Falklands : Hydrocarbons Daily Record: Thursday, 14 December 2006
Submitted by Falkland Islands News Network (Juanita Brock) 15.12.2006 (Article Archived on 29.12.2006)
OPEC's decision to cut production by approximately 500,000 bpd has caused the price of crude to increase today.
HYDROCARBONS DAILY RECORD: THURSDAY, 14 DECEMBER 2006
By J. Brock (FINN)
At 1800 LMT Thursday, 14 December 2006 Light Sweet Crude gained $1.14 Cents on the New York Mercantile Exchange to stand at $62.51 and Brent Crude gained .69 Cents to stand at $62.02 on London’s ICE Futures Exchange.
TRENDS
OPEC’s decision to cut production by approximately 500,000 barrels a day has caused the price of crude to rise today. As for those cuts, there are a few factors that will give hope for investors. The most recent cut is not due until February 2007. It may not be implemented if crude prices stay above £60.00 a barrel. Thus far OPEC has increased production and the increase has swallowed up the current production cut of 1.2 million bpd. Consumers are the ultimate losers when crude prices go too high and there is a move afoot to switch to alternative fuels. Lessons were learned last northern summer when there was genuine pain at the pump. I am sure that they do not want to suffer the same in 2007.
THE MARKETS
FTSE
At the close of play on Tuesday, the FTSE 100 was up 35.54 points to settle 6,228.00 and the FTSE 250 gained 66.62 points to end at 11,049.10. FTSE Small Cap gained 16.20 points to settle at 3,804.20.
DOW JONES AND NASDAQ
At the end of play today the Dow Jones Index gained 99.26 points or 0.81% to settle at 12,416.76 and the NASDAQ gained 21.44 points or 0.88% to settle at 2,453.85. The S&P 500 gained 12.28 or 0.87% to settle at 1,425.49.
DEVELOPING FACTORS:
(India and China)
The Governments of India and China have announced that they are about to sign an agreement geared towards co-operation in exploring for hydrocarbons in third countries. Named were Syria, Sudan, Colombia and Nigeria.
(Kazakhstan and Ukraine)
Both countries have announced that they are seeking alternatives to hydrocarbons for energy generation and have expressed an interest in using nuclear fuel.
DEVELOPING REGIONAL FACTORS
(Tristan da Cunha)
Tristanians have been informed that a company called TITAN has been appointed to attempt to tow the stranded oil rig away and scuttle it in deep water. The company has chartered the fishing vessel Kelso and will be bringing down an advance party departing Cape Town this weekend 15-17th December. The Tug De Hong is due to arrive in Cape Town on the 17th December and will depart around Christmas with more personnel and equipment, including independent observers to ensure that our environmental concerns are addressed.
(Falkland Islands)
Share prices at the close of play on Wednesday, 13 December 2006
Desire Petroleum Plc ended up 0.75 or 2.14% on the day to settle at 35.75.
Falkland Oil and Gas Limited (FOGL) ended unchanged on the day to stand at 84.50.
Rockhopper Exploration ended up 0.50 or 1.25% on the day to settle at 40.50.
Borders & Southern ended unchanged on the day to stand at 40.00
Tullow Oil ended up 0.25 or 0.06% on the day to stand at 403.25
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