Can China still attract polymer investments?

The recent announcement by energy major BP saying it is looking to divest 50% of its stake in its Chinese petrochemicals joint venture SECCO raises two questions: One, is BP’s move a prelude to a wave of divestments by global producers in China’s petrochemicals/polymers industry? Two, if it is not, what are the new strategies being pursued…

Oil Sold for -$0.50 per Barrel. A Negative Price!

The oil markets are on edge with oil sinking into the $20s per barrel. And last week we reportedon one place where oil is already trading in the single-digits. Canada’s bitumen is selling for just $8 per barrel. But even that rock bottom price is higher than what one oil seller earned for a shipment…

$20 Oil No Longer Seen As Good For The Economy

After flirting with breaking below $30 per barrel, oil decidedly broke that threshold at the end of last week, deepening the unrelenting losses the market shave witnessed so far in 2016. The reasons for the 20 percent decline in oil prices since the start of the year range from rapidly growing concerns over the Chinese…

Is This The Bottom? Balance In Oil Markets Closer Than Many Think

Following a week in which both Brent ($28.94) and WTI ($29.70) crude prices tumbled below $30 per barrel, it might seem premature to suggest that important preconditions for crude prices to stabilize in the first half of 2016 are forming. This is does not mean crude prices will rally substantially, or more than a few…

Does Buffett See A Bottom In Oil Prices

Warren Buffett has been consistently wrong on oil, but many experts are calling a bottom on oil prices now that the investor extraordinaire has upped his ante in Phillips 66, betting that he can’t be wrong three times in a row. Buffett’s Berkshire Hathaway Inc. paid some $390 million for another 5.1 million shares of…

Volatility In Oil Markets Hits A 7 Year High

Everyone knows that oil prices have crashed, and that has opened up a variety of avenues for investors to play the market. Some may have been burned by staying long on the energy sector, others have tried to pick the bottom. Other investors have found ETFs that track the price of WTI, or ETFs that…

Goldman Sachs Sees Oil Markets Turning Bullish Soon

When Goldman Sachs first postulated that oil prices might fall to as little as $20 per barrel, many market participants were incredulous. Fast forward a few months though, and with oil below $30 a barrel, $20 does not look nearly so improbable. Yet despite the fact that oil’s downward trend has gained momentum of late,…

10 Reasons why Sub $30 Oil Is A Major Problem

A person often reads that low oil prices–for example, $30 per barrel oil prices–will stimulate the economy, and the economy will soon bounce back. What is wrong with this story? A lot of things, as I see it: 1. Oil producers can’t really produce oil for $30 per barrel. A few countries can get oil…

Oil Markets Are Balancing Faster Than IEA Would Have Us Believe

Fundamentals point toward market balance but pessimism is dragging oil prices down. IEA has apparently succumbed to this negativity but their data suggests that things are getting better, not worse. In a business-as-usual world in which nothing unusual happens, the world will be close to market balance some time in 2016. If anything unusual happens,…

Analysts See 2016 Oil Price Rise, While Traders Bet On Fall

Investors trying to decide how to approach the oil markets in 2016 have a fundamental conundrum to deal with, and that is whose views they should trust. This question pits two major camps on Wall Street against one another; analysts and traders. On the one hand, analysts are of the view that oil production will…

Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise

Geopolitical risk premiums are likely to return to oil markets as the possibility of an attack on a large petroleum facility grows significantly amid rising tensions in the Middle East, possibly putting a floor on prices. “The risk of an attack is greater than 50pc, which means it is more likely than not,” president of…

How Soon Could A Sustained Oil Price Rally Occur?

There’s an old saying in journalism that goes, “Never let the facts ruin a good story.” This accurately describes what should be called The Incredible Shrinking Oil Price. Combined with sagging world stock markets, a global economy that has all but quit growing because near-zero interest rates are no longer stimulating the economy and the…