Falklands : Hydrocarbons Daily Record (22/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 23.05.2006 (Article Archived on 06.06.2006)
An announcement could be made about a rig for Desire Petroleum Plc at their annual general meeting.
HYDROCARBONS DAILY RECORD Monday, 22 MAY 2006
By J. Brock (FINN)
At 1800 LMT on Monday, 22 May 2006 Light Sweet Crude was $69.23 up .70 cents per barrel and Brent Crude at $69.35 up .67 cents per barrel.
TRENDS:
Stock markets worldwide continue to have an affect on the price of oil per barrel with worries about supply a major factor. Now that Shell’s Mars platform in the Gulf of Mexico is operational and will be in full capacity of 350,000 barrels a day by the end of June, the supply picture looks a lot better and this could reflect in tomorrow’s price per barrel.
A new trend is being set by the New York Stock Exchange bidding for Euronext, a European Stock Market conglomerate. Normally stock exchanges are national entities but this could change with stock exchanges acquiring others outside national boundaries.
MARKET REPORT (FTSE)
More misery was being piled on City investors today as the cracks in stock markets around the world grew bigger and the Footsie lost £31bn in value.
Another major sell-off in the Far East saw investors beating a ragged retreat in Hong Kong, where the Hang Seng index tumbled more than 500 points, or 3%, to close below 16,000 while in Tokyo the Nikkei 225 Average finished almost 300 points down. Singapore's Straits Times index also lost 3% and the Mumbai stock market had to be suspended to let things cool down.
In the event, the FTSE 100 index touched a low of 5538.9, then rallied for most of the day, before a late reversal saw the index 124.7 points down at 5532.7.
(NEW YORK STOCK EXCHANGE)
The Dow Jones index lost 0.17% and ended up at 11,225.33 on worries about rising interest rates and a slow down in US economic growth.
The NASDAQ continues to fluctuate downwards on reports of lower profits and profit warnings that are traditional quarterly indicators of how the technical companies are doing.
In general, the New York Stock Exchange has put a bid in of $10 Billion for the European market conglomerate, Euronext. Euronext is reported to be happy with the bid.
DEVELOPING FACTORS:
(United States)
Infrastructure that had been damaged during Hurricane Katrina last year is now coming back on line. It could be another month before newly opened facilities are on line. There are generally no concerns about supply – a factor that affects the price of hydrocarbons products.
(Africa)
It is hoped with Libya’s oil reserves will remain unhindered by terrorism, unlike the other reserves in the region. There remains a feel good factor about Libyan oil and the consistency of supply.
(Latin America)
President Chavez of Venezuela will be visiting Bolivia this week to have talks with President Morales about Bolivia’s hydrocarbons industry. It is thought that if there is any compensation for nationalisation of Bolivia’s industry, it would be the Bolivian investors that will be compensated.
(Falkland Islands)
It is hoped that at Desire Plc’s annual general meeting an announcement about a drilling partner will be made.
Falklands Oil Stocks End of Day Price for the 22.05.06
Desire Petroleum up 2.75p or 7.1% to end the day at 36p
Falklands Oil and Gas down 20p or 15.1% to end the day at £1.12.50p
Rockhopper Exploration up0.5p or 1.7% to end the day at 30p
Border and Southern shares remained unchanged on the day 47.75p
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