Falklands : Hydrocarbons Daily Record Tuesday, 24 June 2008
Submitted by Falkland Islands News Network (Juanita Brock) 25.06.2008 (Article Archived on 09.07.2008)
For the second day in a row since Saudi Arabia announced an increase in production the price of crude has risen. It seems that increasing production is not going to help decrease the price of crude. Indeed, people at the top will be making more profit if this goes on for any length of time.
HYDROCARBONS DAILY RECORD TUESDAY, 24 JUNE 2008
By J. Brock (FINN)
At 1930hrs LMT on Tuesday, 24 June 2008 Light Sweet Crude was trading at $137.00 up 26 Cents on the New York Mercantile Exchange. Brent Crude was trading at $135.91 up $1.05 on London’s ICE Futures Market.
ANALYSIS:
For the second day in a row since Saudi Arabia announced an increase in production the price of crude has risen. It seems that increasing production is not going to help decrease the price of crude. Indeed, people at the top will be making more profit if this goes on for any length of time. HDR feels that if Saudi Arabia is really interested in decreasing the price of crude to a reasonable level then they should refuse to sell crude at extortionate prices. Yes, billions businesses aren’t entitled to will be wiped off the bottom line but the benefits for ordinary people who buy hydrocarbons products will far exceed any losses incurred.
OPEC’s President Chakib Khelil has said that OPEC has done all it can but prices aren’t going to come down. OPEC can also say NO to extortionate prices. HDR feels they can and if enough providers say NO to extortionate offers then crude prices will go down.
People are not going to buy as much if prices are too high. Regardless of what fear mongers say, demand is going down. Even larger businesses and some governments feel the pinch and aren’t frivolously spending on unnecessary road trips or on vehicles that guzzle the gas.
RELATED ARTICLES:
(OPEC Statement)
OPEC has already done what OPEC can do and prices will not come down," the cartel's president Chakib Khelil said Tuesday as he arrived for a meeting with European Union energy officials in Brussels.
http://afp.google.com/article/ALeqM5jput_m6FmNXD4gtm66kg4PH8doyA
(Demand)
The world's thirst for oil is growing so quickly humanity will consume more of it this decade than over the previous hundred years.
http://www.canada.com/montrealgazette/features/viewpoints/story.html?id=7c4e4d81-1e5b-462f-b8a5-2978049a5739
(Increasing Crude Prices)
Crude prices continued to rise June 23 as traders shrugged off Saudi Arabia's promise to produce more oil and invested instead in the possibility that civil unrest in Nigeria could reduce production even more.
http://www.ogj.com/display_article/332607/7/ONART/none/GenIn/1/MARKET-WATCH:-Supply-worries-raise-energy-prices/
Oil edged slightly higher on Tuesday amid uncertain trading. Light sweet crude for August delivery closed at $137.00, up 26 cents on the session. Earlier, oil touched $138.75, before slipping lower.
http://www.forexpros.com/news/oil-prices-climb-to-%5C$137-2179
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Tuesday, 24 June 2008.
TLW: 959.50 down 25.00, DES: 90.00 up 3.25, FOGL: 142.50 down 7.50 RKH: 96.25 up 1.00, BOR: 84.75 down 9.50 PRE: 13.50 unchanged, GBP: 7.88 unchanged, GPK: 406.50 unchanged, BLT 1911.00 up 3.00, RDSA: 1998.00 up 15.00 RDSB: 1950.00 up 4.00
New York Stock Exchange:
XOM: 86.92 down 0.78 (Trading in USD)
THE MARKETS (23/06/08)
FTSE100: 5,634.70 down 32.53, FTSE250: 9,192.30 down 128.27 SmallCap: 2,899.40 down 57.11
DJI: 11,807.43 down 34.93 NASDAQ: 2,368.28 down 17.46 S&P500: 1,314.29 down 3.71
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 13/06/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
HYDROCARBONS RESEARCH:
(Exploration)
Nautilus Minerals (TSX:NUS) says it is a step closer to becoming the world's first deepwater mining exploration and production company after contracting with a Norwegian shipowner for a support vessel.
http://canadianpress.google.com/article/ALeqM5hgMYWdCKRVqT4b1gIZJ0_xLRKvVg
REGIONAL DEVELOPMENTS:
(Bolivia)
Franklin Oil & Gas, Bolivia S.A. has offered four rigs to YPFB (Yacimientos Petroliferos Fiscales Bolivianos), Bolivia's national petroleum company. Another three rigs have been offered in Colombia and two in Brazil.
http://www.marketwire.com/mw/release.do?id=872297
Franklin Mining, Inc. (PINKSHEETS: FMNJ | Quote | Chart | News | PowerRating) Chairman and President, William A. Petty, is pleased to announce that Franklin has entered into a joint-venture agreement with Cherokee Oil & Gas, Inc., Tulsa, OK and General Turbine Systems, Inc., Houston, TX to provide oil rigs in Bolivia, Colombia and Brazil.
http://www.tradingmarkets.com/.site/news/Stock%20News/1708991/
Two members from a rightwing Santa Cruz youth group were arrested outside the Trompillo airport on June 19 with a rifle, telescopic sight, and 300 rounds of ammunition in a purported assassination attempt on President Evo Morales. In an unprecedented and highly questionable move, the accused were freed the very next day by a Santa Cruz attorney sympathetic to their separatist cause.
http://www.coha.org/2008/06/bolivia-straddles-between-popular-reform-and-illegal-resistance/
(Brazil)
Providence Resources has contracted Transocean semisubmersible GSF Arctic 2 for a two firm plus one option in the North Celtic Sea Basin, offshore southern Ireland. Drilling is expected to begin in August 2008.
http://www.energycurrent.com/index.php?id=2&storyid=11416
Transocean Inc.'s subsidiaries reached an agreement with subsidiaries of Petrobras and Mitsui to acquire a newbuild ultradeepwater drillship under a capital lease contract.
http://www.ogj.com/display_article/332601/7/ONART/none/DriPr/1/Petrobras,-Mitsui-sign-ultradeepwater-drilling-contract/
(Chile)
The sponsors of GNL Quintero are BG Group (40%), Enap (20%), Endesa (20%) and Metrogas (20%). BG Group will supply the facility with 1.7 million tonnes per ...
(Note: This item needs registration)
http://www.projectfinancemagazine.com/default.asp?page=7&PubID=4&ISS=24819&SID=708098
(Cuba)
said Havana may become the third Cuban oil producer, after Matanzas and La Habana provinces, experts of Cuba Petroleo Company (Cupet).
http://www.radionuevitas.co.cu/web_english/news/cuba_230608_5.asp
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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