October 20, 2016 01:26:18 AM
SEATTLE (polymers.in): For more than two years the oil industry has suffered through its worst down cycle since the 1980s.
- According to World Energy Council predicts that global demand for crude oil could hit a peak in 2030 at 103 million bbl/day.
BP can operate in USD 50 - 60/b oil range next year: Dudley
- BP can now balance the books in 2017 in just south of USD 55/bbl compared to its previous guidance of USD 60/bbl.
- According to Dudley, the market is essentially in balance and as long as oil demand grows at 1 - 1.2 million bbl/day we’re going to see a tightening.
OPEC Reversal Is Gift to Oil Majors After 2 Years of “Hell”
- After two years of pursuing a Saudi-led strategy to pump without limits, pummeling industry earnings, OPEC unexpectedly come to the aid of the oil majors.
- Brent has climbed as high as USD 53.73/bbl since oil producers announced a preliminary deal in Algiers on September 28.
Oil rises on dollar and market balance expectations
- Brent crude rose 43 cents or 0.8% to USD 51.95/bbl.
- US WTI crude was up 49 cents, close to 1% at USD 50.43/bbl.
- Global oil inventories increased by 17 million bbl to 5.168 billion bbl in Q3 2016.
Saudi Arabia Says Oil at USD 50 - 60 Ensures Adequate Global Supply
- Officials from Saudi Arabia and Kuwait, key protagonists in shaping OPEC policy, said oil at USD 50 to USD 60/bbl.
- Brent crude is up about 13% since the OPEC reached a deal September 28 to manage supply.
Former OPEC Official Says Reaching Oil Production Agreement Is Difficult
- OPEC agreed during its the 15th IEA in Algiers to reduce its oil output to 32.5 million bbl/day.
Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Japan's naphtha imports for petrochemical fell 34% in September 16 vs Sept 15
- Japan’s naphtha imports for the petrochemical sector fell 34% in September 2016.
- Imports of naphtha for ethylene production totaled 0.87% million tons in September 16, down from 1.31 million tons in September 15.
China PTA market enters attrition war as end-users buy local USD cargoes
- China’s PTA market is seeing a war of attrition as local producers fiercely compete with imported material to preserve their market share.
- CFR CMP prices have been on a gradual upward trend since 1 Sept, climbing USD 10/MT to USD 610/MT CFR CMP on 14 October.
China's propylene supply to increase from H2 Oct on new start-ups
- Wanhua Chemical’s 750,000 MT/year PDH plant in Shandong is due to restart on around 20 October from a turnaround of more than 20 days.
- Haiwei Group is said to have resumed operations at its 500,000 MT/year PDH unit in Hebei on 9 October following several days of unplanned outage.
Sentiment drives US ethylene volatility, overall plunge
- US ethylene spot prices were volatile this week.
- Spot prices began slipping once again, but values plunged by 11% on Thursday as news emerged of a fire at a styrene plant in Lake Charles, Louisiana.
Polymers Demand
Anger Grows In The US Over Lost Economic Opportunities
- As the boomers reached working age in the 1960s and 1970s they increased US labor supply, leading to a surge in economic growth and higher interest rates in response to higher inflation.
- Demand received a further boost from greater numbers of women joining the workforce for the first time.
India PVC importers to grapple with higher November offers
- India’s spot PVC import prices were assessed at USD 925 - 950/MT CFR.
- Buyers in India are expected an increase in offers, maybe about USD 10 - 20/MT, but USD 40/MT was quite unexpected.
Russia's Kazanorgsintez resumes HDPE production following turnaround
- Kazanorgsintez is in the process of resuming production of HDPE after scheduled maintenance works.
- The plant’s annual production capacity is 540,000 MT.
Courtesy: www.polymers.io
