreed last month, will take effect on November 1.

Although stocks of fuel in top consumer the United States rose last week, crude inventories stand about 4 percent below a year ago, while gasoline and distillate stocks are about 7 percent below last year.

Rising political tension between Turkey and Kurdish rebels in northern Iraq has also supported gains, as traders worry about a disruption in flows of Iraq's northern oil exports.

AFP, Singapore

Sales of personal computers in the Asia Pacific region outside Japan rose 24 percent in the third quarter to September, compared with the same period a year ago, an industry report said.

Strong demand for notebook computers helped boost sales to 16.1 million units in the quarter, global research firm International Data Corp (IDC) said in a statement received yesterday.

Compared with the second quarter, growth came in at 13 percent, it said, citing preliminary data.

The July-September figures were 5.0 percent higher than IDC's forecast, the statement said. "Portable PCs, particularly those sold through retail channels, continue to blow me away," said IDC analyst Bryan Ma.

"Even emerging markets that intuitively would gravitate towards lower priced desktop PCs have shown increased interest in notebooks. If things keep going at this pace, the region's portable PC shipments will likely reach the 20 million unit milestone for the year."

China's Lenovo maintained its regional leadership with a 21.3 percent market share during the quarter, followed by US computer- maker Hewlett-Packard with 15.5 percent, IDC said.

Dell, also of the United States, was in third place with 8.8 percent of the market, while Taiwan's Acer had 7.2 percent.

AFP, Colombo

Sri Lanka is seeking international expertise to conduct seismic surveys off the southern tip of the island in a hunt for new oil deposits, a senior minister said on Friday.

"Initial seismic surveys shows that there are prospects for oil deposits in the southern seas and we are calling for international tenders to conduct a two dimensional seismic survey," Petroleum Minister A. H. M. Fowzie told AFP. The survey is expected to cost about 6.5 million dollars, he said. Sri Lanka has also sought international investors to explore oil off its northwestern shores.

Seismic surveys conducted by Norway's TGS Nopec have shown that there was potential for oil and gas in the Cauvery basin off Mannar. Officials estimate the basin to carry oil reserves in excess of one billion barrels.

Fowzie said over 40 foreign firms showed interest when the government shared data on three out of eight blocks earmarked for exploration, during roadshows held in London, Houston and Malaysia last month. Successful bidders have to pay the Sri Lankan government a 10 percent royalty fee on oil produced and a 35 percent tax on profits in return for an eight-year license to prospect for oil, he said.

Two blocks in the basin out of the eight have already been allocated to the governments of China and India, which have to pay a 100-million- dollar deposit each for the privilege.

AFP, Tokyo

The dollar took a breather in Asian trade on Friday as investors waited for key interest rate decisions from central banks worldwide after weeks of market turmoil, dealers said.

The dollar was steady at 115.91 yen in Tokyo afternoon trade from 115.95 Monday in London. US markets were closed Monday for the Labor Day holiday.

The euro slipped to 1.3617 dollars from 1.3648 but edged up to 157.82 yen from 157.65.

The Australian dollar, which has swung sharply in the recent turmoil, gained after Australia unexpectedly posted the strongest growth in three years in the second quarter.

The Australian dollar firmed to 95.59 yen in Tokyo late trade from 94.42 on Monday and to 0.8247 US dollars from 0.8159.

Traders were looking ahead to central banks' interest rate decisions due later this week in the eurozone, Britain, Australia, Canada and Sweden-and in particular their accompanying statements.

The European Central Bank's meeting Thursday will be the main focus although market players mostly expect the bank to keep interest rates on hold at 4.0 percent after the havoc wreaked by shaky US mortgage markets.

But investors will be closely listening to comments by ECB chief Jean-Claude Trichet and whether he will use the code word "strong vigilance" as he has in the past before deciding to raise rates, dealers said.

Use of those words "will remind market participants the ECB still has a tightening bias, barring further turmoil in the banking sector," said NAB Capital strategist John Kyriakopoulos.

Global markets have been roiled over problems with

"subprime," or credit-risky, US homeowners defaulting on loans, sending banks and funds with such mortgage-backed securities to scramble to cover their losses.

The dollar edged up to 938.40 South Korean won from 937.75 on position adjustment after the won spiked Monday on strong GDP figures.

The dollar was stable at 1.5229 Singapore dollars, 9,385 Indonesian rupiah and 33.05 Taiwan dollars.

The greenback slipped to 32.33 Thai baht from 32.49.

AFP, Tokyo

Japan needs to show strong political leadership if it is to achieve a free trade deal with the United States, a prospect that presents both huge opportunities and challenges, a US envoy said on Friday.

Assistant US Trade Representative Wendy Cutler said she sensed "some momentum" was building in Japan towards the goal of a free trade agreement (FTA) between the world's two largest economies.

Expectations for what a US-Japan free trade deal could accomplish would be very high, she told reporters on a visit to Tokyo.

"We're the world's two largest economies with a complex economic relationship and a vast range of interested stakeholders. I believe that a US-Japan FTA would present enormous challenges and opportunities," she said.

Cutler was the chief US negotiator for a huge free trade deal signed with South Korea in June, the biggest such deal for Washington in nearly 15 years.

"The question is when-or some say whether-Japan will be ready to move forward with the same kind of bold steps that led Korea to embark and conclude a high quality FTA with the largest economy in the world," she said.

"It's no secret to met that there's a lot of rivalry between many ministries in Japan. For an FTA to work you would really need to have strong political leadership."

The United States wants Japan to open up its tightly shut agriculture sector before it negotiates a free trade deal with Asia's largest economy.

"Japan would need to look at its own economic future and figure out if its current economic course is really the right way to go if it wants to continue to grow and remain a vibrant economic force in the global economy," Cutler said.

Washington urged Japan yesterday to take further steps in opening and deregulating its markets, especially the medical, pharmaceutical and insurance sectors, as part of an annual review of trade relations.