Crude oversupply is a well-known story by now. Let’s talk about demand growth – or the absence of it. Why has the near-60% crash in crude as measured between the high of mid-June 2014 and the trough of January this year ($115.06 and $46.59/b respectively for front-month Brent) not produced a demand response from Asia?
Archive for the ‘oil fundamentals’ Category
By Vandana Hari | February 17, 2015 07:50 AM Comments (4)
As oil prices push towards $60/b, are we witnessing a “dead cat bounce”, or is the market finding some equilibrium?
By Jamie McDuell | February 10, 2015 08:30 AM Comments (1)
On February 9 over 500 delegates crammed into London’s Mayfair Hotel for the Platts London Oil Forum 2015. I’ve lost count of how many times I’ve attended this annual event, which traditionally kicks off IP Week – it’s a fantastic opportunity for the industry to come together, and invariably features stimulating debate.
By Matt Kohlman | January 22, 2015 12:01 AM Comments (0)
Drivers in car-crazed California paid more than 10% more for their gasoline at the start of the year. They just didn’t realize it.
As expected, California’s introduction of the emissions cap-and-trade program for transportation fuel suppliers boosted Los Angeles regular gasoline rack prices nearly 17 cents in the first two days of 2015 to $1.5885/gal. The rack is the wholesale level where gasoline and diesel is moved onto those often-shiny tanker trucks that hold roughly 9,000 gallons.
What barely changed right away was the price up and down the supply chain.
By Stuart Elliott | January 16, 2015 11:16 AM Comments (0)
The International Energy Agency on January 16 gave the beleaguered oil industry something to feel happy about, suggesting that an oil price recovery could be around the corner. However, producers suffering from sub-$50/b oil will still have some time to wait yet before they can expect any real improvement in prices.
By News Desk | January 7, 2015 03:50 PM Comments (1)
By Jonathan Kingsman | January 7, 2015 11:01 AM Comments (1)
Guest blogger Jonathan Kingsman is the founder of Kingsman SA, which is now a unit of Platts, and he remains a Platts consultant.
Are low oil prices good or bad for oil traders?
In theory oil traders should not care about the price of oil; as they have reminded us many times recently, the big trading companies trade differentials and spreads, not flat (outright) price.
In a trader’s ideal world oil prices would fluctuate in a range, giving traders just enough volatility for risk-free plays on shipment dates and tonnages.
By John Kingston | January 5, 2015 03:21 PM Comments (1)
It has been a wild ride for the US Gulf Coast diesel market, driven by oversupply and tax considerations in just the last two weeks.
The longer-term market is reflecting that glut, because the NYMEX ULSD contract is in a relatively steep contango of 10 cts/gal out over the next year. But in the short-term, it’s been the physical Gulf Coast market that’s been the most interesting.
By Steven Kopits | January 2, 2015 12:07 PM Comments (16)
Steven Kopits is the President of Princeton Energy Advisors, and has been a guest blogger on The Barrel numerous times in the past.
Seven years ago, when I first turned my attention full time to oil, one of the strangest concepts I encountered was the “call on OPEC”. The call on OPEC means different things in different contexts, but fundamentally, it is as non-economic and culturally imperialist a term as one could imagine.