The oil and gas game can be a tricky one for junior companies, but if played right the pay-off can be massive. At a time when juniors are risking a lot in volatile venues in the Middle East and Africa, Canada’s Aroway Energy (ARW) is planting its feet firmly in homeland soil and in conventional plays. Why? […]
As we begin a new year we wanted to take a look at the current energy landscape and see what the future holds for the global economy, America’s oil and gas boom, whether renewables will continue to be a favourite amongst investors and whether we should be focusing more attention on conservation and energy efficiency […]
It was only a matter of time before Syria’s oil industry, sagging as it may be, became a target in the country’s civil war, a conflict that is rapidly devastating Syria’s infrastructure and economy. The latest casualty is now Syria’s modest oil industry, already suffering from lack of modernization. In two separate incidents in the […]
Oil prices have risen following Israeli attacks in the Gaza strip which killed Ahmed al-Jabari, the leader of Hamas’s militant wing. Traders fear that the whole Middle East is reaching its limit and that something is about to blow which could seriously impact on the global oil market. After more than 115 rockets have been […]
After a torturous journey through Congress, the United States-Colombia Trade Promotion Agreement (CTPA), first signed in 2006, came into effect on May 15 of this year. The agreement has raised high hopes in Colombia, for which the United States is by far the largest trading partner. However, while the CTPA was fighting its way through […]
Jim Brown offered these details on the oil trading:
Those funds interviewed said the massive amount of stop losses that were triggered was beyond comprehension…. When the crash finally came the number of positions liquidated was staggering. As each technical level was broken it triggered more stop losses and more short selling to capture the drop….
Credit Suisse analysts said the high frequency and algorithmic trading accounted for about half of all the volume in the oil markets.
Like a roller coaster ride, 2011 saw oil prices climb gradually, only to fall dramatically this last week. Here I offer my thoughts on some of the key contributing factors.
Oil prices in New York remain north of $110 this morning–the highest in three years. What’s behind the spike in prices? There’s no shortage of opinion, and it’s not necessarily in agreement. For some perspective, several oil analysts opine on what’s happening via a fresh round of interviews, courtesy of Integrity Research Associates.
Here are some excerpts:
Weekly filings of new jobless claims continue to drift lower, and that’s encouraging. But oil prices remain elevated and various global risks continue to bubble. That raises the question of whether the falling trend in new filings for unemployment benefits has legs. The recent strength in jobs creation is one reason for answering “yes,” although the fall in new jobless claims is beginning to look weak again.
With a few exceptions, Central and Eastern European states are highly dependent on imports of natural gas from Gazprom, the Russian state monopolist. The gas markets in the region are essentially fragmented along national lines, both commercially and physically, thus making them vulnerable to monopoly power. As a result, import prices for Russian gas have been found to be higher in the Baltic States than for example in Germany which benefits from supply source diversification while the Baltic States do not. As is well known, supply source diversification is a crucial mechanism for security of supply – enabling both price competition and lower vulnerability to supply disruptions. However the high fixed costs of the necessary infrastructure and the small size of many Central and Eastern European gas markets makes it uneconomical to organise diversification for each of them separately. The most commonly discussed solution to this problem is to invest in interconnector pipelines so as to transform a set of separate national gas transmission systems into a larger regional system. Arbitrage could then occur throughout this interconnected system, thus helping to overcome price discrimination on the part of a monopoly supplier. If, in addition, one of the countries in such a network were to acquire a new source of supplies – for instance an LNG terminal – then the benefits of diversification could be transmitted throughout the entire group of countries thanks to the possibility of physical arbitrage.