Falklands : Hydrocarbons Daily Record (12/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 12.09.2006 (Article Archived on 26.09.2006)
Now that OPEC has agreed to keep production steady at 28 million barrels per day, the price of crude has dropped, giving relief to customers at the pump.
HYDROCARBONS DAILY RECORD: TUESDAY, 12 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Tuesday, 12 September 2006 Light Sweet Crude fell $1.85 Cents to stand at $63.76 and Brent Crude fell $1.56 Cents to stand at $62.99.
TRENDS
Agreement in Vienna that OPEC will not cut production has been a major factor in the drop in crude prices today.
Efforts for dialogue between Iraq and Iran have also added to ease in the Mid East and less nervousness amongst investors, who are hopeful that stability will replace violence in Southern Lebanon.
With Mexico now taking up deepwater exploration in the Gulf of Mexico, there is an excellent opportunity to find out the hydrocarbons potential of the whole region. With its proximity to major markets and refineries, this could be a winning combination for both the US and Mexico.
Supplies of gasoline in the United States remain good, with the winter heating season not yet happening.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 44.73 points to settle 5,895.50 and the FTSE 250 declined 84.83 points to end at 9,605.50. FTSE Small Cap closed 8.11 points to settle at 3,452.60.
DOW JONES AND NASDAQ
Despite a record US trade deficit of $68Billion, Wall Street had a stunning day. The sharply lower price of crude had a hand in this.
At the end of play today the Dow Jones Index gained 101.25 points or 1.96% to settle at 11,498.09 and the NASDAQ closed up 42.57 of 0.04% to settle at 2,215.82.
DEVELOPMENTS:
(United States and Mexico)
The discovery by Chevron and partners of a vast deep water oilfield in the Gulf of Mexico means that there could be extensive oilfields on the Mexican side of the international boundary. Mexican Energy Secretary Fernando Canales, who is attending the OPEC Seminar in Vienna said on Tuesday that he was enthusiastic about the possibilities of a discovery in his country’s deep water frontier. He went on to say that Petroleos Mexicanos, the state owned energy company, has a deepwater has three wells drilled so far in its own deep water exploration programme but that the industry needs investment if the full potential of its oil and gas acreage is to be fully known..
(OPEC)
As Reported on Monday, a major factor in the crude price drop was the indication by OPEC delegates that they did not intend to cut production. At the moment they are producing to capacity at 28 million barrels a day. OPEC has now agreed not to cut production.
DEVELOPING REGIONAL FACTORS
(Venezuela)
Minister Rafael Ramirez said in a statement to the Organization of Petroleum Exporting Countries (OPEC) to watch the world oil market and prevent prices from falling before the group's next meeting in December. "There's a consensus to wait and evaluate price behaviour in the coming months. Depending on that evaluation, a decision will have to be made at the end of this year or early in 2007," he said. Crude prices plunged to below 66 dollars a barrel on Monday, because Iran said it might consider halting its uranium enrichment program prior to talks with the EU and UN. OPEC officials also said they would maintain the group's 28 million barrel-a-day production target. Venezuela, the world's fifth-largest oil exporter and a founding member of OPEC, has been campaigning for high oil prices within OPEC and says that there should be a minimum crude price of around $55.00 per barrel.
(Falkland Islands)
Share prices at the close of play on Tuesday, 12 September 2006
Desire Petroleum Plc was down 0.75 point or 2.08% on the day to settle at 35.25.
Falkland Oil and Gas Limited (FOGL) fell 3.00 points or 2.67% on the day to stand at 109.50.
Rockhopper Exploration ended unchanged on the day to settle at 40.00.
Borders & Southern ended unchanged on the day to stand at 45.25
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