Monitoring Your Initial Margin Exposure

As you may have read, the Basel Committee and IOSCO have agreed to a one-year extension of the final implementation phase of the margin requirements for non-centrally cleared derivatives[1]. This means implementation for Phase 5 firms will be split, with some entities not falling into scope until September 1, 2021. Much of the focus is on the changed timelines but, …

Read More »

Philadelphia Energy Solutions (PES) closure tightens Atlantic Basin refining markets

Troubles at Philadelphia Energy Solutions (PES) On 20 June, a major explosion at PES, the largest refinery on the east coast of the United States, compromised the facility’s gasoline production capacity for an indeterminant amount of time. The following week, on 26 June, news broke that PES would be ceasing operations because of the accident. On July 21, PES filed …

Read More »

Flash Australia PMI surveys signal loss of momentum in economic recovery

CBA Flash Australia PMI indicates growth for a third straight month, but at slower pace Order book growth moderates, dragged by exports Job decline seen for second time in survey history The recovery in Australian business activity lost momentum at the start of the third quarter, according to flash PMI survey data, with other survey indices suggesting that future expansion …

Read More »

Flash Japan PMI shows services growth offsets factory decline, but outlook darkens

New flash PMI data includes services, shows improved rate of output growth in July Service sector expands, manufacturing acts as drag New orders and future output indicators deteriorate Good prices fall at fastest rate since 2016 Japanese business activity grew in July at the fastest rate since last December, according to new survey data, though indicators of new orders and …

Read More »

Flash Japan PMI shows manufacturing malaise continues into July

Flash Japan Manufacturing PMI points to further deterioration in business conditions Falling exports remain a drag on manufacturing activity Optimism among lowest since 2012 Good prices fall further in July The start of the third quarter saw a further deterioration in Japanese manufacturing conditions, according to flash PMI, as new export sales continued to decline. Other survey indicators also added …

Read More »

The next wave of Permian Basin growth driven by Majors

The Permian fields of West Texas have a famed history and that history is still being written. The first commercial well was drilled in Mitchell county, West Texas in 1920. By War World II, the region was producing near 0.5 million b/d, supplying valuable fuel to the Allied forces. Growth continued to a peak in 1973 at near 2.0 million …

Read More »

North Korea fires short-range missiles

North Korea launched into the East Sea/Sea of Japan on 25 July what South Korea described as two “short-range missiles”. Pyongyang has not yet released information on the reported test, and little information still remains publicly available on the short-range ballistic missile (SRBM) system reported to be involved, so the test firings raise as many questions as they answer. The …

Read More »

Building up the pressure – when it all gets too much – escape!

Sometimes something as innocuous as an Admiralty Chart can give an idea of the presence of oil or gas. The northeast part of Chart 278a shows the presence of gas in an area surrounded by fields such as Andrew, Moira, Maria, Fleming, Shelley and Everest. Figure 1: Escaping gas Escaping gas is of course a shipping hazard as it reduces …

Read More »

Singapore unveils new unmanned military vehicle

Singapore has been pursuing unmanned land systems development for over two decades, initially with the GINTIC Institute of Manufacturing Technology’s (now known as the Singapore Institute of Manufacturing Technology, or SIMTech) Project Diana, which explored the feasibility of developing indigenous technologies for autonomous ground vehicles. This was followed by the DSTA-led Project Ulysses, which used a specially modified M-113 armoured …

Read More »

Diversification into low carbon raises questions about returns for oil and gas companies

Investments in the low-carbon segment among global integrated oil and gas companies have become increasingly material in recent years. In fact, IHS Markit currently forecasts nearly $7 billion in average annual spending in the low-carbon sector among this peer group between 2019 and 2021. This higher spending has led to questions about the profitability of investments in sectors outside of …

Read More »

OSV Recovery Update: Americas, in the thick of it

Where is the recovery in offshore drilling activity? The bulls will tell you it’s just around the corner, but it has so far failed to materialize for offshore supply vessel (OSV) companies in the Americas. If we step back and look at the Western Hemisphere as one big market, then the Americas OSV market has remained largely flat since October …

Read More »

PMI shows steepest drop in UK manufacturing output for seven years

Manufacturing PMI signals deteriorating business conditions for third straight month Order books fall as export downturn deepens Job losses mount Cost pressures fall markedly to lowest since early-2016 UK manufacturers reported the largest monthly fall in production for seven years in July, with recent order book weakness also leading to one of the largest culls in factory employment for over …

Read More »

Why international buyers import US ethane

Over the past decade, rapid unconventional oil and gas development in the US resulted in significantly increased ethane availability. Increased ethane rejection reduced ethane prices to parity with natural gas, incentivizing a wave of investment in both domestic consumption and exports. The US began exporting ethane via pipeline to Nova Chemicals’ Sarnia plants in Canada in early 2014. The first …

Read More »

Accelerating global manufacturing downturn spreads to more countries in July

Global PMI lowest since October 2012 as 19 out of 30 countries report manufacturing downturns Global exports fall at increased rate Prices fail to rise for first time in three years Job cuts accelerate to seven-year high PMI surveys indicated that the global manufacturing downturn deepened in July, causing greater job losses and reducing pricing power, as the downturn widened …

Read More »