OPEC deal to push oil market into deficit by mid-2017

Published: Dec 16, 2016 10:24

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Global oil market will move into deficit during the first half of 2017 with demand potentially outstripping supply by some 600,000 bbl/day.

By Polymers

ScrapMonster Contributor

SEATTLE (polymers.in): Global oil market will move into deficit during the first half of 2017 with demand potentially outstripping supply by some 600,000 bbl/day.
- The assumption is based on OPEC fully committing to its new effective production target of 32.7 million bbl/day and key non-OPEC producers delivering agreed cuts of 558,000 bbl/day.

One Europe Oil Refiner Said to Get 20% Less Saudi Arabia Crude
- Saudi Arabia will cut the amount of oil it allocated to one European refining company by about 20% or 10.06 million bbl/day.

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Propylene prices inch higher in Asia on Monday
- FOB Korea prices of propylene were assessed up at USD 800/MT levels, a gain of USD 5/MT from last Friday’s assessed levels.
- CFR China prices were assessed higher at USD 860/MT levels, a rise of USD 5/MT on the day.

Technip, Chemetry sign cooperation agreement for EDC technology
- Technip and Cemetery have signed an exclusive cooperation agreement for the licensing and engineering of Chemetry’s eShuttle technology for the production of EDC.

Lotte Chemical to invest USD 215 million for ethylene capacity expansion
- South Korea’s Lotte Chemical Corp plans to invest USD 215.82 million to increase ethylene production capacity at the Yeosu plant by 2018.
- The PET maker plans to start construction in H1-2017 and expects to boost its annual sales to about USD 426.48 million in 2019.

US ethylene spot margins up 1.5% week on week
- US ethylene spot prices rose by 6.2% week on week as some crackers were taking longer than expected to restart after turnarounds.
- Margins benefitted from higher spot prices despite feedstock ethane costs rising by 12%. Polymers Demand
US Stocks Climb to Record Highs as Energy, Tech Shares Rally
- The S&P 500 Index added 0.7% at 2,271.72.
- Dow rose 0.6% to 19.911.21, while the Nasdaq 100 jumped 1.3% to 4,935.84.
- Tech companies up 1.3%, with gains of at least 2.1% in Facebook Inc., Intel Corp., Red Hat Inc., CA Inc., and Seagate Technology Plc.

US PP margins mostly rise on falling naphtha, propylene
- Integrated PP contract margins for material made from naphtha rose by 6.7%, as feedstock costs fell by 1.8%.
- Integrated PP contract margins based on RGP rose by 2.5% last week as the feedstock fell by 5%.

ADB cut Asia economic growth forecast
- ADB has trimmed its 2016 economic growth forecast for Asia to reflect slower-than-expected expansion in India.
- The lender now projects that a group of 45 countries which it calls Developing Asia will grow by 5.6% this year.

PVC imports in Russia grew by 36% in the eleven months of the year, exports grew by 33%
- Imports of SPVC in Russia grew to about 123,900 MT in the eleven months of the year up 36% year on year.

Polymers Supply
Eastman expects no impact on customers after accident at US PET plant
- Eastman Chemical does not expect customers to be affected after an accident last week at a PET unit in South Carolina.
- The accident occurred while three employees were working on a 250,000 MT/year production line down for scheduled annual maintenance in Gaston, South Carolina.

Lotte Chemical Titan to shut HDPE plant for maintenance
- Lotte Chemical Titan is likely to undertake its HDPE plant off-stream for a maintenance turnaround in mid-December 2016 for a period of around 3 weeks.
- Lotte Chemical will be shut again by mid-February 2017 for a week.

Courtesy: www.polymers.io

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