Energy prices have been gradually improving, or at least stabilising in many respects in recent months.
But they are yet to hit the mark the futures speculators would like to see.
Oil prices have surged 25 per cent in less than a month, dredging up memories of last year’s spike.
Crude oil is being tugged higher for different reasons this time, rising primarily as the US dollar gets weaker.
The US dollar hit an annual low last week even as energy demand in the United States remained weak and Benchmark crude for December delivery settled just above US$80 per barrel.
Natural gas, methanol, ammonia and oil are still not where the experts would like them to be and are likely to continue to take big bites out of profits in the local energy sector for months to come.
But while prices are putting big producers like Methanol Holdings Trinidad Ltd- which operates both methanol and ammonia facilities at Pt Lisas- in weakened competitive positions, executives at the group believe there is light around the corner.
MHTL chief executive Rampersad Motilal said last week ammonia prices were already starting to rebound and by next year, those prices will be at a place where the company can start generating sustainable profits.
Even as ammonia prices continue to strengthen, producers like MHTL and others will have to continue to monitor, and operate in volatile markets around the world as the United States reduces its dependency on product from Trinidad and Tobago energy suppliers.
