The OPEC deal: What it really means

By Polymers (ScrapMonster Contributor)

September 30, 2016 01:30:29 AM

SEATTLE (polymers.in): OPEC members would limit production to a range of 32.5 million to 33 million bbl/day down slightly on August’s output of 33.2 million bbl/day.

- It is the demand for oil that is also a key issues here now that the Economic Supercycle is over.

- OPEC has understood both the above for a long time, and so realizes that it needs to pump as much oil as possible whilst it can, rather than risk leaving oil in the ground.

- Crude oil prices raced higher nearly 6% on Wednesday as OPEC members have struck a deal to reduce crude output for the first time in eight years.

- OPEC agreed to slash oil production to a range of 32.5 million to 33 million bbl/day.  

The super rich are getting stung by the oil slump

- Last year, the world’s ultra-rich added a bit more to their combined wealth and now hold a total of USD 30 trillion in net assets.

- In Russia, the number of UHNW people who own at least USD 30 million in assets fell by almost 13% last year.

- The government plans to draft nearest-term budgets based on a USD 40 price for its Urals blend.

- Brent has been trading at around USD 44 to 47 for a few weeks now.

- Norway’s richest saw their numbers plunge by 54% and their total wealth plummet 51% annually to a mere USD 90 billion. 

US oil producers may already be readying to thwart OPEC's plan

- The tentative agreement to cut output by 750,000 bbl/day to 32.5 million bbl.

- US data suggests that oil prices around USD 50/bbl are encouraging the restart of idled US oil output.  

UK Oil Shares Up Most in 7 Months to Lift Market on OPEC Deal

- Royal Dutch Shell Plc and BP Plc rose more than 4.5%.

- Anglo American Plc and BHP Billiton Ltd. up at least 5.1%.

- FTSE 100 advanced 1.2%.  

Saudi Stocks Rise as Oil Output Cut Outweighs 9/11 Legislation

- Tadawul All Share Index, which rose and fell at least 0.8% in the first 30 minutes of trading, gained 1.6%.

- Traders exchanged 265 million shares, 68% above the gauge’s 30 day average. 

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

European ethylene contract price for October agreed at EUR 940/MT

- European ethylene contract price for October has been fully confirmed at EUR 940/MT.

- The EUR 15/MT increase over September was in line with many players’ expectations. 

Polymers Supply

PE production in Russia rose by 4% in the first eight months of 2016

- Russia’s production of PE increased in the first eight months of 2016 by 4% year on year, totaling 1.12 million MT.

- August total PE production in Russia rose to 161,400 MT, whereas a month earlier, this figure was 126,300 MT. 

Courtesy: www.polymers.io