Oil market to become tight in next 2-3 years

By Polymers

SEATTLE (polymers.in):  OPEC’s decision to cut  crude output on the first half of 2017.
- The agreement among OPEC and non-OPEC producers at the end of last year to cut 1.8 million bbl/day of global output in 1H17.
- Front-month Brent crude futures currently trade at USD 55.10/bbl. 

Oil market to become tight in next 2-3 years: Saudi energy minister
- The world could run short of oil by 2020 due to the recent sharp global downturn in upstream investment.
- Under its Saudi Arabia Vision 2030 master — plan for economic reform, OPEC’s biggest oil producer is seeking to de-link its economy from oil prices. 

Outlook 2017: India's oil demand growth rate to eclipse China's yet again
- India’s oil demand show no signs of faltering, leading analysts to say that the country will remain a driver of Asian growth in 2017.
- Consumption is expected to rise 7 - 8% this year. 

Saudi Oil Output Drops Under OPEC Quota Close to Two-Year Low
- Saudi Arabia is currently producing at a 22 month low and agreed to cut 486,000 bbl/day to 10.058 million bbl/day.
- Kuwait has cut 133,000 bbl/day of oil output and is currently producing 2.7 million bbl/day.

UAE Says $50 Oil Isn’t Going to Cut for Producers
- Crude oil at USD 50/bbl is too low for most producing countries.
- Prices have climbed almost 20% to above USD 50/bbl. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
MEG Expands Christina Lake, Taps Debt Market in Oil-Sands Rebound
- MEG Energy Corp will increase output from the site by about 25% to 100,000 bbl/day by 2019.
- MEG increased a stock sale to C$450 million from C$357 million, selling 58.1 million shares at C$7.75 each.

Polymers Price
PVC prices climb in India
- In India, prices of PVC were assessed up at USD 970/MT levels, a sharp week on week increase of USD 30/MT.
- In India, Formosa, Taiwan is reported to have sealed several deals for PVC resin suspension grade at USD 970/MT levels, for February 2017 shipment. 

PP prices gain in parts of South Asia 
- Sri Lanka, PP raffia and PP injection prices were assessed up at USD 1060/MT CFR levels, a week on week rise of USD 5/MT. PP film prices were assessed at USD 1080/MT CFR levels while BOPP prices were also assessed at USD 1080/MT CFR levels. PP block copolymer prices were steady at USD 1110/MT CFR levels. 
- In South East Asia, PP raffia and PP injection prices were assessed steady at USD 1045/MT CFR levels. PP film prices were assessed at USD 1065/MT levels, while BOPP prices were also at USD 1065/MT levels, both unchanged from the previous week. PP block copolymer prices were assessed stable at USD 1100/MT CFR levels.

Polymers Demand
Trump and dollar strength will accelerate the Great Reckoning
- China, with foreign currency borrowings of USD 1.2 trillion in Q3 last year seems most at risk initially. 
- Bank for International Settlements suggest the EMs’ dollar-denominated debt doubled to USD 3.2 trillion between 2009 and March 2016.

Courtesy: www.polymers.io