Cement News tagged under: oil

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Key risks to near-term oil price

06 June 2019, Published under Cement News

Global oil demand is growing at its weakest rate since 2012 while global oil supply disruptions continue to be at their highest levels in almost 30 years, according to Bank of America Merrill Lynch (BoAML). Key risks to the oil price remain with US trade wars and tensions with Iran affecting demand and supply, respectively. In addition, the bank also highlights the “ultimate ultra-bearish scenario” where China relinquishes trade negotiations, ignores US sanctions and proceeds to purchase Ira...

Are lower coal prices what the cement industry needs?

29 April 2019, Published under Cement News

This week ICR takes a look at the downward trend in coal prices and discusses whether cement producers will benefit from the drop in prices or whether the cement sector should be looking more at sustainable long-term fuel options. Coal prices cool Morgan Stanley reports that April's data of Newcastle and Atlantic Basin prices has seen thermal coal retreat by 23-30 per cent YoY, as evidenced by the key contract between global mining company Glencore and Japan's Tohoku Electric Power, end...

Geopolitics and tightening supply to impact oil prices in 2018-19

18 May 2018, Published under Cement News

Global oil supply and demand balances are expected to tighten over the next 18 months, driven by the continued collapse of Venezuelan output, according to Bank of America Merrill Lynch (BOAML). A collaboration between OPEC and Russia to set a floor on oil prices with a reduction of oil output cuts by these countries of 450,000bpd from 3Q18 to 4Q19 is also expected to play its part in squeezing availability. In addition, higher interest rates and a stronger US dollar are forecast provide near...

ENERGY – OPEC consolidates oil while India shakes petcoke, coal high

20 December 2017, Published under Cement News

Prices at a glance Crude oil - bbl US$64.00 Coal API 4 - 1Q18 US$91.25 Coal API 4 - Cal2018 US$88.00 Petcoke USGC 4.5% 40HGI FOB US$82.00 USGC 4.5% 40HGI cf ARA US$100.50 USGC 6.5% 40HGI FOB US$72.50 USGC 6.5% 40HGI cf ARA US$91.00 In November the US dollar was supported by the US tax reform, which could see US firms repatriating profits. The lack of German government for...

Falling crude oil challenges uptrend, China cuts coal capacity

17 March 2017, Published under Cement News

By Frank O Brannvoll, Cimeurope sarl, Belgium Last month the US$/EUR trading range was set at €1.04-1.08 and has held within €1.05-1.075 at €1.0720. Other than the US Federal Reserve Bank raising its overnight rate by 0.25 per cent to one per cent, there is no other major news. The increase did not have an impact on the US$/EUR rate with the expected range going forward between €1.05-1.10. Crude oil Crude oil price developments can often be considered as a front runner for ov...

Average oil price in 2017 to hover around US$61/bbl, gas at US$3.50/mBtu

13 December 2016, Published under Cement News

Brent oil is expected to average US$61/bbl in 2017, peaking at US$70/bbl during the US driving season while WTI’s average is forecast at around US$59/bbl, according to the latest report by Bank of America Merrill Lynch (BoAML). This follows last week’s OPEC announcement to cut crude production by 1.2Mbpd with non-OPEC producers supplying an extra 0.6Mbpd. “This joint curb is a first since 1998 and in our view marks a clear turning point. It will likely tighten global oil market balances a...

Natural gas price to rise but thermal coal to fall in 2017

27 September 2016, Published under Cement News

Global oil production fell in 2Q16 as the decline in no-OPEC fields is no longer offset by OPEC growth but is expected to remain largely unchanged in 2017, particularly has there has been no double-digit growth in new investments. Demand in 2017 is forecast to grow by 1.2mbd, resulting in a Brent price of US$61/bbl, according to Bank of America Merrill Lynch (BoAML). Natural gas prices fell in 2016 to US$2.30/mBtu on the back of muted demand and falling US output. However, going forward, B...

BofAML forecasts 2H16 oil price recovery; downside risks prevail as OPEC meeting ends in acrimony

14 December 2015, Published under Cement News

Brent crude oil prices are expected see a recovery in the second half of next year, leading to average price of US$50/bbl in 2016, according to Bank of America Merrill Lynch (BofAML). However, the "deep sense of acrimony" that emerged from last Friday's OPEC meeting creates downside risks to BofAML's 2016 pricing assumptions, it cautions. BofAML highlighted that its expectations for next year "embed rational economic behaviour." The forecasts include relatively robust global oil demand grow...

APSCO organises technical symposium for cement sector

26 June 2013, Published under Cement News

Arabian Oil Supply Company (APSCO), manufacturer and marketer of Mobil oils in Saudi Arabia, recently held a seminar in the Egyptian city of Al-Ghardaqah on the importance of synthetic oil and its role in reducing crashes and increase the productive capacity of factories and equipment. The symposium was attended by many experts and engineer of Saudi cement industry, as well as experts from Exxon Mobil. A number of APSCO oil production experts addressed the attendees about the role of Mobil ...

Emerging markets continue to play key role in global energy prices

15 February 2013, Published under Cement News

With a sluggish US economy where the fiscal cliff remains a major concern in 1H13 and a recession-hit Eurozone burdened by unaffordable energy import costs, it is clear that most support for global oil demand hinges on the consumption of emerging markets. The economic benefits of globalisation, urbanization and industrialization have led to major advances in productivity, positively impacting on oil demand in these parts of the world. As the world oil demand improves gradually, non-OPEC s...