Falklands : Hydrocarbons Daily Record (29/01/07)
Submitted by Falkland Islands News Network (Juanita Brock) 30.01.2007 (Article Archived on 13.02.2007)
The rally in crude prices has fizzled out regardless of cold weather in the US.
HYDROCARBONS DAILY RECORD: MONDAY, 29 JANUARY 2007
By J. Brock (FINN)
At 1800 LMT on Monday, 29 January 2007 Light Sweet Crude lost$1.41 Cents to settle at $54.01 on the New York Mercantile Exchange and Brent Crude decreased .65 Cents to settle at $54.65 on London’s ICE Futures Market.
The rally in crude prices has fizzled out largely due to Saudi Officials being adamant that they would not recommend cuts in production. Forecasts of cold weather in the US were not enough to change the downward trend.
FTSE 100 closed at 6,239.90 up +11.86
FTSE 250 closed at 11,104.70 down -13.90
FTSE Small Cap closed at 3.959.50 up 9.25
DJI closed at 12,490.78 up +3.76
NASDAQ closed at 2,441.09 down +5.60
S&P500 closed at 1,420.62 down -1.56
Iraq has not, as hoped, ratified its new draft hydrocarbons law. Iraqi parliament realises, however, that outside investment is needed if the industry’s ageing and minimally maintained infrastructure is going to get a much needed refit. It is thought that a variety of obstacles have been put in the way of the legislation, including those from the Kurds, who feel the draft law does not adequately reflect their interests.
Saudi Officials continue stress their philosophy of keeping crude prices close to $50.00 per barrel and not cutting production. This comes as there have been speculative attempts to put the fear of production cuts into the minds of investors.
President Evo Morales of Bolivia has announced on Monday that one of his colleagues as CEO of Yacimientos Petroleos Fiscales Bolivianos (YPFB). Bolivia's state energy company. Though opposition leaders say Mr. Olivera is woefully unqualified, he replaces Juan Carlos Ortiz, who resigned on Friday. It is expected that Mr. Olivera will conclude the state acquisition of four partially privatised oil companies as well as seeking higher prices for natural gas sold to Brazil.
On Monday Venezuela’s parliament added hydrocarbons to list for the grant special powers the country’s President, Hugo Chavez. The vote will allow President Chavez to rule by decree in a number of areas. The vote is expected to take place on Wednesday. President Chavez had requested the powers for the past 18 months in an attempt to establish a socialist system for Venezuela.
Relevant Share Prices for Monday, 29 January 2007:
Tullow Oil up 0.50 to stand at 403.25
Desire Petroleum up 0.25 at 29.75
FOGL Up 0.50 to 92.50
Rockhopper Exploration up 3.75 to stand at 42.00
Borders & Southern unchanged at 34.00