Falklands : Hydrocarbons Daily Record (18/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 19.07.2006 (Article Archived on 02.08.2006)
Mercosur met today and will continue their meeting on Wednesday.
HYDROCARBONS DAILY RECORD: TUESDAY, 18 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 18 July 2006 Light Sweet Crude fell $1.76 Cents and settled at $73.54 on the New York Mercantile Exchange and Brent Crude fell $1.17 Cents to $74.75 per barrel on London’s ICE Futures Exchange.
TRENDS:
The roller coaster ride crude prices are experiencing is due to the Mid-East Conflict. Though there are proposed and actual diplomatic efforts to quell the violence, rockets and air attacks continue to plague the region, thus causing the panic that is affecting crude prices. There is speculation that the conflict is escalating so that crude prices will go higher. I hope this is not the case
THE MARKETS
FTSE:
Nervous over BP, Shell and the Gaming industry caused the markets to decline today.
At the close of play on Tuesday, the FTSE100 was 5681.70 with the FTSE250 at 9076.19 The FTSE Small Cap Market was 3,320.3
DOW JONES AND NASDAQ:
The markets could have been better today if there was more confidence in the Housing Construction Industry. According to analysts it has been at its lowest in 15 years. The lower oil prices helped to add points to the stock markets today.
The Dow Jones Index gained 0.48% and settled at 10,799.23 and the NASDAQ gained 0.27% and settled at 2,043.23.
DEVELOPING FACTORS:
(Israel and Lebanon)
The bombing and missile attacks continue on both sides – with Israel bombing Southern Lebanon to destroy Hezbollah infrastructure and Hezbollah firing missiles deeper into Israel. Rhetoric remains the same with neither side wanting to listen to recommendations put to them by the G-8.
(India)
If India has its way there will be less dependence on hydrocarbons and more on nuclear energy. Municipalities as well as the Farming industry are turning to alternative fuel for transport and machinery.
(Russia)
It is not known yet what affect the new pipeline from the Caspian Sea to the Mediterranean will have on Russia’s plans to pipe hydrocarbons throughout Europe. Meanwhile exploration companies are looking for hydrocarbons throughout producing areas of the country.
(Iran)
Given other nations in the region advocating nuclear power, Iran’s reluctance to sign up to the sweeteners presented to them last month 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:
Heads of State in MERCOSUR and associated countries are launching, on Tuesday a summit set the agenda for future meetings as well as to discuss policy on a wide range of subjects. Representatives from Argentina, Brazil, Paraguay, Uruguay and Venezuela, MERCOSUR’s new member, have been preparing for debates that the trading block will have with the European Union. The 31st Special Meeting of the Common Market Group taking place on Wednesday. It is thought that the hydrocarbons issue will be on the agenda.
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.
(Bolivia)
Bolivia’s Energy Ministry has announced that the nationalization of Bolivian hydrocarbons is materializing with the beginning of audits of nine oil companies on Tuesday. Government sources said a 5.2 million dollar budget was allotted for audits in 56 oilfields operated by nine firms, including subsidiaries of Spanish-Argentine Repsol YPF, Brazilian PETROBRAS, French-Belgian TotalFinaElf, and British Gas and British Petroleum. Hydrocarbon Minister Andres Soliz stated the audits will remove doubts of Bolivians about the true reserves of hydrocarbons.
(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.
(Venezuela)
The Governments of Trinidad and Tobago and Venezuela have made progress towards an agreement to share underlying hydrocarbons reserves on the maritime border, Trinidad and Tobago Minister of the Interior reported Tuesday. An agreement was drafted during the regular meeting of the Initiatives Committee held recently in Trinidad with the involvement of technicians from both countries, Efe reported.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 17.7.06
Desire Petroleum unchanged on the day to stand at 39.75p
Falklands Oil and Gas unchanged on the day to stand at £1.07.00p
Rockhopper Exploration was unchanged on the day to stand at 39.5p
Border and Southern unchanged on the day to stand at 46p
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