Posts Tagged ‘prices’

Coal may burn bright, but which Asian market has the lights left on?

If you are a coal producer focused on the Chinese market, I am sure you will be scratching your head thinking about the future. Ever since China started imposing restrictions on imports, suppliers have gone on a wild hunt for buyers.

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Energy Economist: King Coal faces the end of its reign

The coal industry is in crisis. It has failed to recognize the structural shift in power generation driven by regulation rather than price and has missed the window of opportunity to invest in clean coal technologies. Now it faces a slow King Canute style demise, as elaborated by Ross McCracken, managing editor of Platts Energy Economist.

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The UK may lose a large part of its gas storage, but does it matter?

It went largely unnoticed by the general media, but last week there was a significant announcement for the UK gas industry: the country’s main gas storage site may have its capacity cut by around a quarter, reducing the volumes that can be held in reserve next winter.

Just two years ago, during a cold winter, there were warnings that the country “was just six hours away from running out of gas.” So why would storage capacity be cut now, and does it matter? Read the rest of this entry »

Europe: The perennial LNG sponge

This winter saw record volumes of LNG arriving on the shores of Europe, as cargoes sought value in an environment of weak LNG spot pricing. Cargoes flowed in from not only Qatar, but also from production sites like Trinidad and Tobago as portfolio players sought to optimize volumes into Europe while purchasing Asia Pacific delivery cargoes elsewhere to fulfill existing commitments.

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Guest post — The gold:oil ratio is speaking

Jodie Gunzberg is the global  head of commodities for S&P Dow Jones Indices, which, like Platts, is part of McGraw Hill Financial. She writes on commodity investing on the Indexology blog. Her post from March 12, explaining the ratio of gold prices to oil prices and what lessons can be gleaned from it regarding the oil price collapse, is reproduced here. 

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Could 2015 finally be nickel’s chance to shine?

Nickel was something of a disappointment in 2014 with prices spiking in the first half of the year, only to fall back in the second half, failing to meet many analysts’ expectations.

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Freezing temps across US Northeast warm the diesel market

Spring might be around the corner, but for residents of New York and Boston who just experienced one of the coldest Februarys on record, the change in seasons cannot come soon enough.

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Oil demand, prices and decelerating US supply

Global oil supply and demand forecasts for 2015 have changed significantly recently, but these changes have largely cancelled each other out: the outlook is still one of a market roughly in balance. However, this ignores the tectonic shifts taking place under the surface. US output growth is decelerating. If futures markets pre-empt this, as they did in February, they risk reversing it, which could produce another drop in prices, as Ross McCracken, managing editor of Platts Energy Economist, explains.

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If breaking up is hard to do, try not growing oil

Someone had to do it, and it might as well have been one of the biggest names in US shale.

Having whittled its 2015 capital budget down to $5 billion, 40% lower than last year, US producer EOG Resources last week made the tough call of forfeiting production growth this year, saying it would drill but not complete wells in a low oil price environment.

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New Frontiers: Price drops could reset African crude production expectations

With spending cutbacks already taking their toll on global upstream activity, oil companies are being forced to rethink their approach to Africa’s vulnerable high-risk, high-reward exploration frontiers.

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