Falklands : Hydrocarbons Daily Record (28/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 29.07.2006 (Article Archived on 12.08.2006)
Crude prices have dropped today despite the conflict in the mid east
HYDROCARBONS DAILY RECORD: FRIDAY, 28 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 28 July 2006 Light Sweet Crude dropped 1.30 Cents and settled at $73.24 on the New York Mercantile Exchange and Brent Crude dropped 1.62 Cents to $73.39 per barrel on London’s ICE Futures Exchange.
TRENDS:
Investors are assimilating Geopolitics into the scheme of things and this helped to lower the price rise today. Nervousness has been replaced with a little anger about the continuing mid-east conflict with some analysts saying that it is the profits made by war that makes the conflict grow bigger. I hope this is not the case. Continuing high demand for hydrocarbons products in China caused some nervousness amongst investors today as well as reports of high summer drive demand for gasoline in the United States. However, the hurricane season that began on 01 June has not proved to be a threat – yet. Infrastructure in the Gulf of Mexico is safe for the time being.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was 45.41 points higher at 5,974.90 with the FTSE250 up 7.52 points at 9,992.50 and the FTSE Small caps lost 8.45 settling at 3,377.60
DOW JONES AND NASDAQ:
The Dow Jones Index gained 119.27 points and settled at 11,219.70 and the NASDAQ gained 39.67 points and settled at 2,094.14.
DEVELOPING FACTORS:
LATIN AMERICA:
(Ecuador)
Investors are awaiting legal challenges to Ecuador’s New 50% law for hydrocarbons profits. This new law is seen as part of a trend to nationalise and/or claw back hydrocarbons profits for improvement of industry infrastructure as well as general conditions for the country’s people.
(Bolivia)
On Friday Bolivia’s government sent to the Department of Justice the concerns levelled at the decision to nationalise the hydrocarbons sector, by industry officials and international investors. They want to legally challenge the signing of a contract for oil exporting by the state run company. Hydrocarbons Minister Andres Soliz said that the rule of law must prevail on the agreement between Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and Iberoamerica Trading to export 2,000 barrels of oil a day to the Brazilian Univen at a price below the existing one. Meanwhile, the Congress asked for a report from Soliz and YPFB head Jorge Alvarado.
(Brazil)
There is no new information on Brazil seeking compensation from Bolivia over the allegations that Bolivia's government would investigate Petrobras and Argentine-Spanish Company Repsol-YPF (REP) over tampering with natural gas meters at local fields.
(Venezuela)
There is still excitement about the news coming out of Venezuela is that experts from Argentina, Brazil, Bolivia and Venezuela continued technical discussions related to the future construction of a gas pipeline, called Southern Gas Pipeline. This new pipeline should help with the efficient distribution of hydrocarbons throughout South America. Meanwhile, people are keeping an eye on what Venezuela is doing with their increased revenue from hydrocarbons.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 28.7.06
Desire Petroleum up 0.75 points or i.82% on the day to stand at 42.00p
Falklands Oil and Gas was up .50 points or 0.47% on the day to stand at .107.00p
Rockhopper Exploration was down 0.50 or – 1.23% on the day to stand at 40.00p
Border and Southern was down 0.50 points or 1.05% on the day to stand at 47.00p
|
