Falklands : Hydrocarbons Daily Record (Tuesday, 28 August 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 29.08.2007 (Article Archived on 12.09.2007)
Opec's benchmark of $70.00 per barrel isn't helping people who need to keep warm in the winter or for those most vulnerable to pain at the pump.
HYDROCARBONS DAILY RECORD TUESDAY, 28 AUGUST 2007
Compiled by J. Brock (FINN)
At 1800hrs on Tuesday, 28 August 2007 Light Sweet Crude was trading at $72.10 up 13 Cents on the New York Mercantile Exchange and Brent Crude was trading at $70.50 down 45 Cents on London’s Ice Futures Market.
ANALYSIS
The global stock markets are down again and this has had a positive affect on the price of crude. It is reported that OPEC has set a benchmark of $70.00 for crude but this price is too high, given the effort to seek alternatives for crude as the source of much energy generation. To be honest, I feel that $55.00 to $60.00 would be best. Higher prices could lead to more people seeking alternatives.
THE MARKETS
FTSE100: 6,102.20 down 117.90, FTSE250: 10,793.80 down 175.70, SmallCap: unavailable
DJI: 13,041.85 down 280.28, NASDAQ: 2,500.64 down 60.61, S&P500:
INTERNATIONAL DEVELOPMENTS:
It is reported that OPEC has set an unofficial target oil price of around $70.00 per barrel, This is on the negative side of what is expected by the public, who suffer from not only pain at the pump but freezing temperatures and limited money for fuel during winter months. While HDR agrees with OPEC’s decision to put a hold on production due to adequate supply to meet demand, it does not agree with setting artificially high benchmarks for crude prices. If there isn’t enough crude resource, that’s another story but one would expect some kind of official warning if this is the case.
REGIONAL DEVELOPMENTS:
(Argentina)
The Argentine Bank of the South has alleged that a claim made by former Venezuelan Vice-President José Vicente Rangel was the result of confusion Rangel linked the financial agency with the scandal of the suitcase filled with an undeclared amount of almost USD 800,000 in cash that a Venezuelan businessman tried to bring in Argentina. HDR is getting tired of not getting proper news from this country. I think it’s time this story went ceased to be a part of hydrocarbons development news as, I am sure, there are more relevant developments in the industry.
(Colombia)
Eleven exploration companies have been chosen by Colombia’s government to bid for oil and gas exploration rights in 13 offshore areas in the Caribbean coast. National Hydrocarbon Association, the government's oil-licensing agency, said that Colombia’s government fully pre-selected state-owned Ecopetrol SA, U.S.- based Chevron Corp. (CVX) and Japan-based Teikoku Oil Co. These companies will be able to participate in the auction to be held on Sept.18. Another eight companies still need to hand over additional information to be fully pre-selected. Brazil’s state-run Petrobras, BP PLC, Repsol YPF SA, BHP Billiton PLC, Hess Corp., Seep SA, ONGC Videsh Ltd. and Vinccler Oil & Gas are included.
RELEVANT SHARE PRICES:
TLW: 479.75 down 13.50, DES: 28.25 unchanged, FOGL: 130.00 up 0.50, RKH: 46.50 unchanged BOR: 27.00 unchanged, PRE: 12.50 up 0.25, GBP: 8.00 unchanged
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