Falklands : Hydrocarbons Daily Record (02/06/06)
Submitted by Falkland Islands News Network (Juanita Brock) 03.06.2006 (Article Archived on 17.06.2006)
It is possible that Iran has commented on the Vienna proposals without seeing the relevant document.
HYDROCARBONS DAILY RECORD: FRIDAY, 02 JUNE 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 02 June 2006 Light Sweet Crude raised $1.99 and settled at $72,33 per barrel on the New York Mercantile Exchange and Brent Crude at $70.72 up $1.28 per barrel on London’s ICE Futures Exchange.
Investors have reacted to Iran’s flat-out refusal of yesterday’s initiative by a joint UN Security Council plus Germany panel. Their list of proposals and sanctions indicated to investors that Iran could, at some later stage, come to the table for bilateral talks. Nervousness over the kidnapping of two oil workers in Nigeria and unspecified problems at US refineries also added to the rise in prices.
FTSE 100 5,776.80 +0.47% and the FTSE 250 9,408.90 +1.06%.
Dow Jones and NASDAQ
Though there was a record low unemployment rate in the United States of 4.6% seemed to be good news, investors honed in on the fact that regardless of a prediction by the stock exchange said 175,000 new jobs would be added to the labour market, the figures of 75,000 new jobs did not live up to expectations. This brought up worries that the Federal Reserve Bank might raise interest rates later this month.
The Dow Jones Index closed down 0.11% at 11,247.87 and the NASDAQ closed down at 0.02% at 2,219.41.
Even though it is not clear whether Iran has received the list of proposals and sanctions emanating from the meeting in Vienna yesterday, President Ahmadinejad has rejected any proposal that requires his country to give up nuclear research. U. S. Secretary of State, Dr. Condoleezza Rice has said that she wants to meet Iranian Officials but added they must give up their nuclear research programme prior to any meeting. It was important for the representatives from the UN Security Council plus Germany to ensure that Iran had the chance to read the document and it is not known when or if the document was sent to that country. It is unfortunate that the reaction to the document could have been voiced prior to its reception in Iran. It is thought that there is still a way forward for bilateral talks and that middle ground can be reached.
The Santiago daily El Mercurio reported on Thursday that ten of the world's top oil companies have expressed interest in exploring for natural gas in Chile. Companies showing interest include Chevron Corp., British Gas or BG Group PCL, Marathon Oil Corp., and Brazil's Petroleo Brasilero SA, or Petrobras, according to the report.
Investors are still vacillating between indifference and depression over the situation regarding the oil rig that would really send the feel good factor through the roof. The per day costs are only one problem, with the scarcity of rigs for exploratory drilling. Even if we do get a rig and find something we could be looking at 5 years before oil reserves are exploited.
Falklands Oil Stocks End of Day Price for the 2.06.06
Desire Petroleum down 0.75 or 1.6% to end the day at 39.p
Falklands Oil and Gas up 1p or 0.8% on the day to stand at £1.19.50p
Rockhopper Exploration unchanged on the to stand at 28.5p
Border and Southern unchanged on the day to stand at 44p