Getting crude from the oil sands out to market is an enormous challenge, and there are several proposals that would aim to meet that need. Canada’s National Energy Board is going to need to review those projects, and it is going to be under tremendous scrutiny, as Ashok Dutta discusses in this week’s Oilgram News column, Regulation & Environment.
Archive for the ‘trading’ Category
By News Desk | December 2, 2013 12:01 AM Comments (2)
By Joshua Brown | November 27, 2013 12:01 AM Comments (0)
Two new arbitrages have opened in the last month for two vastly different crude markets, both created by the abundant supply coming out of North America’s ever-growing production and low seasonal demand.
Indian Oil Corp. bought a cargo of White Rose crude oil on November 21, marking the first time the state-owned company reached out to the Canadian East Coast for crude supply.
By Bridget Hunsucker | November 20, 2013 12:01 AM Comments (0)
The Louisiana Light Sweet prompt crude price has disconnected from its traditional price spread relationships as a light sweet crude wave invades the US Gulf Coast.
Traditionally, the price of coastal-based benchmark LLS was connected more to the price of imported crudes, and therefore, the price of Brent. And up until lately, LLS traded mostly at a premium.
But this relationship has changed dramatically.
By John Kingston | November 19, 2013 12:01 AM Comments (3)
The University of California-Davis has a new study out about California’s Low Carbon Fuel Standard. Once you get past the standard dry academic writing, much of it is fairly startling.
We care about the source of the report because the school’s Institute of Transportation Studies is essentially the intellectual center of the LCFS. And what it calls for in the study, released last month but published on an LCFS-centered Twitter feed just a few days ago would, if implemented, mark a significant change in the way the state’s LCFS is administered.
By Matt Kohlman | November 15, 2013 12:01 AM Comments (0)
The long wedding march for US airlines is nearing its end, with all the marriages bringing much-needed discipline into the industry.
By Alison Ciaccio | November 1, 2013 04:46 PM Comments (0)
After a two-day policy meeting this week, the US Federal Reserve left the door open to tapering its $85 billion monthly bond buying purchases, despite a 16-day government shutdown and a somewhat hazy picture of the US economy.
But oil prices may just be paying less attention to the “will they or won’t they” moves of the Fed in regards to tapering, which had been all the rage over the summer.
By Esa Ramasamy | October 29, 2013 10:17 AM Comments (4)
Have Mars and Light Louisiana Sweet crudes become marginalized after failing to rise with a wide Brent-WTI spread?
In the past week, with the ICE Brent-NYMEX WTI spread blowing out—it was at parity briefly a few weeks ago, and now it’s out to more than $11–US Gulf Coast crudes Mars and LLS’s differentials failed to rise in tandem. In the past, whenever the Brent-WTI spread widened, Mars and LLS differentials to WTI would rise, in essence, keeping those two grades more in line with Brent.
By Ross McCracken | October 24, 2013 09:51 AM Comments (1)
An arbitrage is a difference in value for a commodity relative to location. It is something that efficient markets close. Billions of dollars are being invested in the US to take advantage of the price difference between domestic gas and Asian LNG, just as billions were earlier invested in LNG import terminals. In this month’s featured article from Platts Energy Economist, editor in chief Ross McCracken discusses how only time will tell if it proves a good bet either for buyers or sellers.
Arbitrages are common in the oil and gas world. One of the most long-standing was the Brent-WTI arb. In the old days – Before Shale – international marker Dated Brent, then a single crude blend from the North Sea, traded at a discount to the US marker West Texas Intermediate. If the discount proved large enough to compensate for the freight cost, cargoes of Brent would be moved across the Atlantic and into the Gulf Coast.
By Christopher Tremulis | October 4, 2013 02:08 PM Comments (1)
With Gary Gensler’s time as Chairman of the US Commodity Futures Trading Commission coming to a close after five years of leadership, new unidentified sources in Washington have re-stirred the speculation pot, hunting for his successor.
Currently, media reports have suggested a small flock of potential leaders of a commission with a far larger footprint and regulatory responsibility than when Gensler started. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 which Gensler implemented gave new powers to the regulator now responsible for both the futures and multi-trillion dollar swaps markets.
The most recent name to emerge is Treasury Department official Timothy Massad, who has overseen the ending of the government’s bank-bailout program. He could be a smart, safe pick. He was confirmed to his role by the Senate in 2011, making his resume seem noncontroversial.
By James Bourne | October 4, 2013 09:54 AM Comments (0)
The cracks in the once-impregnable edifice of oil-price linked LNG term contract pricing are widening.
Since last autumn, when Japan’s industry and energy ministry METI hosted the first LNG Producer-Consumer conference in Tokyo, Asian LNG term buyers have had an annual forum at which to lobby for lower prices, or at least for more flexible contract terms.
Ever since oil prices topped $100/b and US Henry Hub natural gas prices dropped below $5/MMBtu, Asian term buyers have complained that traditional oil-linked contracts are killing them. They would also like flexible destination clauses, as allowed in Europe, and other variants to the traditional 20-year LNG contract model which, to outsiders and newcomers, looks old fashioned and inflexible, to put it mildly.