Falklands : Hydrocarbons Daily Record (23/04/07)
Submitted by Falkland Islands News Network (Juanita Brock) 24.04.2007 (Article Archived on 08.05.2007)
Yet more worries about supply and anticipation over the election results in Nigeria helped to increase crude prices today.
HYDROCARBONS DAILY RECORD: MONDAY, 23 APRIL 2007
By J. Brock (FINN)
At 1800hrs LMT on Monday, 23 April 2007 Light Sweet Crude was trading at$65.89 up $1.78 on the New York Mercantile Exchange and Brent Crude was trading at $68.15 up $1.66 on London’s Ice Futures Market.
ANALYSIS:
Yet more worries about supply and anticipation over the election results in Nigeria helped to increase crude prices today.
THE MARKETS
FTSE 100: 6,479.70 down 7.05
FTSE 250: 11,924.30 up 23.72
SmallCap: 4,079.10 down 2.31
DJI: 12,919.40 down 42.58
NASDAQ: 2,523.67 down 2.72
S&P 500: 1,480.92 down 3.42
INTERNATIONAL DEVELOPMENTS:
(Supply)
Last Monday OPEC dismissed calls to pump more crude and announced that supply was adequate to meet demand. Demand for its oil this year would be less than previously forecast. Last week’s statement came as the IHS report claimed that reserves of crude are falling. The mixed message from two well respected sources caused the price of crude to increase. Fear that US supplies of crude, gasoline and distillates are declining also has caused panic in the industry, raising prices for hydrocarbons products. The International Energy Agency (IEA) has put pressure on OPEC to increase output as an increase in supply would lower the price of gasoline in the United States. OPEC’s April monthly oil market report cut the forecast for demand for its oil in 2007 by 120,000 barrels per day to 30.28 million bpd. OPEC’s advice is that increasing supplies would not solve gasoline supply problems. Seeking alternatives will.
(Bio Diesel)
Reports are coming stating that Bio-Diesel pollutes just as badly as gasoline. The jury is still out on this. It is said that hydrogen operated vehicles still would cause pollution because it would take electricity to operate the hydrogen gas machines. Again, it is uncertain whether these criticisms have been well thought out. It is important to seek alternatives that are clean and cost-effective.
REGIONAL DEVELOPMENTS:
(South America)
(Paraguay)
Paraguay has signed an agreement with Venezuela to build a refinery and to explore for oil. President Nicanor Duarte signed the agreement with Venezuela on April 16, during the first South American Energy Summit in Margarita. It is expected that the production cost would be about 400 and 600 million dollars and that the refinery will process 40,000 oil barrels a day. This is good news for the region as it will help Paraguay’s economy and create jobs.
(Falkland Islands)
The Board of Desire Petroleum plc is pleased to announce that Dr. Colin Phipps has recovered well from his operation and has returned to the chairmanship of the Company (Desire Petroleum plc). 02 April 2007
RELEVANT SHARE PRICES:
TLW: 369.75 up 4.50
DES: 28.00 up 1.50
FOGL: 88.00 Unchanged
RKH: 43.50 up 1.50
BOR: 27.00 Unchanged
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