ICIS news reports that polymer demand is falling sharply in two key markets, China and Europe. This is a bad omen for demand in other chemical markets, as polymers are closely tied to GDP growth. Linda Naylor reports that PE volumes in Europe may be down 7% in 2008. Meanwhile, John Richardson and Malini Hariharan […]
Tag Archives | crude oil prices
There seems to have been no response from Iran to the 2 week deadline set by the US and Europe on the nuclear issue. Over the weekend, Iran’s President, Mahmoud Ahmadinejad said ‘the Iranian nation would not retreat one iota from its rights.’ Earlier, Israel’s deputy Prime Minister, Shaul Mofaz, had also taken a hard […]
A new debate about increasing US energy security, by reducing gasoline dependence, may be getting underway. Leading the move is Andy Grove, the man who made Intel into the leading global chip company. His key phrase, and the title for his 1996 book, was ‘Only the paranoid survive’. Now he is taking this approach into […]
I suggested at the weekend that the Iran issue had the potential to move oil prices by $50/bbl either way. Since then, prices have fallen $20/bbl to $130/bbl, on news that the USA and Iran will meet tomorrow for the first time in nearly 30 years. If they reach agreement on the nuclear issue, oil […]
Andrew Sentance of the Bank of England has issued a very clear analysis of current oil and commodity price movements. It rejects the view that these have been primarily caused by speculators. Instead, it points to increasing demand, and lack of supply, as the main causes of today’s higher prices. The slide above sums up […]
Yesterday’s US government data on gasoline consumption gives the clearest picture yet of what is happening to US demand. The data compares the 4 weeks covering the July 4 Independence Day weekend, with the same period last year. And it shows gasoline demand was down just 2.1%, even though oil prices have doubled since last […]
Its now a year since the blog started. Since then, 213 postings have appeared. It is now read in 72 countries and 620 cities (shown above). Most encouragingly, readership continues to steadily increase. Since January, it has risen a further 301%. The blog’s aim is to identify ‘the influences that may shape the chemical industry […]
Three major themes ( ICIS Jun08.pdf ) emerged from our Asian Conference last week, co-organised with ICIS: • Change. The world is clearly changing very rapidly. Feedstock prices are rising. At the same time, major new capacity is starting to come on-stream in the Middle East, and in Asia. • Complexity. There are many more […]
Dow today announced that it is raising prices for ‘all of its products by up to 20 percent – depending on their exposure to rising energy, feedstock and transportation costs – and will review all terms to all customers’. Dow CEO, Andrew Liveris, said that Dow’s ‘first quarter feedstock and energy bill leapt a staggering […]
Sinopec is now losing 3000 yuan ($425) on every tonne of oil product sold, due to China’s price freeze, according to Sinopec spokesman Chen Ge yesterday. And this is on top of official government subsidies paid to Sinopec, which rocketed to $1bn in April. This was more that the entire subsidy paid in 2007. And […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.