Falklands : Hydrocarbons Daily Record (05/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 05.06.2006 (Article Archived on 19.06.2006)
Iran's roller-coaster rhetoric is causing the price of oil to rise today.
HYDROCARBONS DAILY RECORD: MONDAY, 05 JUNE 2006
By J. Brock (FINN)
At 1800 LMT on Monday, 05 June 2006 Light Sweet Crude rose 27 cents to $72.60 per barrel on the New York Mercantile Exchange and Brent Crude was at $71.45 barrel, down 42 cents on London’s ICE Futures Exchange.
TRENDS:
Oil prices in a tight market rose today because Iranian officials continued their roller-coaster rhetoric about coming to bilateral talks with the US and the European Union. Today Iran threatened to stop exporting oil. Iran will be getting the document of incentives and sanctions when EU Foreign Policy Chief Javier Solana arrives in Iran this week. It is well known that worries over supply cause oil prises to rise.
THE MARKETS:
FTSE
FTSE 100 5,776.80 +0.47% and the FTSE 250 9,408.90 +1.06%
DOW JONES AND NASDAQ
Worries about inflation and a threatened rise in the US Federal Reserve Bank interest rate fuelled a sell off at the New York Stock Exchange.
Dow Jones Index closed down 1.75% at 11,050.56 and the NASDAQ closed down 2.22% at 2170.07.
DEVELOPING FACTORS:
(Iran)
EU Security Chief, Javier Solana, is on his way to Iran to deliver the package of incentives and sanctions worked out in Vienna last week. Iran has threatened to stop exporting oil if it is forced to stop enriching nuclear fuel. This was enough to cause nervous stomach in investors. It is not known what the reaction will be on Tuesday, or indeed when the Iranians finally have a look at the proposals and sanctions
(Latin America)
The Bolivian government said on Sunday that its talks over the price it sells gas to Argentina have been quagmired after Argentine officials revealed the gas Argentina buys from Bolivia is piped to Chile. It is thought that Bolivia refuses direct talks with Chile because a 19th century war deprived them access to the Pacific Ocean.
On Thursday an El Mercurio report that ten of the world's top oil companies have expressed interest in exploring for natural gas in Chile indicated that the country would, if the resources were exploited, be more self sufficient in gas supplies.
A visit to Bolivia by Soliz's Argentine colleague, Julio de Vido, to finalize the new contract was postponed indefinitely two weeks ago. Bolivia exports daily up to 5.5 million cubic meters of gas to Argentina, earning roughly US$3.18 per British Thermal-unit.
Negotiations with the Brazil have been stalemating. Bolivia at present provides Brazil with up to 30 million cubic meters per day – half the daily requirement - at roughly $US3.25 per British Thermal Unit. Petrobras had expressed interest in increasing volumes. However, it is now looking to increase domestic natural gas production and eventually wean itself off Bolivian gas. The company has the most to lose from Bolivia's nationalization plans.
The general trend is for Bolivia and Venezuela’s neighbours to find alternatives within their own nations to importing hydrocarbons from them.
The People of Peru have stopped a trend begun by Venezuela by electing Alan Garcia to be their next president. President Chavez of Venezuela had urged the Peruvian people to vote for Left Leaning Ollanta Humadia but the President elect won with a 55% majority.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 2.06.06
Desire Petroleum down 0.75 or 1.6% to end the day at 39.p
Falklands Oil and Gas up 1p or 0.8% on the day to stand at £1.19.50p
Rockhopper Exploration unchanged on the to stand at 28.5p
Border and Southern unchanged on the day to stand at 44p
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