Falklands : Hydrocarbons Daily Record Monday, 23 June 2008
Submitted by Falkland Islands News Network (Juanita Brock) 24.06.2008 (Article Archived on 08.07.2008)
Today’s significant crude price rises come in the wake of analysts saying that there is a supply problem and that demand worldwide is growing.
HYDROCARBONS DAILY RECORD MONDAY, 23 JUNE 2008
By J. Brock (FINN)
At 1930hrs LMT on Friday, 20 June 2008 Light Sweet Crude was trading at $134.62 up $2.69 on the New York Mercantile Exchange. Brent Crude was trading at $134.86 up $2.86 on London’s ICE Futures Market.
ANALYSIS:
Today’s significant crude price rises come in the wake of analysts saying that there is a supply problem and that demand worldwide is growing. The only thing that is growing is the price of crude, with people in Asia putting off buying vehicles until they can afford to fill the gas tank. People are down-sizing their vehicles and taking fewer road trips. HDR feels that increasing production could be counter-productive if the price of crude remains the same or, as in today’s case, increases.
Agreed, some of the demand will come back with lower prices but there is a segment of society that has learned a valuable lesson. Electric vehicles and others using alternative fuel like hydrogen and LPG are becoming more popular, with LPG vehicles being the choice of municipalities. It is hoped that more money could be granted for alternative energy projects. These projects will help clean up the atmosphere as well as help people to save money for other expensive things – like food.
Geopolitics played a part in today’s increase with attacks on Nigerian production platforms and the threat with hostilities towards Iran.
HDR feels that one thing producers can do to help curb the price of crude is to refuse to sell it at extortionate prices.
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SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Monday, 23 June 2008.
TLW: 985.00 up 32.00, DES: 86.75 down 1.25, FOGL: 150.00 unchanged RKH: 95.25 down 0.25, BOR: 94.25 down 6.75 PRE: 13.50 unchanged, GBP: 7.88 unchanged, GPK: 406.50 unchanged, BLT 1908.00 up 21.00, RDSA: 1983.00 up 30.00 RDSB: 1946.00 up 36.00
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LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
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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