S.Atlantic : HYDROCARBONS DAILY RECORD THURSDAY, 02 JULY 2009
Submitted by SARTMA.com (Juanita Brock) 03.07.2009 (Article Archived on 17.07.2009)

Employment figures caused crude prices to decline today. At the moment crude prices are too high to get people to by hydrocarbons products.

HYDROCARBONS DAILY RECORD THURSDAY, 02 JULY 2009

By J. Brock (FINN)

REGIONAL NEWS

July 2 (Bloomberg) -- The following companies may have unusual price changes today in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index gained 1.3 percent to 3,011.82. In Brazil, preferred shares usually are the most- traded class of stock.

Argentina

YPF SA (YPFD AR): Repsol YPF SA, Spain’s largest oil refiner, said it received proposals from several companies on YPF, its Argentine unit. Separately, China National Petroleum Corp.

http://www.bloomberg.com/apps/news?pid=20601086&sid=a3KS8.JpFme4

STATISTICS:

Light Sweet Crude:

Brent Crude:

ANALYSIS:

Employment figures caused crude prices to decline today.  At the moment crude prices are too high to get people to by hydrocarbons products.  With many people out of work money is tight and non essential journeys are out as well as some essential ones.  It’s difficult to buy food, let alone fuel for people on the dole.  Unemployment benefits don’t last forever in many countries, thus a drop in crude prices would be a good step forward to help kick start economies.

The Northern winter is coming and while heating fuel is cheaper than it was last winter, it still is unaffordable for families that have no income.  Optimal crude prices during such ties should be around $35 to $45 per barrel.

London Stock Exchange:

FTSE100

FTSE250

Small Cap

Dow Jones Index:

NASDAQ:

S&P 500

ANALYSIS

Unemployment and other economic news caused a major slump in stock markets today.  The US lost 467,000 jobs during the second quarter 2009.  While the loss is less than the 700,000 lost in the first quarter, they are too much to sustain any growth at all.  With unemployment at 9.5% there are no green shoots to be seen and the much touted recovery is but a dream.

Besides bailing out the banks that caused this mess, governments are also responsible for social welfare for those people who have been severely affected by the economic down-turn.

This is not the time to raise prices – that’s grazing on a field that is newly planted – not the best scenario for recovery.

Desire Petroleum

BPC

FOGL

BLT

RKH

BOR

FKL

ANALYSIS:

Most regional and local share prices either stayed the same or increased today.  The only one declining was BHP Billiton.  That decline was not due to its successes in Falkland waters but well could be due to its other business units.

Exploratory drilling as well as the natural gas discovery by Rockhopper Exploration keep share prices growing.

GPK

GBP

TLW

ANALYSIS:

Companies associated with the Falklands and regional companies have an affect on local share prices in that hydrocarbons know no political boundaries and when they are discovered regionally there are possibilities they can be discovered locally.

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