Archive for the ‘trading’ Category

Montreal could become an oil export hub as markets continue to shift

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.

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A small Maine city may have set off a big fight over oil movements

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.

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Did the US Commerce condensate export rulings mean nothing?

Two US Commerce Department rulings giving a pair of Eagle Ford players legal backing to export processed condensate have been viewed as a dramatic loosening of America’s 40-year ban on crude exports, or at least a sign that long-awaited export policy changes were near.

But what if these private letter rulings really only impact the companies that received them and nothing more?

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The end is nigh for high sulfur European gasoil, despite pockets of demand

It has not been a great year for high sulfur gasoil consumption in Europe, by any stretch of the imagination.

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Regulation & Environment: Cap & Trade comes to California oil product markets

California’s cap and trade law has been reality for a wide variety of CO2 emitters for several years. But they are all stationary sources. In January, it moves to a moving kind of source: motor vehicles. In this week’s Oilgram News column, Regulation & Environment, John Kingston, fresh off a trip to the state’s capital city of Sacramento, discusses the implementation of the law in the fuels business.

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S&P Dow Jones launches a new commodity index

Our colleagues at S&P Dow Jones Indices — like Platts, a unit of McGraw Hill Financial — have launched a new commodity index. Investing in commodities through indexes do or do not have a significant impact on price; we cite both sides of the coin to note that it is an issue of significant disagreeement among analysis.

Platts wrote about the launch in this news story on July 1, the day the index was launched. We are republishing here a blog posting from S&P’s blog Indexology, written by Jodie Gunzberg, global head of commodities for S&P Dow Jones Indices. We have featured Jodie’s views on The Barrel previously.

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Foreign-owned steelmakers in the US go native and sue “foreigners”

A funny thing happened on the way to international free trade.

If you know what a NIMBY is, that should provide a clue. When foreign steel mills started buying American producers some thought they might eventually see an end to costly and disruptive unfair trade case filings as a more international perspective flourished in the market. (If you don’t know, NIMBY stands for “Not in my back yard.”)

But the filing of American steel dumping and countervailing duty cases never ended. There has been a resurgence in recent years, and more are expected to be filed or finalized this year and next. Steel has been the most litigated product in human history and likely still holds that honor.

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Energy Economist: Why do oil and natural gas markets appear complacent?

In this month’s selection on The Barrel from Platts’ Energy Economist, Ross McCracken wonders why in the midst of so much turmoil, markets are relatively calm.

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Letter from California: What’s missing in the LCFS, and C&T on the horizon for fuels

Here are a few observations after two days in Sacramento — and on the phone — talking about the California Low Carbon Fuel Standard and the arrival of the state’s cap-and-trade law into the fuels market on New Year’s Day 2015.

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A new book seeks to lift the lid on the commodity rulers of the world

The bubble for commodity-contract trading, or the buying and selling of contracts to bet on the future price of commodities, is deflated, or so the liquidity statistics suggest.

According to the Bank for International Settlements, outstanding OTC commodity derivative contracts totaled $2.2 trillion at the end of 2013, down from a peak of $8.5 trillion in 2007. Even accounting for growth in exchange or “cleared” contracts as a result of the regulatory requirements imposed by US legislation Dodd-Frank, overall volumes are down significantly.

As others on The Barrel have discussed, commodities are no longer the hottest ticket in town.

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