Whisper it quietly to your friends in the oil business. But oil prices are looking very vulnerable. Producers and the central banks have done a great job in creating the myth of imminent shortages – these have always been ‘just about to happen’ as a result of supply disruptions or the long-promised recovery in global […]
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Oil prices hit the top of their triangle
Oil prices are poised at a critical point. As the chart shows, the recent rally has taken them to the top of the triangle formation that has built up over the past decade. Players now need to decide if they are confident enough to push prices into higher ground. A lot of different reasons have […]
Oil demand falls whilst prices rise
The major US investment banks saw their revenues from commodity trading jump 55% in Q1, as oil and other prices rose. According to the Wall Street Journal, JP Morgan (which employs 1800 people in its commodities unit), made $750m in Q1, well ahead of its $1.2bn target for the whole of 2011. The driving force […]
CEOs remain cautious over 2010 Outlook
The blog’s quarterly survey of company Outlook statements shows CEOs remain very cautious. There has been a rebound after the destocking disaster of Q4 2008 – Q1 2009. But there seems little confidence that we will quickly return to the levels of demand and margin seen in the 2003-7 Boom period. China’s stimulus and loan […]
Vitol warns on current oil prices
Vitol are one of the world’s largest oil traders. Thus the blog was interested to see their CEO, Ian Taylor, suggesting that the recent rise in oil prices “does not sit comfortably with the currently available supply and demand data”. According to ICIS news, Taylor went on to note: • Oil demand fell 3m bbl/day […]