Posts Tagged ‘Japan’

Monthly Strategy – January 2012

The consensus with which I agree is that the Euro zone is heading into a recession. While the economic activity has somewhat improved over the last months in the U.S. I remain doubtful whether the U.S. can escape the recession when Europe enters one. The data coming from China doesn’t (jet) point to a hard landing. For the time being it looks like that the Chinese government is in control. The measures to contain inflation and raising real-estate prices are successful, while in the same time China is has taken early steps to increase domestic consumption and re-balance the economy. One should not disregard and keep close watch on soft data coming from China especially in real estate and commodity related industries which are not reflected in the official data and could be pointing to serious issues.

Monthly Strategy – October 2011

Leading economic indicators are pointing to a recession. At the time being it looks like it could be a mild one, but taken into account all the unknowns (EMU future, China slowdown, bank balance-sheet question) it could easily develop into something more ominous.

Monthly Strategy – August 2011

Global economic growth is clearly slowing down.

Monthly Strategy – May 2011

Mostly unchanged from April…

Monthly Strategy – April 2011

I have lost flair in making predictions. I even started to think that correct forecasting is impossible. Maybe it is better to look at forecasting only as to the extent “what if” exercise. That’s why this is the first strategy post this year.

I have to come to conclusion that the only relevant judgement on is made by market and this is the key in being a successful in this line of business. What is fair, what is right or what is logical are completely irrelevant questions in speculating. Fundamentals are most of the time only a peripheral factors affecting the prices; in fact fundamentals are major factor only in times of great excesses.

Now, lets get back to writing down my current mind setup.

U.S. Petroleum Weekly – March 24, 2011

I was wrong on the assumption that West will let Gaddafi win the war in Libya. U.N. approved military intervention will keep the Libyan oil out of the markets for longer then previously thought. This is positive for crude oil price.

Concerning Japan it is reasonable to assume increased derivatives demand, also positive for oil price.

In the U.S. the gasoline draw is looking quite impressive (although it is not demand driven, rather a product of refiner discipline). This could help clear Cushing stockpile glut and close the WTI – Brent pricing gap.

Japan Update – Things Getting Worse?

Japanese official reports are quite scarce, so this is my inferring based on what is not said rather than on what is said.

Video Of The Day: CNBC – Marc Faber: QE8 on the Way?

I try to post diverse opinions (too much Marc Faber lately), but this video is so fun, especially seeing CNBC hosts so shocked with Marc Faber views that they lose the ability to ask any kind of questions.

Japan Update

Things got much worse during the night…two additional reactors exploded and radiation got out to atmosphere.

Help Japan Earthquake And Tsunami Victims

My thoughts are with the earthquake and tsunami victims in Japan. If you would like to help, you can make a donation via. the International Federation of Red Cross and Red Crescent Societies (IFRC) web site.

Video Of The Day – Fukushima I Nuclear Power Plant Reactor 3 explosion on March 14, 2011

Fukushima I Nuclear Power Plant Reactor 3 explosion on March 14, 2011.

Tanker Weekly – March 13, 2011

Baltic Dirty Tanker Index fell 1.9%; Baltic Clean Tanker Index was unchanged.

Japan earthquake effects: I seems that Japanese crude oil demand will initially fall because one fifth of Japanese refinery capacity is offline, but subsequently will rise fast because only possible substitution to nuclear electricity generation (one fourth off-line and years needed to bring it back on-line) is gas and oil-fired generation. Product demand (residual fuel oil and diesel fuel especially) will rise fast in coming days.

To sum up, near term positive for product tankers, negative for crude oil carriers. Longer term positive for both. Positive for LNG carriers.

Monthly Strategy – Holiday Edition – December 2010

In the last months global economic outlook has improved a bit. In U.S. we can see signs of personal consumption and manufacturing activity growing at soft rates, but growing; at the same time employment, housing, construction spending, durable goods orders are stagnating. Fall in initial jobless claims is clearly being offset by inflow of people into the workforce; job creation still weak.

Friday Optimism

After frustrating American and Asian sessions, looks like the markets have calmed down. After opening sharply lower European equities are trading at -0.6%. What to say on the U.S. action yesterday? Maybe only that the technology has evolved since Black Monday in 1987 and the trading programs were shut down (changed) very fast enabling the […]

Greece Again

Markets still focus on Europe and in particular Greece. There are some rumors today  that Unicredit and Deutsche bank have ceased to accept Greek government bonds as a collateral; there are also some rumors that the capital flight from Greece is reaching alarming levels. It looks the Greece story is approaching its climax and  we […]


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