Stez

The Slippery Slope of Declining Petrochemical Demand

For the moment petro chemical demand will fall. Baker Hughes rig count has shown a strong contraction in the drilling market.

However the fact that exploration projects are terminated means that we will see prices increase as supply is limited. Oil sands will no longer be a viable supply source as the price of refinement is too high.

My view is the market will be range bound. However 18 months time we will return to 70 dollar oil.

Honda are doing amazing things with hydrogen cars however those developing economies like their oil and are going to retain their fossil fuels for a decade or more at the very least.