Falklands : Hydrocarbons Daily Record (09/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 09.06.2006 (Article Archived on 23.06.2006)
Negotiations are still on-going from Tristan da Cunha about the grounded rig.
HYDROCARBONS DAILY RECORD: FRIDAY, 09 JUNE 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 09 June 2006 Light Sweet Crude raised $1.28 and settled at $71.63 on the New York Mercantile Exchange and Brent Crude raised $1.43 to $70.48 per barrel on London’s ICE Futures Exchange.
TRENDS:
Nervousness over Abu Zachab Al-Zarquawi’s death in Iraq caused crude prices to rise today. This outweighed optimism about the increasing supply of gasoline in the United States as well as Iran being positive about bilateral talks with the US, and EU about its processing of nuclear fuel for energy generation. The hurricane season’s first indicators of trouble also added to the price rise.
THE MARKETS:
FTSE 100
City investors have taken a big hit this week and faced some hefty losses. Today they set about clawing back some of the deficit, encouraged by a resilient performance overnight on Wall Street, where the Dow rallied from being 173 points down to close eight points up on the session.
Prices in London were marked higher as traders tried to find a new level. The FTSE 100 index jumped 92.3 points to 5655.2. The FTSE 250 index of second liners surged 211 to 9024.7.
DOW JONES AND NASDAQ
A look at core inflation in the United States provides a key reason why there was a sell off and a lower Dow Jones Index. The Fed was expected to pause but now it looks likely that there will be a rise in interest rates, so assets that are likely to fall in value are being sold off and investors are cutting their losses. It looks like tight money all around.
The Dow Jones Index closed 0.47% lower at 10,887.60 but the NASDAQ managed a 0.04% increase and closed at 2,146.19.
DEVELOPING FACTORS:
(LATIN AMERICA)
Peru
A License Contract for the Exploration and Exploitation of Hydrocarbons in Peru has been announced on Thursday. The contract was signed on June 8, 2006 between Gran Tierra Energy Peru and PeruPetro S.A. and will become effective once ratified by Supreme Decree, expected in July, 2006.
(EUROPE)
Belarus
Over last winter Belarus had to pay the higher price that was levied by Russia’s Gasprom for its natural gas. Now Belarus is selling off its state-owned energy distribution system, Beltranshaz. Though the price is attractive, one of the terms that Belarus wants is the go-ahead to search for hydrocarbons in Russia’s territory – namely Altay Province.
(UNITED STATES)
There is nervousness about the first indicators that there soon will be named storms in the Gulf region. Generally there have been good exploration results in Utah and elsewhere on land. The supply of gasoline is helping to keep prices down. Until late last century the United States was self sufficient with its energy supplies and there is a move to reduce its dependence on importing hydrocarbons products for domestic use.
(ASIA)
India
In the era of spiralling oil prices, and a perpetually energy-starved country like India, the role of a national oil company like ONGC in achieving energy security for the country become all the more crucial. The company’s strategic goal is to double reserves base from 6 billion tonne to 12 billion tonne by 2020. Several areas of interest will be explored for hydrocarbons in and around India.
FALKLAND ISLANDS
Falklands Oil Stocks End of Day Price for the 9.06.06
Desire Petroleum unchanged on the day to stand at 36.5.p
Falklands Oil and Gas down 3.5p or 2.8% on the day to stand at £1.22.50.p
Rockhopper Exploration up 0.25 or 0.9% to end the day at 26.75p
Border and Southern unchanged on the day to stand at 44p
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