Falklands : Hydrocarbons Daily Record (25/06/07)
Submitted by Falkland Islands News Network (Juanita Brock) 26.06.2007 (Article Archived on 10.07.2007)
Worries over supply could cause crude prices to fluctuate higher. Refinery capacity has caused a slow-down in processing crude into gasoline and distillates.
HYDROCARBONS DAILY RECORD: MONDAY, 25 JUNE 2007
By J. Brock (FINN)
At 1800LMT on Monday, 25 June 2007 Light Sweet Crude was trading at $69.18 up 4 Cents on the New York Mercantile Exchange and Brent Crude was trading at $70.23 down 95 Cents on London’s Ice Futures Market.
ANALYSIS:
Supply concerns ahead of the weekly US Department of Energy Administration weekly inventory report have helped crude prices to remain fairly stable today. Though the amount of crude in storage went up last week, the drop in refinery capacity could have had an affect on the reserves.
THE MARKETS:
FTSE 100: 6,588.40 up 21.05
FTSE 250: 11,577.40 down 11.44
SmallCap: 4,037.90 down 11.60
DJI: 13,352.05 down 8.21
NASDAQ: 2,577.08 down 11.88
S&P: 1,497.44 down 4.82
REGIONAL DEVELOPMENTS:
(Argentina, Brazil and Bolivia)
The Latin American press are reporting that Petrobras, won't pay a fine levied against them by Bolivia's government for “irregularities” during past oil exports, a company press officer said on Monday. Bolivia's legal proceedings could result in a fine of up to $239 million. The Petrobras press official said that, to quote Will Rogers, all they know is what they read in the papers and that no formal charges have been filed against his company. Last year, Bolivia accused Spanish-Argentine energy company Repsol-YPF SA of illegally exporting hydrocarbons. Bolivia, according to pres reports, accuses Petrobras' refining unit of exporting oil worth about $188 million in 2004 and 2005 without notifying a government anti-drug unit, to ensure they won't end up with drug traffickers. According to Petrobras’ press officer the law was not in force at the time of the exports.
(Venezuela)
Venezuela’s government is taking over the majority operating share in the Orinoco Belt, as it nationalises hydrocarbons assets. State-owned oil firm, PDVSA, says they've not come to agreement with Conoco Phillips and Exxon Mobil about their future in the region. PDVSA, is now in charge of exploration in the Orinoco Belt. There are proven reserves of at least 80 bn barrels but there could be enough there to make Venezuela the world's biggest source of oil. It has been reported that Conoco Phillips, however, has taken the decision to leave Venezuela entirely after failure to reach an agreement over its role in the Orinoco Belt project. Though President Chavez wants a decision by Tuesday, the company has not accepted the terms for the government to take a majority stake in the Belt where projects are valued at more than $30 billion and can produce 600,000 barrels per day.
RELEVANT SHARE PRICES:
TLW: 499.75 UP 20.75
DES: 31.00 unchanged
FOGL: 80.00 up 0.50
RKH: 42.50 down 0.50
BOR: 24.50 up 0.50
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