Falklands : Hydrocarbons Daily Record Monday, 28 May 2007
Submitted by Falkland Islands News Network (Juanita Brock) 29.05.2007 (Article Archived on 12.06.2007)
Opec's reassurances that there will be enough crude supplies to meet demand have helped to decrease the price of crude today.
HYDROCARBONS DAILY RECORD: MONDAY, 28 MAY 2007
By J. Brock (FINN)
At 1800LMT on Monday, 28 May 2007 Light Sweet Crude was trading at $64.55 down 65 Cents on the New York Mercantile Exchange and Brent Crude was trading at $69.50 down $1.18 on London’s Ice Futures Market.
ANALYSIS:
Geopolitics as reported recently by Saudi Arabia’s Assistant Oil Minister, Prince Abdul Aziz bin Salman bin Abdul Aziz, is the major factor for crude price fluctuations. The Assistant Oil Minister will tell you that politics can drive crude prices up and it can drive crude prices down. For his part, the Assistant Oil Minister has assured investors that OPEC is committed to keeping supplies sufficient to meet demand. This news also helped to lower the price of crude today.
THE MARKETS (Closed on Monday for bank holiday and Memorial Day: These are the last reported prices.)
FTSE100: 6,570.50 up 5.05
FTSE250: 12,057.60 up 72.87
SmallCap: 4,138.00 down 6.06
DJI: 13,507.28 up 66.15
NASDAQ: 2,577.19 up 19.27
S&P500: 1,515.73 up 8.22
INTERNATIONAL DEVELOPMENTS:
(Russia)
In press releases from Gazprom Neft and LUKoil it has been announced that both companies have set up a joint venture to cooperate in new projects in Russia and overseas. Gazprom Neft will hold 51% and LUKoil will hold 49 percent of the shares. It is hoped that the new Joint Venture will acquire new licenses and explore, develop and produce oil and gas, focusing on Russia as well as overseas. It is expected the joint venture will develop new projects in production and refining of hydrocarbon resources. Though Gazprom has a 51% share, control will be shared. According to the press release, both companies planned to sign an agreement last year. The then Gazprom Neft CEO Alexander Ryazanov left the company in November and it was decided it was better to postpone the deal.
REGIONAL DEVELOPMENTS:
(Venezuela)
A company press release says Venezuela’s PDVSA has signed a letter of intent with Repsol YPF SA to assess the Barua Motatan gas field in Trujillo and Zulia. In the statement, PDVSA said production at the field could reach 40,000 barrels a day in the first phase of operations. For its part, Repsol/YPF says the Venezuela government is currently seeking plans to meet increases domestic gas demand.”
(Brazil)
The Sonatrach website reports that Algeria will begin selling liquefied natural gas (LNG) to Brazil next year under the terms of a new contract signed in Algeria on Saturday. Sonatrach will deliver LNG to Brazilian company Petrobras through the use of offshore re-gasification terminals at Guanabara in the south of Brazil and Pecem in the north of the country Exploration and exploitation clauses are included in the contract..
RELEVANT SHARE PRICES:
TLW: 386.75 down 1.25
DES: 26.00 down 0.25
FOGL: 78 Unchanged
RKH: 41.00 Unchanged
BOR: 21.00down 0.50
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