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Buffett sells PetroChina

I mentioned PetroChina in the very first blog entry, when the stock was trading at $155 in New York. It seemed to me to typify the new mood of confidence that I was finding as I travelled in Asia on the 10th anniversary of the Asian financial crisis. Little did I think that just 3 […]

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Policymakers turn more downbeat

There has been a noted change of tone from leading policymakers in the past few days. Gone is the jaunty confidence that the world economy is ‘fundamentally sound’. This has been replaced by a sense that debt market problems may have a wider impact than first expected. US Treasury Secretary, Hank Paulson, typified the new […]

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BP and Reliance

BP and Reliance Industries are both powerhouses in their own fields. BP’s new CEO, Tony Hayward, has just given his first interview in the new job. Comparing, and contrasting, his comments with last week’s AGM statement by Reliance’s Chairman, Mukesh Ambani, is very revealing in terms of content as well as tone. Hayward’s interview in […]

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Pricing for profit

The price of a product is a key factor in determining the profitability of producing and using it. And a transparent pricing structure encourages liquidity, which enables price discovery to take place more easily between buyers and sellers. This is why I have long been a supporter of the London Metals Exchange (LME) initiative to […]

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Shenhua shares double on IPO

Coal-to-chemicals just took a further step towards becoming a major source of chemical production once again. Yesterday, major coal producer Shenhua Energy listed on the Shanghai stock exchange, and saw its shares jump 93% to value it at $173bn. Shenhua is the world’s second largest seller of coal, after the US’s Peabody Energy, and it […]

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US housing worsens

Its now 3 months since we first saw the impact of the subprime crisis. At that time, the main impact was on poor Americans, who were losing their homes. Then, in August, banks stopped lending to each other, causing credit conditions to tighten. By September, central banks were fighting fires on several fronts: • Injecting […]

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EPCA 2007

It seems likely that this week’s European Petrochemical Association annual meeting in Berlin will mark a turning point in the petchem cycle. Looking back over 2007, Boy Litjens, CEO of Sabic Europe, told ICIS@EPCA that performance this year had been ‘excellent’, and that they would ‘definitely report the best results ever’. He was also hopeful […]

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Dow warns

Dow CEO Andrew Liveris has spelled out very clearly his concerns about the impact of the US subprime crisis and high energy prices. He said that last week’s Fed Funds cut ‘flirted with danger’ in terms of the risks it took with inflation, although it was clearly necessary in order to tackle other problem areas. […]

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One week later

A week ago, I wrote that it would be important to see if ‘the US Federal Reserve can pull a rabbit out of its hat’ at its meeting later that day. The dust has now settled on its 0.5% Fed Funds rate cut, and one can see that short term liquidity has certainly been improved, […]

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Shell, Saudi Aramco to build new $7bn US refinery

Shell and Saudi Aramco have now confirmed plans to spend $7bn to build what they term ‘the first new refinery in the U.S. in more than 30 years’. They will achieve this by adding 325,000 barrels per day (b/d) to their existing Port Arthur, Texas, facility, taking total capacity to 600,000 b/d. It is scheduled […]

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