Crude oil is getting clobbered after a huge inventory build

By Polymers (ScrapMonster Contributor)

September 02, 2016 01:18:40 AM

SEATTLE (polymers.in): Oil, Natural Gas, Coal

Crude oil is getting clobbered after a huge inventory build

- WTI crude oil is lower by 3.7% near USD 44.60/bbl.

- The build of 2.3 million bbl was slightly smaller than last week’s build of 2.5 million bbl.  

BARCLAYS: A lot of pros are getting these 5 things wrong about the oil industry

- Global supply and demand estimates are extremely prone to error and are frequently revised in both direction.

- The weekly data on inventories from the EIA may exaggerate consumption.

- OECD inventory levels are not as high as they seem.

- Earnings calls are not an ideal indicator of US production level.

- There’s too much focus on the active Permian Basin in West Texas.

- There’s not enough focus on non-OPEC, non-American supply, which is three times the size of US output.  

Analysis: South Korea a bright spot for fuel oil demand

- South Korea’s demand for fuel oil, local known as Bunker-C, rise by almost 40% to 27.91 million bbl in the first seven months of 2016.

- Demand for fuel in China fell nearly 21% year on year to an average 749,000 bbl/day over Jan - July 2016.

- Japan’s demand fell 23% to an average 242,139 bbl/day in the same period.  

Oil Trades Near $45 as Rising U.S. Crude Stockpiles Expand Glut

- Futures rose as much as 0.7% after falling 6.2% the previous three sessions.

- US crude inventories increased by 2.28 million bbl.

- Oil rose 7.5% in August amid speculation that talks in Algiers may lead to an agreement to manage the market.

- WTI for Oct delivery advanced as much as 33 cents at USD 45.03 bbl.

- Brent for November settlement was 18 cents higher at USD 47.07/bbl.  

Oil Rally Sparks Surprise Drop in Bad Loans for Canadian Banks

- The nation’s six biggest lenders set aside a combined C$ 1.99 billion for bad loans in the most recent quarter.

- Oil’s rebound to about USD 46/bbl from USD 26 earlier this year.  

Oil Slump Sparks Stock Losses as S&P 500 Wipes Out August Gains

- Energy share sled decline as New York traded crude fell below USD 45/bbl.

- The S&P ended the month down 0.1%.

- European stocks fell 0.4% as declines in commodity and energy producers outweighed the best month for banks in more than a year.  

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

MEG price gains on bullish crude

- Asian MEG marker gained USD 13/ton CFR China and CFR South East Asia.

- In Europe, MEG spot declined as the summer lull continued to weigh on demand while initial contract price was not yet settled.

- In US, MEG markets resisted rise in feedstock as thin activity prevent rise in pricing.  

Paraxylene prices dearer across all regions

- Asia PX prices gained USD 14/ton FOB Korea and CFR Taiwan/China in the third week of August.

- In US, spot PX gained USD 10/ton FOB USG during the week.

- In Europe, PX prices rose USD 15.50/ton.  

OPaL, India has commenced productions at its new Dahej cracker (Ethylene 1.1 mmt/year & Propylene 400,000 mt/year) early this week.  

Sasol boosts Lake Charles ethane cracker price estimate by USD 2.1 Billion

- Sasol has raised the price tag of its US ethane cracker project to USD 11 billion from USD 8.9 billion.  

MEG October contract finishes 4 lower.  

ZCE PTA futures for Jan delivery closes 48 lower. 

Polymers Price

China spot LLDPE prices steady amid limited trade

- China’s LLDPE prices were assessed at USD 1,100 - 1,180 CFR China.  

ASPET PET price increased by Rs.1 in basic wef 1st Sept.  

PVC imports to Kazakhstan grew by 3% in the first seven months of 2016

- Imports of PVC into Kazakhstan increased in the first seven months of 2016 by 3% year on year, totalling 28,400 MT.

- There was a slight decrease in shipments of unmixed PVC to Kazakhstan last month, imports dropped to 6,000 MT from 6,300 MT in June. 

Polymers Demand

China’s One Belt, One Road: What It Means For PP and PVC

- Coal has long been the dost dominant route for making PVC in China, wherein it is accounted for 78% of China’s total PVC capacity in 2016.

- China will export its manufacturing surpluses to countries and regions along the One Belt, One Road route.

- PVC resin will flow to say Myanmar and Cambodia.  

Stocks Fall: Here's what you need to know

- Brazil’s Dilma Rousseff was impeach as president, wherein senators voted 61 to 20.

- WTI crude futures fell to a two-week low after the Department of Energy reported inventories rose last week by 2.3 million bbl.

- Pending home sales rose more than expected in July, by 1.3% month-on-month.

- The Chicago Purchasing Manager’s Index fell more than expected to 51.5 in August.

- Nigeria’s gross domestic product shrank 2.06% in the Q2.

- Statistics Canada said real GDP fell 0.4% in Q2 after rising by 0.6% in Q1. 

Polymers Supply

Kazakhstan’s Neftekhim shuts down PP production for maintenance

- Neftekhim has shut down production for scheduled maintenance works at the weekend on 27 - 28 August. 

Courtesy: www.polymers.io