Falklands : Hydrocarbons Daily Record (31/05/06)
Submitted by Falkland Islands News Network (Juanita Brock) 31.05.2006 (Article Archived on 14.06.2006)
Crude prices have dropped as a result of the US offer of talks with Iran.
HYDROCARBONS DAILY RECORD WEDNESDAY, 31 MAY 2006
By J. Brock (FINN)
At 1800 LMT on Wednesday, 31 May 2006 Light Sweet Crude was $71.29 down .74 cents per barrel on the New York Mercantile Exchange and Brent Crude at $69.63 down $1.42 per barrel on London’s ICE Futures Exchange.
TRENDS:
The sole reason why oil prices eased today was due to the US offer to Iran of direct round table talks with Iran about their desire to enrich nuclear fuel for energy generation. US Secretary of State, Dr. Condoleezza Rice has acknowledged Iran’s right to develop nuclear energy for power generation.
MARKET REPORT
(FTSE)
Another roller coaster day on the London stock market today after another grim performance on Wall Street overnight that saw the Dow plunge 184 points to 11,094. This was in response to the latest slump in the dollar.
At its low point of the day, the Footsie 100 had dipped back below the 5600 level, with a deficit of 60.5 at 5591.5. However, the lead index rebounded and by the close was 71.8 points ahead at 5723.8. Even second-liners shared in the rally, the FTSE 250 index adding 62.70 points to 9298.20.
(Dow Jones and NASDAQ)
The Dow Jones Index has recovered 0.7% to 11,168.31. The NASDAQ rose 0.7% to 2.178.88
DEVELOPING FACTORS:
(United States – Iran)
Somehow oil investors like to hear about talks between Iran and the United States. This reflected in the easing of prices per barrel. The US wants full and verifiable proof that Iran has ceased nuclear fuel enrichment. Though diplomatic relations are not yet on offer, it is a possibility and not too soon for investors, who definitely do not want another conflict in the area. It is hoped that Iran will not dismiss this official offer out of hand as a propaganda move.
(Iraq)
Unrest in Basra and in Southern Iraq, recently thought to be free of violence, has caused some nervousness. Southern Iraq is that country’s major oil producing region and it is hoped that something can e done to quell the unrest. It is the violence and sabotage that keeps Iraq’s hydrocarbons infrastructure poorly maintained and in many areas, obsolete.
(Latin America)
Once thought worthless, liquid coal can now be refined into hydrocarbons products. Chevron, whose operations Nelson runs in eastern Venezuela, has spent about $1 billion turning what was once called "liquid coal" into oil, helping transform an area of scrub grass into one of the last great frontiers for oil production. The region is in fact so promising that President Hugo Chávez claims that it contains up to 235 billion barrels of recoverable oil, which if true would rival Saudi Arabia's reserves.
Respsol-YPF CEO Antonio Brufau admitted last week that the company’s future development will be “outside” Latin America given what happened with company assets in Bolivia. The company needs to disperse their assets and are committed to markets which they believe are closer to Latin America. However, following the Argentina’s financial crisis in 2001 the company had to restructure, sell assets, and redesign the framework of their budget. Nonetheless, there are reports that the company plan to look for oil in the Colorado area off the South American coast in the South Atlantic.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 31.05.06
Desire Petroleum up 0.5p or 1.3% to end the day at 40p
Falklands Oil and Gas up 2.25p or 1.9% to end the day at £1.18.50p
Rockhopper Exploration unchanged on the day stood at 30p
Border and Southern unchanged on the day stood at 44p
Locally, Stanley Services have announced a change in fuel prices. Kero is at .51p per litre, down 2p. Petrol is at .66p per litre, 11kg Propane Gas is now £18.25 and 45kg is £70.40. The price of diesel is unchanged.
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