We’re coming up to the Christmas festivities and the sentiment in the market is extremely robust. Although the physical commotion isn’t anywhere near resembling Oxford Street on Christmas Eve, in itself it’s maybe a hint that there aren’t that many spare cargoes loitering around in the market, especially for delivery in January 2020.
I’ve always been fascinated with the way deals are done, the process of negotiation between two parties, maybe with someone in the middle, maybe not. It can be exciting, frustrating, win some, lose some. I think I was more a guy who wanted compromise, while I ended up doing deals with a number of traders hanging out for the last cent, even though I’m sure I would have done more with them if only they had shown a sign of compromise, it’s always good to blame the other party.
Although last week was shortened by the Thanksgiving holiday, a few more pieces seemed to be falling into place in the U.S., and for that matter when moving out of the U.S. as well. If we then add in a few what might or might not happen questions, it was actually an eventful last week of November. Then came the attention on the U.S. from Asia, concern may be, as well as from a small number of trading houses nestling in the major cities of Europe. But why the concern?
I was kindly invited to attend the first Argus LPG Awards for Excellence ceremony, this week in London’s Science Museum. I have to say it was a great success, and was lovely to see such a broad representation of our business, and some worthy winners as well. “You know who” picked up the best trader award, yes I do mean Seb Willems at Glencore, and he’d already got his winner’s speech prepared, that’s why he is #1, it’s all in the preparation! Mary-Jane Hogg deservedly won the executive of the year, and there were awards for Ineos, GE Power and Noreen Howat at Aggreko.
I’ve always found it difficult to understand how on earth anyone makes money with an LPG purchase deal based on Saudi Aramco’s Contract Price (CP). In fact, I’ve rarely found anyone else who knows how it’s done either. But around this time of year, every year, CP becomes the talk of the market, as if it possesses this mesmerizing draw, sucking in believers and non-believers by the score.