Tag Archives | oil prices

Adjusting Inventories To Lower China Growth

By John Richardson

EXCESSIVE inventory building across a range of commodities in China, including  petrochemicals, continues to worry the blog.

One reason, as we discussed yesterday, might be that traders are in the midst of a liquidity squeeze as a …

Continue Reading

More People Wanting To Buy Than Sell

By John Richardson

SOME people in the petrochemicals industry are showing great confidence in the future.

Perhaps it is no coincidence that several of these people are said to be Chinese domestic traders in polyethylene (PE) and mono-ethylene glycol (MEG) …

Continue Reading

Asia, The Fed And Swimming Naked

 

By John Richardson

WHEN the tide eventually goes out, we will find out who has been swimming naked.

This will also be the case in several emerging markets, ex-China, when the Fed eventually draws down its stimulus.

Hot money …

Continue Reading
benzene global 2013 H1.JPG

The Complexities Of Benzene

By John Richardson

SOMETIMES petrochemicals markets defy reality, on the occasions when pricing moves out-of-synchronicity with the underlying nature of demand.

This is the case with benzene today (see the above pricing chart) as my ICIS colleague Truong Mellor describes, …

Continue Reading
20130516_ECo.jpg

Please Be Careful Out There

By John Richardson

Quite often, a chart is worth many thousands of words. The above chart, from Bloomberg, shows the divergence between the soaring S&P 500 index and US macro-economic indicators.

The theory is that soaring equity values will be …

Continue Reading
apr15_wti_chris.png

Oil Prices Fall, As We Warned

Source: Daily Forex

 

By John Richardson

WE warned on 4 April that real economics threatened a sharp correction in crude-oil prices and it now appears to be happening.

“New York’s main contract, West Texas Intermediate for May delivery, closed …

Continue Reading
NikkeiVLCC.png

The Real Economies Set To Dominate Q2

By John Richardson

Sometimes a picture is worth many thousands of words.

The above chart, supplied by one of the blog’s resources analyst contacts in Perth, Western Australia, neatly illustrates the dangerous divergence between real ecoomies and financial markets. As …

Continue Reading
PE14March3.jpg

China Demand Worse Than Just Before CNY

By John Richardson

CHINA’S demand for polyethylene (PE) is lower than immediately ahead of the February Chinese New Year (CNY) break, said a Singapore-based polyolefins trader.

“For demand to be less than just before the New Year, when most traders …

Continue Reading
PEICIS28feb.png

“Flabbergasted” By Weak Demand….

….In A Tale Of Three Markets.

By John Richardson

AS China introduces more measures to clamp down on an overheated property sector and the shadow-banking system, polyethylene (PE) traders regard this latest news cycle as yet another opportunity to go …

Continue Reading
HDPE.png

Damage Limitation

By John Richardson

POLYETHYLENE (PE) prices crept up by $10-50/tonne for the week ending 22 February, according to ICIS pricing.

But, as the above chart shows, integrated high-density PE variable cost margins in Southeast and Northeast Asia remained very weak, …

Continue Reading