Helping you navigate the new normal since 2001
Oil prices are finally starting to reconnect with other fossil fuel prices, as the chart shows. It compares US WTI prices in terms of $/MMBtu value (WTI/5.8), versus US natural gas and coal prices: In January 1990, WTI was $3.94 versus natgas at $2.30 and coal at $1.45 (all $/MMBtu) In January 2000, WTI was
Its been a long time since oil market supply/demand was based on physical barrels rather than financial flows: First there was the subprime period, when the Fed artificially boosted demand and caused Brent to hit $147/bbl Then there was QE, where central banks gave free cash to commodity hedge funds and led Brent to hit […]
Oil market supply/demand finally begins to matter again as commodity funds withdraw Read More
OPEC is living in the past with its recent announcement of new quotas. The simple fact is that the arrival of US shale production means OPEC are no longer the swing producer, able to control the world market. The quotas will have little effect in themselves, as most of the participants will cheat. Instead, they […]
OPEC move supports US oil production rise, and smart meters Read More
Development is clearly hotting up in the industrial biotech area. The key is the increasing demand by consumers for sustainable methods of production. As Antonello Ciotto, commercial director of Equipolymers, told our Conference in Brussels this week, the major brand owners are forcing the pace on this issue: Coca-Cola: “We are working to completely eliminate […]
ExxonMobil’s annual energy review is always a fascinating read. This year’s issue looks out to 2040 for the first time. It thus forecasts the relative share of the major fuels over the next 30 years.
Interestingly, it also shares the blog’s belief, …