Friday, July 19, 2019
Energy, Petrochemicals and Plastics 26
1 Oil Price Fundamental Daily Forecast – Underpinned by US-Iran Tensions, Capped by Demand Worries
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-underpinned-by-us-iran-tensions-capped-by-demand-worries-587647
Escalating tensions between the U.S. and Iran could underpin prices today, but gains are likely to be limited by concerns over demand. Furthermore, don’t expected a prolonged rally unless there is an actual supply disruption in the region, especially after bullish speculators were blown out of the market earlier in the week.
2 OPEC’s Oil Giants Give Trading Houses A Run For Their Money
https://oilprice.com/Energy/Energy-General/OPECs-Oil-Giants-Give-Trading-Houses-A-Run-For-Their-Money.html
OPEC is currently restricting production to keep oil prices from tumbling in an oversupplied market fearful of faltering demand growth. But the national oil companies (NOCs) of the cartel’s largest producers are thinking long term and vying for a large slice of the oil trading pie.
3 Summer natural gas prices on track to be the lowest in more than 20 years – Today in Energy
https://www.eia.gov/todayinenergy/detail.php?id=40132
In its July 2019 Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts Henry Hub natural gas spot prices for June, July, and August this year will average $2.37 per million British thermal units (MMBtu).
4 IEA does not expect ‘huge increase’ in crude prices: executive director
https://www.reuters.com/article/us-iea-oil-india-idUSKCN1UE0BR
The International Energy Agency (IEA) doesn’t expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets, its executive director said on Friday.
5 Oil Will Go ‘’Bust’’ If Recession Hits
https://oilprice.com/Energy/Energy-General/Oil-Will-Go-Bust-If-Recession-Hits.html
Oil prices plunged again on Thursday, dragged down by fears of slowing demand. An unexpected increase in inventories underscored the downside risk to oil prices. The EIA reported a drawdown in crude stocks, but a huge 9.25 million barrel combined increase in gasoline and diesel inventories, which surprised traders. Also, gasoline demand plunged by 0.5 mb/d in the week ending on July 12, although week-to-week changes are typical and make the data a bit noisy.
6 Allies play hard to get on U.S. proposal to protect oil shipping lanes
https://www.reuters.com/article/us-mideast-iran-tanker-allies-idUSKCN1UE0KI
The United States is struggling to win its allies’ support for an initiative to heighten surveillance of vital Middle East oil shipping lanes because of fears it will increase tension with Iran, six sources familiar with the matter said.
7 Mexico Goes Full Steam Ahead With $8 Billion Oil Refinery Against Advice
https://oilprice.com/Latest-Energy-News/World-News/Mexico-Goes-Full-Steam-Ahead-With-8-Billion-Oil-Refinery-Against-Advice.html
Mexico’s controversial Dos Bocas oil refinery project will indeed be built despite investor criticism, Mexican Energy Minister Rocio Nahle said during a radio broadcast on Thursday
8 LyondellBasell JV to add PP capacity in Thailand
https://www.plasticsnews.com/news/lyondellbasell-jv-add-pp-capacity-thailand
LyondellBasell Industries plans to add more than a half-billion pounds of annual polypropylene resin production through a joint venture in Thailand.
9 China to drive global propylene industry growth
https://www.hydrocarbonengineering.com/petrochemicals/18072019/china-to-drive-global-propylene-industry-growth/
China is expected to drive the global propylene industry growth from planned and announced plants between 2019 and 2030, contributing around 33% of the total propylene capacity additions,
10 Tetra Pak becomes ‘first carton packaging’ company to launch paper straws in Europe
https://www.packagingnews.co.uk/news/environment/marine-litter-environment/tetra-pak-becomes-first-carton-packaging-company-launch-paper-straws-europe-19-07-2019
The carton packaging giant said it is the first company to provide such straws for beverage cartons in the region.
11 H2 Outlook: Unfavorable economics will test appetite for sustainability
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/071619-h2-outlook-unfavorable-economics-will-test-appetite-for-sustainability
Increased media coverage on the environmental impacts of single-use plastics has fueled huge demand growth in recycled plastics, particularly of polyethylene terephthalate (PET) — used to make plastic beverage bottles — and also more recently high density polyethylene ( HDPE), used for a plethora of other consumer goods packaging.
12 Stepped-up cooperation between Borealis and Erema tackles challenge of plastics recyclability
https://www.plasticstoday.com/recycling/stepped-cooperation-between-borealis-and-erema-tackles-challenge-plastics-recyclability/153272341961161
Resin supplier Borealis and recycling systems provider Erema have signed a letter of intent (LOI) for the purpose of deepening their cooperation in the field of mechanical recycling.
13 ‘Circular Economy’ Will Be Unifying Theme at K 2019 Show: Plastics Technology
https://www.ptonline.com/blog/post/circular-economy-will-be-unifying-theme-at-k-2019-show
Under the shadow of spreading bans of single-use plastic products and growing public concern over “ocean plastics” pollution, the dominant theme at this October’s K 2019 show in Dusseldorf, Germany, will be recycling, under the currently fashionable label of “Circular Economy.”
14 Americas petrochemicals outlook, w/c July 15
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/071519-americas-petrochemicals-outlook-w-c-july-15
Prompt July ethylene prices moved higher over the week. The market closely watched the potential impact of Hurricane Barry, which has been minimal to the operations of the olefins plants. Market participants are still closely watching the timing of the return of the BASF-TOTAL cracker back to operations, as well as ethane prices. The July polymer-grade propylene contract rose over the week. Ongoing turnarounds at the propane dehydrogenation plant of Flint Hills Resources and BASF-TOTAL’s cracker and metathesis unit will be the primary focus of the market participants. The market is watching the duration of those turnarounds, which will impact US propylene stocks, which dropped over the week.
15 IEA launches new tool for tracking oil and gas-related methane emissions
https://www.iea.org/newsroom/news/2019/july/iea-launches-new-tool-for-tracking-oil-and-gas-related-methane-emissions.html
The International Energy Agency has launched a new online tool that tracks oil and gas-related sources of methane, a major and often overlooked greenhouse gas. The new “methane tracker” offers the most comprehensive global picture of methane emissions, covering eight industry areas across more than seventy countries.
