Falklands : Hydrocarbons Daily Record (06/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 07.07.2006 (Article Archived on 21.07.2006)
Mexico has a new president but the leftists are going to challenge the closely run race in the courts.
HYDROCARBONS DAILY RECORD: THURSDAY, 06 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Thursday, 06 July 2006 Light Sweet Crude was down 5 Cents and settled at $75.14 on the New York Mercantile Exchange and Brent Crude dropped 35 cents to $74.89 per barrel on London’s ICE Futures Exchange.
TRENDS:
Instability in and around countries that produce hydrocarbons has lead to the rather steep rise in the price per barrel of crude today. Several newspapers carry a story about it being unwise to invest in Iraq’s hydrocarbons industry due to the terrorism and vandalism on its oil related infrastructure. Analysts are predicting $100.00 per barrel crude due to the unrest and possible escalation of conflict in the Mid East.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was up 63.3 points at 5,890 with the FTSE250 ahead 40.3 points at 9,461.7 and the FTSE Small caps 14 points higher at 3,409.1.
DOW JONES AND NASDAQ:
A favourable court ruling relating to an award given to cigarette company’s lead to a rise on the DOW Jones and NASDAQ today.
The Dow Jones Index closed up .66% and settled at 11,225.30 and the NASDAQ closed up 0.08% and settled at 2,274.08
DEVELOPING FACTORS
(Iran)
New incentives have been offered to Iran to stop enriching nuclear fuel for energy generation. Iran maintains it’s their right to enrich fuel for energy generation but the European Community as well as the United States is impatient to get Iran’s answer. Iran wants to put things off until the end of August at least.
(Iraq)
Analysts are saying that it is not a good idea to invest in Iraq. They point to the rise in violence and vandalism as well as terrorism as reasoning for their advice.
LATIN AMERICA:
(Venezuela)
It was hoped that rhetoric about trade and benefits to infrastructure and people in the MERCOSUR block would predominate the media today after the announcement that Venezuela had joined the trade block. Unfortunately, the dreaded Falklands virus has impregnated the feel good feeling. People in the Falklands feel that the rhetoric is hydrocarbons related and class it as sabre rattling. One wonders if the rhetoric would be the same if the price per barrel were around $10.00.
(Mexico)
After the recount of the 41 Million votes cast in Mexico’s election on Sunday, Sr. Felipe Calderon has won the victory by an extra-slim margin. Supporters of Sr. Andres Manuel Lopez Obrador have vowed to take to the streets in Mexico if the votes are not hand-counted. Sr. Felipe Calderon had secured a lead of less than .01% or 250,000 votes on the recount. Sr. Obrador has vowed to challenge the results in court. At stake is Mexico’s philosophy concerning their economic future, with Sr. Obrador wanting to nationalise the hydrocarbons industry and Sr. Calderon wanting free trade markets to dictate his country’s wealth.
(Falkland Islands)
President Hugo Chávez, of Venezuela, met President Nestor Kirchner of Argentina on Tuesday signing a document urging Argentina and the UK to renew talks over the Falkland Islands. Britain rejects Argentina's claim to the islands, saying it is up to the Islanders to determine their own future. In the document Venezuela urged a "peaceful, fair and definitive solution to the sovereignty dispute ... including the principle of territorial integrity" and called on Argentina and the UK to renew negotiations "as soon as possible". Hydrocarbons have often been blamed for the continuing demand from Argentina for a financial cut from our hydrocarbons industry. It was a contributing factor, some believe, for the 1982 conflict. Indications are that the Falklands have huge reserves and at the price per barrel one can expect that South America will vie for a slice of the pie.
Falklands Oil Stocks End of Day Price for the 6.7.06
Desire Petroleum up 3.5p or 9.8% on the day to stand at 39.25p
Falklands Oil and Gas down 1.5 or 1.4% on the day to stand at £112.p
Rockhopper Exploration up 1.5 or 4.1 % on the day to stand at 38p
Border and Southern unchanged on the day to stand at 44p
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