Oil snoozes after OPEC jolt as market awaits supply cut proof

By Polymers

SEATTLE (polymers.in):  Oil and Gas News: Mexico’s Gasoline Market, LNG Hits Record Levels
- Mexico is a large crude oil producer but it relied heavily on imports of gasoline from the US to meet domestic demand.
- The Henry Hub natural gas spot price is expected to average USD 3.55/million in 2017 and USD 3.73 per million in 2018. 

Malaysian light sweet crude oil premiums retreat as buyers seek alternatives
- Petroleum Brunei could have sold a 600,000 bbl cargo of Kimanis crude to Ampol Singapore.
- S&P Global plants assessed the benchmark Malaysian light sweet grade at a premium of USD 3.90/bbl. 

Oil Snoozes After OPEC Jolt as Market Awaits Supply Cut Proof
- Oil slumped to a 12-year low early last year and whiplashed between bull and bear markets before firming on the supply agreement between the OPEC and 11 non-members.
- OPEC and its partners are seeking to trim output by about 1.8 million bbl a day during the first six months of 2017.
- WTI for March delivery traded at USD 52.85/bbl. 

China Oil Trader’s Mideast Spree Contributes to Shake-Up in Global Supply Flows
- China National United Oil Co. last month bought at least 7 million bbl of Middle East Crude for March,
- Crude imports by China rose to a record average of 7.63 million bbl/day in 2016. 

India Plans to Create Oil Giant by Integrating State-Run Firms
- India is planning to create a state-owned oil giant through mergers to match the might on international companies.
- India is overtaking Japan as the world’s third-largest oil consumer and will be the center of global growth through 2040.
- Shares of Indian Oil closed 2.5% higher at 375.45 rupees in Mumbai.
- ONGC fell 1.2% to 200.20 rupees. 

US Enjoys First-Ever Oil Trade Surplus With Latin
- The scales tipped in favor of the US in October, when it recorded a surplus of 89,000 bbl/day of petroleum.
- With the US shale boom reinvigorated by prices above USD 50/bbl, the surplus is likely to continue. 

OPEC achieves 82% of pledged oil output cut in January
- OPEC’s oil output is set to fall by more than 1 million bbl/day this month.
- OPEC agreed to cut its output by about 1.2 million bbl/day from January 1 to prop up oil prices and reduce a supply glut. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
NWE naphtha backwardation at 21-month high on buoyant petrochemical demand
- The front-month/second-month CIF Northwest Europe naphtha swap backwardation hit its highest in 21 months as the front of the market strengthened.
- S&P Global Platts assessed the front-month CIF NWE naphtha crack swap at a 10-month high of 60 cents/bbl. 

MEG price edges up in Asia, Europe
- Asian MEG prices inched up USD 2/ton CFR China and CFR South East Asia marker in the third week of January.
- MEGlobal is set to increase its February North American benchmark for MEG by US cents 3/pound. 

PX price climbs across all regions
- Asian PX price rose USD 13/ton CFR Taiwan/China and FOB Korea in the third week of January.
- US spot PX rose USD 10/ton FOB USG on the week.
- European PX spot gained USD 14/ton. 

MEG price edges up in Asia, Europe 
- Asian MEG prices inched up USD 2/ton CFR China and CFR South East Asia marker in the third week of January.
- US MEG was up US cent 0.50/pound FOB USG on the week.
- European MEG prices climbed EUR 50/ton FCA NWE on the week.

Polymers Demand
Trumponomics: 2017 Global Recession Now Almost Inevitable
- Donal Trump is governing exactly the way he promised to govern by focusing on immigration and trade.
- It might be that Wilbur Ross is proved right in his assessment that the White House’s new approach will raise US GDP growth 4% double what it is today. 

Asia PP naphtha margins up despite rising feed costs
- Asia PP margins rose across the board in both regions during the week ended 27 January.
- In NE Asia, integrated naphtha-based PP margins inched up by 0.3%.
- Northeast Asia PP margins based on PDH rose about 18%.

Courtesy: www.polymers.io