Oil May Be Up 75%, but Here Is Why It Will Remain Cheap

By Polymers (ScrapMonster Contributor)

September 07, 2016 01:32:28 AM

SEATTLE (polymers.in):  World’s Hottest Oil Market Gets a Jolt From China’s Taxman
- Purchases by China’s independent refiners, granted permission last year to buy foreign crude.
- China’s oil imports have averaged an unprecedented 7.5 million bbl/day so far this year.
- Brent crude was little changed at USD 47.65/bbl.  

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Northeast Asia-Southeast Asia ethylene price spread hits nearly 6-year high
- CFR NEA ethylene prices was assessed unchanged day on day at USD 1195/MT.
- CFR SEA market fell USD 5/MT to USD 1065/MT over the same period. 

Propylene contracts pave way for higher PP prices in Europe.  

Europe naphtha spot and contract cracker margins rise above LPG
- EURO dominated naphtha costs fell by 9% leading to a 19% rise in both spot and contract margins.
- Spot ethylene prices were unchanged in dollar terms but the dollar strengthened by 1% against the EURO.
- The September ethylene contract price settled at EUR 925/MT FD NWE. 

Russia LDPE prices continue downward trend in August
- Prices of LDPE fell significantly in the Russian market in August with many grades.
- Deals were done in the range of Rb 96,500 - 102,500/MT Moscow. 

Polymers Demand
G20 Reassurances Not Enough To Stop A Currency War
- During the big devaluation panic last summer, the Chinese government rightly pointed out that the fall in the Yuan was not a competitive devaluation. It was instead the result of the adoption of a more flexible, market-based exchange rate mechanism.
- Weaker Yuan was thus down to currency market investors being able to more easily vote with their feet.

Courtesy: www.polymers.io