ScrapMonster Contributor
SEATTLE (polymers.in): Early Monday, the price of oil jumped more than 5% after the deal between OPEC and non-OPEC countries was announced by Saudi Oil Minister Khalid al-Falih.
- Saudi Arabia will cut production by more than 500,000 bbl/day.
Analysts think the oil cut deal could bring US shale back from the brink
- With 1.758 million bbl expected to be slashed out of the market, oil prices have more room to rally with Brent potentially closing above USD 60 in the next couple of weeks.
- US rig counts rose by 21 last week to 498.
Expected Jan month-on-month gain in US shale oil output first since Apr 2015
- US shale oil production should rise overall by 2,000 bbl/day to 4.542 million bbl/day in January.
- January oil production is pegged to fall 23,000 bbl/day to 980,000 bbl/day.
Deepest Oil Cuts in World’s Top Market Didn’t Need OPEC Deal
- Malaysia and Brunei are doing their bit for the global pact to rebalance oil markets.
- China, the world’s fifth-biggest producer last year, has reduced output by about 300,000 bbl/day this year.
Crude prices contain rally, Asia and Europe stocks in the red post-OPEC summit
- Crude oil futures for delivery in February of international referential Brent were trading at USD 56.87/bbl.
- WTI future for delivery in January was trading in European opening at USD 54.04/bbl up from the USD 53.84/bbl.
OPEC Skeptics Flee as Production Cut Rockets Oil Past USD 50
- Money managers slashed bets on lower WTI crude prices by the most in five years after OPEC’s November 30.
- OPEC agreed to reduce oil production by 1.2 million bbl/day starting in January.
- WTI surged 13% to USD 50.93/bbl.
- US benchmark advanced 2.6% to USD 52.83.
- Saudi Arabia agreed on November 30 to cut its production to 10.06 million bbl/day.
OPEC-Russia Deal Could Drain Almost Half the Global Oil Surplus
- Crude-supply deficit of 760,000 bbl/day in the first half of 2017 would require OPEC to fully implement its 1.2 million bbl/day cut.
- Full compliance with the deal would mean OPEC crude supply in the first half is about 400,000 bbl/day.
OPEC Oil Output Said to Rise Ahead of January Historic Cut
- OPEC raised production to 33.79 million bbl/day in November from 33.71 million bbl/day in October.
- Iraq’s output last month also fell to 4.55 million bbl/day from 4.56 million.
Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
China's Shenghong settles 2017 paraxylene terms contracts, keeping pricing unchanged from 2016
- China’s Jiangsu Shenghong Chemical Fiber Co settled its 2017 long-term contracts with major Japanese and South Korea producers for buying PX.
- The common settlement terms for 2016 were a USD 2.50/MT discount for buyers outside the Asian Contract Price negotiations.
Naphtha-based ethylene margins soar in Asia
- Naphtha-based ethylene margins in NEA increased 16% to USD 770/MT.
- Spot ethylene in NEA increased USD 35/MT week on week.
- Naphtha-based ethylene margins in SEA increased 25% to USD 623/MT.
- Spot ethylene in SEA increased rose USD 30/MT.
Polymers Price
Prices for European PE continue to decrease in CIS countries
- December contract price of ethylene in Europe was agreed down EUR 30/MT below the level of the November.
- December deals for HDPE were discussed in the range EUR 1045 - 1160/MT FCA.
Polyethylene Pricing, Profits In 2017: Three Scenarios
- Scenario no. 1: An average spread or gap between naphtha and CFR LLDPE butene film-grade prices of USD 373/MT would be in line with the actual spread in 2011 of USD 374/MT.
- Scenario no. 2: Brent price of USD 52.94, will lead to an average naphtha price of USD 471/MT.
- Scenario no. 3: Oil prices average USD 89.11/bbl and naphtha USD 810/MT, while spreads fall to USD 280/MT on demand destruction caused by the surge in oil prices.
Propylene-carrying tanker explodes after derailment in Bulgaria
- 12 tanks of a private tai’s tank carrying propylene derailed at a station in NE Bulgaria.
- One of the tanks struck an electricity line and exploded in flames.
Polymers Supply
China PE halts downtrend; restocking to support prices
- China’s PE import prices held steady last week, halting recent heavy losses, with limited fluctuations expected for the rest of December.
- LLDPE prices have stabilized after falling 4.6% between mid-November to 2 December.
Courtesy: www.polymers.io
