This is not my first post on the current oil price dilemma and I have a hunch that there will be more to come in…
All those interested in Norse mythology (I am sure there are some Thor fans out there) will have a clue on what happens when Ragnarok…
So we have lived through the last OPEC meeting in Vienna holding our breath what the oil producers might be doing in order to stop…
European natural gas prices are a shambles. The ones say that one can’t make a living under those conditions as the price is to low for comfort.
The others say that it’s to high for gas to be competitive. Who is right? An off the beaten path analysis.
A couple of things were conveniently forgotten by those driving the portfolios. First gravity – everything that goes up eventually will come down. European energy utilities and gas traders deluded themselves into believing that the Bonanza would be never ending.
Cheap oil is gone, expensive oil comes in. But that changes the architecture of the energy planet more than most would like to think.
The Ukraine has a LNG problem. It’s a major blunder and it looks like LNG in the region is doomed. As strange as it sounds, there might be a bright future for LNG in the Black Sea still.
Oil price links are finally coming to an end in Europe. In fact, they have eked an existence as Zombies of the energy world as the fundamental mechanism destroying them was not American shale but free markets.
New Asian LNG buyers (outside the JKT and China) have a problem. They are perceived to be in the “I will pay any price for LNG” club by sellers. Many of them face vastly different situations from each other in their home markets. Not an enviable position but one that can be dealt with.