ARAB TIMES, THURSDAY, AUGUST 25, 2011
John Nielsen of the American
Automobile Association (AAA) demon- Iran denies it resumed petrol imports
strates charging a Nissan Leaf electric
car from an AAA roadside assistance
truck at the unveiling of North America’s A top Iranian lawmaker denied lished based on a misinterpretation Soudani was quoted by Mehr. It quot-
first roadside assistance truck capable of Wednesday he had said the oil-rich made by some media,” he added. ed Soudani as saying the decision to
charging electric vehicles in Los country had decided to resume petrol The remarks came after the Mehr import petrol also would allow the gov-
Angeles, California, on Aug 23. The imports, after the oil minister said Iran news agency quoted him as saying on ernment to meet daily petrol needs,
truck, which will also be able to provide was “self-sufficient.” Monday that the government had following a decrease in output he
traditional roadside assistance to gaso- “I do not confirm the report regarding decided to import petrol, targeted by blamed on a May 23 blast at the
line powered vehicles, will be deployed petrol imports into the country,” Nasser international sanctions on Iran over its southern Abadan refinery, Mehr
in a pilot program in six US metropolitan Soudani, deputy chairman of parlia- disputed nuclear programme. reported.
areas across the US including San ment’s energy commission, was quot- “The domestically produced petrol Oil minister Rostam Qasemi on
Francisco, Los Angeles, Tampa Bay, ed by the state television’s website as due to its low octane (rating) lacks a Tuesday dismissed the report, saying
Florida, Portland, Oregon and Knoxville, saying. desirable quality and has to be mixed” Iran was “self-sufficient” in petrol pro-
Tennessee. (AFP) “Unfortunately, the report was pub- with imported fuel with a better quality, duction. (AFP)
Naphtha, gas oil margins remain strong
Bulls prevail at end of ME crude Oct trade
SINGAPORE, Aug 24, (RTRS): Trade of miums as high as $2.50 a barrel to Dubai between $1.20 and $1.30 a barrel to for Swaps (EFS) for October fell by 10 China urged a “stable transition of istry official said.
October-loading cargoes in the Middle quotes, up from premiums as low as Dubai quotes, traders said. cents to $4.45 a barrel at 0830 GMT, power” in Libya and said on Wednesday ■ CRACK SPREADS
East crude market was nearly completed $1.70 last month. Oman crude cargoes were seen ending Reuters data showed, down from levels it is in contact with the rebel National Fuel oil’s September crack widened 9
after a sharp turnaround in valuations that Middle East condensate was still get- the month at premiums larger than 60 above $5 last week, before the Libyan Transitional Council, the clearest sign cents to a discount of $5.20 a barrel to
drove most grades to premiums from dis- ting support from a wide premium of cents to Dubai quotes, up from discounts rebels’ decisive advance against that Beijing has effectively shifted recog- Dubai crude, while the October discount
counts in early August. Brent over regional benchmark Dubai, as deeper than 30 cents at the start of the Muammar Gaddafi. nition to forces poised to defeat also weakened 8 cents to $5.99.
The restart of a crude distillation unit at a quick resumption of Libyan output month. The front-month EFS on June 15 Muammar Gaddafi. Gas oil’s September crack inched up 9
Taiwan’s Formosa Petrochemical Corp’s remained far from certain. This main- Abu Dhabi Murban was one of the few touched $9.20, the highest intraday value A Libyan rebel government would hon- cents to a premium of $17.73, while the
refinery at the weekend bolstered expecta- tained a competitive advantage for Qatari grades to weaken recently, slipping to a since the spread reached a record of our all the oil contracts granted during the October crack was also 11 cents higher at a
tions of strong demand for heavy sour grades over Australian Northwest Shelf premium as low as 10 cents a barrel to the almost $12 in October 2004. Muammar Gaddafi era, including those of premium of $18.00 a barrel to Dubai crude.
grades from September onwards. Refineries (NWS), traders said. ADNOC official selling price from above ■ DME OMAN Chinese companies, Ahmed Jehani, a sen- Naphtha’s September and October
across the region will also increase crude Perception of a tight condensate mar- 30 cents last week. October Oman traded on the DME ior rebel representative for reconstruction cracks to Brent both widened 12 cents to
intake in the run-up to winter. ket also crystalised on expectations of a The grade’s high quality makes it a added 4 cents to a premium of 64 cents to told Reuters in an interview. a discount of $4.37 and $4.34 a barrel
The bullish mood also permeated to limited number of cargoes to be sold in competitor with Brent-related grades, Dubai swap quotes at 0830 GMT, using the India’s Reliance Industries has aban- respectively.
the condensates market, where Qatar Tasweeq’s tender. which are expected to weaken with a settlement price for DME futures, the ICE doned plans to develop an offshore oil ■ OUTRIGHT PRICES
International Petroleum Marketing Co, or Naphtha and gas oil margins remained return of Libyan production. one-minute marker for Singapore and the exploration block in Oman six years after October ICE Brent was at $108.92 a
Tasweeq, was expected to sell deodorised strong, sending values of Qatar low sul- ■ EAST-WEST Brent-Dubai EFS as calculated by Reuters. signing a production sharing agreement barrel at 0830 GMT, down 7 cents from
field condensate (DFC) via tender at pre- phur condensate (LSC) to premiums of The Brent/Dubai Exchange of Futures ■ MARKET NEWS with the government, an oil and gas min- Tuesday.
Give-away to corporations: opponents
US overseas profit tax
US durable goods orders up in
holiday showdown set
WASHINGTON, Aug 24, (RTRS): “The tax holiday promoted by
July, ‘eases’ economic worries
Backed by powerful companies the WIN America coalition is a Businesses pulling back on spending: data
spending millions of dollars, real loser for hardworking
Washington lobbyists are fighting Americans,” Doggett told Reuters.
in the marble corridors of “It didn’t create jobs last time WASHINGTON, Aug 24, (AP): A surge in demand for autos points in morning trading. Broader indexes also increased.
Congress for a tax break on $1.5 and ... multinational corporations and aircraft drove orders for long-lasting manufactured Overall orders for durable goods rose 4 percent last month, the Commerce
trillion in profits held overseas to have no intention of using this Department said Wednesday.
escape the US tax man. repatriation tax windfall to create goods higher in July, easing fears that the US economy might The report “reinforces other data that the economy wasn’t at serious risk of recession
When lawmakers return next jobs. A bargain tax rate on foreign be on the verge of another recession. through July,” said David Resler, chief US economist at Nomura Securities. Retail sales
month from summer break, pow- profits, many hidden in tax The rebound in the auto industry helped offset a decline in orders for most and industrial production also held up well last month, he said.
erful high-tech and pharmaceuti- havens, would be an incentive for other factory goods. The data did offer a cautionary signal: a key category that tracks business investment
cal companies will step up their job creation abroad and even more Stocks rose after the better-than-expected report showed the biggest increase in plans fell 1.5 percent, the biggest drop in six months. That suggests businesses are
push for an overseas profit tax layoffs at home.” durable-goods orders since March, when the Japan earthquake disrupted supply chains pulling back on spending. Orders in all other major categories dropped, including com-
repatriation holiday and pose a test The repatriation tax holiday and slowed auto production. The Dow Jones industrial average gained more than 50 puters, electronic goods, and machinery.
for President Barack Obama. fight opens a window into the Resler and other economists also
The idea has been kicking game of writing tax law in warned that the turmoil in the stock mar-
around for months, gaining only Washington and the tightly knit kets could cause businesses to pull back
group of politicians and lobbyists further this month.
limited traction, but supporters “It remains to be seen whether firms
sense their moment may be near, who play it.
■ Duke Energy Corp CEO Jim cancelled or postponed planned orders,”
with the economy sluggish and Paul Dales, an economist at Capital
Obama searching for new ways to Rogers, a Southerner with ties to Economics, said in note to clients.
ignite business investment and Democrats, is a frequent public A durable good is a product that is
create jobs. speaker for WIN America, advocat- expected to last at least three years.
A repatriation tax holiday offers ing for the tax holiday. Rogers led a Economists view the report cautiously
just that, advocates say, although fund-raising committee to bring the because orders tend to fluctuate from
critics contend the proposal’s 2012 Democratic National month to month.
promises of economic stimulus are Convention to Charlotte, North Excluding transportation goods, orders
illusory and serve only to mask a Carolina, where Duke is based. The rose just 0.7 percent. It was the third
tax break costing the United States company guaranteed a $10 million straight gain in so-called core orders.
line of credit for the event. Demand for primary metals surged 10.3
$80 billion over 10 years.
The White House, so far, has ■ On a more private level, lobby- percent, the most since last November.
ists and aides said, Oracle Some of that increase was likely due to
stood firm against a holiday, refus- higher prices for metals such as copper.
ing to consider it outside the con- President Safra Catz and Cisco
text of making broad changes in Systems Inc CEO John Chambers Recession
the convoluted tax code. — both leaders of California high- Overall, orders rose to a seasonally
That stance could be strained as tech giants — have met lawmakers adjusted $201.5 billion in July. That is 35
the November 2012 elections near to talk up the WIN America cause. percent higher than the recession low hit
with 9.1 percent of Americans Besides Oracle and Cisco, two in April 2009. But it is still 18 percent
other WIN America supporters are below the level in December 2007, when
unemployed and Obama courting the recession began.
corporate support for his reelec- Apple Inc and Google Inc.
Employees of all four of these Demand for autos and auto parts
tion campaign. jumped 11.5 percent, the most in eight
firms have been generous Obama
Struggle supporters, altogether donating years. Aircraft orders, a volatile category,
$1.3 million to his 2008 campaign, soared 43.4 percent, after falling 24 per-
“As this economy continues to cent in June.
struggle, I think our case gets according to Sunlight, according Auto production is rebounding after a
stronger every day,” said to the Sunlight Foundation, a good slowdown caused by the Japan earth-
Republican Representative Kevin government watchdog group. quake. The Federal Reserve reported last
Brady, author of a repatriation tax ■ WIN America has hired dozens week that factory output rose 0.6 percent
holiday bill backed by 15 of former staffers of congressional in July, mostly because of an increase in
Republicans and eight Democrats tax writing panels, according to Alvaro Moreira (left), a recruiter for Duty Free Americas, interviews prospective employee Marquis Vinson as he looks for auto production.
in the House of Representatives. Sunlight. a job at the job fair in the James L. Knight Center on Aug 23, in Miami, Florida. The job fair, known as ‘For the People’ A big order by American Airlines
“Lowering that tax rate for a year Ex-Congressman Jim McCrery, Jobs Initiative, was organized by the Congressional Black Caucus and is part of a nationwide series of job fairs and town helped boost the aircraft sector. American
hall meetings. (AFP) Airlines ordered 100 new Boeing 737
to bring those dollars home, people once the top Republican on the
don’t understand why we’re not tax-writing House Ways and planes with fuel-efficient engines in July.
Manufacturing has been a key source
doing that. Some may view it as a
tax break, but others just see these
Means Committee, is lobbying for
the group. So is Jeff Forbes, for-
‘Economy remains in slump’ of economic growth since the recession
mer chief of staff to Senate officially ended in June 2009. But it
stranded profits that could do a lot began to slump this spring, along with the
Finance Committee Chairman
US budget ‘improves’: CBO
of good things,” Brady said. broader economy.
No Senate bill has emerged, but Max Baucus, a key player. Baucus Orders fell in April and June, partly
Democratic Senator Kay Hagan is played a central role in killing the because of supply disruptions stemming
considering one, her spokes- last attempt to get a repatriation from the March 11 earthquake in Japan.
woman said. tax holiday approved. He stood And a spike in gas prices earlier this year
“Repatriation is on the table,” firmly against an amendment WASHINGTON, Aug 24, (RTRS): A package next month to help boost an years, some $3.3 trillion below its previ- cut into consumer spending, reducing
offered in 2009 by fellow sweeping US budget deal has brightened economy that threatens to slide back into ous projection, CBO said. demand for big-ticket items, such as com-
said Chris Krueger, policy analyst the country’s fiscal outlook but unem- recession. At the same time, lawmakers Nearly two-thirds of that savings is due
at investment firm MF Global. Democratic Senator Barbara puters, appliances and furniture.
Boxer. It failed in a 55-42 vote. ployment will remain high over the near on a special congressional committee will to the deficit-reduction deal, which Several recent reports suggest the sec-
Like most analysts, however, he term, nonpartisan congressional forecast- try to squeeze more budget savings from passed earlier this month as part of a
said a new 12-member “super The stance taken by Baucus — a tor could be slowing further. A survey by
ers said on Wednesday. the tax code and popular benefit pro- package to raise the national debt limit. the Federal Reserve Bank of Philadelphia
committee” being formed to tack- member of the new deficit “super The report by the Congressional grams like Medicare. Another one-fifth is attributable to lower
committee” — will be crucial this showed that manufacturing in the mid-
le the federal deficit likely will not Budget Office is likely to add fuel to the Policymakers will have to balance aus- projected interest rates during the coming Atlantic region contracted in August by
embrace a tax holiday, as promot- time around for WIN America and debate over jobs and the economy that is terity and stimulus efforts over the com- decade, CBO said.
its allies, said aides and lobbyists. the most in more than two years. A
ed by a corporate lobbying group set to dominate Washington through the ing months, Obama’s fellow Democrats Stocks rose as much as 1 percent and Richmond Fed survey released Tuesday
called the WIN America cam- A Senate Finance Committee aide 2012 elections. said. Treasury bond prices fell as the figures and a New York Fed survey last week
paign. said only that Baucus “is examin- The recent budget deal, passed earlier revealed a stronger fiscal outlook than also pointed to slowdowns in those areas,
ing proposals in the context of this month after months of acrimonious
Underscores previously thought. Both markets later
The main reason? The White although not as severe as the Philadelphia
House and other Democratic comprehensive tax reform and the debate, will help slash projected budget The report “underscores the need for flattened out as other factors overtook region.
forthcoming deficit reduction deficits nearly in half over the next 10 the Joint Committee to propose a plan to early enthusiasm about the CBO data. Economists predict further weakness,
opponents want to use it as lever- help put America back to work, coupled
age as long as they can to gain efforts.” years, CBO said. The economic picture could worsen even as temporary factors fade. Falling
Nearly everyone on both sides of But economic growth will remain slug- with a blueprint to reduce the long term considerably if Congress extends tempo- stock prices and fear of another recession
concessions from corporations on gish through 2012, CBO said. It said the deficit,” said Democratic Representative rary tax cuts that were passed under
other tax reform issues. the repatriation debate agrees that may persuade consumers and businesses
the tax code, especially the part of unemployment rate, currently at 9.1 per- Chris Van Hollen, one of 12 lawmakers President George W. Bush. to hold back on big purchases. That could
“Repatriation ... is an important cent, will only fall to 8.5 percent by the named to the bipartisan panel. CBO’s budget projections assume that
it dealing with overseas corporate slow orders for industrial machinery,
bargaining lever - not one to be time voters head to the polls in November Republicans said the report showed those cuts will expire at the end of 2012. electronic goods and appliances.
given away easily by lawmakers,” profits, needs an overhaul. that Obama’s efforts to boost the econo-
2012. Democrats want to extend them for mid- Analysts have been scaling back their
he said. “The way we tax our multina- The economic picture is probably even my in the wake of the 2008-2009 finan- dle and low income taxpayers, while
tionals is broken,” said Duke forecasts for economic growth for this
Congress still feels burned by worse as grimmer data has emerged since cial crisis have not borne fruit. Republicans want to extend the tax cuts year and next.
the last repatriation tax holiday. Senior Vice President for Tax the office completed its work in early “A slight decrease in the projected for the wealthiest households as well. Michael Feroli, an economist at
Approved in 2004 with the back- Keith Butler in an interview, July, CBO Director Doug Elmendorf deficit is nothing to celebrate, particular- An aging population and rising health- JPMorgan Chase, projects the economy
ing of President George W. Bush, adding that Duke’s corporate tax said. ly when it is accompanied by the grim care costs will force Congress to raise will expand at only a 1 percent annual
that tax break did little to boost the return is 10,000 pages long. “The pace of the recovery has been news that CBO expects the national taxes or pursue further spending cuts if it rate in the second half of the year. That’s
economy, despite promises of job- But like other executives back- slow, and the economy remains in a severe unemployment rate to continue to exceed wants to keep deficits and debt under not much better than the 0.8 percent
creating investment. ing WIN America, Butler said tax slump,” Elmendorf wrote in a blog post. 8 percent well past next year,” House of control, Elmendorf wrote. growth that the government reported for
Democratic Representative reform will take too long and repa- That could complicate President Representatives Speaker John Boehner In the current fiscal year, which ends the first half of the year.
triation is needed now. Barack Obama’s re-election hopes and said in a statement. “The president’s poli- on Sept. 30, the government will spend The Federal Reserve this month said
Lloyd Doggett said another such cies were supposed to keep that from
“Repatriation would really give more ammunition to Republican $1.284 trillion more than it collects, that it expects weak growth for the next
corporate give-away would simply rivals who have criticized his economic happening.” according to CBO’s latest estimate. That two years. As a result, it said that it plans
be a mistake. Continued on Page 41
policies. The United States will rack up $3.487 is a $115 billion improvement over its to keep its short-term interest rate near
Obama plans to unveil a job-creation trillion in cumulative deficits over 10 last estimate in March. zero until at least mid-2013.