Gerard Burg
Gerard Burg
capacity crude ease expanding expected exporting higher intention likely maintain oil petroleum prices strength support
Prices are expected to ease in 2007 as expanding refinery capacity reduces some of the bottleneck in that sector. However, the likely strength of oil demand, as well as the Organization of Petroleum Exporting Countries' intention to support higher prices will maintain crude oil prices at historically high levels.
decisions impact key level main market obviously production steel
Obviously the main uncertainty in the steel market is the level of production from China. It's really the key uncertainty and that will impact on decisions made by steelmakers.
capacity fuels heavy largely shortage sour spare supply upgrade
This is really much more important than OPEC supply as their spare capacity is largely heavy and sour and the real shortage is capacity to upgrade such fuels anyway.
area capacity element given lack market oil panic solid surprising worldwide
That area is solid with refining capacity. There's an element of panic in the market but that's not surprising given the lack of capacity worldwide at every level, refineries and oil wells.
assets commodity expected funds increase pension recent returns
With commodity returns outperforming other assets in recent years, pension and hedge funds are expected to increase investments in commodity markets.
bit cool impact oil prolonged spell until
There is a bit of a time-lag in all this, but a prolonged cool spell should see a real impact on heating oil stocks, which until now have been robust.
bit came continuing high prices pushed question rise surprised whether year
We see prices continuing to rise during the year but the real question is whether we have pushed up a bit too high with speculative interests. I wouldn't be surprised if it came off a little.
barrier easily extent full given next question weeks
We're now in wait-and-see mode. It could be weeks before we know the full extent (of damage), but given how easily $70 was reached, it's not out of the question that $80 could be the next barrier if there's long-term damage.
certainly damage early katrina
We're now in wait-and-see mode, ... There was a pull-back after Katrina went through, but early indicators are certainly that some damage has been done.
assess attention attracting continue damage drive prices production storms threat
While we continue to assess the damage from Katrina, the threat to production of new storms is attracting everybody's attention and could drive prices right back up.
adds caused decline fears fresh greener likely market stock switch
With this week's stock announcement likely to show a fresh decline in gasoline, it adds to market fears caused by the switch to greener fuels.
copper couple deficit last market mines opinion people seen thinking weeks whether
What we've seen over the last couple of weeks with disruptions at copper mines has narrowed the opinion of whether the market is going to be in deficit or surplus. More and more people are thinking it's going to be in deficit this year.
damage due path pressure rita spared tight
The path of Rita really spared most of the damage to refineries that was the concern. There's still a lot of pressure on the market, particularly due to tight capacity.
capacity demand expect next squeeze strong
We've still got a capacity squeeze from that area. Demand has been very strong short-term and we expect it will be strong next year.