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Oil rig count rises for 7th straight week
Oct 18,2016 13:25CST
Industry News
US oil rig count rose by 4 to 432 this week.

By Polymers

SEATTLE (polymers.in):  US oil rig count rose by 4 to 432 this week.
- Gas rig count rose by 11 to 105.
- WTI crude oil is down by 0.7% at USD 50.10/bbl.
- Brent crude oil is down by 0.7% at USD 51.70/bbl.  

Oil Extends Decline as US Producers Boost Drilling Amid Glut
- Futures lost as much as 0.8% in New York after slipping 0.2%.
- Output from OPEC’s Libya expanded to 560,000 bbl/day.
- Oil has fluctuated near USD 50/bbl amid speculations over the ability of the OPEC to implement an agreement to reduce supply.
- WTI for November delivery fell as much as 41 cents to USD 49.94/bbl.
- Brent for December settlement was 6 cents lower at USD 51.89/bbl.  

Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard
- A USD 13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market.
- Rosneft is targeting a market of 1.3 billion people that imports more than 80% of its crude requirements.
- Essar Oil’s Vadinar refinery in the western state of Gujarat can process about 400,000 bbl/day. 

Oil From USD 50 Billion Kashagan Field Starts Flowing to Export
- Kashagan sent its first crude for export after about 16 years in development and more than USD 50 billion of investment.
- The venture loaded 26,500 MT of crude for export into the country’s pipeline.
- Shares in Eni rose 2.4% to EUR 13.48 in Milan.  

US Oil Output Slide Seen Slowing as Shale Drillers Return
- EIA raised its outlook for US crude production next year, which now is estimated to fall 1.6% from 2016.
- The agency boosted its domestic output forecast for next year to 8.59 million bbl/day from 8.51 million projected in September.
- EIA increased its estimate for the global oil surplus next year to 340,000 bbl/day.
- Demand for petroleum and other liquid fuels is expected to grow to 96.67 million bbl/day worldwide next year.
- Global supply is expected to be 97.01 million bbl/day next year.
- WTI crude will average USD 49.99/bbl in 2017.
- Brent crude is projected to average USD 50.99 next year, a reduction from the prior estimate of USD 51.58. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
PTA price moves up amid plant shutdowns in Asia
- Asian PTA markers moved up slightly USD 2 - 3/ton CFR China and CFR Southeast Asia.
- In China, offers for nearby-month goods were slightly lower, and counter offers fell USD 5/ton on the week.

WTI and Brent Crude oil rise. Asian polymers rise, European and US static
- WTI and Brent Crude oil rose over the week to 14th September to USD 50.34 and USD 51.99/bbl.
- US crude stocks rose by 4.9 million bbl.
- European polymer prices remained relatively unchanged over the week though there were increased of EUR 5/MT.
- Asian polymer prices rose with increases of between USD 10 and USD 40/MT.
- US polymers remained unchanged apart from a 1 cent/pound increase reported in the price of PET. 

Polymers Demand
China’s New Real Estate Bubble: A LitmusTest For Economic Reforms
- Although China might still need 800 million square meters of new housing every year to meet demand, restrictions on how much land can be developed has led to very steep inflation in the cost of land in the major cities.
- China’s total value of residential housing to GDP is currently 3.27 times GDP and is forecast to hit 3.72 times by year-end.
- Japan’s great bubble peaked in 1990 at 3.7 times GDP.
- Hong Kong’s 1997 bubble peak was at 3.04 times.
- US bubble peak in early 2006 was at 1.75 times. 

Polymers Supply
LDPE unit to be shut by Lotte Chemical Titan
- Lotte Chemical Titan is in plans to shut its LDPE unit for a maintenance turnaround in 2016 December until the end of the month.  

HDPE imports into Russia down 20% in January-September
- Imports of HDPE into Russia decreased to about 113,000 MT in the first nine months of 2016, down 20% year on year.
- September imports of HDPE into Russia reduced to 16,700 MT, compared with 17,100 MT a month earlier.
- Total imports of film HDPE into the country increased to 19,300 MT in January to September 2016, compared to 10,800 MT/year earlier. 

HDPE imports into Russia decreased by 20% in January - September 2016
- Total imports of HDPE into Russia decreased to about 113,000 MT in the first nine months of 2016.
- September imports of HDPE into Russia reduced to 16,700 MT, compared with 17,100 MT a month earlier.

Courtesy: www.polymers.io

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