Falklands : Hydrocarbons Daily Record (31/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 01.08.2006 (Article Archived on 15.08.2006)
President Chavez of Venezuela is in Iran encouraging 3rd World countries to support Iran's enriching nuclear fuel for energy generation.
HYDROCARBONS DAILY RECORD: MONDAY, 31 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Monday, 31 July 2006 Light Sweet Crude gained $1.16 Cents and settled at $74.40 on the New York Mercantile Exchange and Brent Crude gained $1.76 Cents to $75.15 per barrel on London’s ICE Futures Exchange.
TRENDS:
Geopolitics tends to be the dominating factor in the scheme of things today with Israel breaking its promise to stop the bombing for 48 hours. It resumed after only 24 hours while diplomatic efforts continue in the mid east at the highest level despite accelerated fighting. The Israeli Prime Minister said that now is not the time to cease the bombing. True to form the US is pointing the finger at Iran and Syria for supplying the Hezbullah with weapons. Predictions of $100.00 per barrel crude, though disappointing, seem likely if fighting in the region continues. Analysts do not see this conflict ending soon.
Keeping cool in the US, Europe and China as well as driving during summer made demand for hydrocarbons products higher. However, the hurricane season that began on 01 June has not proved to be a threat – yet. Infrastructure in the Gulf of Mexico is safe for the time being. Some reports say that it has not all been repaired from last hurricane season.
Purchasing fuel for precautionary inventories continues. When there are supply worries fuel can be bought in at a higher price instead of waiting for a lower price. This practice affects the price of crude in that if the inventory is bought at a high price, crude prices will go up and if it is bought at a low price, crude prices will go down. The size of the increase or decrease depends on what the savings or added expenditure for the inventory is.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was 46.60 points lower at 5,928.30 with the FTSE250 down 13.90 points at 9,355.60 and the FTSE Small caps up 6.00 settling at 3,383.60.
DOW JONES AND NASDAQ:
The predicted economic slow-down in the United States caused the markets to decline today.
The Dow Jones Index fell 34.02 points or 0.3% and settled at 11,185.68 and the NASDAQ lost 2.67 points or 0.13% and settled at 2,091.47.
DEVELOPING FACTORS:
(Iran)
The UN Security Council has given Iran until 31 August 2006 to give up enriching nuclear fuel for energy generation or face UN sanctions. Thus far there has been minimal response from Iran, as it is hosting Venezuelan President Hugo Chavez on his round the world tour.
(Qatar)
Royal Dutch Shell PLC and Qatar Petroleum are launching a natural gas liquids venture in Qatar. The Pearl project features development of offshore natural gas reserves in Qatar's North Field. The project will also include transporting and processing the gas to extract natural gas liquids and ethane and the conversion of the remaining gas into liquid hydrocarbons. It is expected the output will be some 1.6 billion cubic feet per day of wellhead natural gas to produce about 120,000 barrels of oil equivalent per day of condensate, liquefied petroleum gas and ethane.
LATIN AMERICA:
(Venezuela)
Venezuela’s President Hugo Chavez called on third world countries to support Iran’s right to develop and make peaceful use of nuclear energy. He said on Sunday to the Tehran Times, “Now that the world is faced with the reduction of oil output and the growth of consumerism, it is better to seek alternative energy resources that can be substituted for the fossil fuel,” he told a joint press conference with his Iranian counterpart Mohamed Ahmadinejad before leaving Iran for Vietnam. He also told a press conference that there were no plans to cut off oil supplies to the US.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 31.7.06
Desire Petroleum down 0.75 points or 1.79% on the day to stand at 41.25p
Falklands Oil and Gas was up 8.50 points or 7.94% on the day to stand at .115.50p
Rockhopper Exploration was unchanged on the day to stand at 40.00p
Border and Southern was unchanged on the day to stand at 47.00p
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