Falklands : Hydrocarbons Daily Record (07 August 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 08.08.2007 (Article Archived on 22.08.2007)
Easing economic worries helped to flatten volitility in the price of crude today.
HYDROCARBONS DAILY RECORD: TUESDAY, 07 AUGUST 2007
By J. Brock (FINN)
At 1800LMT on Monday, 06 August 2007 Light Sweet Crude was trading at $72.42 up 36 Cents on the New York Mercantile Exchange and Brent Crude was trading at $71.13 down 4 Cents on London’s Ice Futures Market.
ANALYSIS
Economic worries eased today when the Federal Reserve Bank announced it would not be raising the interest rate and that it stands at 5.25%. This helped to flatten volatility and helped the price of crude to remain relatively flat today. Prices, however, still remain artificially high, with a fluctuation downwards expected after the Labour Day holiday in the US.
THE MARKETS (Tuesday, 07 August 2007):
FTSE 100: 6,308.80 up 119.70
FTSE 250: 11,235.70 up 236.36
SmallCap: 3,913.60 up 28.43
DJI: 13,504.30 up 35.52
NASDAQ: 2,561.60 up 14.27
S&P500: 1,476.71 up 9.04
REGIONAL DEVELOPMENTS
(Argentina and Venezuela)
As reported in HDR, an energy security treaty designed to boost Venezuela's participation in Argentina's energy market has been signed by Argentine President Néstor Kirchner and his Venezuelan President Hugo Chávez. Venezuela's state oil company PDVSA and its Argentina’s state energy company, Enarsa has set up a joint venture reported to be called Petrosuramérica, The company has already been incorporated and it is thought that headquarters will be located in Buenos Aires. It is expected that the new joint venture will be exploring for and exploiting hydrocarbons as well as refining hydrocarbons products, developing petrochemicals, seeing to pipelines to transport products and experimenting with renewable projects. Also included in the wish list is generating electricity and working with the maritime transport industry. Further plans about a US$400mn LNG re-gasification plant presumably built by Venezuela and located in Argentina have also been announced.
(Ecuador)
Ecuadorian President Rafael Correa has said that his government plans to review contract terms of all foreign oil companies operating in the country and not just those of Spanish Repsol YPF.
LOCAL DEVELOPMENTS
(Falkland Islands)
Desire Petroleum Plc has announced that it has applied for 539,679 new ordinary shares in the Company to be admitted to trading on the Alternative Investment Market. Shares should be admitted on Friday, 10 August 2007. The press release goes on to say that following the exercise of these options, Desire has 223,556,022 ordinary shares in issue with an equivalent number of voting rights.
RELEVANT SHARE PRICES (Tuesday, 07 August 2007):
TLW: 475.75 up 19.50
DES: 30.50 unchanged
FOGL: 126.50 down 1.50
RKH: 50.50 up 0.50
BOR: 29.00 up 0.25
PRE: 14.50 unchanged
GBP: 8.25 unchanged
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