Falklands : Hydrocarbons Daily Record (17/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 18.07.2006 (Article Archived on 01.08.2006)
Players in the Mid-East Conflict have been told to cool it by the G-8.
HYDROCARBONS DAILY RECORD: MONDAY, 17 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Monday, 17 July 2006 Light Sweet Crude was down $1.73 Cents and settled at $75.30 on the New York Mercantile Exchange and Brent Crude lost.84 Cents to $76.74 per barrel on London’s ICE Futures Exchange.
TRENDS:
Crude prices fell significantly today on the speculation that fighting in the Mid East would slow down. The G-8 has formally asked both sides to stop fighting and for the kidnapped Israeli soldiers to be released.
THE MARKETS
FTSE:
At the close of play on Monday, the FTSE100 was 6.60 points lower at 5,701.00 with the FTSE250 down 59.00 at 9,017.0. The FTSE Small Cap Market was down 38.10 at 3,325.90
DOW JONES AND NASDAQ:
Slight rises in the markets today were due to more confidence that there will be an end to the fighting in the Mid East.
The Dow Jones Index added 0.07% and settled at 10,747.36 and the NASDAQ settled up0.22% at 2,037.72.
DEVELOPING FACTORS:
(Israel and Lebanon)
The major cause for the upward fluctuation of crude last week was due to the conflict in the Mid East. Hints that fighting could stop and a corresponding demand from the G-8 Summit in Russia, that both sides cease their fighting helped to build confidence in the Crude market today. Analysts in Lebanon feel that high oil prices are a fact of life and will not drop again
(India)
If India has its way there will be less dependence on hydrocarbons and more on nuclear energy.
(Russia)
Leaders at the G-8 Summit called on militant groups in the Middle East to stop attacking Israel and urged Israelis to avoid killing civilians and damaging Lebanon's infrastructure in responding to military and terrorist attacks from Hezbollah. President Bush had pressed members of the G-8 to condemn Hezbollah and its backers in Syria and Iran. Instead, the leaders on Sunday crafted a statement that, while chastising terrorist groups, calls on Israelis and Palestinians to take steps that would lead back to the road map peace plan.
(Iran)
Statements from Iran still indicates that the package of sweeteners is not worthy of an answer until Iran wants to say something – perhaps at the end of August. Given other nations in the region having nuclear power, Iran’s reluctance to sign up to the sweeteners is understandable. However, the G-8 feels that Iran could have ulterior motives for enriching nuclear fuel for power generation. For Example, Iran has made a statement that if anyone attacks Syria then it is an attack against the whole mid east region. Though Israel and Lebanon don’t have hydrocarbons reserves it is thought that if the war spreads to other countries in the region that has great reserves, the price of crude could escalate to $100.00 a barrel.
LATIN AMERICA:
Generally, recent rhetoric from left leaning countries that have nationalised their hydrocarbons industries have played second fiddle to the events in the Mid East. Investors in the region, are seeking alternatives and are investing in countries where the hydrocarbons industries are not nationalised.
(Ecuador)
Ecuador's new economy minister, Armando Rodas, said on Monday that he plans to maintain the same economic and fiscal targets laid down by his predecessor, Diego Borja. Ecuador's gross domestic product should grow by about 3.8%, while inflation should end the year at 3.1%, and the government's fiscal surplus will be 1.2%, Rodas told reporters at a press conference. Borja, who was replaced by Rodas on July 7, had forecasted GDP growth of between 3.8% and 4%, inflation of 3.1% and a surplus of between 1.2% and 1.4%. Rodas said his forecasts could be changeable depending on how crude oil prices perform. Rodas said the government hopes to receive $1.09 billion through the end of the year as a result of changes to the country's hydrocarbons law and the seizure of oil fields operated by Occidental Petroleum Company (OXY). The law changes would account for $255 million while the Occidental fields would generate $838 million, he said.
(Peru)
An announcement from Peru's Ministry of Energy and Mines on Monday said that several companies working in Peru's hydrocarbons industry are committed to investing $2.3 billion between 2006 and 2010. Peru has been trying to boost production in its undeveloped hydrocarbons sector for several years, and its efforts are paying off with new companies showing interest. Existing operators will pump more money into exploration and development. One of the biggest projects is an LNG plant being built by Peru LNG Co., south of Lima in Pampa Melchorita. Peru LNG is a joint venture led by U.S.-based Hunt Oil Co. with South Korea's SK Corp. (003600.SE) and Repsol YPF (REP). The venture plans to export liquefied natural gas to Mexico beginning in 2010.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 17.7.06
Desire Petroleum down 1.00p or 2.45 % on the day to stand at 39.75p
Falklands Oil and Gas down .50p or 0.47% on the day to stand at £1.07.00p
Rockhopper Exploration was unchanged on the day to stand at 39.5p
Border and Southern down 1.00 or 1.0o% on the day to stand at 46p
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