Falklands : Hydrocarbons Daily Record (17/10/06)
Submitted by Falkland Islands News Network (Juanita Brock) 17.10.2006 (Article Archived on 31.10.2006)
OPEC's proposed production cut has kept crude prices from dipping too low but better inventories in the US has kept prices steady.
HYDROCARBONS DAILY RECORD: TUESDAY, 17 OCTOBER 2006
By J. Brock (FINN)
At 1800 LMT Tuesday, 17 October 2006 Light Sweet Crude dropped $1.01 Cents to stand at $58.93 on the New York Mercantile Exchange and Brent Crude gained .06 Cents to stand at $61.72 on London’s ICE Futures Exchange.
TRENDS
There is nervousness due to the up and coming cut in production by OPEC. However it wasn’t enough to realise a downward trend in Light Sweet Crude and it only put 6 cents on Brent Crude. The major factor seems to be better inventories of heating oil in the United States than previously announced.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was down 63.77 points to settle 6,108.60 and the FTSE 250 fell 158.50 points to end at 10,219.70. FTSE Small Cap closed down 20.58 points to settle at 3,608.90.
DOW JONES AND NASDAQ
A rise in the core index by 0.6% in September caused nervousness on Wall Street today. Indicators are that the Federal Reserve Bank could raise interest rates when the board next meets.
At the end of play today the Dow Jones Index fell 30.08 points or 0.26% to settle at 11,950.02 and the NASDAQ fell 18.89 points or 0.80% to settle at 2,344.95
DEVELOPING FACTORS
(The People’s Republic of China)
The People’s Republic of China has joined in the search for hydrocarbons in the Orinoco River Strip that hopefully will turn Venezuela into a leader with the world’s largest hydrocarbons reserves and this after drilling planned oil wells. Venezuela’s Oil Corporation (CVP) Business Manager Pedro Leon has said that the first exploratory drilling of six wells is planned for the fourth bloc of Junin field. Spanish Repsol YPF has been appointed the seventh bloc in the Junin field. According to the seismic data the area allocated to the Chinese Oil National Company (CNCP) should have oilfields of 35 million barrels out of the 236 billion expected to be extracted from the Orinoco Strip. Classified as heavy crude oil, thought at first to be bitumen, Venezuela has resolved to classify this resource as oil, to add it to its 79 billion barrel reserves and turn the South American country into the biggest hydrocarbons reserve in the world.
DEVELOPING REGIONAL FACTORS
(Bolivia and Argentina)
In El Alto on Monday Bolivia’s President Evo Morales announced that talks about energy with Argentina recently should encourage investments from other foreign oil companies operating in the nation. President Morales and Argentine President Nestor Kirchner will sign a protocol agreement in Santa Cruz province between Juan Carlos Ortiz, head of state-run firm Yacimientos Petroliferos Fiscales Bolivianos, and Exequiel Espinoza, president of Energia Argentina Sociedad Anonima. Besides purchasing the Bolivian gas, Argentina will finance the construction of a refinery in eastern Bolivia’s Yacuiba province. President Morales stressed that such co-operation is possible thanks to the ongoing process of change (presumably nationalisation) led by his government, which will enable Bolivia to increase its international reserves.
(El Salvador and Venezuela)
Friction between Salvador’s government and the Farabundo Marti National Liberation Front (FMLN) continues over President Antonio Saca s refusal to sell Nicaraguans fuel at better prices. The main opposition party FMLN, are negotiating with Venezuela to buy oil, But this is interpreted by Saca s administration as political will to win sympathy in the area and finance the ex guerrillas. Soyapango Mayor Carlos Ruiz has denied that President Hugo Chavez government is interfering in El Salvador s internal policy. The FMLN mayor, says the municipal authorities are being obstructed by trans-nationals, by whom Saca is employed. He’s also President of ENEPASA, a joint company created to distribute Venezuelan hydrocarbons in the country.
(Falkland Islands)
Share prices at the close of play Tuesday, 17 October 2006
Desire Petroleum Plc ended down 0.50 or -1.52% on the day to settle at 32.50.
Falkland Oil and Gas Limited (FOGL) ended down 2.00 or -235% on the day to stand at 83.00.
Rockhopper Exploration ended unchanged on the day to settle at 39.50.
Borders & Southern ended down 0.50 points or 1.25% on the day to stand at 39.50
Tullow Oil ended down 1.75 points or 0.44% to stand at 393.00
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