Home / Metal News / Oil bounces back but the glut that crushed prices is not going away

Oil bounces back but the glut that crushed prices is not going away

iconMar 17, 2017 16:28
WTI crude oil trades up 2.1% or 098% at USD 48.70/bbl.


ScrapMonster Contributor

SEATTLE (polymers.in):  Oil, Natural Gas, Coal
Oil is bouncing back but the glut that crushed prices isn't going away
- WTI crude oil trades up 2.1% or 098% at USD 48.70/bbl. 

Oil's Price Isn't Quite High Enough to Keep Louisiana's Credit Rating Afloat
- The Gulf Coast state’s credit rating was lowered by one notch to AA-, the fourth highest grade.
- Louisiana has been a month the states hardest since the price of oil slid from over USD 100/bbl nearly three years ago. 

Chinese Shares Decline in Hong Kong as Oil Tumbles, Fed Ponders
- The Hang Seng China Enterprises Index fell 0.4% at the close, after a 2.4% gain in the last two sessions.
- China Petroleum & Chemical Corp. was among the biggest decliners with a 0.7% drop.
- The Shanghai Composite Index closed 0.1% higher. 

Oil Rises as US Crude Supplies Drop First Time Since December
- Futures rose 2.4% in New York.
- WTI for April delivery rose by USD 1.14 to settle at USD 48.86/bbl.
- Brent for May settlement advanced 89 cents to end the session at USD 51.81/bbl.
- US crude inventories declined to 528.2 million bbl last week. 

How Slipping Oil Prices Are Hurting the Global Reflation Rally
- Saudi Arabia announced Tuesday that it raised output back above 10 million bbl/day in February.
- A sustained fall below USD 50 will likely prove a catalyst for a meaningful repricing of energy credit.

Russia postpones scrapping oil export duties to 2022-2025
- Russia will not fully scrap its oil export duty until 2022 - 2025.
- Russia is in the midst of a so-called tax maneuver whereby it is gradually increasing its mineral extraction tax. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
January Mexican methanol production jumps 66% year on year
- Methanol output totaled 15,000 MT in January, up 66% from 9,000 MT in December.
- Pemex operates a 165,000 MT/year plant in San Martin Texmelucan in the state of Puebla.
- Methanol consumption in the first two months of 2017 totaled 47,000 MT, 18% above the 40,000 MT consumed in January to February 2016. 

MEG prices plunge across all regions
- Asian MEG prices declined USD 52/ton CFR China and CFR South East Asia in the first week of March.
- In China, prices moved down USD 70/ton early in the week.
- European spot MEG prices were EUR 50/ton on the week.
- MEG was down US cents 1.50 cents/pound FOB USG.

Intl. Offers for SE Asia in USD
- ABS 1805 (-80)
- GPPS 1405 (-45)
- HIPS 1505 (-30)
- PET 1065 (-20)
- LDPE 1290 (-10)
- HDPE Raff 1180 (NC)
- HDPE Inj. 1140 (+10)
- HDPE Film 1170 (NC)
- LLDPE 1215 (-5)

China Polyolefins: An Outlook For The Rest Of 2017
- China is suffering from a bout of polyolefin's indigestion right now as a result of a sharp rise in both imports and domestic production.
- The government has taken the crude import quotas away from some of the teapot or independent refineries.

Sinopec Qilu to restart LDPE plant
- Sinopec Qilu is likely to bought on stream its LDPE plant following a maintenance turnaround last week.
- Sinopec Qilu is located at Shandong province in China and has a production capacities of 140,000 MT/year.

Courtesy: www.polymers.io

Oil prices

For queries, please contact Michael Jiang at michaeljiang@smm.cn

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

Related news