Falklands : Hydrocarbons Daily Record Tuesday, 12 August 2008
Submitted by Falkland Islands News Network (Juanita Brock) 12.08.2008 (Article Archived on 26.08.2008)
Crude prices declined today on declining demand and a strong US Dollar. HDR maintains that speculators and traders had jacked crude prices extortionately high and people buying in crude stocks have been forced to pay these prices.
HYDROCARBONS DAILY RECORD TUESDAY, 12 AUGUST 2008
By J. Brock (FINN)
At 1930hrs LMT on Tuesday, 12 August 2008 Light Sweet Crude was trading at $113.01 down $1.56 on the New York Mercantile Exchange. Brent Crude was trading at $111.15 down $1.52 on London’s ICE Futures Market.
ANALYSIS:
Crude prices declined today on declining demand and a strong US Dollar. HDR maintains that speculators and traders had jacked crude prices extortionately high and people buying in crude stocks have been forced to pay these prices.
There is no need to hit the panic button over a swift decline in crude’s value as it was too highly priced. Optimal prices would range from $45.00 to $60.00 per barrel. However, once these extortionately priced stocks have been processed prices at the pump will come down. Demand from the emerging markets has been diminished as well as that in the United States in Europe due to unaffordable prices.
Hopefully product prices will decrease before the northern winter so that more people dependent on hydrocarbons products can afford to heat their houses.
There is no need to increase production as demand is slacking off. However, there is also no need to cut production as demand will increase as prices for hydrocarbons products decrease. We all know the economic damage caused by high crude prices and are not keen to repeat the scenario.
It is hoped that mechanisms can be put in place that will prevent prices from becoming this high again.
RELATED ARTICLE:
(Crude Prices)
On the New York Mercantile Exchange, light sweet crude for September delivery closed down $1.56 at $113.01 a barrel. This was the lowest level for the U.S. energy benchmark since May 2 and more than $34, or 23%, below its all-time high of $147.27 on July 11.
http://www.pionline.com/apps/pbcs.dll/article?AID=/20080812/REG/319135141
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Friday, 08 August 2008.
TLW: 678.00 down 22.00, DES: 75.75 down 4.25, FOGL: 112.50 down 4.50 RKH: 61.00 down 0.50, BOR: 61.50 down 1.50 PRE: 12.25 up 0.25 GBP: 7.13 unchanged, GPK: 419.00 unchanged, BLT 1470.00 down 18.00, RDSA: 1810.00 up 30.00, RDSB: 1772.00 up 31.00
New York Stock Exchange:
XOM: 77.05 down 1.11 (Trading in USD)
THE MARKETS (08/08/08)
FTSE100: 5,489.20 up 11.71 FTSE250: 9,291.00 down 92.93 SmallCap: 2,814.30 down 17.43
DJI: 11,642.47 down 139.88 NASDAQ: 2,430.61 down 9.34 S&P500: 1,289.59 down 15.72
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 01/08/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(North Sea Oil)
Aker Solutions has been awarded two contracts, one with Bluewater Industries Inc. and one with Daewoo Shipbuilding & Marine Engineering (DSME) for the design and supply of on-vessel mooring systems.
http://subseaworld.com/contracts/aker-solutions-to-design-on-vessel-mooring-systems-02300.html
(United States)
If Congress agrees to allow more drilling off America's coasts, energy companies will employ more environmentally friendly technology than in years past, but serious risks remain in “industrializing” the U.S. shoreline and a major spill could cause significant damage.
http://www.theglobeandmail.com/servlet/story/RTGAM.20080811.wgtdrill0811/BNStory/Technology/home
REGIONAL DEVELOPMENTS:
(Argentina)
To sustain the country's economic growth by maintaining the nation's energy supply, Argentina's oil and gas industry will need significant private investment.
http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=59398&sn=Detail
(Brazil and Chile)
Brazilian integrated energy company Petrobras has signed an agreement with US-based energy giant ExxonMobil to purchase the latter's stakes in Esso Chile Petrolera and other associated Chilean companies for $400 million.
http://www.tradingmarkets.com/.site/news/Stock%20News/1820836/
(Chile and Ecuador)
Ecuador's wants to work with Venezuela and Chile to explore for natural gas in the Gulf of Guayaquil.
http://www.forbes.com/feeds/ap/2008/08/11/ap5311021.html
(Colombia)
Pan Andean (AIM:PRE), the AIM-listed oil & gas producer, is pleased to announce the successful completion of a critical new 2D seismic survey in the Antorcha Block. The block licence is located in the prolific Middle Magdalena Basin of central Colombia. The licence was signed in November 2007, after which Pan Andean accelerated an exploration programme to confirm the block's prospectivity.
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1926671&source=RNS
Pan Andean, an AIM-listed oil & gas producer, Tuesday announced the successful completion of a critical new 2D seismic survey in the Antorcha Block.
http://www.tradingmarkets.com/.site/news/Stock%20News/1819804/
(Ecuador)
Repsol YPF SA, Spain's biggest oil company, will give up production-sharing agreements in Ecuador in return for an extension of its exploration rights in the Latin American nation.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aXFrcPOZwAmo&refer=latin_america
(Uruguay)
Uruguay's President Tabaré Vázquez last month surprised the global oil and gas industry - and delighted local investors - when he announced his country had made significant discoveries in the continental shelf.
http://www.bnamericas.com/perspectives_qa.jsp?sector=9&idioma=I&documento=594807&estado=3§or_pag=0
(Venezuela)
A 5.1 magnitude earthquake shook east Venezuela, damaging dozens of buildings and forcing patients to evacuate a hospital in the oil producing region.
http://tvnz.co.nz/view/page/536641/1999275
LOCAL DEVELOPMENTS:
(Rockhopper Exploration)
UK equity managers can still profit from peppering their sector allocations with small-cap bets, according to Royal London Asset Management.
http://ftadviser.com/InvestmentAdviser/Investments/AssetClass/Equities/News/article/20080811/e958bb64-645a-11dd-9fff-00144f484ebe/Small-caps-still-sound-claims-Royal-London.jsp
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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