Falklands : Hydrocarbons Daily Record (13/09/06)
Submitted by Falkland Islands News Network (Juanita Brock) 13.09.2006 (Article Archived on 27.09.2006)
OPEC discussed how to calm a volitile market today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 13 SEPTEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 13 September 2006 Light Sweet Crude gained .21 Cents to stand at $63.97 and Brent Crude gained .31 Cents to stand at $63.30.
TRENDS
There is optimism in the mid east over the talks between Iran and Iraq, in hopes there will be peace in the region. Pre negotiations between a broad representative group in Gaza and Israel could help to ease tensions in the region as well. It is not clear at this time if the coalition will recognise Israel. If they do, things can move forward. Talking also helps to ease the price of crude oil.
A US Government report that crude supplies were significantly lower contributed to the slight rise in prices today. It is hoped that with the price lower that those responsible for buying in reserves of Crude will take advantage of lower prices and purchase supplies to help rectify the problem. It would be unwise to wait until prices gained more to purchase these supplies.
Nigerian oil workers have struck for three days over security problems in the Niger Delta. This also put the pennies on the price of crude today.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 3.28 points to settle 5,892.20 and the FTSE 250 added63.74 84.83 points to end at 9,669.20. FTSE Small Cap closed up 9.58 points to settle at 3,462.20.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index gained 45.23 points or 0.39% to settle at 11,543.32 and the NASDAQ closed up 11.85 of 0.04% to settle at 2,227.67.
DEVELOPMENTS:
(OPEC)
Eleven members of The Organisation for Petroleum Exporting Countries (OPEC) are meeting this week in Austria. While meeting in Vienna OPEC will be considering how to cope with crude price rises, as well as the increasingly volatile market and other issues related to selling crude. According to the agenda, the discussion is entitled, “OPEC in a new energy era: challenges and opportunities.” OPEC will have to deal with short term issues like where the demand comes from and how much will be needed, predictable supply and security of the supply. Also, investment, technology and market tightness were discussed. The agenda also points out the focus on the global energy outlook, oil production capacity expansion and the role of OPEC in a new energy era. As well as OPEC countries, there are representatives from consuming nations and other hydrocarbons experts attending the seminar. The cartel hopes to calm market volatility but it is thought that a calm market runs hand in hand with peace and security in oil producing countries.
DEVELOPING REGIONAL FACTORS
(Bolivia)
Petrolíferos Fiscales Bolivianos (YPFB), Bolivia’s state oil company, assumed ownership of oil and liquid gas produced in the country on Wednesday, 13 September. A Ministry of Hydrocarbons communiqué stated that YPBF today began taking over ownership rights of its own reserves. Now the state company has the exclusive rights to export crude, liquid gas, oil and derivatives. Reserves of natural gas were nationalised on 01 May this year. An Energy Ministry delegation is talking with Bolivian owned oil companies to help them to adapt to nationalisation by signing of new contracts that comply with government models. Private foreign owned oil companies are still awaiting the negotiation of their contracts to do business in Bolivia.
(Falkland Islands)
Share prices at the close of play on Wednesday, 13 September 2006
Desire Petroleum Plc was up 0.50 points or 1.42% on the day to settle at 35.75.
Falkland Oil and Gas Limited (FOGL) unchanged 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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