Stop oil speculators : Mukhriz

KUALA LUMPUR: Malaysia should take the initiative to urge nations to work together and stop oil speculators in their tracks, Jerlun MP Datuk Mukhriz Mahathir said.
He added that the worrying rise in global crude oil prices, which went up from US$50 (RM163) per barrel in January last year to US$140 (RM457) per barrel recently would push Malaysia to scrap its fuel subsidies by the end of the year if the price spikes were not halted.
Mukhriz said the cause was not due to less production of oil, but due to oil speculators, whose international trading activities had caused an artificial rise in oil prices.
He added that the amount of money invested in the oil futures market was actually larger than the money used to buy and trade oil.
Mukhriz said oil trading firms such as Goldman Sachs correctly predicted in August last year that the global oil price would go up from US$75 (RM245) to US$95 (RM310) per barrel by December.
The oil futures traders such as Goldman Sachs are not trading in actual oil, but the value of the production of oil itself or termed as paper oil, he added.
"In 2003, trade in paper oil in New York, London and Singapore bourses came to 100 million barrels, which had nothing to do with the actual trade in oil.
"Recently Morgan Stanley issued a statement that the oil price will reach US$150 (RM489) per barrel this month while Goldman Sachs predicted that oil prices will reach US$200 (RM653) per barrel by the end of the year," he said in his speech in debating the mid-term review report of the Ninth Malaysia Plan.
Mukhriz said the Government should not give in to the oil speculators, whom he described as immoral and think of nothing of causing economic hardship to poorer countries.
He added the Government should do what it had done for the ringgit in 1998, by protecting the oil prices from being manipulated by speculators and launch a counter-offensive by calling on the world to stop the excessive activities of speculators. Mukhriz called on the Government to seriously consider several suggestions being bandied about to stop oil speculators.
"The developing countries should call for a meeting to seek measures to transfer oil pricing activities out of the hands of speculators to governments.
"The Indian finance minister suggested that oil prices should be controlled and not be left to free market forces.
"Our foreign minister has called for the Organisation of the Islamic Countries to form a task force to seek measures against oil price speculation.
"Malaysia should call on oil-producing nations to carry out direct oil trade on a contract basis between the buyer and seller and not be left to the free market which can be manipulated by oil speculators.
"We should urge the Inter-continental Exchange which carries out oil trading to be more transparent," Mukhriz added.

Government not listening to people, says MP
THE recent Government measures to stem the economic fallout due to the rise in world oil prices should be described as weak and unacceptable, Nasharuddin Mat Isa (PAS-Bachok) said.
He added the Government had not been listening to the people on the hardships they were facing due to the recent hike in fuel prices.
For example, Nasharuddin said the mid-term review report of the Ninth Malaysia Plan (9MP) had not taken into consideration the recent rise in global oil prices.
"What is the value of development to be paid for with RM230bil when the low-income groups and the government servants cannot enjoy this wealth and are living from hand to mouth daily?
"The Prime Minister had stated that the recent measures to rise fuel prices couldn't be helped due to pressure from outside forces.
"For us, this reasoning is weak and negative. We are sure that the Government can do something better than this. Unfortunately, it has not been listening to the people.
"In fact, more people will hold a protest this Sunday to express their unhappiness on the situation," he said in his speech during the debate on the mid-term review of the 9MP.
Nasharuddin also questioned why the country is contributing money to the Commonwealth Endowment Fund in conjunction with the 100th anniversary of the Commonwealth when the money could be used to finance the repair of schools.
He questioned how much was given to the fund, adding that priority should be given to schools and schoolchildren.

tunku : the difference between the two mp's above is one (mukhriz) gave suggestion and the other one(nasharudin) only knows how to complaint.we want our opposition to be more suggestive when debating issues.