Falklands : Hydrocarbons Daily Record (07/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 07.06.2006 (Article Archived on 22.06.2006)
Oil prices responded to the 6th straight week of rising hydrocarbons inventories.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 07 JUNE 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 07 June 2006 Light Sweet Crude fell $1.90 to $70.60 per barrel on the New York Mercantile Exchange and Brent Crude was down $1.67 to $70.83 barrel on Londonís ICE Futures Exchange.
Oil prices dropped on the news that the inventory is up for the 6th straight week. It is not known how long the trend will last because former Federal Reserve Bank Chairman Alan Greenspan told a US Senate Committee that he was sceptical about producers being able to pump enough to meet demand. News of a terrorist rebel attack in the Niger Delta fuelled nervousness for investors late in the day. Nigeria has cut its production of oil by .25% due to the rebel terrorism, as it becomes apparent that oil companies are ill equipped to cope with security problems in the region.
Share prices generally spent a nervous session that saw an early 31-point lead reversed and then exceeded. The FTSE 100 index eventually traded up 36.5 points at 5706.2 and the FTSE 250 index was ahead 33.7 points at 9108.90.
(DOW JONES AND NASDAQ)
The Dow Jones Index and the NASDAQ slumped for the third straight session on speculation that the Federal Reserve will raise interest rates when it meets later this month. This means tight money and difficult borrowing conditions.
The Dow Jones, after gaining back its losses earlier in the day closed down at 10,930.90 and that NASDAQ followed suit closing at 2,151.80.
Positive news is expected after Iranian officials read and inwardly digest the proposals and sanctions delivered to them by EU Foreign Policy Chief, Javier Solana. US President Bush also sounded optimistic about bilateral talks concerning Iranís enrichment of nuclear fuel for energy generation.
Security concerns were raised today when rebel terrorists attacked an oil facility in the Niger Delta, killing 10 security guards and kidnapping five South Korean oil workers. Concerns that the oil companies are ill equipped to cope with the increasing security threats have been refuted by company representatives. Thus far terrorism and vandalism has caused Nigeria to cut its oil production by 25%.
(Organisation of American States)
The 34 members of the Organisation of American States, meeting in the Dominican Republic are expected to discuss bilateral issues such as economics and trade. It is expected that there will be fringes talks about the hydrocarbons industries in Venezuela, Bolivia, Brazil and Chile.
Falklands Oil Stocks End of Day Price for the 7.06.06
Desire Petroleum up1.25p or 3.5% on the day to stand at 36.p
Falklands Oil and Gas up 4p or 3.5% on the day to stand at £1.30.50p
Rockhopper Exploration unchanged to end the day at 29.5p
Border and Southern unchanged on the day to stand at 44p