Oil futures markets are a wonderful thing, in theory. They are supposed to enable price discovery, whilst their liquidity is meant to enable companies to reduce inventory levels. Instead of tying up working capital, they can simply go to the market and buy what they need, when they need it. But the chart above, of US oil […]
Tag Archives | oil markets
Remarkably, crude oil prices are continuing to trade in their triangle formation. As the chart shows, they tried to break out higher in recent weeks. But there was no follow-through. The high-frequency traders were clearly hoping the US Federal Reserve would announce a new round of quantitative easing (QE3), and provide the firepower for a […]
The blog warmly welcomes the move by players in the European olefins market to re-engage with monthly pricing. The rationale for its support is based upon the conclusion of the major report that International eChem produced 3 years ago, Pricing for Profit: “The cumulative impact of the current pricing mechanisms has caused the wider marketplace […]
OPEC’s oil output hit an all-time record in July at 32.8Mbd, due to higher volumes from Saudi and Iran. The Saudi increase to 9.55Mbd was in line with their pledge at the Jeddah summit in June to raise output to 9.7Mbd. But the Iranian increase appears to have been a one-off, as the country sold […]
I’ve read several reports on the outcome of the Jeddah oil ‘summit’, and still feel no wiser than last week:
The war of words between OPEC (the oil producers’ club) and the International Energy Agency (the rich countries energy watchdog), has intensified this week, ahead of the next OPEC Ministerial meeting scheduled for 11 September. Claude Mandil, director general of the IEA, told Arab Oil and Gas ‘the market has become aware’ that OPEC ‘has […]
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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.