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Gazprom Sees $250 Oil; Kenya Goes on $25 billion Spree; Vietnam Jacks Interest Rates to 14%; Oil Demand Slowing; U.S. Trade Gap Widens; Brazilian SWF; 3G iPhone Bobbles Apple Stock; XTO to Buy Hunt Petroleum
- Natural gas firm, Gazprom OAO (OTC: OGZPY) predicts oil would top $250 per barrel by the end of 2009, Chief Executive Alexei Miller said yesterday (Tuesday), speaking before reporters in France. Gazprom is the largest global gas producer with a market capitalization of over $330 billion, Reuters reported. The Russian firm expects to triple in size to become a $1 trillion company within the next seven to 10 years.
- Kenya's Planning Minister said the government plans to spend more than $25 billion over the next five years on economic development, Bloomberg reported. The spending spree is apart of Kenya Vision 2030, , AllAfrica.com reported.
- Vietnam's central bank increased the country's benchmark interest rate from 12% to 14% – the highest in Asia – to combat widespread inflation and currency speculation, Bloomberg reported. The government also hopes the rate increase to balance the country's stock index, which is lost nearly 60% this year.
- World oil demand will rise at its slowest pace in six years during 2008 as fuel subsidy cuts in Asia erode consumption, the International Energy Agency said yesterday (Tuesday). In its monthly Oil Market Report, the IEA also said global oil demand will rise by 800,000 barrels per day (bpd) this year, 230,000 bpd less than its previous forecast, Reuters reported.
- , the Associated Press reported. The Commerce Department reported yesterday (Tuesday) that the trade gap grew by 7.8% to $60.9 billion, the largest imbalance since March 2007.
- the Financial Times reported. Finance minister Guido Mantega told the paper that a bill to create the fund would be sent to Congress as early as this week.
- Shares of Apple Inc. (AAPL) recovered yesterday (Tuesday) after taking a dip on Monday with the announcement of the new 3G iPhone, which will be available July 11. Shares lost ground on news that AT&T Inc. (T) would no longer share revenue with Apple, rather the phone giant will subsidize the price of the iPhone, bringing it down to $199, TheStreet.com reported. Apple shares gained $4.03 to close at $185.64.
- XTO Energy Inc. (XTO) agreed to purchase Hunt Petroleum Corp. in a deal valued at $4.2 billion, Bloomberg News reported. It's the latest in a string of acquisitions for natural gas producer XTO, which will pay $2.6 billion in cash and $1.6 billion in stock for Hunt's wells in East Texas and Louisiana.