Falklands : Hydrocarbons Daily Record (13/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 13.06.2006 (Article Archived on 27.06.2006)
Investors are bracing themselves for higher interest rates.
HYDROCARBONS DAILY RECORD: TUESDAY, 13 JUNE 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 13 June 2006 Light Sweet Crude fell $1.80 and settled at $68.56 on the New York Mercantile Exchange and Brent Crude fell $2.01 cents to $66.92 per barrel on London’s ICE Futures Exchange.
TRENDS:
Many investors are deciding to downsize their interest in hydrocarbons due to the fall in the markets worldwide. The first tropical storm did not damage any of the oil infrastructure in the Gulf of Mexico and there is confidence that Iran will enter into bilateral talks about enriching nuclear fuel for energy generation.
THE MARKETS
FTSE:
Investors had to endure another day of misery as share prices around the world fell sharply amid worries about growing inflation and the prospect of further interest-rate rises. Wall Street fell 100 points overnight and the selling accelerated in the Far East this morning, with Tokyo dropping 4.3% - its biggest one-day loss in more than two years - to its lowest level since November. Another grey day for city investors as London was soon testing the 5500 support level as the FTSE 100 index slumped 101.3 to 5519.6, having briefly touched 5467.4, its lowest since 1 December last year. More than £23bn was wiped from the value of leading shares. The wider FTSE 250 index was down a further 259.5 at 8721.7. Just a month ago, it closed above 10,000 for the first time.
DOW JONES / NASDAQ:
Speculation that Global banks would raise interest rates to help curb inflation fuelled an 86 point drop in the Dow Jones and nearly 100 points in the NASDAQ. All of the gains made in 2006 have now been lost with billions shaved off the value of the markets.
The Dow Jones Index closed the day down 0.8% at 10,706.14 and the Nasdaq closed 0.9% lower at 2,072.47.
DEVELOPING FACTORS:
(Ecuador)
in the short term, Ecuador's expropriation of Oxy properties and its new hydrocarbons law will boost oil revenues but, in the long term, this might not be a good move. Officials staunchly defend the decision to seize the properties of U.S. oil giant Occidental (Oxy) four weeks ago. However, there is growing concern about the ramifications. The U.S. immediately stopped further talks on a free trade agreement, which likely will result in losses of $300 millions for Ecuadorean exporters. The move is seen as another in the latest of investor hostile actions by Latin American governments.
(India)
The Indian Congress has demanded that the Narendra Modi government immediately make public the official communication of the director-general (DG), Hydrocarbon, to prove that its claim of "more than 20 trillion cubic feet (tcf) gas found in the Krishna-Godavari (KG) basin" from the fourth well drilled by the Gujarat State Petroleum Corporation (GSPC), is correct.
Falklands Oil Stocks End of Day Price for the 13.06.06
Desire Petroleum down 2.5p or 7% on the day to stand at 33.25.p
Falklands Oil and Gas down 9.5p or 8% on the day to stand at £1.09.00.p
Rockhopper Exploration down 4.25p or 15.9% to end the day at 22.5p
Border and Southern unchanged on the day to stand at 44p
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