BIS says financial flows partly to blame for oil collapse

 

 

 

 

Neil Hume, Commodities Editor

 

©Reuters

The near 50 per cent fall in oil prices since mid-June cannot be solely explained by changes in consumption and production, according to the Bank for International Settlements, which says heavy trading on commodity futures markets has also played a part.

In a preliminary analysis of the oil market rout, BIS, known as the central bankers’ bank, says financial flows have contributed to the rout along with changes in supply and demand balances.

The comments will add to the debate about the “financialisation” of commodity markets and the extent to which investors, big banks and hedge funds are driving prices of raw materials.

BIS says the last two comparable oil price declines in 1996 and 2008 were

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Finland's Meriaura Aims to Cut Fuel Consumption By Almost 50%

 

 

 

 

Friday February 6, 2015

Royal Bowedes will build the ships for Meriaura

Finnish logistics company Meriaura Group has announced it aims to reduce bunker consumption by almost half with two newbuild coastal dry cargo vessels.

The ships will feature advanced hull design and optimised machinery to achieve the bunker savings.

Dutch shipbuilder Royal Bowedes will construct the 4,700 deadweight tonne vessels, with the first scheduled for delivery in July 2016.

The Ice Class 1A vessels will steam at 10.5 knots in open water, driven by a dual-fuel engine capable of running on biofuel as well as marine gasoil (MGO).

Our goal is that in five years' time at least 50% of our fleet consists

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Want to Buy a Used German Power Plant? Shipping Is Included

1:01 AM CET
February 2, 2015

The two largest power producers, RWE AG and EON SE, are especially keen to sell their gas-fired plants, rendered uncompetitive by the rise of renewable energy on the one hand and record low coal prices on the other. It’s a relatively easy task to take them apart, move them by truck and ship and reassemble them elsewhere.

Sometimes people will buy whole plants, at others the key components. The giant power-generating turbines that lie at the heart of the station cost

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ANALYSIS-Eastern Canadian LNG export plans face supply quandary

 

 

 

 

 

 

 
By Dave Sherwood

PORTLAND, Maine Wed Feb 4, 2015 6:00am GMT

Quotes

 
E.ON SE
EONGn.DE
€13.38
----
02/03/2015
 
Liquefied Natural Gas Ltd
LNG.AX
$3.05
+0.06+2.01%
02/04/2015
 
Repsol SA
REP.MC
€16.74
----
02/03/2015
 
 

PORTLAND, Maine Feb 4 (Reuters) - Eastern Canada has joined a race to export North America's vast natural gas riches to energy-hungry markets overseas, with four projects betting the far-flung Atlantic provinces will be the easiest route to Europe and India.

But firms behind those proposals, such as Spanish oil giant Repsol and Australia's Liquefied Natural Gas Ltd have one major hurdle to clear: huge investments are needed to expand regional pipeline capacity to feed them, and it is unclear who will pay.

"They

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Crude Oil Price Ten Year Forecast to 2025: Importers Set to Receive a $600 Billion Refund

 

 Commodities / Crude Oil Jan 10, 2015 - 04:19 PM GMT

By: Andrew_Butter

This is an update on a long-term oil price forecasting model developed in early 2008 first posted in April 2009 as “The Impending Mother of All Oil Shocks” which was updated in December 2010 and posted as “Crude Oil Price Ten Year Forecast to 2020”.
http://www.marketoracle.co.uk/Article24849.html
http://www.marketoracle.co.uk/Article10260.html

 

 

Comments
Reference the current drama, in 2011 the model said:
1:            Brent at $125 was a bubble
2:            Bubbles pop
3:            Whenever the bubble popped the price would halve 

In 2011 the model predicted the forthcoming crash would bring Brent down to $67 which was out by 30%...or more – Brent today is $50. That doesn’t prove

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