U.S. OIL WILL LIKELY SLIDE TO $30

Posted: August 20th, 2015 | Author: | Filed under: Commodities, Crude Oil, Energy, Energy, Iran, Negotiating with Suppliers, Oil, Uncategorized, USA, Wall Street Journal | Tags: , , , , , , , , | No Comments »

NEGOTIATOR’S TAKE: Lubricants, plastics and transportation are all candidates for price reduction.

 

Seasonal slowdown of oil graph

 

Toward prices not seen since the last financial crisis

As U.S. oil fell to a six-year low below $41 a barrel on Wednesday, an increasing number of analysts and traders are saying crude could drop into the $30s—and soon.

The move to a price last seen at the height of the financial crisis, in February 2009, could come amid a seasonal falloff in demand, coupled with concerns about the Chinese economy and the continuing global glut of crude. Cheaper oil would bring further joy to consumers and businesses around the globe, but more pain for everyone from Russian budget officials to U.S. shale-oil drillers….read the rest of this ProPurchaser sourced article, HERE.

 

Source: The Wall Street Journal, August 2015

Article Author: GEORGI KANTCHEV  (view his biography, HERE)


Shale gas blasts open world energy market

Posted: July 28th, 2015 | Author: | Filed under: Energy, Gem, Natural Gas | Tags: , , , , , | No Comments »

Shale gas drillingUnconventional treasure: Shale gas is trapped deep inside rock formations.

Shale gas is a new and abundant source of natural gas, trapped in rock formations. Oil companies have known about it for decades but always dismissed it because it was too expensive and difficult to extract.

In the past few years new technologies that pump water underground to fracture the rock and free the gas have been perfected. The breakthrough has opened a new frontier for the energy industry and turned long-held assumptions about the world’s dwindling supplies on their head.
via Shale gas blasts open world energy market on Propurchaser


KEY TO U.S. ETHYLENE PRICE DROP

Posted: July 20th, 2015 | Author: | Filed under: Australia, Commodities, Energy, Energy, ethylene, Natural Gas, Plastics, Saudi Arabia, Shale gas, USA, What's Happening in Our Profession | Tags: , , , , , , , | No Comments »

NEGOTIATOR’S TAKE:  North American producers have a huge cost advantage for plastic products made from Ethylene.  You might want to re-think sourcing from China.

Now that the US has surpassed Saudi Arabia as the top crude oil and natural gas producer, it can produce cheaper plastic and bring better economic prospects to the nation.  How so?  Well, it’s ethane that’s the key ingredient:

 

mintec

 

Ethane can be derived from both natural gas and crude oil.  From ethane you get ethylene, which is the basic building block of many plastics….read the rest of this ProPurchaser sourced article, here.

Source: Spend Matters

Article Author: RAJIV JOARDER of Mintec – View his profile at: LinkedIn


The U.S. Natural Gas Story in 15 Charts

Posted: March 30th, 2015 | Author: | Filed under: Energy, Gem, Natural Gas | Tags: , , , , | No Comments »

Natural gasThe story of U.S. natural gas gets referenced a lot but you may not know whats going on. Here are 15 charts that tell the story of the U.S. natural gas market which has been completely changed by the rise of horizontal drilling and hydraulic fracturing.

In the past few years, new technologies and cheaper costs allowed producers to access gas trapped in parts of the U.S. previously considered unreachable.

Read the rest of The U.S. Natural Gas Story in 15 Charts » » »


WTI at $45: have we reached the bottom yet?

Posted: January 27th, 2015 | Author: | Filed under: Energy, Oil, Russia, Saudi Arabia, USA | Tags: , , , | No Comments »

WTI at $45: have we reached the bottom yet?West Texas Intermediate for March delivery decreased as much as $1.24 to $44.35 a barrel in electronic trading on the New York Mercantile Exchange and was down 57 cents to $45.02 at 12:14 p.m. London time. The contract lost 72 cents to $45.59 on Jan. 23, the lowest close since March 2009. The volume of all futures traded was 24 percent above the 100-day average for the time of day.

Brent for March settlement slid as much as $1.22, or 2.5 percent, to $47.57 a barrel on the London-based ICE Futures Europe exchange. It gained 27 cents to $48.79 on Jan. 23. The European benchmark crude traded at a premium of $3.14 to WTI.

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Oil rout impacts the Canadian economy

Posted: January 22nd, 2015 | Author: | Filed under: Canada, Energy, Oil | Tags: , , | No Comments »

Oil rout impacts CanadaA new Conference Board of Canada report released today at the Oil and Gas Summit 2015 in Calgary estimates Canada’s economy will suffer a 0.4 per cent hit to growth this year. Lower oil prices will have sharply differing effects across Canada’s regions and industries.

The Canadian dollar fell to its weakest in five years Tuesday on speculation the more than 50% drop in oil prices since June would lead to sharp economic revisions by the central bank.

In a shock move, the Bank of Canada cut its benchmark interest rate on Wednesday to counter the effects of cheaper oil on economic growth and inflation and help guard against the risks of a housing market downturn.

Read the rest of Oil rout impacts the Canadian economy » » »


US January propylene contracts at lowest level since November 2009

Posted: January 15th, 2015 | Author: | Filed under: Energy, propylene | Tags: , , | No Comments »

US January propylene contracts at lowest level since November 2009In spot markets Tuesday, January and February polymer-grade propylene (PGP) were heard offered at 47.5 cents/lb Mont Belvieu pipeline basis. February was heard traded Monday at 46.25 cents/lb MtB-pipe. Spot PGP was last heard traded at that level in late November 2009.

The drop comes after one US producer nominated its January contracts for an 8 cent/lb fall, tracking declining spot prices for PGP and feedstock refinery-grade propylene (RGP).

Overall, most downward pressure has been coming from global energy markets, which have lowered cracker feedslate costs and allowed overseas derivative producers to be more competitive with US product.

Via


US december ethylene at 53-month low

Posted: January 9th, 2015 | Author: | Filed under: Commodities, Energy, ethylene, USA | Tags: , , | No Comments »

US december ethylene at 53-month lowUS December ethylene contracts settled at a 53-month low, as per sources in ICIS. Sources confirmed the December settlement at 38.25 cents/lb ($843/tonne), down by 7.25 cents/lb from 45.50 cents/lb for November. The drop puts contracts at their lowest since settling at 37 cents/lb for the month of July 2010.

The drop in spot prices was largely fueled by declining global energy markets, which made overseas derivatives more competitive and forced US sellers to lower prices. This led to less demand for ethylene, which pushed the market longer, especially as several cracker restarts in the fourth quarter boosted supply.

Via US Dec ethylene falls 7.25 cents/lb, settles at 53-month low – ICIS


US diesel price slide for 9-week straight

Posted: January 8th, 2015 | Author: | Filed under: Diesel, Energy, USA | Tags: , , | No Comments »

US diesel priceDiesel for February delivery fell 4.7% last week to end at $1.7957 a gallon Friday, the lowest closing price since Oct. 7, 2009. Prices have retreated 29% over the past nine weeks, the longest streak of down weeks ever, according to data going back to 1979.

Nationwide, the average residential heating-oil price fell 3.6 cents to $3.043 a gallon in the week ended Dec. 29, the lowest price since November 2010, according to the U.S. Energy Information Administration. The EIA expects households to spend an average of $1,722 on heating oil this winter, down 27% from last winter.

Companies that use diesel as a transportation fuel are also seeing lower costs. Melton Truck Lines in Tulsa, Okla., spends more than $150,000 a day on diesel fuel, down from about $200,000 a day in October, said Robert Ragan, Melton’s chief financial officer.

Via U.S. Diesel Prices Fall for Ninth Straight Week – WSJ


Natural gas down 32% in 2014

Posted: January 4th, 2015 | Author: | Filed under: Energy, Natural Gas, USA | Tags: , , , | No Comments »

Natural gas 2014Natural gas for February delivery settled down 20.5 cents, or 6.6%, to $2.889/mmBtu on the New York Mercantile Exchange, the lowest settlement price since Sept. 24, 2012. Stockpiles now stand at 3.22 trillion cubic feet, 7.8% above last year’s level and 2.5% below the five-year average for the week.

Natural gas, known for being a volatile market, closed the year as one of the worst performing commodities. Prices spiked to $6 a million British thermal units in February as a cold winter depleted supplies. But production exceeded expectations this summer, and this winter’s weather has been moderate.

Via Natural Gas Posts 32% Loss for Year – WSJ


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