Falklands : Hydrocarbons Daily Record Sunday, 17 August 2008
Submitted by Falkland Islands News Network (Juanita Brock) 18.08.2008 (Article Archived on 01.09.2008)
Crude prices settled lower on Friday due to a strengthening US Dollar. While declining prices have provided hope that end products will be more cost-effective, moves are afoot to increase prices by cutting supplies.
HYDROCARBONS DAILY RECORD SUNDAY, 17 AUGUST 2008
By J. Brock (FINN)
At 1930hrs LMT on Friday, 15 August 2008 Light Sweet Crude was trading at $112.69 down $2.62 on the New York Mercantile Exchange. Brent Crude was trading at $113.77 down $1.24 on London’s ICE Futures Market.
ANALYSIS:
Crude prices settled lower on Friday due to a strengthening US Dollar. While declining prices have provided hope that end products will be more cost-effective, moves are afoot to increase prices by cutting supplies.
For well over a year OPEC has said there is sufficient supply to meet demand. They are right and now that demand is falling the organisation says it is time to cut supplies. Hopefully that cut will be by the amount demand has fallen off and that over-supply rather than making a profit motivates the move.
Fay, a hurricane, is now buffeting Cuba and is on a path that threatens south Florida. At this moment the jury is out as to whether the storm will continue into the Gulf of Mexico. If the storm enters the gulf and strengthens it could strengthen and threaten industry infrastructure. We wait to see where this storm goes.
RELATED ARTICLES:
(Hurricane)
Tropical Storm Fay raked Cuba's southern coast with gusty winds and heavy rains on Sunday and was expected to move ashore overnight before heading to Florida as a likely hurricane.
http://www.canada.com/topics/news/world/story.html?id=28027eb2-1b30-4986-9b59-508385312df7
(Possible Production Cut)
The 13-member Organization of Petroleum Exporting Countries (OPEC) could play a balancing act by cutting down crude output from the existing levels after it slashed down its estimate for global oil demand growth for a fifth month in 2008, reports said.
http://www.allheadlinenews.com/articles/7011964135
(Crude Production)
The Organization of Petroleum Exporting Countries could decide to roll over or cut crude oil production from existing levels when the group meets in early September in Vienna, Iran's OPEC governor Mohammad Ali Khatibi said Saturday.
http://online.wsj.com/article/SB121888972084047049.html?mod=googlenews_wsj
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Friday, 15 August 2008.
TLW: 677.00 down 31.00, DES: 79.75 down 3.75, FOGL: 119.00 up 2.50 RKH: 66.00 down 0.75, BOR: 59.50 up 0.75 PRE: 12.00 unchanged GBP: 7.25.00 up 0.13, GPK: 419.00 unchanged, BLT 1529.00 down 53.00, RDSA: 1797.00 down 41.00, RDSB: 1763.00 down 40.00
New York Stock Exchange:
XOM: 77.07 down 0.38 (Trading in USD)
THE MARKETS (15/08/08)
FTSE100: 5,454.80 down 42.65 FTSE250: 9,194.90 up 60.52 SmallCap: 2,833.90 up 16.48
DJI: 11,659.90 up 43.97 NASDAQ: 2,452.52 down 1.15 S&P500: 1,298.19 up 5.26
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 08/08/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(European Union)
For Europeans basking in the sun on their summer holidays, the pictures from Tskhinvali, the capital of South Ossetia, look appalling yet reassuringly distant. The Caucasus, however, is on their doorstep and the game that Vladimir Putin, the Russian prime minister - with a little involuntary help from Mikheil Saakashvili, the Georgian president - is putting the European Union's credibility at risk.
http://www.ft.com/cms/s/0/e20a39b6-69a3-11dd-91bd-0000779fd18c.html
(Iraq)
Oil production has risen about 25 percent in Iraq in the past year. It had been flat from 2005 through mid-2007, hovering around 2 million barrels per day before beginning to climb to its present level of 2.5 million barrels per day.
http://www.weeklystandard.com/Content/Public/Articles/000/000/015/430mzibx.asp
(North Sea Oil)
Atlantic Petroleum P/F, the only oil company on the Faeroe Islands, rose the most in almost five months in Copenhagen trading after it found oil in a U.K. North Sea exploration well.
http://www.bloomberg.com/apps/news?pid=20601085&sid=aNT5udecQ3FM&refer=europe
REGIONAL DEVELOPMENTS:
(Argentina and Venezuela)
Last week, the Argentinean government paid an exorbitant 15 percent interest rate to Venezuela to obtain USD 1 billion in financing, and President Hugo Chávez even advocated Argentinean bonds, saying that they "are not junk bonds like those of the United States."
http://www.petroleumworld.com/story08081815.htm
(Bolivia)
Electoral Experts, and parliamentarians from Europe and Mercosur countries (Argentina, Brazil, Uruguay and Paraguay) were present for the recall referendums of 8 departmental (state) prefects (governors) and President Morales and Vice-President Álvaro García Linera on August 10. All stood to lose their jobs or reinforce their support base.
http://www.newsocialist.org/index.php?id=1677
(Brazil and Newfoundland)
Petrobras, the Brazilian state-controlled oil and gas multinational, made headlines last November when it discovered a deposit with estimated reserves of 5 to 8 billion barrels, the world's second-biggest discovery in 20 years.
http://www.brazzilmag.com/content/view/9770/1/
(Ecuador)
Ecuadorian Minister of Mines and Petroleum Galo Chiriboga has urged the Organization of Petroleum Exporting Countries (OPEC) not to change their oil output despite drop in international crude prices.
http://english.neftegaz.ru/lenta/show/82188/
(Peru)
Petroleos del Peru SA, the country's state oil company, shut its Northern Peruvian Oil Pipeline after protests by indigenous groups, Chief Executive Officer Cesar Gutierrez said today.
http://www.bloomberg.com/apps/news?pid=20601086&sid=ay.ur0IZVG3g&refer=latin_america
LOCAL DEVELOPMENTS:
(Desire Petroleum)
Desire Petroleum (DES) has finally confirmed the worst kept secret in industry, that Arcadia Petroleum Ltd is their farm-in partner in the North Falkland Basin.
http://www.smallcapnews.co.uk/article/Oil_and_Gas_RoundUp_15_August/5556.aspx
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
IMPORTANT LINK:
http://www.onegeology.org/
DISCLAIMER: The sources for related articles come from a variety of websites so that readers can get as wide a selection of views as possible. HDR does not necessarily align itself with any of the views expressed.
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