Thailand may import crude from RI

Thailand may import crude from RI

SINGAPORE: Thailand may import crude oil from Indonesia, Malaysia and Brunei in the event of a possible oil supply disruption from the Middle East, according to a local newspaper report Friday.

According to a report in the Business Day, quoting Metta Bunturngsuk, National Energy Policy Office deputy secretary- general, the decision was made at a meeting held to discuss measures increase a possible U.S. military strike against Iraq disrupts crude oil shipments from the Middle East.

A Nepo official confirmed Metta's comments, but said the arrangement is already provided for under an existing agreement among members of the Association of Southeast Asian Nations. The official said the agreement is being updated, but wouldn't provide further details.

Thailand's oil and natural gas consumption averaged 993,900 barrels of oil equivalent a day from January to July, up 5.9 percent from the same period last year.

Thailand imports most of its crude oil from the Middle East, with 521,000 barrels a day in the first seven months of this year, compared with 139,000 barrels per day from the Far East. -- Dow Jones

Japan bankruptcies jump 44%

TOKYO: The liabilities of Japanese firms that went bankrupt in August rose 44 percent to 1,059.22 billion yen (US$8.8 billion) from a year earlier, a private research firm said Friday.

"A series of large-scale bankruptcies inflated the liability figure," said Teikoku Data Bank said in a report.

The number of failed businesses fell 3.1 percent in August from a year earlier to 1,562 companies, the company said.

Deflation had continued to take a heavy toll amongst Japanese companies with 1,205 failing due to the ongoing recession.

Real estate developer Chisan failed with 320.7 billion yen in liabilities in the biggest single bankruptcy. Gashu Enterprise, which offers bridal services and operates a wedding center and hotel, went under with liabilities of 88.3 billion yen.

"More than 75 percent of the failures happened due to the current deflationary recession, with many firms saying 'we cannot sell' and 'we cannot make payments on loans'," Teikoku said. -- AFP

China's foreign investment surges

BEIJING: A flood of overseas cash pouring into China's economy picked up still further during August, with foreign investment growing 25.5 percent in the first eight months of the year, official figures said Friday.

The figure is well up on the 22 percent year-on-year rise seen during the first seven months, the Ministry of Foreign Trade and Economic Cooperation said.

A total of US$34.44 billion of investment entered China in the eight months to August, the ministry said, with $4.9 billion in August alone.

Contracted foreign investment -- commitments to spend in the future -- grew even more sharply, up 42.4 in the eight months, a notable leap from the 34.9 percent seen during the first seven months.

Foreign investment has been growing rapidly this year as overseas firms take advantage of gradual opening up of Chinese markets following the country's entry to the World Trade Organization (WTO) in December. -- AFP

Venezuela, U.S. discuss oil pact

CARACAS: The United States and Venezuela are discussing a pact to guarantee Venezuelan oil exports for 20 years.

Venezuela has the largest oil reserves in the Western Hemisphere and is among the top four oil suppliers to the United States. The South American country produces about 2.5 million barrels a day.

U.S. Undersecretary of State for Economic Affairs Alan Larson discussed the deal with President Hugo Chavez and oil officials Thursday. While no details were released, Larson said U.S. companies were eager to invest in Venezuela to "increase oil production to make it more profitable" and promote Venezuelan development and democracy.

The talks come amid concerns that any U.S.-led action against Iraqi President Saddam Hussein could disrupt global oil markets. -- AP

ECB leaves key rate unchanged

FRANKFURT: The European Central Bank left interest rates untouched for the 10th straight month Thursday as the continent's economic recovery struggles to gather pace.

Bank president Wim Duisenberg, who gave no indication of when the bank would make its next move and what it would be, said stronger growth wouldn't come until next year.

Economists don't expect the bank to raise rates - a move meant to fight inflation, but which risks dampening growth - until well into 2003. The bank's key refinancing rate has stood at 3.25 percent since Nov. 8 last year.

Duisenberg stressed that prospects for growth in the 12 countries using the euro currency were more uncertain than he would like.

"Sharp declines in stock prices are having negative effects on consumer and investor confidence," Duisenberg said at a news conference. "Consequently, the strength of the upturn in economic activity has become more uncertain, both inside and outside the euro area." -- AP