• They are not big loans. A payday loan is typically under $500, so if you need more money than that, you will have to find another way.
• They are short term. This type of loan is not designed to be paid back over time. They are two week loans, and once the two weeks are up, you either repay the loan, get a new loan, or rollover the loan.
• There are fees associated with them. Most loan companies charge interest fees, which are usually quite high. Typically, you can expect to pay a minimum of $15 for every $100 borrowed for the average two-week payday loan. The longer it takes you to pay back the loan, the higher the fees will be.
• There are few requirements. There is no credit check to get a payday loan. You will need to produce identification, proof of a checking account, and proof of income. This income can even be social security or unemployment payments.
• They are best used in an emergency. Payday loans are designed for one-time use in the event of a financial emergency. If you find you are getting more than one to make ends meet, you will need to rework your finances, budget, and re-structure your debt.

A payday loan can help you out when there’s a money emergency, but it’s important to know how they work before committing to one.

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Source: CNN

After experiencing a stiff upsurge in the oil prices and growing concern of degrading relationship with the other oil producing nations, Senate has passed an energy bill, which emphasis on the first big increase in fuel mileage requirements for passenger cars in more than two decades.

Senate pressed hard on the automakers, ordered them to develop more fuel economy engine. In its fresh ruling, Senate increase average fuel economy by 40 percent to 35 miles per gallon for cars, SUVs and pickups by 2020.

The bill shattered automakers hope, as they were expecting for a much smaller increase in fuel economy standards and is anticipated to keep fighting as the House takes up the issue. But Senate Democrats also fell short of their own goals. In a victory for the oil industry, Republican lawmakers successfully blocked a crucial component of the Democratic plan that would have raised taxes on oil companies by about $32 billion and used the money on tax breaks for wind power, solar power, ethanol and other renewable fuels.

Bill got the senate’s overwhelming support as it successfully obtained 65-27 votes. The measure now awaits action by the House, which is expected to take it up next week and then finally it will send to approval of president can take year to press as a law.

If bill presses to a law, than it will be a first increase in vehicle fuel efficiency since 1989, when it was set at 22.7 miles per gallon for cars.

Analysts estimate that by successfully implementing the proposed expectations, it would save nearly 2.5 million barrels of oil a day by 2025.

Republicans criticized the energy bill, as isn’t their any provisions for the battling oil industry and also obscure about the renewable and fuel efficiency strategy.

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Via: NYTimes

Crude oil and gasoline prices once again topped $70 a barrel after the U.S. government’s assurance that the subprime crises will not push economy in the recession.

While trading, light, sweet crude for October delivery mounts $1.26 to $71.09 a barrel on the New York Mercantile Exchange. In London, prices for the October delivery increases 76c to $70.62 a barrel on the ICE Futures exchange.

Amidst the Brent crude prices hick, gasoline prices for the September supply also augmented by 5.82c and settle at $1.9814 a gallon, heating oil prices rose 3.62c to $1.9972 a gallon.

For the last one week, US refineries are feeling extra burden. Meanwhile, Chevron’s Pascagoula, Miss., refinery is operating at about 50% due to damage from a fire last week. It expects to know next week how long it will take for its full production to come back on line.

Due to the damage Chevron has canceled a 550,000-barrel Venezuelan crude shipment, which could further add panic to the US market. Earlier this week, crude oil and gasoline prices dip amid the fear of Hurricane Dean and uncertainty persisted in the credit markets. Many investors worry that a severe credit tightening could crimp growth and, in turn, dampen energy demand.

In the past few days, market has shown a sign of improvement, Commerce Department confirmed that subprime generated volatility has loosen its grip as orders for durable goods surged 5.9% in July and new-home sales rose 2.8% that month. Amidst the improvement in the housing market, market isn’t fully liberated from the crises. Liquidity crunch still prevails in the economy; Hurricane can also damage the industries.

To end the instability, exist in the world, oil producers need immediate extra pumping of crude oil, whereas oil producing group OPEC didn’t budge from its previous stance and will decide about the further production on Sept. 11.

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Via: USA-Today

Unstable oil prices are dithering major economies as recently U.S. crude oil prices surged to record highs of $78.77 before falling to around $72.

America urges OPEC to boost production to keep the tempo of oil prices stable, but Venezuela’s oil minister Rafael Ramirez commented that there is enough oil in the market and no reason for OPEC to increase production.

OPEC has already cleared its intention about the additional production that it will decide to increase production after its schedule September’s meeting, but Venezuela’s open back-up to the group will definitely add worries to the world market. America is arraigning that oil producing countries are not pumping enough oil to end the volatility, whereas oil producers group is impeaching that geo-political affairs are more responsible for the higher prices rather than short supplies.

Although OPEC decision might be correct on the forefront, yet it can put many dependent nations on the dock as oil supplies can diminish amid the winter arrival on the Northern Hemisphere. In that case, OPEC contribution will count high, while Venezuela’s further move will also be accountable.

Venezuela has nationalized its oil reserve and signed a conditional deal with western drillers. Chavez led country still looking for foreign investors to develop Orinoco River basin, but new conditional role of Chevron, BP, Total and Statoil will be the most venerable for the stability in world market.

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Via: IHT

PetroChina Co, which is a unit of the state owned China National Petroleum Corp., is China’s largest oil and gas producer. The value of its new shares listed in the Shanghai stock exchange rose to 43.96 Yuan or $5.90 on Monday; nearly triple the IPO price of 16.70 Yuan or $2.24. Its initial public offering of 4 billion shares raised a record $8.94 billion from the mainland bourse. The volume of PetroChina shares traded in the Shanghai, Hong Kong and the New York stock exchanges added to the market capitalization of over $1 trillion.

As other Yuan denominates ‘A shares’ traded in China, the shares of PetroChina issued in Shanghai for meant for domestic investors only.

PetroChina’s status as the world’s most valued oil producing company does not necessarily mean that it has outperformed its rivals in terms of better profitability or productivity. However, the company’s revenue has soared amid rising oil prices but it has been struggling to increase production from its aging domestic oil fields. It is also struggling to manage the widening gap between rising global crude prices and the state controlled prices of oil products in the domestic market.

The company will use a major part of the money raised from its Shanghai issue to finance five projects aimed at increasing its crude oil output and refining capacity. It also intends to make heavy overseas investments.

Source:dallas news
Image:Business Week

Developing economies are trying to satiate their growing demand by digging new reserves and exploring alternatives, but all seems in vain as energy watchdog, International Energy Agency stated that within five year, world will face acute shortage of supply.

In its quest for oil, mighty America is in Iraq, now desperately looking at Iran. European Union is dependent on Russia’s mercy, whereas OPEC is waywardly oscillating the prices and hurting the balance of payment of developing nation.

Prices will sore to a record level and industrialized countries’ development will depend on oil cartel OPEC.

It’s expecting that oil demand will grow at an annual rate of 2.2 per cent during the next five years, up from a previous estimate of 2 per cent, to reach 95.8million barrels a day in 2012.

In its starkest warning yet on the world’s fuel outlook, the International Energy Agency said: ‘Oil looks extremely tight in five years time and there are prospects of even tighter natural gas markets at the turn of the decade.’

The analysts at IEA calculate the supply of oil, which assume to fall faster than expected in major industry areas. Meanwhile, consumption is accelerating on strong economic growth in emerging countries.

Although, the supply from non-members of the Organization of the Petroleum Exporting Countries will increase at an annual pace of 1 per cent yet will be far less than half the rate of the demand rise.

Inefficient supply will force OPEC to sharply increase its production in the next five years, in that condition OPEC can increase its prices.

Head of the IEA’s oil market division, Lawrence Eagles, rightly stated:

If we get to the point were there is insufficient supply, the only way to balance the market will be through higher prices and a drop in demand

The IEA Medium Term Oil Market Report came as oil prices are again on the verge of previous record high at $72 a barrel. Refineries are already paying record high prices as producing countries have cut the discount at which they sell their oil relative to Brent.

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Russia’s state-controlled gas monopoly has called off planned gas cuts to its former Soviet neighbor Belarus after Minsk paid a substantial part of a $456 million gas debt before a Friday morning deadline, the national gas monopoly said. However, Russian energy giant, Gazprom has reportedly extended its deadline by one week for Belarus to pay in full. Comforting European Union, Gazprom’s official spokesmen have stated that there will be no cuts of the Russian gas supplies to Belarus. Earlier, Gazprom had warned it would cut gas supplies to neighboring Belarus by almost half on Friday, in punishment for what it claims are unpaid bills. The EU had been watching nervously the gas dispute between Russia and Belarus and was in a process to call a meeting of stakeholders next week to review the natural gas supply situation due to the eventual impact on the flow of gas to the European recipient countries.

The recent gas dispute once again fueled concerns that consumers in West European countries might also be affected and further raising questions about Russia’s reliability as an energy supplier. According to the Russian energy giant the main bone of contention was Belarus’ failure to pay $460 million for gas delivered in the first half of this year. Belarus is the crucial transit route for Russian gas exports in Europe and a potential cut of gas supplies by Gazprom could affect customers in Poland, Lithuania and Germany. According to the reports, Belarus pipeline operator Beltransgaz has paid $190 million, or more than 40 percent of the bill.

Earlier, following the gas dispute between Russia and Ukraine, supplies to the EU had considerably plummeted in the initial days of 2006 as Ukraine was accused of siphoning gas from a transit pipeline after Gazprom halted direct shipments. And that raised question over the reliability of Russia as a trusted gas supplier to Europe. At present, the Russian energy giant supplies a quarter of the gas used by Europe.

However, the recent face-off stemmed out of an agreement struck in the last minutes of 2006 that required Belarus to pay $100 per 1,000 cubic meters of gas, instead of $46. The agreement had permitted Minsk to pay $55 per 1,000 cubic meters for the first half of the year, but required payment of the balance of $456 million to Gazprom by July 23. In the meanwhile, the EU had issued a statement after the dispute surfaced urging Gazprom and Belarus to ‘react in proportionate manner to disagreements and in any event not to disturb, either directly nor indirectly, the gas supply to EU member states.’

Belarussian President Alexander Lukashenko, until recently a close Kremlin ally, has been discontented over the fact that Russia had been raising prices for oil and gas supplies to Belarus at the start of the year. In response he had raised a transit duty on Russian oil going to Europe across his country by more than 30 percent.

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Kazakh national oil company KazMunaiGaz bought 75% stake in Romanian oil firm Rompetrol for $2.7bn but requires final approval from the European Union.

The deal will double KazMunaiGaz’s refining capacity and give it a total of 630 gasoline stations in seven European countries.

Merger of the two big oil refineries will accelerate growth in the region, and this transaction guarantees a rapid development in Rompetrol oil resources.

The transaction will also benefit the European region, as it will lessen their dependency over Russia. EU alleges Russia to have bullied its neighbors in recent years. Wherein, Russia imposed rigorous norms on the foreign oil drillers to empower the state owned Gazprom. This is presumed as a possible hurdle in the near future.

Romania, which earlier obstructed the foreign holdings in the state oil reserve is now under immense pressure to compete with the Russian refinery. For it KazMunaiGaz is the best option, as the oil driller is aggressively seeking for assets in Western markets.

On the other side, Russia is ready to compete with the newly merged competitors and wishes them to gain a fair market price for their gas.

Russia is the biggest oil supplier in the EU, it supplies quarter of Europe’s oil i.e. more than two-fifths of its gas to EU. However, to compete with such a big supplier, it will not be a easy task for the company, which will meagerly satiate EU’s demands.

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Via: Forbes

With the world facing some major oil crisis, now is an excellent time to produce more oil. Otherwise, the gas prices in the US as well as throughout the world is more than likely to skyrocket in coming years. Keeping this in mind, OPEC was asked to boost up gas production by the US. Recently, the Organization of Petroleum Exporting Countries (OPEC) ministers met up in order to discuss some major issues. The crucial meeting was held in order to discuss whether the oil producing countries would crank up the amount of gas produced or not.

Samuel Bodman, the current US Energy secretary asked the OPEC to increase production. Reportedly, the oil inventories have been running low and Mr.Bodman discussed the matter with OPEC ministers. However, the ministers from UAE, Qatar, as well as Venezuela decided that there is no need to boost up production.

The fluctuation of the recent oil prices is mostly due to other factors involved. OPEC ministers follow the lead of the ministers from Saudi Arabia. The ministers are also discussing the oil issues with International Energy Agency as well. Together, they are trying to push the prices downward. Although, the prices skyrocketed to a whopping $98.18 per barrel recently, it is likely to go down soon. The bottom line is that the ministers are still undecided on oil production decision.

Image: Acc-tv