Montreal has emerged as an export base for Western Canadian heavy sour crudes as prospects to construct new pipelines to the British Columbia coast, Eastern Canada and US fade.
By Esa Ramasamy | July 31, 2014 06:30 AM Comments (0)
By Jeff Ryser | July 30, 2014 02:58 PM Comments (0)
In May, this blog looked at April data for crude oil trading on Platts market on close, or MOC, system, and saw a steep falloff in volumes of barrels traded in the Americas and in Europe, the Middle East and Africa.
The apparent cause of the decline in liquidity of these markets was the lack of volatility in prices. A Platts review of April numbers said that trading volumes in energy futures products had been “caught in a declining trend” as “major price fluctuations came to a standstill.” It said that volatility had “eerily decreased,” with standard price deviations down across oil and oil products.
Now, from the vantage point of late July, MOC numbers for April, May and June–in other words, for the second quarter–look quite different, even though volatility mostly remains at bay.
By News Desk | July 30, 2014 02:40 PM Comments (0)
By Steven Kopits | July 30, 2014 11:57 AM Comments (8)
Steven Kopits is the Managing Director of Princeton Energy Advisors, LLC. He is currently writing a book on supply-constrained oil markets analysis.
Once again, we return to the debate over the direction of oil prices, this time led by the high price school.
In a recent article, Professor James Hamilton of the University of California argues that sluggish supply growth, coupled with sustained emerging market demand, will tend to keep oil prices elevated. He writes, “the world of energy may have changed forever…hundred dollar oil is here to stay.”
By Ross McCracken | July 29, 2014 12:01 AM Comments (1)
By Yen Ling Song | July 28, 2014 10:50 AM Comments (0)
China is shifting its focus on state-owned enterprise reform, but it still remains to be seen if the SOEs will make significant changes to the roles non-state entities can play. Song Yen Ling discusses China’s energy sector reform goals in this week’s At the Wellhead column from Oilgram News, and also takes a look at whether internal turmoil within China’s dominant upstream player is a hurdle to advancing projects.
By Christine Forster | July 25, 2014 10:15 AM Comments (0)
Mongolia might not be the first place that springs to mind as a potential investment destination for oil and gas players, but one small Australian company is hoping the recent passing of a new petroleum law will open up opportunities in the landlocked nation between Russia and China.
Wolf Petroleum is the only Australia-listed oil and gas company operating in Mongolia. But the industry minnow, capitalized at just A$5.5 million ($5.2 million), claims a position as Mongolia’s largest petroleum acreage holder, with one production block and two exploration areas covering more than 74,400 sq km (18,000 million acres).
By Alison Ciaccio | July 24, 2014 05:24 PM Comments (1)
In early July, there was a shift in the ICE Brent crude futures market — the backwardation that market players had become accustomed to flipped into contango. Some even said the market “collapsed” into a “supercontango” in a way not seen since 2008.
A contango market suggests ample supply in the prompt market, as the futures price of a commodity is above the expected future spot price. The contango in the Brent curve seems to suggest fatigue in oil demand, some say.
By News Desk | July 23, 2014 03:48 PM Comments (0)
Our analysis of this week’s EIA oil data can be found here.
By John Kingston | July 23, 2014 03:13 PM Comments (0)
The next big fight in the war over oil and gas development in the US — or at least one of the next big fights – will be over local control. That issue ramped up this week and appears to raise a significant question of federalism.
The city council in South Portland, Maine, voted this week to approve a package of zoning restrictions that would affect the handling of crude oil in the city. But the laws were drawn to impact the handling of oil being put on to tankers. It doesn’t affect oil being taken off tankers.
Why this is significant is because South Portland is the eastern terminus of the Portland-Montreal Pipeline, which takes crude oil imported into Maine and brings it to Montreal near the St. Lawrence Seaway. It can be refined in Montreal, or moved down Line 9 to Canadian refineries in Ontario.