Falklands : Hydrocarbons Daily Record (22/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 23.06.2006 (Article Archived on 07.07.2006)
Poor economic indicators have driven the Dow and NASDAQ sharply lower today.
HYDROCARBONS DAILY RECORD: THURSDAY, 22 JUNE 2006
By J. Brock (FINN)
At 1800 LMT Thursday, 22 June 2006 Light Sweet Crude increased .27cents and settled at $70.60 on the New York Mercantile Exchange and Brent Crude rose .57 cents to $69.74 per barrel on London’s ICE Futures Exchange.
TRENDS:
Factors that have made crude prices creep around and over the $70.00 mark are conflicting with legal ramifications for airline companies over fuel surcharges mixed up with rhetoric from the United States about not wanting bilateral talks with Iran about nuclear fuel enrichment.
THE MARKETS
FTSE
At the close of play, the FTSE100 was 19.1 points higher at 5,684.1 with the FTSE250 up 99.7 points at 9,192.8 and the FTSE Small caps 9.3 points better at 3,327.4. Volume was firm with 2.702 billion shares changing hands in 337,027 deals
DOW JONES AND NASDAQ
Disappointing economic indicators lead to a sharp decline in the Dow Jones Index and the NASDAQ today, wiping out all of yesterday’s gains. It is expected that market figures will be volatile in the run-up to next week’s Federal Reserve Bank statement, which is expected to indicate a rise in interest rates.
The Dow Jones Index closed down 5.5% at 11,018.63 and the NASDAQ closed down .85% at 2,122.98.
DEVELOPING FACTORS
(Iran)
Un General Secretary, Mr. Cofe Annan has stressed the importance of bilateral talks and expressed the hope that the stalemate would be over soon. Iran has said they want to wait until sometime near the end of August to begin the Talks and the United States stresses that an earlier date around the end of July for Iran to stop enriching nuclear fuel for energy generation, would be appropriate.
LATIN AMERICA
(Venezuela)
In Venezuela the Energy and Petroleum Ministry announced last week the appointment of the firms that are to become private partners of the Venezuelan State under the 21 oil joint ventures passed last April 1st. Under article 37, Organic Hydrocarbons Law, "the relevant public office is to launch a number of biddings in order to select operators. For reasons of public interest or under special circumstances related to the activities, operators can be chosen directly, with prior approval by the ministers' cabinet." The cabinet approved the selection last week, then the names of the 37 large and small private companies that are taking part in 21 joint ventures were published in the Official Gazette on June 20th. This is a legal step necessary to initial agreements between the Venezuelan Petroleum Corporation (CVP), which represents Venezuelan state oil firm Pdvsa, and the private partners.
(Bolivia)
PETROBRAS has shut Down Bolivia Office. Brazil’s state-run oil company has announced it will stop fuel operations in Bolivia by July1st, in compliance with the hydrocarbon nationalization policy effective in the country. Company sources said the closing of PETROBRAS Bolivia Distribution (PEDB) is the first major closure by Bolivian Fiscal Oil Fields (YPFB) firm. Under the nationalization decree of May 1, the YPFB will produce, transport, refine, store, distribute, trade and industrialize hydrocarbons. PETROBRAS Bolivia Refining (PEBR), which runs the two major Bolivian refineries, is destined to end up as the PEDB, handing over the stock control to the YPFB, as stipulated by the decree.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 22.06.06
Desire Petroleum down 0.75p or 2.2% on the day to stand at 32.75p
Falklands Oil and Gas up 4p or 3.7% on the day to stand at £112.50.p
Rockhopper Exploration unchanged on the day to stand at 24p
Border and Southern up 0.25p or 0.6% on the day to stand at 43.5p
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