Let the Good Times Roll?
During the course of a month, we talk to a lot of people in the CTRM space and pick up on a lot of intel and information. In the last couple of months, almost everyone without exception is telling us how active the market is right now. Everyone is busy dealing with inquiries, demos and RFP’s it seems. Many also are picking up new customers, extensions at customers and new business. In fact, in the whole period I have worked in CTRM – almost 30-years – , I can’t recall it being so busy according to so many people involved in the industry. According to our sources, there is activity in pretty much all regions and commodities although energy and metals seem to be the hottest areas. The type of activity varies a little between the regions – so Oil & Gas, LNG in North America, APAC, Middle East/Africa, Metals – Europe and APAC, Power etc,. – Europe and Australasia might be some general observations. What is also interesting is that many tell us that there are several very large deals in the offing as well.
The US election result appears to have brought some additional confidence among some to make investments. The recent volatility in markets may be causing some people to pause but that depends on whether this is a short-term market ‘blip’ or it turns into a longer depression/recession. Volatility and risk is what makes the market active. Uncertainty has the opposite effect. This may be the dawn of a new era in terms of trading patterns or it may be a short term political move to obtain concessions – we will need to wait and see and then assess what impacts short and longterm it will have on commodities and CTRM specifically. In the background, OPEC has increased oil supply and oil prices have shown some weakness. This too can have an impact as it reduces energy prices. If the USD loses strength as well then energy prices will drop quite substantially and that ought to encourage some growth. Here – there has been little impact so fed as the USD remains strong versus the Czech Crown. In short, it would need a crystal ball to predict where things may be headed from here.
In the meantime, it seems the good times do indeed roll. As Richard Williamson, CEO of Gen10, told me recently “Q4 last year and Q1 this year were exceptionally busy.” A sentiment echoed by Amphora’s Facid Glasspool who told me that “It’s very busy and there are some very large companies looking right now as well.” These are just two examples. Sunil Biswas of ION Commodities also commented on market activity in our recent CTRMRadio episode and these same sentiments were also remarked on by Energy One CEO, Shaun Ankers in an upcoming episode of CTRMRadio – out this week.
Keep in touch and sign up to our Newsletter
