Category Archives: Energy

Energy

Commodities Update: Plenty of Supply

Energy, Global Economy, On the cover, Sin categoría
Brent down 3.2% MTD at c$107/bbl. WTI at $94/bbl (-4%). Differential has settled around $13/bbl. 
 
US production at a 25-year high.
Global oil supply at 92.23m b/d, up 1.16m b/d or 1.3% y/y. Within this OPEC supplies increased 310k b/d m/m to 29.82m b/d on higher output from Saudi Arabia & the UAE. Iraq was the only member to post a monthly decline in December.  Continue reading Commodities Update: Plenty of Supply →

Commodities Update

Energy, Global Economy, On the cover, Sin categoría
US gas ends the year as the king of commodities, up 19% YTD at $4.31/mmbtu as the injection trend reversed to a bullish storage withdrawal in the past two months. Looking to 2014, exports + coal plant retirements adding 3bcf/d of demand keep me confident of improving US gas prices. Total working storage is now at 2,974 Bcf, 562 Bcf below last year’s 3,536 Bcf and 289 Bcf below the 5-year average of 3,263 Bcf. Continue reading Commodities Update →

Commodities Update: More Supply… Don’t Bet On Price Inflation

Energy, Global Economy, On the cover, Sin categoría

Brent – WTI differential shrunk recently from $20 to $11.5/bbl.WTI rallied due to the Keystone line fill. Before the pipeline goes into service it needs to be filled up with oil (600kbpd) so there is a continuous flow once it starts up. The pipeline is 485 miles long and goes from Cushing, OK to Nederland, TX. Careful, this is a technical and temporary effect. Continue reading Commodities Update: More Supply… Don’t Bet On Price Inflation →

The Oil Market Is Well Supplied. Thoughts for 2014

Energy, English, Global Economy, On the cover

Fans of monetary stimulus always ignore the biggest and best push for the economy. Cheap energy. Finding oil and gas.

The United States have achieved an economic stimulus equivalent to 1.3% of GDP thanks to the energy revolution brought by fracking. It is a very significant positive effect, both on the supply and demand side. Continue reading The Oil Market Is Well Supplied. Thoughts for 2014 →