Friday, November 13, 2015
ExxonMobil (Irving, Texas) and Chevron (San Ramon, Calif.), the two largest U.S. oil and gas groups, have just reported big declines in third-quarter profits because of plunging crude oil prices. However, their earnings exceeded analysts’ expectations. Overall, of the two companies Chevron was affected to a greater extent. Chevron stated that it was cutting capital expenditures and operating costs, and would lose between 6000 and 7000 jobs from
its 64,700-strong workforce, a cut of up to 11%. ExxonMobil and Chevron are under pressure from the steep decline in oil and gas prices that began in the summer of 2014 and accelerated after OPEC, the producers’ cartel, decided
against cutting output in November in the face of a supply glut.
The large butane and propane markets in Northwest Europe are gradually becoming more active as winter approaches. Large propane prices are now at $370 (U.S.) per tonne cif Northwest Europe. This is up $23 per tonne since the beginning of this month. Large butane market prices now stand at $358 per tonne cif Northwest Europe and have weakened by $20 per tonne since the end of October.
The smaller pressure propane and butane sectors of the market are more active with the petchem and blending demand still present. The latest indication of propane swap deals are December $366-$370 per tonne and January 2016 $354-$358 per tonne, both cif Northwest Europe.
North Sea prices for November are at $308 per tonne fob North Sea terminals for propane and at $353 per tonne fob North Sea for butane. Since October, propane has strengthened by $2 per tonne, while butane has weakened by $73 since the start of November.
In the Mediterranean, the demand for LPG is increasing, especially from crackers and for inland consumption. Prices for large, fully refrigerated cargoes of propane are now at $425 per tonne cif Lavera, South of France, and at $430 per tonne for butane, cif Lavera. Since the beginning of November, propane has softened by $2 per tonne and butane by $20 per tonne.
Sonatrach of Algeria has posted new contract prices for November at $315 per tonne fob Bethouia and Skikda for propane and at $380 per tonne for butane. Since the end of October, both products have increased by $5 per tonne. The Saudi Arabians have negotiated new contract prices for November at $395 per tonne fob Middle Eastern terminals (M.E.) for propane and at $435 per tonne fob M.E. terminals for butane. Both prices have hardened since the beginning of November, with propane adding $35 per tonne and butane $70. Spot premiums against contract prices currently stand at $1 per tonne to $3 per tonne for both grades of LPG. In the Far East, demand for LPG is increasing with cargoes being received by China, Korea, Japan, and Taiwan. The VLGC (very large gas carrier) market has been very quiet, in fact the quietest since the middle of January 2015. But, this will change in the next few months.
its 64,700-strong workforce, a cut of up to 11%. ExxonMobil and Chevron are under pressure from the steep decline in oil and gas prices that began in the summer of 2014 and accelerated after OPEC, the producers’ cartel, decided
against cutting output in November in the face of a supply glut.
The large butane and propane markets in Northwest Europe are gradually becoming more active as winter approaches. Large propane prices are now at $370 (U.S.) per tonne cif Northwest Europe. This is up $23 per tonne since the beginning of this month. Large butane market prices now stand at $358 per tonne cif Northwest Europe and have weakened by $20 per tonne since the end of October.
The smaller pressure propane and butane sectors of the market are more active with the petchem and blending demand still present. The latest indication of propane swap deals are December $366-$370 per tonne and January 2016 $354-$358 per tonne, both cif Northwest Europe.
North Sea prices for November are at $308 per tonne fob North Sea terminals for propane and at $353 per tonne fob North Sea for butane. Since October, propane has strengthened by $2 per tonne, while butane has weakened by $73 since the start of November.
In the Mediterranean, the demand for LPG is increasing, especially from crackers and for inland consumption. Prices for large, fully refrigerated cargoes of propane are now at $425 per tonne cif Lavera, South of France, and at $430 per tonne for butane, cif Lavera. Since the beginning of November, propane has softened by $2 per tonne and butane by $20 per tonne.
Sonatrach of Algeria has posted new contract prices for November at $315 per tonne fob Bethouia and Skikda for propane and at $380 per tonne for butane. Since the end of October, both products have increased by $5 per tonne. The Saudi Arabians have negotiated new contract prices for November at $395 per tonne fob Middle Eastern terminals (M.E.) for propane and at $435 per tonne fob M.E. terminals for butane. Both prices have hardened since the beginning of November, with propane adding $35 per tonne and butane $70. Spot premiums against contract prices currently stand at $1 per tonne to $3 per tonne for both grades of LPG. In the Far East, demand for LPG is increasing with cargoes being received by China, Korea, Japan, and Taiwan. The VLGC (very large gas carrier) market has been very quiet, in fact the quietest since the middle of January 2015. But, this will change in the next few months.
