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Chemicals and the Economy

Oil price volatility highlights uncertainty ahead

  The 3 month trend of Brent oil price volatility has reached its highest level since the 2008 financial crisis and before that, the 1st Gulf War in 1990/91.  As the chart shows, it is even higher than after 9/11. Yet there have been no developments in oil markets themselves to justify such a level. […]

Brexit a disaster for the UK, Europe and the world

First, the good news.  It has long been recognised that the UK economy is over-dependent on financial services, and that its housing market – particularly in London – is wildly over-priced in relation to earnings.  The Brexit vote should ensure that both these problems are solved: Many banks and financial institutions are already planning to […]

Oil market fundamentals continue to weaken as Glencore buys

Global oil traders are having lots of fun as oil market volatility ramps up.  Earlier this month, for example, Reuters reported that “Glencore have got big positions all over the place” in North Sea oil markets: They spotted that N Sea production would be sharply reduced in June due to maintenance on the Ekofisk field […]

Saudi plans to transform Aramco to energy /industrial company

“Within 20 years, we will be an economy that doesn’t depend mainly on oil“. With that one statement, deputy Crown Prince Mohammed bin Salman (pictured above), changed the outlook for oil and energy markets.  The world’s major oil producer, with the lowest cost, was signalling that the kingdom will no longer be supply-driven, focused on […]

Oil market rally under threat as Doha meeting fails to agree

Yesterday’s failure of the Doha oil producers meeting will hopefully reintroduce a note of sanity into oil markets.  After all, Saudi leaders have made it clear, time and time again, that they were no longer interested in operating a cartel where they take the pain of cutting production, and everyone else gains the benefit of […]

US GDP Q1 forecast at just 0.1%; global chemical output slows

“Confusion now hath made his masterpiece”.  This quotation from Shakespeare’s great tragedy, Macbeth, aptly sums up the state of the world economy. Policymakers refuse to accept that the BabyBoomer-led economic SuperCycle is over.  And so they continue to believe that adding vast amounts of electronic money to the financial system will return the economy to SuperCycle levels […]

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