Falklands : Hydrocarbons Daily Record (18 September 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 19.09.2007 (Article Archived on 03.10.2007)
The Federal Reserve bank has, by its 0.50% interest rate cut, caused the price of crude to close at a record high today.
HYDROCARBONS DAILY RECORD: TUESDAY, 18 SEPTEMBER 2007
By J. Brock (FINN)
At 1830hrs LMT on Tuesday, 18 September 2007 Light Sweet Crude was trading at $81.51 up 94 Cents on the New York Mercantile Exchange. Brent Crude was trading at $77.59 up 61 Cents on London’s ICE Futures Market.
ANALYSIS:
Fear about the Federal Reserve Bank’s 0.50% cut in interest rates has driven the price of crude to record highs today. Crude prices have been artificially high for several months now and consumers are uneasy about paying more at the pump now that the US economy is wavering. Many consumers are actively seeking energy alternatives.
Locally the high crude prices are a good thing now that there are good prospects for getting an exploration rig for the South Falkland Basin with FOGL. Last year when prices were artificially high the rig market was super-tight and oil companies were even using exploration rigs for exploitation.
THE MARKETS: 18 SEPTEMBER 2007:
FTSE100: 6,283.30 up 100.52, FTSE250: 10,802.00 up 57.53, SmallCap: 3,766.40 up 13.77
DJI: 13,739.39 up 335.97, NASDAQ: 2.651.66 up 70.00, S&P500: 1,519.78 up 43.13
INTERNATIONAL DEVELOPMENTS:
(United States)
The major factor affecting the price of crude today was the 0.50 cut in interest rates by the Federal Reserve Bank in the US. Inventory reports are due out tomorrow and there already has been a warning about refinery capacity. Let’s hope this is not a true indicator of refinery capacity.
REGIONAL DEVELOPMENTS:
(Argentina and Bolivia)
Energy Ministers from Bolivia and Argentina are meeting Santa Cruz, Bolivia, to assess energy projects recently signed by Presidents Evo Morales of Bolivia and Nestor Kirchner of Argentina. Hydrocarbon Minister Carlos Villegas and Guillermo Arequipa, director of Bolivia's YPFB Company are taking part in the talks for the Bolivian side, while Roberto Barata, from the ministry of federal planning and Exequiel Espinoza, director of ENARSA Company are doing so for the Argentine side. Joint venture projects like a pipeline to pump gas to the south of Argentina and an LNG Plant in Tarija are among the projects scrutinised by the experts. Pre-investment studies and the construction of a plant to separate ethane from the gas Bolivia will sell to Argentina are other issues assessed in Bolivia today.
LOCAL DEVELOPMENTS:
There is a positive buzz in the Falklands and the visit of Oil Company representatives is seen as a very important event for Falklands businesses. The representatives will be giving presentations at the Chamber of Commerce and there will be an opportunity to chat with them about a variety of options. It is expected that the Falklands will see an exploration rig sooner rather than later.
RELEVANT SHARE PRICES 18 SEPTEMBER 2007:
TLW: 533.00 up 1.00, DES: 29.00 down 0.25, FOGL: 165.00 up 2.00, RKH: 50.50 unchanged, BOR: 32.00 unchanged, PRE: 13.00 unchanged, GBP: 9.13 down 0.38, GPK: 419.00 unchanged.
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