Falklands : Hydrocarbons Weekend Record (29 to 30 April 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 30.04.2006 (Article Archived on 14.05.2006)
There is no firm reported price for Light Sweet Crude or Brent Crude at the time of this writing. Prices will be quoted on Monday.
HYDROCARBONS WEEKEND RECORD (29 AND 30 APRIL 2006)
By J. Brock (FINN)
Reporting on barrel prices for Light Sweet Crude and Brent Crude will continue in Monday’s record. At present, there are different prices coming from various sources. When the reporting stabilises the figures will be given.
Contributing factors for per barrel prices include nervousness over Iran’s reluctance to comply with IAEA recommendations to the UN Security Council and outright defiance of any sanctions that could be placed against that country. Iran claims the nuclear enrichment programme is for power generation and not for military purposes. Another factor is Nigeria’s 20% cut in production due to recent terrorism near an oil refinery in the city of Werri in the Niger Delta. Though the blast caused minimal damage to the facility, fears are that the rebel group wanting a separate state in the Niger Delta will step up their violence in the area.
A third contributing factor is this weekend’s summit in Havana of three left leaning governments in Latin America. The resulting trade pact is called the “Bolivarian Alternative for the Americas.” President Castro of Cuba hosted President Alvo Morales of Bolivia and President Hugo Chavez of Venezuela. Negotiations on several trade subjects moved forward, including some for the hydrocarbons industry. Venezuela will supply Bolivia with oil at below market value prices and Bolivia will supply Venezuela with natural gas that it has in abundance. It is not yet known if this trade deal will affect US and UK oil interests in Latin America but trends will be monitored. President Chavez of Venezuela used the Vince Lombardi philosophy when summing up the summit’s affects by saying (translated) “the best defence is a good offence.”
Locally there is little affect on prices as Stanley Services buys fuel at the going rate when supplies run out. Any price fluctuations here will depend on what price the fuel is bought. It is hoped that enough supply can be obtained to wait until bulk fuel prices go down. However, this is thought to be unlikely when crud prices are fluctuating upwards.