Investor Optimism

Speculation boosted investor optimism that demand in the world’s largest economy U.S. is recovering. The U.S. labor market report shows U.S consumer spending has not improved for a third month.
Contracts for crude have also been formed using speculation as a base, crude oil for May delivery rose as much as 1.2 percent to $85.89 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since Oct. 9, 2008. It was trading at $85.21 in Asia trading. Speculation showed economic data indexes are getting better and that is supporting crude oil prices, so now we have no economic recovery and prices are struggling above $87 with no evidence of growth, this will cause a revenue drop in most crude dependent states as there will be a decline in demandover the next months. Oil prices have established a floor of $75 a barrel and there is no need for OPEC to increase production, Venezuelan Oil Minister Rafael Ramirez said April 2.
The Organization of Petroleum Exporting Countries pumps about 40 percent of the world’s oil and slashed output in January 2009 to prevent a glut. The group left its production targets unchanged when ministers met in Vienna on March 17. Some petrol companies in Europe use every available excuss to inflate final consumer prices as is the case with Portugal... As http://so-buracos.blogspot.com/ informed last week, the price of petrol for the motorist in Portugal this week has once more increased...The price per litre has passed the 1,44 Euro for the first time in 19 months, Portugal continues to have one of the highest consumer price for petrol in the world ...The companies involved in this squeme are, Galp 1,449 euro, Cepsa 1,449 euro, BP 1,459 euro, Repsol 1,414 euro, these prices are for regular 95 Octane.

The downgrading of Portugal

As announced by WorldWatch the euro weakened against 14 of its 16 most-traded peers in New York.

The MSCI World Index of stocks in 23 developed nations slid 0.6 percent and the Standard & Poor’s 500 Index fell 0.2 percent, retreating from an 18-month high. The Reuters/Jefferies CRB Index of commodities fell to the lowest level since Feb. 12 as oil slid 1.5 percent, copper dropped 1 percent and lead tumbled 2.8 percent. The yield on the benchmark 10-year Treasury note rose 7 basis points to 3.76 percent.

The euro slid to a 10-month low against the dollar, while stocks, commodities and Treasuries also retreated, as concern grew that Greece may default and Portugal’s debt was downgraded by Fitch Ratings.

Greece is going to default at some point, and Europe’s failure to answer that challenge will hurt the common currency, If Europe can’t solve a small problem like this, how on earth is it going to solve the larger problem, which is the euro doesn’t work.

The S&P 500 fell for the first time in three days after closing at the highest level since September 2008 yesterday. Concern over Portugal and Greece overshadowed a third straight monthly increase in orders for durable goods, a sign the manufacturing rebound will keep propelling the U.S. recovery. European reports showed that the region’s services and manufacturing grew at the fastest pace since August 2007 and German business confidence increased.
The downgrading of Portugal is a consequence of the inflated petrol prices practiced by Galp,BP, Repsol and Cepsa and if the situation is not corrected by the government then a further downgrading is possible.

Crude oil slid 1.5 percent to $80.67 a barrel after a 7.5 million-barrel increase in U.S. inventories reported yesterday by the American Petroleum Institute. The euro declined as much as 1.2 percent to $1.3333, the lowest level since May 2009.

While most European stock gauges declined, Greece’s ASE Index rose 0.9 percent. Portugal’s PSI-20 Index slumped 1.3 percent, the most in a month...

Main Topic

As http://so-buracos.blogspot.com informed last week, the price of petrol for the motorist in Portugal this week has once more increased...
The price per litre has passed the 1,40 Euro for the first time in 18 months, Portugal continues to have one of the highest consumer price for petrol in the world ...
The companies involved in this squeme are, Galp 1,409 euro, Cepsa 1,409 euro, BP 1,419 euro, Repsol 1,414 euro, these prices are for regular 95 Octane.

95 Octane. (per litre)
Galp 1,409
Cepsa 1,409
BP 1,419
Repsol 1,414

DIESEL (per litre)
Galp 1,144
Cepsa 1,147
BP 1,155
Repsol 1,154

A year ago to fill a normal 50 litre car tank we paid 57,85 euros, today the same tank will cost 70,95 euros...
These prices will shortly start a cascade of higher prices in all consumer goods,services and retail prices, according to WorldWatch Portugal faces the risk of becoming bogged down in a even worse economical situatioon than that of Greece.
These petrol consumer prices are equivalent to when crude was at a record of $147 per barril...
Besides the directly involved companies the government is also to blame for the inflated prices, the revenue in Tax obtained is huge and according to local newspapers corruption is a main topic for most politicians and government company CEO.

Europe’s oldest economies.

According to the latest news from Portugal , fraud is practiced by local authoraties, government and international companies such as oil companies on a daily basis!!!
Everyday the world faces serious economic difficulties, unemployment, more and more companies closing down, massive layoffs, sales dropping, production levels at the lowest ever, but somehow the Portuguese government and oil companies like Galp,BP,Cepsa and Repsol take upon themselves to on a weekly basis increase the final consumer price at the pump sometimes two or three times per week....
Its measures like these that have placed the world economy in a recession, Portugal has one of the worlds most expensive consumer oil prices, even now as oil prices slipped below $78 a barrel as investors grappled with the prospect that global growth will be slower than originally feared. Oil prices have fallen about 67% in four months, plunging from a record $147.27 in mid-July 2008. However this decrease in crude prices does not affect one of Europe’s oldest economies...Portugal...were prices continue to be one of the highest in the world, even when crude prices where at a three-year low Portugal continued to have final consumer prices one of the highest in the world...Oil consumption in Portugal last year dropped more than 14% and all tendencies indicate that it will continue!!!
The consumer price in Portugal is 20% more expensive than in Spain...
This dishonest attitude is lead by the so called national oil company Galp Energia...there is no reason for the increase except greed, the Portuguese Government is also involved in this apparent corruption scheme as the more the companies charge the more taxes the government obtains... This scheme is called "Robin Hood Tax" the more you charge the more Tax I (government) have... As is also tradition one company increases all others follow behind, the prices are also certainly combined between all involved... This arrogant attitude by the oil companies (GALP,BP,REPSOL,CEPSA) and government will no doubt continue as they sink Portugal further into recession.

Volatility again

Stocks plunged around the globe, the euro slid to the lowest level since May. Benchmark equity indexes for Portugal and Spain plummeted the most in 15 months. Oil lost 5 percent, the biggest drop in six months, and gold tumbled the most since 2008 as a stronger dollar curbed demand for commodities, some European nations will struggle to finance their budget deficits.
There will be a dramatic increas in volatility again... Even Warren Buffett’s Berkshire Hathaway Inc. was stripped of its last AAA credit rating by Standard & Poor’s.
Greece’s ASE Index lost 3.3 percent, Portugal led declines in government bonds, with the premium investors demand to hold the nation’s two-year securities instead of benchmark German bunds widening to 156 basis points, the biggest margin since 1997. Confidence in Portugal was shaken yesterday when it cut an issue of 12-month bills to 300 million euros ($417 million) from a planned 500 million euros.
Credit-default swaps on Portugal’s government debt soared 27 basis points to a 223, the most since at least 2004, according to CMA DataVision prices. Contracts on Greece jumped 14 basis points to 411.5, approaching the record 422. Spain CDSs increased 13 basis points to 165, Italy’s were up 7 at 138 and Ireland climbed 6.5 basis points to 169.5.
The focus is shifting toward Spain and Portugal, where the deficit-reduction plans have now been introduced, in the case of Portugal to finance their budget deficits they must also reduce and freeze the salaries of the "government" employees that number above 700 thousand public servants, some frinch benefits should also be stopped.
Energy companies should restrain from constantly incresing consumer prices such as Galp, BP, Cepsa and Repsol, there is no reason for Portugal to have one of the highest final consumer prices for petrol in the world, crude oil for March delivery fell 5 percent to $71.14 a barrel, however consumers are paying a price equivalent to $92.14 a barrel.
What these companies dont realise is that unemployed people don’t spend money....

The Monopoly

WorldWatch informs that the monopoly in petrol price fixing in one of the worlds oldest economies continues. During this month alone final consumer prices at the pump for motorits have increased by more than five cents per litre.
Now as crude prices have declined these same companies Galp, Cepsa, BP and Repsol decided to once more mislead the public and decreased the
petrol price, but only by one cent and only for diesel products, 95 regular Octane maintains the same inflated price of 1,349€ per litre.
Its due to these attitude that Portugal has a recession gripped economy..
Medical health care appauling..
Education outdated and very esxpensive..
Social services at the edge of collapse..
Corruption according to local newspapers is the only "service " booming..
Unemployment passes the 11% mark..
These are the good news possible related to Portugal....

Greek tragedy

Portugal has one of the worst economical economies in Europe, almostidentical to the Greek tragedy, all indications point to a continuing Of the dilemma as the country faces severe measures almost on a daily basis, as is the case with the petrol price paid by the motorist at the petrol filling stations across the country. Today the petrol company’s Galp, BP, Repsol and Cepsa increased final consumer price by a staggering two cents per litre.

A litre of Regular 95Octane is now 1.401 euro per litre, one of the most expensive in the world. This attitude is possible since the involved companies have the approval of the now useless socialist government to increase the final consumer price as they so desire. Europe Asia and the US have not left the recession zone, in fact some Nations are worse now than two years ago, we have the example of Greece, Ireland, Spain and Portugal that have serious budget problems, the increase in petrol prices will further reduce demand and public spending by more than 7% this year alone, this will be aggravated next year by a 2% increase in Tax to a record breaking 23%, this ridiculous measure taken by the useless Prime minister Socrates will have serious inverse economical effects on the economy and population whose unemployment rate is now over 10.5%.

Filling a normal 50 litre petrol tank the motorist must pay 6 € more than in January this year for the same amount.

Oil prices rose to near $83 a barrel Monday due to the stonger dollar and speculation that the U.S. central bank will soon move to bolstera spluttering economic recovery.