Br.Ant.Territory : Hydrocarbons Daily Record Monday, 21 July 2008
Submitted by (Juanita Brock) 22.07.2008 (Article Archived on 05.08.2008)

Crude prices disappointingly increased today due to a tropical storm near the Gulf of Mexico, tensions over Iran’s quest for nuclear energy and worries over far rich people getting richer by the second of the backs of the rest of us.

HYDROCARBONS DAILY RECORD MONDAY, 21 JULY 2008

By J. Brock (FINN)

At 1930hrs LMT on Monday, 21 July 2008 Light Sweet Crude was trading at $131.04 up$ 2.16 on the New York Mercantile Exchange.  Brent Crude was trading at $131.64 up 44 Cents on London’s ICE Futures Market.

ANALYSIS:

Crude prices disappointingly increased today due to a tropical storm near the Gulf of Mexico, tensions over Iran’s quest for nuclear energy and worries over far rich people getting richer by the second of the backs of the rest of us.   When buyers learn to say NO to high prices we could see a sustainable downward trend in the price of crude.  That sustainable downward trend should stop at between $45 and $60.00 per barrel.

As readers would have noticed, lower oil prices mean a correspondingly positive response on the stock market.

RELATED ARTICLES:

(Hurricane?)

Offshore oil producers in the Gulf of Mexico on Monday geared up to prepare for the first big storm of 2008, but Tropical Storm Dolly looked unlikely to deal a crippling blow to U.S. crude oil and natural gas production.

http://www.guardian.co.uk/business/feedarticle/7667438

(Black but not gold)

It is the lifeblood of the world economy, and because so many nations are being lifted by a rising tide of economic prosperity, demand for the "black gold" is unprecedented.

http://www.heraldtribune.com/article/20080721/ARTICLE/807210351/2413&title=Better_

understanding_our_obsession_with_oil

(Brazil Labour Strike)

The two labor strikes carried out this week, respectively by the “Norte Fluminense” Oil Workers’ Union, in the Campos Basin, which lasted five days, and by the Single Oil Workers’ Federation (FUP) at other Company units, and which lasted 48 hours, had no impact on production or market supply.

http://www.edubourse.com/finance/actualites.php?actu=43788

(Crude Prices)

The "drill here, drill now, pay less" crowd went into a tizzy when oil prices dropped this past week on word that oil demand is forecast to drop as a result of the shaky economy.

http://www.thedailygreen.com/environmental-news/blogs/republican/gas-prices-conservation-460708

SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET:  Monday, 21 July 2008.

TLW: 773.50 down 10.00, DES:  76.75 down 0.50, FOGL: 112.00 up 1.00 RKH:  70.00 up 4.00, BOR: 69.25 down 0.75 PRE: 12.25 down 0.25 GBP: 7.25.00 unchanged, GPK: 419.00 unchanged, BLT 1646.00 up 46.00 RDSA: 1831.00 up 11.00, RDSB: 1808.00 up 13.00

New York Stock Exchange:

XOM:  82.98 up 1.44 (Trading in USD)

THE MARKETS (21/07/08)

FTSE100: 5,404.30 up 27.93 FTSE250: 9,045.50 up 80.78 SmallCap: 2,731.30 up 55.10

DJI: 11,467.34 down 29.23 NASDAQ: 2,279.53 down 3.25 S&P500: 1,260.00 down 0.68

US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 11/07/08

http://tonto.eia.doe.gov/oog/info/twip/twip.asp

INTERNATIONAL DEVELOPMENTS:

(Canada)

Canadian Imperial Venture Corp. (TSXV:CQV) has disclosed that a preliminary review of the final section of a well off the Port au Port Peninsula in western Newfoundland "did not identify the presence of any economic hydrocarbons."

http://canadianpress.google.com/article/ALeqM5g7v-DyYTO5fYS7IHq5oHPDUhzGng

(Energy Giants)

The global energy market has seen several emerging giants over the last decade. The market, used to be dominated by British Petroleum, Chevron, ExxonMobil etc, saw new leaders such as China National Petroleum Corporation (CNPC), Lukoil, Gazprom (both Russian) and Petróleos de Venezuela, S.A. (PDVSA).  These companies have grown largely through mergers and acquisitions. Adding to the list of such mergers is Gaz de France (GDF) and Suez.

http://www.proactiveinvestors.com/companies/news/649/gaz-de-france-suez-merger-creates-an-energy-giant-0649.html

(North Sea Oil)

Shares of Oilexco Incorporated (TSX:T.OIL, Stock Forum) were up slightly Monday to $16.87, a gain of 5.6%, after the company announced that through its wholly owned subsidiary Oilexco North Sea Limited, it has successfully flow tested gas-condensate at significant rates from its Moth discovery.

http://www.stockhouse.com/Community-News/2008/July/21/Energy-company-reports-flow-test-in-North-Sea

A new report commissioned by the energy giant has asserted that substantial hikes are likely as North Sea reserves dwindle Britain’s total gas production falls. The group warned that with the country becoming a net importer of the natural resource, rates will be at a greater exposure to fluctuations in energy prices.

http://www.free-press-release-center.info/pr00000000000000018176_british-gas-indicates-heavy-hikes.html

REGIONAL DEVELOPMENTS:

(Colombia)

Suroco Energy Inc. (TSX Venture Exchange: SRN) ("Suroco" or the "Corporation") is pleased to announce that it has entered into a letter agreement (the "Letter Agreement") dated effective July 17, 2008, for the arm's length acquisition (the "Proposed Transaction") of interest in the Suroriente Block, Arjona Field, Alea 1947 C Block and Alea 1848 A Block in Colombia (the "Acquired Interests") currently held by Alentar Holdings Inc. ("Alentar"), in exchange for 8,700,000 common shares in the capital of the Corporation at a deemed price of US$1.00 per share and 4,000,000 Contingent Value Rights. Upon completion of the Proposed Transaction, the Acquired Interests will be held by the Corporation's wholly owned subsidiary, NCT Corporacion Petrolera Latinoamericana S.L. ("NCT").

http://www.newswire.ca/en/releases/archive/July2008/21/c6056.html

(Ecuador)

Over the weekend, Ecuador's constitutional assembly delivered its formal draft for a new constitution.  It is heavily skewed towards socialism and follows the recommendations of Ecuador's angry and authoritarian President Rafael Correa.

http://www.latinbusinesschronicle.com/app/article.aspx?id=2594

(Venezuela)

Venezuelan President Hugo Chavez arrives in Moscow with an official visit. The Venezuelans leader is going to discuss issues of arms shipments, the energy market cooperation, as well as questions regarding the establishment of a Russian-Venezuelan bank.

http://english.pravda.ru/russia/economics/21-07-2008/105836-chavez_russia-0

LOCAL DEVELOPMENTS:

(Desire Petroleum)

The Company was notified on 21 July 2008 that, following a disposal of voting rights on 16 July 2008, Barclays PLC no longer has a notifiable interest in the share capital of the Company.

http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1905972&source=RNS

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.