Thursday, 4 December 2014

What does " Crude Going Down " means?

Crude is going down toward USD 60/ barrel. Expert are predicting it toward USD 30/ Barrel. How will it effect the guar gum industry ?

Shale Gas Production may decrease

Crude is base of energy industry. Shale gas has emerged major competitor to crude oil  It will directly effect the shale gas production. Shale gas production is major activity where guar gum powder in used in large quantity. If shale gas production goes down then it will directly effect the guar gum consumption. and it will further miss match the demand and supply. In this condition guar gum prices will come down. It may touch the November 2010 level.

Date
Time
Rate
23 Nov 2010
12 :33 :00
5792.85
23 Nov 2010
16 :10 :00
5927.5
24 Nov 2010
12 :38 :00
6100
24 Nov 2010
15 :38 :00
6075.3
25 Nov 2010
12 :39 :00
5995.85
25 Nov 2010
15 :39 :00
5944.75
26 Nov 2010
12 :45 :00
6000
26 Nov 2010
15 :25 :00
6000
27 Nov 2010
12 :44 :00
5888.9
29 Nov 2010
12 :33 :00
6151.95
29 Nov 2010
15 :44 :00
6106.25
30 Nov 2010
12 :40 :00
6060.3
30 Nov 2010
15 :40 :00
6029.25
01 Dec 2010
12 :33 :00
5983.35
01 Dec 2010
15 :24 :00
6000
02 Dec 2010
12 :37 :00
5864.3
02 Dec 2010
15 :53 :00
5865.65
03 Dec 2010
12 :11 :00
5950
03 Dec 2010
15 :13 :00
5972.5
04 Dec 2010
13 :36 :00
6400
06 Dec 2010
12 :41 :00
6403.55
06 Dec 2010
15 :34 :00
6453.85
07 Dec 2010
12 :33 :00
6400

November - December 2010 guar gum level was around  INR 5000 - 6000 / 100 Kg. in that condition guar seed may touch INR 1700 -  INR 1800 Level.

Shale Gas Production may increase

In the condition of hyper competition, Shale gas production companies may increase the production. These companies may increase the quantity to increase there overall profit. If the production increases then  companies work on input cost control. Defiantly these companies will pay less for guar gum or these companies may switch on guar gum alternatives. All the alternatives are synthetic and rate of product can be controlled. Again guar gum may reach to the level of November - December 2010 rates.

Next 5-6 month are very criticle for guar gum industry specially in context to Guar Gum application in Shale Gas production. 





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