Falklands : Hydrocarbons Daily Record (04/10/06)
Submitted by Falkland Islands News Network (Juanita Brock) 05.10.2006 (Article Archived on 19.10.2006)
Saudi Arabia says it will work closely with OPEC at the next meeting about cutting production.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 04 OCTOBER 2006
By J. Brock (FINN)
At 1800 LMT Wednesday, 04 October 2006 Light Sweet Crude gained 73 Cents to stand at $59.41 and Brent Crude dropped 13 Cents to stand at $58.30.
TRENDS
Kuwait could cut production unofficially to follow Nigeria and Venezuela in the trend thought to curb the severe drop in crude prices.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 29.41 points to settle 5,966.50 and the FTSE 250 gained 42.25 points to end at 10,006.20. FTSE Small Cap closed up 9.23 points to settle at 3,544.80.
DOW JONES AND NASDAQ
Today’s close reflects the second day that the DJI has closed with its highest ever average. The economy and speculation that the FED will keep interest rates at 5.25% has fuelled the rises.
At the end of play today the Dow Jones Index was up 122.87 points or 1.05% to settle at 11,850.21 and the NASDAQ gained 47.30 points or 2.11% to settle at 2,290.95.
DEVELOPING FACTORS
(OPEC and Saudi Arabia)
Given the trend to unofficially cut production, Saudi Arabia has announced it will work with OPEC to bring oil prices to a “reasonable level. Saudi Arabia’s Ambassador to the US, Turki al-Faisal said his government will vote according to international best interest at the next OPEC meeting, due to take place in early December. It is possible that OPEC will cut production at that meeting but it depends on whether the price of crude does between now and then.
DEVELOPING REGIONAL FACTORS
(Bolivia)
A Bolivian congressional commission presented today a recommendation that the deadline for completion of nationalisation contracts be put back 30 or 60 days so that negotiations can continue without pressure. However, Bolivia's oil and gas minister reaffirmed a Nov. 1 deadline for full nationalisation of the petroleum reserves, but stopped short of confirming that the cut off date could be changed. With the option of leaving Bolivia if unsuccessful, foreign oil companies have six months to negotiate new contracts giving majority control of their Bolivian operations to the state. At a press conference on Tuesday, Hydrocarbons Minister Carlos Villegas said the Bolivian government is working with the effort, intention and hope that foreign energy companies would sign new contracts before the cut off date. He acknowledged, however, that the negotiations might take more time and that it is difficult to judge when they might be completed.
(Bolivia and Venezuela)
Bolivia’s President Evo Morales and Venezuela’s President Hugo Chavez will finalise a deal next week to build a gas plant Rio Grande, eastern Santa Cruz province. They have used the Bolivian Alternative for Latin America (ALBA) framework as a guideline for the project. Presidents Morales and Chavez are expected to place the cornerstone for the $150Million construction. A joint venture between state Petroleos de Venezuela S.A. (PDVSA), with 49 percent of the shares, and Yacimientos Petroliferos Fiscales Bolivianos (YPFB), with 51 percent will construct the gas plant, which is slated to produce domestic natural gas. A similar gas plant near the border with Argentina could be the next ALBA joint venture project.
(Falkland Islands)
Higher prices caused by the increased cause of fuel over the winter will take time to decrease. It is hoped that stocks of fuel bought into the Falklands were negotiated at a reasonable price and recently to get the benefit of lower prices.
Share prices at the close of play on Wednesday, 04 October 2006
Desire Petroleum Plc ended down 0.50 points or -1.48% on the day to settle at 33.25.
Falkland Oil and Gas Limited (FOGL) ended up 1.00 point or 1.27% on the day to stand at 79.50.
Rockhopper Exploration ended up 0.50 points or 1.25% on the day to settle at 40.50.
Borders & Southern ended unchanged on the day to stand at 41.00
Tullow Oil ended down 9.00 points or 2.44% to stand at 359.25
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