Crude oil surged above USD 50 for the first time since June

By Anil Mathews

ScrapMonster Author

SEATTLE (polymers.in): WTI crude oil on Thursday climbed above USD 50/bbl for the first time since 24 June.

- EIA announced that inventories of oil in the US had unexpectedly decreased by 3 million bbl.  

Oil prices will nosedive if OPEC's deal falls apart

- Oil prices jumped 6% last week when news broke that members of the OPEC had agreed on the rough outline of a freeze deal in Algiers.  

OPEC targeting USD 55/bbl oil, to meet non-OPEC exporters in Istanbul

- OPEC is aiming for an oil price of USD 55/bbl.

- OPEC ministers agreed in Algiers last Wednesday to freeze their crude production between 32.5 million to 33 million bbl/day.  

Brazil Stocks Gain as Petrobras’s Rally Offset Fed Rate Concern

- Brazil’s state-run oil producer Petrol Brasileiro SA buoyed the Ibovespa index as the stock extended a rally to an almost two-year high.

- The Ibovespa rose 0.6% to 60,644.24 at the close of trading in Sao Paulo as 30 of its 58 stocks gained.

- Embracer climbed 2.4%.  

US Oil Advances Above USD 50 a Barrel for First Time Since June

- Oil climbed above USD 50/bbl in New York for the first time since June as declines in US crude inventories and OPEC’s pledge to reduce supply lifted hopes the global glut may clear.

- Futures increased 1.2%.

- US crude stockpiles shrank below 500 million bbl last week for the first time since January. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)

NE Asia ethylene market under pressure from ample supply

- Ethylene prices stood at USD 1000 - 1050/MT CFR northeast Asia, stable from the previous day.

- On 30th Sept, spot ethylene prices were assessed at USD 1020 - 1050/MT CFR NE Asia, down USD 50 - 75/MT from the previous week. 

Shell to restart Singapore ethylene cracker in a few weeks

- Royal Dutch Shell is expecting to restart its ethylene cracker at Pulau Bukom, Singapore, in the next few weeks following an unplanned shutdown last week.  

Polymers Price

GAIL reduced LLDPE Prices by Rs. 500/MT w.e.f. 6th October 2016.  

PP sellers in Southeast Asia, are in no hurry to cut prices on weak buying activity

- Processors buy to replenish PP in the amount of 100 - 200 tons.

- Prices of Saudi PP for the production of yarns and fibers were in the range of USD 990 - 1000/MT.

- Middle Eastern suppliers offer material at USD 1020 - 1030/ton.

- CFR South East Asia, while the buyer agrees to a maximum of USD 1000/MT.

- PP fibers and filaments of 30th Sept were in the range USD 990 - 1000/ton CFR Southeast Asia. 

Polymers Demand

Borealis says lifts force majeure on polypropylene from Belgian Kallo site

- Austria’s Borealis lifted force majeure at its polypropylene production site at Kallo near Antwerp in Belgium.

- The force majeure was due to a power outage which resulted in a shutdown of all plants at the site.  

European market players expect the October price growth PP

- PP October proportional increase in monomer quotations, ie at EUR 35/MT.

- Original contract price of propylene in Europe for the supply in September has been agreed at the level of EUR 690/MT. Polymers Supply

The production of PP plant in Atyrau will be built by 2020

- The first integrated gas chemical complex in Atyrau under the Special Economic Zone shall consist of a number of enterprise.

- It is a factory for the production of PP with a capacity of 500 thousand tons/year and a polyethylene of up to 800 thousand per tons/year. 

Courtesy: www.polymers.io