Tag Archives | natural gas

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Oil tumbles $12/bbl as demand worries increase

Cracks have begun to appear in commodity markets as QE2 ends. Crude oil has now fallen $12/bbl on demand worries since the blog suggested a top might be close. And the Wall Street Journal has confirmed that the super-computers who have driven prices skyward, are now beginning to retire from the party. This builds on […]

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Crude oil continues to trade in its ‘Triangle’

An unnatural calm continues to dominate crude oil trading. Prices may move up or down by $2/bbl or $3/bbl a day, but then they always return to where they started, between the upper red line and the lower green one. The blog has kept its promised eye on developments, since this trend of ‘trading in […]

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Shell sees “supply revolution” in natural gas

Natural gas markets, so important in relation to chemical feedstock availability and pricing, are undergoing major change as we transition to the New Normal. The Middle East, which had been in surplus, is now moving to a more balanced position in some countries, such as Saudi Arabia. But the USA, which had expected to need […]

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US natural gas prices tumble

The blog’s early career, as a petchems trader in Houston, taught it to look out for moments when prices in one market start to diverge from those of a related product. These can often provide advance warning that a trend change is underway. Thus it is fascinated by the above chart, from commoditycharts.com. It shows […]

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Chemicals could gain from energy savings need

“The most important ‘fuel’ of all, will be energy saved through fuel efficiency“. That’s ExxonMobil’s (EM) latest view of the outlook for meeting world energy demand over the next 20 years. And as Nigel Davis highlights in ICIS insight, this “will require materials and innovation – the backbone for the chemicals industry“. EM expect “40% […]

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US natural gas markets in confusion

Natural gas is a major feedstock for US chemical producers. So the problems caused by the rush to buy a fund that “invests” in the natural gas futures market, are a concern. Olivier Jakob of Petromatrix has been warning for some time that the UNG fund was becoming too large. Investors have been so keen […]

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US natural gas prices rise 65%

The US price for natural gas has risen faster than crude so far this year. It is already up almost 65%. Rising coal and oil prices have encouraged power generators to switch to gas, whilst lower Canadian exports and a tight global LNG market have helped to push prices higher. Increasing demand for ethanol will […]

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Inflation worries increase in China, USA

China announced yesterday that inflation had soared again last month, reaching 8.7%, versus the government target of 4.8%. Part of the increase is clearly due to the effects of recent major storms. But with the US Fed likely to cut rates soon, China remains in a difficult position. If it increases interest rates, then the […]

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