Falklands : Hydrocarbons Daily Record (07 November 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 08.11.2007 (Article Archived on 22.11.2007)
Today's better than expected inventory report from the US Department of Energy Administration helped prices to decrease slightly on Wednesday.
HYDROCARBONS DAILY RECORD (07 NOVEMBER 2007)
By J. Brock (FINN)
TODAY’S TOP STORY:
OIL $100 – MORE LIKELY A NIGHTMARE
By J. Brock (FINN)
It seems nowadays that crude has a manifest destiny to reach $100.00 for the first time in history. But unlike its counterpart in the United States this destiny could turn out to be a windfall for a few and a nightmare for the rest of us.
It is said that the monumental rise in crude prices is caused by demand outstripping supply. Analysts see a rising demand as emerging economies require more energy related products.
What makes things worse is some of these emerging economies are running on subsidised fuel. As governments pay more for hydrocarbons products the trend is to pass the increase on to consumers, who may not be able to afford them.
We are going to feel the pinch as the price of crude, already artificially high, gets even more expensive. Air travel, freight and other transport prices will increase as additional costs are passed down to the consumer. Food prices in the shops, electricity tariffs, home heating and factory production will be more expensive.
For most of us there will be little to no disposable income left after the bills are paid. And, with economies slowing down the pool of investors will also shrink. It might spike momentarily as desperate people decide to spend core income on oil futures to make a quick buck but that will stop when the bubble bursts – and it will burst. Best advice is: don’t spend mortgage money on shares and futures.
HDR has advocated financial prudence and seeking energy alternatives to help when things go bust. It’s time to go green and replenish the Ozone layer at the poles.
CRUDE PRICES Wednesday, 07 November 2007:
Light Sweet Crude traded at $96.37 down 33 Cents on the New York Mercantile Exchange. Brent Crude was trading at $93.24 down 2 Cents on London’s ICE Futures Market.
ANALYSIS Wednesday, 07 November 2007:
Today’s better than expected inventory report from the US Department of Energy Administration has helped crude prices to decrease today. The weak dollar is still a factor in keeping prices artificially high.
SHARE PRICES: WEDNESDAY, 07 NOVEMBER 2007
TLW: 654.00 down 14.00 DES: 26.50 down 0.50, FOGL: 151.50 unchanged, RKH: 50.50 unchanged, BOR: 36.00 down 0.50, PRE: 15.25 down 0.25, GBP: 10.25 up 0.25, GPK: 425.00 unchanged, BLT 1756.00 down 19.00 RDSA: 2040.00 up 20.00, RDSB: 2026.00 up 17.00, RDSD: 39.21 unchanged
New York Stock Exchange:
XOM: 87.20 down 2.83
THE MARKETS ON WEDNESDAY, 07 November 2007:
FTSE100: 6,420.10 down 54.83, FTSE 250: 11,399.60 up 64.73, SmallCap: 3,780.70 down 7.43.
DJI: 13,300.02 down 360.92, NASDAQ: 2,748.76 down 76.42, S&P500: 1,475.62 down 44.65
BRIEF INVENTORY REPORT FOR THE WEEK ENDING 02 NOVEMBER 2007:
Crude: down 800,000 barrels to 311.9 million barrels
Gasoline: down 800,000 barrels to 194.3 million barrels
Distillates: up 100,000 barrels to 135.4 million barrels
Refinery Capacity: flat at 86.2%
REGIONAL DEVELOPMENTS:
(Argentina)
From a Company Press Release:
On Tuesday an oil and gas exploration and production company, Apco Argentina Inc announced that the Company had acquired a 23% stake in the Bajada del Palo concession located in the province of Neuquen in southwest Argentina. Petrolera Entre Lomas S.A., Apco Argentina's partner, has acquired a 73.15% participation interest in the same property. The joint venture has purchased interests for a total price of USD30.6m from PetroUruguay S.A. and Petrobras Energia S.A. The deal took effect on 1 September 2007.
(100X Translation Service)
(Ecuador)
Ecuador’s state run energy company, PETROECUADOR has announced legal redress concerning foreign oil firms with overdue debts of $317.7 million from surplus income generated by oil price jacking on the world market. The legislation making this possible was passed by Ecuador’s Parliament in 2006. Carlos Pareja, president of PETROECUADOR, ordered his firm’s Contract Management Unit to check at the Central Bank for payments from oil companies that were due on 31 October 2007. PETROECUADOR Contract Management Unit listed as debtors the companies Andes Petroleum, Canada Grande, Perenco, PetroOriental, CNPC Amazon and Repsol-YPF as defaulting on their debts.
(100X Translation Service)
|
