Falklands : Hydrocarbons Daily Record (01/11/06)
Submitted by Falkland Islands News Network (Juanita Brock) 02.11.2006 (Article Archived on 16.11.2006)
Crude prices fluctuated today because there were less than satisfactory inventories of winter heating oil in the US.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 01 NOVEMBER 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 01 November 2006 Light Sweet Crude lost .70 Cents on the New York Mercantile Exchange to stand at $58.03 and Brent Crude lost .15 Cents to stand at $58.71 on London’s ICE Futures Exchange.
TRENDS
Crude prices fluctuated today on rising inventory figures. Heating oil, however, is not in the best levels and this caused nervousness in the market. Doubts that OPEC will make good on its decision to cut production by 1.2 million bpd abated a little today. OPEC, however, has increased its output to 30.18 million bpd from its September levels. Generally there is a release of tension across global markets, helping to keep crude prices low but entities who want higher crude prices could use the geopolitics issue to force prices higher.
THE MARKETS
FTSE
At the close of play today, the FTSE 100 was up 20.38 points to settle 6,149.60 and the FTSE 250 gained 36.73 points to end at 10,408.90. FTSE Small Cap gained 3.64 points to settle at 3,640.30.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index lost 50.91 points or 0.01% to settle at 12,031.02 and the NASDAQ lost 32.36 points or 1.37% to settle at 2,334.35. The S&P500 lost 10.13 points or 0.74% to settle at 1,367.81 and the NYSE lost 56.84 points or 0.65% to settle at 8,71.14.
DEVELOPING FACTORS
(Nigeria)
An investigation headed by the Nigerian Economic Crimes Commission (EFCC) will be carried out into why the sale of oil acreage that was offered in the open was sold under the table. Mallam Nuhu Ribadu, the Commission’s Chairman, has vowed to find out why the acreage was sold off without being declared by Nigeria's petroleum ministry, despite open bidding procedures designed to bring a measure of credibility to Nigerian oil licence awards.
DEVELOPING REGIONAL FACTORS
(Latin America)
Generally there are concerns about Daniel Ortega becoming President of Nicaragua as his last stint as president nearly 20 years ago did not work well, with the economy suffering severely. However, it is hoped that lessons learned during his last unsuccessful presidency will be applied and things will be better the second time around. Bolivia’s Evo Morales, Cuba’s Fidel Castro and Venezuela’s Hugo Chavez endorse the candidacy.
(Bolivia)
Time will tell whether international investors can live with 18% profits from Bolivia’s natural gas. Bolivia is expected to claw back 82% and it is hoped that the people will benefit with new roads, hospitals and schools, etc.
(Falkland Islands)
Share prices at the close of play on Wednesday, 01 November 2006
Desire Petroleum Plc ended unchanged on the day to settle at 34.00.
Falkland Oil and Gas Limited (FOGL) ended unchanged on the day to stand at 87.50.
Rockhopper Exploration ended unchanged on the day to settle at 43.00.
Borders & Southern ended up 0.50 or 1.35% on the day to stand at 37.50
Tullow Oil ended up 10.25 points or 2.63% to stand at 399.75.
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