Senior Market Analyst, Commodities and Energy
John's Feed
Sep 23, 2015

Megaships are worsening overcapacity in the container market

LONDON (Reuters) – Container shipping lines are poised to take delivery of a new generation of “megaships” over the next two years, just as the growth of world trade is slowing down, contributing to massive overcapacity in the market.

Megaships, which can be up to 400 meters long, seem to be here to stay, not least because so many more are already on order, the product of high fuel costs and low interest rates.

Sep 22, 2015

Megaships are worsening overcapacity in the container market: Kemp

LONDON, Sept 22 (Reuters) – Container shipping lines are
poised to take delivery of a new generation of “megaships” over
the next two years, just as the growth of world trade is slowing
down, contributing to massive overcapacity in the market.

Megaships, which can be up to 400 metres long, seem to be
here to stay, not least because so many more are already on
order, the product of high fuel costs and low interest rates.

Sep 21, 2015

Hedge funds no longer sure oil prices will fall further

LONDON (Reuters) – Hedge funds continued to pare short positions in U.S. crude oil last week even as the previous short-covering rally ran out of steam.

The unusual concentration of hedge fund short positions built up between June and August has been partially unwound, reducing some of the persistent selling pressure evident in the market during the third quarter.

Sep 21, 2015

Hedge funds no longer sure oil prices will fall further: Kemp

LONDON, Sept 21 (Reuters) – Hedge funds continued to pare
short positions in U.S. crude oil last week even as the previous
short-covering rally ran out of steam.

The unusual concentration of hedge fund short positions
built up between June and August has been partially unwound,
reducing some of the persistent selling pressure evident in the
market during the third quarter.

Sep 16, 2015

Falling production is underpinning U.S. oil prices: Kemp

LONDON, Sept 16 (Reuters) – U.S. crude oil production is
falling sharply, helping put a floor beneath U.S. domestic crude
prices and causing them to rise relative to the international
marker Brent.

In the face of lower prices, the U.S. oil boom has stalled
and the industry is facing the sharpest setback in production
for decades, excluding hurricane periods (link.reuters.com/kyj65w).

Sep 15, 2015

Decline rates will ensure oil output falls in 2016: Kemp

LONDON, Sept 15 (Reuters) – “It takes all the running you
can do to keep in the same place. If you want to get somewhere
else, you must run at least twice as fast,” the Red Queen told
Alice in Lewis Carroll’s novel “Through the Looking-Glass”.

Oil companies have to invest heavily simply to offset the
impact of natural decline rates on their existing fields, and
even more if they want actually to increase production.

Sep 11, 2015

Operational constraints limit crude storage at U.S. refineries: Kemp

LONDON, Sept 11 (Reuters) – U.S. commercial crude stocks are
still close to their highest levels in over 80 years, but
operational requirements prevent refineries filling on-site
storage facilities to their maximum capacity.

An increasing proportion of U.S. crude oil stocks is held in
off-site tank farms, some owned or leased by refiners
themselves, but many owned or leased by marketers and traders.

Sep 9, 2015

Low U.S. gasoline prices are supercharging fuel sales: Kemp

LONDON, Sept 9 (Reuters) – As the summer driving season
ends, U.S. gasoline prices have fallen to the lowest level for
the time of year since 2004, wiping out the effect of more than
a decade of rising fuel bills.

The average retail price of gasoline across the United
States was just $2.53 per gallon on Monday, including federal,
state and local taxes, according to the U.S. Energy Information
Administration.

Sep 8, 2015

U.S. crude inventories might be tighter than they look: Kemp

LONDON, Sept 8 (Reuters) – U.S. oil markets have been
transformed over the last decade by the emergence of oil trading
and storage as a major business in its own right, separate from
production and refinery operations.

At the end of 2014, there were more than 390 million barrels
of crude stored at refineries and tank farms as well as in
transit in pipelines and barges and in storage tanks at
oilfields.

Sep 7, 2015

Hedge fund short-covering in oil has further to run: Kemp

LONDON, Sept 7 (Reuters) – Hedge funds covered only a small
part of their gross short position in U.S. crude oil futures and
options during the recent rally, implying there is a lot more
short-covering still to come.

Money managers held short positions equivalent to 136
million barrels at the end of trading on Sept. 1, according to
data released by the U.S. Commodity Futures Trading Commission
on Friday.

    • About John

      "John joined Reuters in 2008 as one of its first financial columnists, specialising in commodities and energy. While his main focus is on oil markets, he has written broadly on the emergence of commodities as an asset class, regulatory issues and macroeconomic themes. Before joining Reuters, John spent seven years as a senior analyst for Sempra Commodities (now part of JP Morgan) covering base metals and crude oil. Previously, he worked as an analyst on world trade, banking and financial regulation for consultancy Oxford Analytica."
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