Tag Archives | PTA

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Investment banks push oil prices higher

The start of a new half-year usually provides an excuse for the investment banks to publish bullish notes on oil markets. We discuss their role in Chapter 3 of Boom, Gloom and the New Normal, to be published later this month. Thus Goldman Sachs last week suggested oil markets will become “critically tight” in 2012, […]

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Downturn Alert shows markets weakened in Q2

The last week of a half-year period often sees greater volatility in financial markets, as players rush to position themselves for client reporting. This was most obvious in stock markets, with the US S&P 500 Index (pink dotted line) staging a 5% rally during the week. Brent crude oil (blue dash) eventually ended unchanged versus […]

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Downturn Alert shows markets still weakening

The IeC Downturn Alert launched on 2 May. Later that day, the US S&P 500 – the world’s most important stock index – hit a post-Crisis high of 1370. Last Friday, it closed down 7% at 1268 (purple dotted line above). Many expect this to be just a minor correction, and still believe a new […]

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High stocks lead buyers to hold back purchases

Buyers’ behaviour has changed completely since the IeC Downturn Alert launched 7 weeks ago. ICIS news reported Friday a large polypropylene consumer commenting: “I am not buying a lot, just one or two trucks at a time. I kept a high stock level when prices were going up, so now I am using that up. […]

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Markets down 9% – 15% since Downturn Alert began

When the blog launched its IeC Downturn Alert in early May, it noted that “they don’t ring bells at market turning points”. However, it hoped that the Alert would provide a replacement. It seems to be doing its job. As the chart above shows, prices for all the products highlighted are now down between 9% […]

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Global stock markets slide as demand disappoints

It is now 5 weeks since the IeC Downturn Alert was launched. The chart above therefore updates the blog’s regular review of financial markets, showing how these have moved over the same period. Most are down around 4%-5%. Russia is the worst performer (down 8%) and Brazil the best (down 3%). But government bond prices […]

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Crude stabilises as Goldman suggests $130/bbl target

Week 5 of the IeC Downturn Alert saw more stability in the markets. This was largely due to the efforts of the major investment banks. JP Morgan, Goldman Sachs and Morgan Stanley all issued ‘buy’ notes on crude oil, suggesting prices would soon return to $130/bbl, whilst Barclays said its current $102/bbl forecast was “conservative”. […]

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Downturn Alert shows prices keep falling

It is now 4 weeks since the blog launched its IeC Downturn Alert. Since then, as the chart shows (based on ICIS pricing reports): • Brent (blue dotted line) is down 11% • Naphtha (red) is down 13% in Europe • Benzene (green) is down 9% in Europe • HDPE export (purple) is down 7% […]

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Time to check Downturn contingency plans

Two years ago, the blog began to survey global stock markets on what turned out to be the day they began their major rally. Its end-April launch of Downturn Alert may prove similarly fortuitous. Since then (shaded area), Brent crude oil is down 8%. Similarly naphtha is down 11%, benzene down 2%, HDPE 6% and […]

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Downturn Alert launches in the blog

They don’t ring bells at market turning points. Otherwise, we could all retire to the Bahamas. But there is growing anecdotal evidence, from chemical buyers and the main retailers, that we may have reached at least a temporary market peak. And Brent crude oil has been stable for 4 weeks at $125/bbl. Equally, since 1970, […]

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