Falklands : Hydrocarbons Daily Record (24/07/07)
Submitted by Falkland Islands News Network (Juanita Brock) 25.07.2007 (Article Archived on 08.08.2007)
Fluctuating supply as well as demand for gasoline in China and in the US has helped to lower the price of crude today.
HYDROCARBONS DAILY RECORD: TUESDAY, 24 JULY 2007
By J. Brock (FINN)
At 1800LMT on Tuesday, 24 July 2007 Light Sweet Crude was trading at $73.73 down $1.16 on the New York Mercantile Exchange and Brent Crude was trading at $75.08 down $1.78 on London’s Ice Futures Market.
ANALYSIS
While the basic reason of supply and demand causes crude prices to fluctuate up or down, it is geopolitics that can also cause enough nervousness on the supply side when things heat up. This Chinese and US drive season focused on the amount of gasoline inventories available rather than geopolitics. It has been said that we are one geopolitical event from $100.00 per barrel crude but lets hope this isn’t going to happen.
More people are turning to alternative energy to run their vehicles. In Israel there are double the number of hybrid vehicles than there were last year at this time. Nuclear power is thought to be making a come-back but it is hoped better care is taken to dispose of nuclear waste.
Regionally it is the tight rig market that is hampering exploration and keeping share prices down. Seismic shows that there is high potential for hydrocarbons in commercial quantities but it takes a rig and drilling to tap that oil for exploration and exploitation purposes.
THE MARKETS (Tuesday, 24 July 2007):
FTSE 100: 6,498.70 down 125.68
FTSE 250: 11,584.00 down 198.21
SmallCap: 4,017.90 down 43.41
DJI: 13,716.95 down 226.47
NASDAQ: 2,639.86 down 50.22
S&P500: 1,511.04 down 30.53
INTERNATIONAL DEVELOPMENTS
(Iraq)
Today Iraq’s parliament has approved a draft law that opens the way for foreign companies to build and operate oil refineries in the country. According to the draft, regional governments and provincial authorities will deal individually with foreign companies, sign contracts and award licences for the construction of all important refineries. The Law on Investing and Refining Crude Oil is separate from a draft hydrocarbons law. That law governs overall exploration and exploitation and is seen as crucial to soothing the sectarian divide in Iraq. Submitted to parliament the draft law has yet to be debated by the full legislature.
(Israel)
Israel’s Air Quality Division of the Ministry of Environmental Protection report shows that data shows a significant rise in the purchase of hybrid cars in Israel in the first half of 2007. The number to date is double that of 2006. The Ministry of Environmental Protection, in cooperation with the Ministry of Finance, promoted the reduction of purchase taxes on these cars to make purchasing them more attractive. The tax breaks led to an increase in the number of hybrids purchased in Israel - from 521 hybrids at the end of 2006 to some 1200 hybrids today.
REGIONAL DEVELOPMENTS
In September Brazil's regulator ANP will probably conclude its eighth hydrocarbons exploration licensing round. ANP general director Haroldo Lima told the Latin American Press in Rio de Janeiro. His ministry had just heard the news that the supreme court had overturned the injunction. He does not want his ministry to suppose anything but as soon as minor issues are cleared, ANP will start deliberating over the eighth round.
(Argentina)
China National Petroleum (PetroChina), the No. 1 China oil and gas producer turned down a chance to buy a stake in the South American assets of Spanish oil company Repsol YPF. Insiders say the proposed deal said CNPC feared the wave of nationalization spreading across South America could threaten the return on the Company’s investment.
RELEVANT SHARE PRICES (Tuesday, 24 July 2007):
TLW: 504.50 down 11.50
DES: 32.75 up 0.50
FOGL: 120.00 down 3.00
RKH: 47.00 up 1.00
BOR: 34.50 up 0.50
PRE: 15.00 down 0.50
GBP: 9.38 up 0.38
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