Falklands : Hydrocarbons Weekend Record (02 to 04 November 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 05.11.2007 (Article Archived on 19.11.2007)
Crude prices have increased due to the weak dollar and the jobs report.
HYDROCARBONS WEEKEND RECORD (02 TO 04 NOVEMBER 2007)
Compiled byJ. Brock (FINN)
CRUDE PRICES Friday, 02 November 2007:
Light Sweet Crude traded at $95.93 up $2.44 on the New York Mercantile Exchange. Brent Crude was trading at $92.08 up $2.36 on London’s ICE Futures Market.
ANALYSIS Friday, 02 NOVEMBER 2007:
Besides basic greed crude prices increased today because of the week dollar and the jobs report.
WEEKEND DEVELOPMENTS:
(Bolivia)
Evo Morales, Bolivia’s President, has welcomed new foreign investments but has stressed that his country has nationalised its hydrocarbons. On Thursday, President Morales opened the third extension of a gas pipeline Altiplano. The pipeline will increase by 5 million cubic feet and supply natural gas to west Bolivia.
(Ecuador)
The government of Ecuador has ordered foreign oil companies to pay off their debts with the State before next Wednesday. According to government regulations if they don’t pay up their contracts will be cancelled. The debt amounts to 236 million dollars, and the payment terms expired on Tuesday.
(Venezuela)
PDVSA, Venezuela’s state oil company and Sonatrach its Algerian counterpart have signed an agreement to explore and exploit crude in both countries. Algeria and Venezuela have signed seven bilateral accords at the end of a four-day meeting, with the aim of strengthening their co-operation. Both Venezuela and Algeria are members of the Non-Aligned Movement and OPEC.
SHARE PRICES: FRIDAY, 02 NOVEMBER 2007
London Stock Exchange:
TLW: 644.50 up 18.50 DES: 28.25 down 0.25, FOGL: 143.50 up 3.50, RKH: 50.50 down 1.50, BOR: 37.00 down 0.50, PRE: 15.00 unchanged, GBP: 9.50 down 0.25, GPK: 425.00 unchanged, BLT 1755.00 down 26.00 RDSA: 2457 down 12.00, RDSB: 2034 down 14.00, RDSD: 39.21 unchanged.
New York Stock Exchange:
XOM: 87.93 down 0.57
CRUDE PRICES Thursday, 01 November 2007:
Light Sweet Crude traded at $93.07 down 43 Cents on the New York Mercantile Exchange. Brent Crude was trading at $89.72 down 91 Cents on London’s ICE Futures Market.
CRUDE PRICES Wednesday, 31 October 2007:
Light Sweet Crude traded at $94.53 up $4.15 on the New York Mercantile Exchange. Brent Crude was trading at $90.63 up $3.19 on London’s ICE Futures Market.
CRUDE PRICES Tuesday, 30 October 2007:
Light Sweet Crude traded at $90.38 down $3.15 on the New York Mercantile Exchange. Brent Crude was trading at $88.75 down $1.61 on London’s ICE Futures Market.
CRUDE PRICES Monday, 29 October 2007:
Light Sweet Crude traded at $93.53 up $1.67 on the New York Mercantile Exchange. Brent Crude was trading at $89.57 up 88 Cents on London’s ICE Futures Market.
ANALYSIS Thursday, 01 November 2007:
Fuel prices increased in the Falklands today and we know that tomorrow other prices will rise to reflect those increases. Oddly enough, aside from the slight decrease in the price of hydrocarbons products as a result of decreases in the price of crude this time last year, prices stayed the same. On 01 November 2006 Light Sweet Crude traded at $58.03 and Brent Crude traded at $58.71. There were calls on OPEC to decrease production to keep the price artificially high. Now this year the opposite is true. I would say that the fear mongers focused on the unknown to drive up prices and investors, anxious to make a profit followed suit.
While the tiger economies of India, China and Indonesia keep demand high while fuel prices are subsidised, demand will remain high. It is up to us to figure out how we are going to live on less hydrocarbons products.
ANALYSIS Wednesday, 31 October 2007:
The excuse this time for higher crude prices is a drop in inventories in the US. (See brief report) Refinery capacity is way down as well as crude supplies. I still maintain that greed is behind high crude prices and that soon we will reach a point where demand will drop as people can no longer afford the products made from hydrocarbons.
ANALYSIS Monday, 29 October 2007:
Though stormy weather in the Gulf of Mexico, the weak dollar, supply concerns and some geopolitical issues played a part, the high price of crude is caused by greed. It isn’t the person struggling to keep his bills paid who is making anything off crude’s prices. Yes, the market wants to know what $100.00 crude is like. Consumers in the low to middle income groups already know what $60.00 oil is like; they suffered through $70.00 crude and fell by the wayside when $80.00 crude was announced. Winter is about to strike the Northern Hemisphere and crude is pointing north as well. What good is $100.00 crude if customers can’t afford to pay for its products? We are about to find out.
BRIEF INVENTORY REPORT FOR WEEK ENDING 26 OCTOBER 2007:
Crude: down 3.9 million barrels to 312.7 million barrels
Gasoline: up 1.3 million barrels to 195.1 million barrels
Distillates: up 800,000 barrels to 135.3 million barrels
Refinery Capacity: down 0.9% to 86.2%
REGIONAL DEVELOPMENTS:
Due to the heavy demand for gas in Argentina, as well as other external markets, Bolivia’s government has asked hydrocarbons companies in the country to focus on and accelerate gas production. Though it will take time, the companies are expected to rise production to meet demand. Some results may be seen by the next Southern winter.
(100X Translation Service)
(Venezuela)
Several Latin American newspapers report that Venezuela is set to clamp down on foreign investors, especially in the hydrocarbons industry. The country’s legislative body, the National Assembly, is concentrating its efforts on Article 301, which allows the state to reserve the right to use trade policy to defend and promote the economic activities of Venezuelan companies ranging from state corporations to social collectives. The text now stresses that foreign individuals, companies and organisations would not get any benefits other than those established for national ones. The legislation includes a prohibition against any attempt in the future either partly or totally to privatize the state oil corporation, Petroleos de Venezuela (PDVSA).
(100X Translation Service)
(Brazil and Venezuela)
PETROBRAS, Brazil's state oil company, has decided against a proposal to help in the development of Venezuela's Mariscal Sucre - an offshore natural-gas field. The field is the source for a $20 billion Amazon pipeline to Brazil. PDVSA and PETROBRAS, have studied plans to send half the field's output of 34 million cubic meters a day to Brazil. The line would have started President Hugo Chavez's proposed “Great Southern Pipeline,'' a 5,000 kilometre network to bring Venezuelan reserves, South America's largest, throughout South America.
(100X Translation Service)
(Venezuela)
Several press articles say that Transocean Inc. has contracted its drill ship Deepwater Pathfinder at a day rate of US$600,000. The contract is set to run from June 2009 through October 2009. Further details will be forthcoming.
(100X Translation Service)
(Argentina and Uruguay)
The Latin American press reports that Argentina and Uruguay are seeking partners for the planned 10Mm3/d LNG re-gasification plant located near Montevideo. Ancap and Enarsa expect to receive 5Mm3/d of LNG. Ancap could sell its excess LNG to Argentina or other countries. The plant could be operational in 2011 or 2012.
(100X Translation Service)
SHARE PRICES: THURSDAY, 01 NOVEMBER 2007
London Stock Exchange:
TLW: 626.00 down 12.00 DES: 28.50 up 0.25, FOGL: 140.00 up 0.50, RKH: 52.00 up 0.50, BOR: 37.50 unchanged, PRE: 15.00 up 1.00, GBP: 9.75 up 0.25, GPK: 425.00 unchanged, BLT 1778.00 down 53.00 RDSA: 2057 down 48.00, RDSB: 2048 down 47.00, RDSD: 39.21 unchanged.
New York Stock Exchange:
XOM: 88.50 down 3.49
SHARE PRICES: WEDNESDAY, 31 OCTOBER 2007:
London Stock Exchange:
TLW: 638.00 up 14.00 DES: 28.25 up 1.00, FOGL: 139.50 up 4.00, RKH: 51.50 up 5.00 BOR: 37.50 up 0.50, PRE: 14.00 up 0.25, GBP: 9.50 unchanged, GPK: 425.00 unchanged, BLT 1831.00 up 13.00 RDSA: 2098 down 9.00, RDSB: 2095.00 down 7.00, RDSD: 39.21 unchanged.
New York Stock Exchange:
XOM: 91.99 up 0.85
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