Falklands : Hydrocarbons Daily Record (13/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 14.07.2006 (Article Archived on 28.07.2006)
The G-8 Summit begins on Saturday and energy will be on the agenda.
HYDROCARBONS DAILY RECORD: THURSDAY, 13 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Thursday, 13 July 2006 Light Sweet Crude was up $1.75 Cents and settled at $76.85 on the New York Mercantile Exchange and Brent Crude gained $2.30 Cents to $76.69 per barrel on London’s ICE Futures Exchange.
TRENDS:
The sharp rise in the price of crude today has two main causes. One is the escalation of the conflict between Israel and Lebanon, with the Israelis bombing Beirut and rockets being launched from Lebanon and hitting Haifa, Israel’s third largest city. The second indicator is worry about the supply of gasoline in the United States.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was 95.6 points lower at 5,765 with the FTSE250 down 185.2 points at 9,176.2 and the FTSE Small caps 34.6 points weaker at 3,387.6. Volume was thin with 2.68 billion shares changing hands in 343,843 deals.
DOW JONES AND NASDAQ:
The sharp declines in the market today are directly related to the problems in the mid east Nervousness about energy stocks has a direct affect on the stock market.
The Dow Jones Index dropped 1.50% and settled at 10,846.49 and the NASDAQ settled down 1.73% and settled at 2,054.10.
DEVELOPING FACTORS:
(Turkey)
The BTC Pipeline from the Caspian Sea and the Mediterranean Sea has been officially opened today. The United States is a supporter because the pipelines avoid going through Russia. The Caspian Sea is rich in natural gas.
(Israel and Lebanon)
The conflict between Israel and Lebanon lead to the sharp increase in the price per barrel of Light Sweet Crude and Brent Crude today. Any conflict in the mid east leads to increased oil prices. It is said that a full-blown war in the region would bring the cost per barrel of crude to $100.00.
(Russia)
Energy will be a major agenda item in the G-8 Conference in St. Petersburg beginning on Saturday. The United States is pushing for sanctions against Iran for continuing to enrich nuclear fuel for energy generation. Iran has rejected the timetable set by the United States, who wanted an answer to the proposals by Saturday, when the G-8 Summit begins.
(Iran)
Iran has made a statement that if anyone attacks Syria then it is an attack against the whole mid east region. This adds to the nervousness leading to an increased price per barrel of crude.
LATIN AMERICA:
Policies leading to increase the Governments’ take on multinational investments due to the high price of oil can work for good or ill in the region. If this extra money lines the pockets of a few people then it is ill indeed. However, a lot of good for the man in the street can be done if the money is spent in education, hospitals, roads and the like. This will take a longer rather than a shorter period of time. Five years would be a good indicator and a few improvements should appear in that time.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 13.7.06
Desire Petroleum down 1.25p or 3 % on the day to stand at 40p
Falklands Oil and Gas down .5p or 0.5% on the day to stand at £1.09.50p
Rockhopper Exploration unchanged on the day to stand at 42.5p
Border and Southern down 1p or 2.1% on the day to stand at 47.5p
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