Friday, July 12, 2019
Energy, Petrochemicals and Plastics 25
1 Gulf of Mexico oil firms evacuate workers ahead of storm
https://www.offshoreenergytoday.com/gulf-of-mexico-oil-firms-evacuate-workers-ahead-of-storm/
U.S. Gulf of Mexico operators are evacuating offshore workers from rig and platforms in response to tropical weather activity.
2 Why This Oil Rally Won’t Last
https://oilprice.com/Energy/Energy-General/Why-This-Oil-Rally-Wont-Last.html
After weeks of gloom, the oil market is tightening up once again. But it’s not clear how long the upward cycle will last. OPEC admitted this week that it may need to keep the production cuts in place, perhaps beyond the latest extension, because of soaring production from U.S. shale.
3 IEA sees oil market oversupplied in 2019 on U.S. production
https://www.reuters.com/article/us-iea-oil-idUSKCN1U70V5
Surging U.S. oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months, the International Energy Agency (IEA) said on Friday.
4 Oil Price Fundamental Daily Forecast – Short-Term Weather Concerns Outweighing Long-Term Demand Worries
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-short-term-weather-concerns-outweighing-long-term-demand-worries-586187
The demand concerns are a longer-term issue. The potential supply concerns due to the approaching tropical storm are a real short-term problem. Therefore, unless the weather conditions suddenly improve and production resumes, this story is likely to drive the price action today.
5 Output cuts boost Asia oil refining margins to highest since Sept 2017
https://www.reuters.com/article/us-asia-oil-idUSKCN1U70US
Asia oil refining margins have more than tripled in the past four weeks to hit their highest since September 2017, Refinitiv data showed on Friday, after refiners cut output and tightened fuel supplies.
6 Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-tropical-storm-weighing-on-short-term-demand-586209
As long as the influence of the tropical storms is short-term, prices could rebound late Friday or early next week with the return of hotter temperatures. If all comes down to whether traders are willing to buy strength, or play for a pullback into support or value.
7 Global LNG – Asian price steady as global supply still ample
https://www.reuters.com/article/us-global-lng-idUSKCN1U70AZ
Asian spot prices for liquefied natural gas (LNG) held steady this week, with traders looking for signs of potential demand ahead of winter amid ample supplies.
8 H2 outlook: Global polyethylene market seen bearish on weak demand, rising supply
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/071019-h2-outlook-global-polyethylene-market-seen-bearish-on-weak-demand-rising-supply
The outlook for the polyethylene market globally is bearish for the remainder of the year due to a combination of weak feedstock costs, weak global demand and anticipated plant startups, according to market participants.
9 Pemex under pressure with AMLO ruling Mexico’s economy
https://www.worldoil.com/news/2019/7/11/pemex-under-pressure-with-amlo-ruling-mexico-s-economy
The surprise departure of Mexico’s finance minister has the state oil company’s watchers biting their nails.
10 U.S. crude stocks fall nearly 10 million barrels: EIA
https://www.reuters.com/article/us-usa-oil-eia-idUSKCN1U51U8
U.S. crude oil stockpiles fell by nearly 10 million barrels last week, far more than expected, as refineries processed the most crude oil since January, the Energy Information Administration said on Wednesday.
11 IISRP panel says styrene, butadiene seeing less volatility
https://www.rubbernews.com/suppliers/styrene-butadiene-seeing-less-volatility
Feedstock supplies and prices can have a great impact on both synthetic rubber producers and down the line to end product makers. So a lot of attention is paid to market conditions to try to plan as much as possible for potential volatility in supply and pricing.
12 Borealis pledges to quadruple amount of recycled content on offer by 2030
https://www.plasticstoday.com/sustainability/borealis-pledges-quadruple-amount-recycled-content-on-offer-2030/54582863561118
Resin supplier Borealis has made a commitment to the market to quadruple the quantity of recycled content contained in its resins by 2030 but this could, in fact, happen as early as 2025.
13 Weekly resin report: Upstream PP inventories at their lowest point in 15 years
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-upstream-pp-inventories-their-lowest-point-15-years/120259858061120
Trading activity did not set off any fireworks, perhaps, but the spot resin markets began July moderately busy. A nice flow of processor buy orders came in through mid-week, reflecting some seemingly pent-up demand at the start of the third quarter, reports the PlasticsExchange (Chicago) in its Market Update.
14 Drop in petchems margins in the first half illustrates wider malaise
https://www.icis.com/explore/resources/news/2019/07/09/10388840/insight-drop-in-petchems-margins-in-the-first-half-illustrates-wider-malaise
The second quarter ended with variable margins for the major petrochemicals and plastics largely down sharply in the year to date.
15 ‘‘Psychological War’’ With Iran Fails To Move Oil Markets
https://oilprice.com/Energy/Oil-Prices/Psychological-War-With-Iran-Fails-To-Move-Oil-Markets.html
The Trump administration refrained from a military strike last month, but the U.S. and Iran’s cycle of escalation continues.
