Falklands : Hydrocarbons Daily Record (30/01/07)
Submitted by Falkland Islands News Network (Juanita Brock) 31.01.2007 (Article Archived on 14.02.2007)
Are they really? According to certain press reports Saudi Arabia has done a 180 from yesterday and threatened further production cuts for Thursday. We wait and see.
HYDROCARBONS DAILY RECORD: TUESDAY, 30 JANUARY 2007
By J. Brock (FINN)
At 1800 LMT on Tuesday, 30 January 2007 Light Sweet Crude gained $2.96 Cents to settle at $56.97 on the New York Mercantile Exchange and Brent Crude increased $2.71 Cents to settle at $56.39 on London’s ICE Futures Market.
TRENDS:
Crude gained 5% today due to cold weather in the US and the demand on supplies. Also causing the increase is the looming yet planned OPEC production cut of 500,000 barrels a day due to take place on Thursday. What seems more irritating than frightening are reports that Saudi Arabia, despite saying it wants to put a lid on prices and keep the benchmark crude price at $50.00 per barrel, is planning a further 158,000 production cut due to take effect on Thursday. More than anything today this speculative reporting helped to significantly increase the price of crude today.
THE MARKETS:
FTSE 100 closed at 6,242.00 up +2.12
FTSE 250 closed at 11,131.00 up 26.28
FTSE Small Cap closed at 3.950.40 down -9.07
DJI closed at 12,523.31 up +32.53
NASDAQ closed at 2,448.64 up +7.55
S&P500 closed at 1,428.82 up +8.20
WORLD-WIDE DEVELOPMENTS:
(Saudi Arabia)
On Monday FINN wrote: “Saudi Officials continue stress their philosophy of keeping crude prices close to $50.00 per barrel and not cutting production. This comes as there have been speculative attempts to put the fear of production cuts into the minds of investors.” It seems that fear in the minds of investors is a very good tool if you want to raise the price of crude. What is confusing about Saudi Arabian Officials announcing a further 158,000 barrels per day production cut to take place on Thursday alongside the already announced 500,000 barrel per day cut, is the way in which the announcement was made. (I still haven’t seen the official announcement) It simply isn’t in keeping with the normal, consistent way Saudis do things. It just isn’t like them to say one day they want to keep the price of crude at a benchmark of $50.00 per barrel and on the next day do something guaranteed to make prices shoot up. Hopefully by tomorrow that official announcement will reflect what is really going on so until then, watch this space.
REGIONAL DEVELOPMENTS:
(Bolivia)
According to the South American press Manuel Morales, new president of YPFB, promised to complete the process of nationalisation of hydrocarbons in the country. The reports say that his aim is to go ahead with a process that combines experience and professional capacity with the strength of Bolivian youth. Morales said that next week he will present the way forward for 2007 and he praised the work done by his predecessor, Juan Carlos Ortiz.
(Falkland Islands)
Two representatives from Borders and Southern are here in the Falklands and FINN will have an interview to publish in tomorrow’s Daily Record.
Relevant Share Prices for Tuesday, 30 January 2007:
Tullow Oil up 2.25 to stand at 405.50
Desire Petroleum up 0.75 at 30.50
FOGL Unchanged to stand at 92.50
Rockhopper Exploration up 1.00 to stand at 43.00
Borders & Southern unchanged at 34.00
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