Home / Metal News / Copper / Crude oil is getting clobbered after a massive inventory build
Crude oil is getting clobbered after a massive inventory build
Nov 8,2016 12:24CST
Industry News
WTI crude prices are down by 3.3% at USD 45.12/bbl.

By Polymers

ScrapMonster Contributor

WTI crude prices are down by 3.3% at USD 45.12/bbl.

SEATTLE (polymers.in):  WTI crude prices are down by 3.3% at USD 45.12/bbl.
- Brent crude prices are down by 3.2% at USD 46.61/bbl. 

Canadian light crude falls to lowest point since August 2015
- NYMEX light sweet crude futures contract minus USD 2/bbl, an outright price of USD 44.13/bbl.
- Canadian crude traders said the fall in SSP can be primarily attributed to decreased demand, driven in part by the competing Canadian light oil Mixed Sweet. 

Oil Market Turns Skeptical About OPEC’s Ability to Deliver Cuts
- Futures surged after the outline of a deal to limit collective production was set out in Algiers on 28 Sept.
- Traders said rising output from Libya, Nigeria, Kazakhstan and Russia are adding to a near-terms global glut, helping to broaden the spread.
- Slumping US inventories aren’t helping.
- Options contracts are moving in a pattern that indicates traders are hedging more against price declines than increases. 

Oil giant BP sees profits fall on weak oil prices
- Oil giant BP has reported a near 50% fall in Q3 profits from last year as the sector continues to struggle with low prices.
- BP made USD 933 million on an underlying replacement cost basis, compared with USD 1.8 billion a year earlier. 

Aramco forecasts increase in oil prices in first half of 2017. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Asian ethylene-naphtha spread hits narrowest level in nine months
- The spread between ethylene and naphtha narrowed by USD 26.50/MT day on day to the lowest level in nine months at USD 583.63/MT.
- CFR Northeast Asia ethylene price market fell USD 15/MT day on day to be assessed at USD 1035/MT on Tuesday.
- CFR Japan naphtha price rose USD 11.50/MT day on day to be assessed at USD 451.38/MT Tuesday.
- Film-grade HDPE was assessed up USD 5/MT day on day at USD 1170/MT CFR Far East Asia.

Asia naphtha crack jumps to near 7-month peak on Colonial Pipeline impact
- CFR Japan naphtha crack spread versus front-month January ICE Brent futures soared by USD 15.50/MT on the day to USD 82.83/MT.
- LG Chem’s import tender was heard awarded Tuesday around a premium of USD 1 - 1.50/MT to the Mean of Platts Japan naphtha assessments, for open spec naphtha with a minimum paraffin content of 70% CFR Daesan. 

High naphtha cost, low output to weigh on Thai SCG Q4 earnings
- In the Q3 of 2016, SCG posted a 57% year-on-year surge in net profit to Thai Bt 14.1 billion, supported by strong performance in its core chemicals business, even as overall revenues fell by 5% to Bt 105 billion.
- SCG’s overall net profit grew by 28% year on year to Bt 43.6 billion, even as revenue slipped by 3% to Bt 323.8 billion. 

Paraxylene price inches up across all regions
- Asian PX prices inched up USD 470/ton CFR Taiwan/China and FOB Korea in the third week of October.
- US spot PX those USD 5/ton FOB USG.
- Europe spot PX prices regained USD 8.50/ton on the week.

South American offers put pressure on LLDPE in Europe: sources
- LLDPE prices were assessed at EUR 1,180/MT FD NWE Wednesday last week.
- LLDPE offers were heard at EUR 1150 - 1200/MT FD NWE Wednesday. 

Russia HDPE October prices buck trend with sharp fall
- Prices in the Russian HDPE market saw a major cut in October with declines across the whole range of PE.
- Kazanorgsintez began a gradual shutdown of its production for maintenance on 24 September, with the gradual resumption of PE production only beginning in the second decade of October. 

Polymers Demand
Why China Cannot Get Away With Its Latest Debt Crisis
- In 1998 - 2004, China spent USD 200 billion resolving problem lending, but S&P Global Ratings has calculated today’s final bill at USD 1.7 trillion.
- Since September 2011, nominal GDP growth in China's averaged 8.6% per annum, whilst total loans have grown by 14.5% year.
- China’s basic pension pays just 1% of average individual/province earnings for each year of coverage, subject to a minimum 15 years of contribution.

Courtesy: www.polymers.io

Crude oil

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn