Archive | Oil markets RSS feed for this section

ExxonMobil Antwerp to spend $1bn boosting diesel capacity

When the world changes, companies either change with it or go out of business.  The market for stagecoaches was never the same once cars came along.  And not many students use slide rules today, now calculators are available. Usually, of course, these market changes are slow-moving.  So companies often fail to respond in the hope the old world […]

Continue Reading

US condensate exports highlight oil market weakness

Slowly but surely the myths over supposed supply shortages in the crude oil market are being exposed.  As leading US investment magazine Barron’s wrote this week: “In May, U.S. production hit its highest monthly average level since 1988 and is projected to keep rising. Domestic supplies have piled up in storage, especially on the Gulf […]

Continue Reading

Oil will be left in the ground, as gas gains energy market share

The annual BP Energy Statistics publication is a treasure trove of information for anyone interested in global energy markets.  One key area is the impact of today’s higher oil prices on consumption growth, as highlighted in the chart: It starts from 1965, and shows consumption growth for oil (red line), gas (blue) and total energy (green) Oil’s […]

Continue Reading

Europe faces Russian gas and oil supply risk over Ukraine

History shows that that governments usually lose arguments with energy suppliers.  UK premier Harold Macmillan summed up the position when talking about coal miners in the 1950s, warning: “There are three bodies no sensible man directly challenges: the Roman Catholic Church, the Brigade of Guards and the National Union of Mineworkers” Unfortunately, Europe now potentially faces an argument with its leading gas […]

Continue Reading

Oil markets pressured by copper price falls

Whisper it quietly to your friends in the oil business.  But oil prices are looking very vulnerable.  Producers and the central banks have done a great job in creating the myth of imminent shortages – these have always been ‘just about to happen’ as a result of supply disruptions or the long-promised recovery in global […]

Continue Reading

Can oil prices stay at $100/bbl forever?

Sometimes the blog’s mind goes back to its happy days in Houston, Texas, when it set up and ran ICI’s feedstock and petchems trading office.  And it thinks through the factors that it would have considered when deciding whether to buy, sell or sit on the sidelines. The memory came back during last week’s lively ACS webinar, when […]

Continue Reading

European oil travels the world as market complacency increases

The blog has a suggestion for a quiz question for anyone planning party games over the Christmas period: Q.  What was the longest distance travelled by a cargo of crude oil in 2013? A.  9000 km (5500 miles) from Scotland to China Isn’t that amazing?  We are constantly being told that supply is short, and that today’s high prices are […]

Continue Reading

Iran talks offer hope on oil prices

Iran has been at the centre of all the major oil market price spikes in the past few decades: Today’s record prices on an annual basis are partly due to market fears over supply disruptions due to the Iran/Israel nuclear issue Fears over a nuclear showdown also led prices to jump to $150/bbl in July 2008, when the […]

Continue Reading

Oil market hype fails to take prices out of their triangle

Pity for a moment those poor souls whose income depends on finding ever-more creative ways of justifying today’s record levels of oil prices.  One by one, all their favourite stories have disappeared.  Even the traditional summer warnings of record hurricane disruption have so far failed to deliver. How different it is from the start of the crisis, when the […]

Continue Reading

Pension fund speculation boosts oil prices as consumers suffer

Think back over the past 5 years.  Can you remember a single time when oil supplies were actually difficult to find?  If you can’t, then you have the same memory as the blog. Official statistics support this view.  Thus last week’s US EIA report noted that “U.S. crude oil inventories are near the upper limit […]

Continue Reading