By J. Brock (FINN)
At 1800 LMT on Monday, 26 February 2007 Light Sweet Crude up +25 Cents to settle at $61.39 on the New York Mercantile Exchange and Brent Crude gained +24 Cents to settle at $61.75 on London’s ICE Futures Market.
TRENDS:
Nervousness about Iran’s continued enrichment of nuclear fuel for energy generation and cold weather in the US resulting in a draw in supplies has added to the price of oil today
THE MARKETS:
FTSE 100 closed at 6,434.70 up +33.21
FTSE 250 closed at 11,612.40 up +12.42
FTSE Small Cap closed at 4,103.50 up +6.37
DJI closed at 12,632.26 down -15.52
NASDAQ closed at 2,504.52 down 10.58
S&P500 closed at 1,449.37 down -1.82
Comments by former Fed Chief Alan Greenspan about the US falling into recession by the end of the year have helped New York share prices to lose ground today.
INTERNATIONAL DEVELOPMENTS:
(Iraq)
The Iraqi cabinet endorsed on Monday a draft law crucial to regulating the distribution of profits from oilfields to all the relevant ethnic groups. With the world's third largest proven oil reserves, the move is a political milestone. Iraq needs billions in foreign investment to kick start its shattered economy. An earlier deadline of the end of 2006 to agree the law was missed to ensure the law covered the ethnic groups. The draft law would allow the Kurdish regional government (KRG) to review existing contracts it has signed with foreign firms to ensure consistency with the new law’s terms and conditions.
Brazil and Russia)
Gazprom has announced that it and Brazil’s Petrobras have agreed to co-operate on oil and gas projects, including production of liquefied natural gas (LNG). The two companies signed a memorandum of understanding to this effect in Rio de Janeiro. According to the statement, Gazprom and Petrobras will cooperate on development, extraction, transportation and sale of hydrocarbons. Both companies are planning to work on the development of sea gas deposits, as well as new technologies. Of the first joint steps there will be co-operation on the sale of LNG, development, and extraction of hydrocarbons on continental Latin America, along with creation of regional gas transporting systems.
(Algeria)
Algeria’s hydrocarbon revenues in 2006 amounted to 58 billion dollars including 53.5 billion dollars for Sonatrach alone. Foreign companies’ profits were nearly 4.5 billion dollars. 98% of the companies’ objectives have been met as regard oil and gas. Algeria’s oil production has reached 1.4 million barrels a day, in 2006.
(Bolivia and Russia)
During a visit of a Gazprom delegation to Bolivia, that company and the Bolivia’s state-owned company YPFB signed a memorandum of understanding. According to a Gazprom statement, "the memorandum provides for the development of co-operation in the prospecting and development of hydrocarbons in Bolivia, a possibility of participation in infrastructure projects, including the production of liquefied natural gas, as well as the training and re-training of specialists for the oil and gas sector."
(Falkland Islands)
