Friday, September 20, 2019
Energy, Petrochemicals and Plastics 30
1 Real crunch from Saudi Arabia’s oil outage has yet to be felt
https://www.reuters.com/article/us-saudi-aramco-attacks-supply-idUSKBN1W41GL
Saudi Arabia’s ability to avert a global oil supply crunch will only become clear in a few weeks, because for now its crude held in storage can fill the gap and mask the scale of damage to its facilities, traders and analysts say.
2 A Crazy Day for Oil Leaves Traders Dazed
https://www.rigzone.com/news/wire/a_crazy_day_for_oil_leaves_traders_dazed-18-sep-2019-159835-article/
The Sunday opening of the oil market is traditionally a sedate affair: volumes are minimal and only a few traders in Asia, where it’s already early Monday, are in front of their screens.
3 Energy transition dampens appetite for Asian mega-refinery projects
https://blogs.platts.com/2019/09/19/energy-transition-asia-mega-refinery/
Asia has been the last bastion of large oil refinery projects for years, but overcapacity in the near term and the de-carbonization of transport fuels further out have raised questions over the need for more large-scale refining projects.
4 Oil Price Fundamental Daily Forecast – Markets Likely to Remain Bid Due to Middle East Tensions
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-markets-likely-to-remain-bid-due-to-middle-east-tensions-601362
Before the market can really become stable, Saudi inventories are going to have to return to pre-attack levels, the damaged facilities are going to have to be repaired and working at full capacity and further threats will have to be prevented. Since the risk is to the downside, the markets are likely to be bid for several days.
5 Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-will-break-under-2-551-finally-spark-long-liquidation-601374
Continuing to trade inside the $2.585 to $2.691 retracement zone will indicate the bulls and the bears are somewhat balanced. Natural gas futures are edging higher on Friday shortly after the regular session opening. Even after three lower closes, the market is having a hard time breaking through the pair of technical support levels that have been propping up prices for nearly two weeks.
6 Weekly resin report: PE prices hit decade-long lows, but don’t get too comfortable
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-pe-prices-hit-decade-long-lows-don-t-get-too-comfortable/116669370361535
Spot resin trading slowed last week and resin prices were mixed, reports the PlasticsExchange (Chicago) in its Market Update.
7 Three prices down, two flat for commodity resins in August
https://www.plasticsnews.com/news/three-prices-down-two-flat-commodity-resins-august
Three North American commodity resins ended summer with price drops, while two others remained flat. The price declines were seen by polyethylene, PVC and PET bottle resin. And although regional prices for polypropylene and polystyrene were flat, the days of early-year price runups, flat summer pricing and late-year price drops appear to be over.
8 Europe petchems brace for higher logistics costs as Rhine’s water levels fall
https://www.icis.com/explore/resources/news/2019/09/19/10419897/europe-petchems-brace-for-higher-logistics-costs-as-rhine-s-water-levels-fall
Worries about the River Rhine’s low water levels are back in the minds of Europe’s petrochemicals players as barges cannot fully load, according to the Rhine Shipping Authority (WSA
9 China petrochemical trades to thin out ahead of October holiday
https://www.icis.com/explore/resources/news/2019/09/20/10420103/china-petrochemical-trades-to-thin-out-ahead-of-october-holiday
Petrochemical trades in China are expected to thin out amid mandated production curbs and logistics restrictions put in place as the nation marks its 70th founding anniversary in October.
10 Petrochemical feedstock supply under attack
https://www.hydrocarbonengineering.com/petrochemicals/19092019/petrochemical-feedstock-supply-under-attack/
The drone attacks on Saudi Aramco’s oil and gas facilities and key infrastructure will have significant ripple effects in the global energy and petrochemical markets, as well as the global economy, as oil prices rise and natural gas production is disrupted.
11 Asian petchem buyers query Saudi recovery timelines
https://www.argusmedia.com/en/news/1980425-asian-petchem-buyers-query-saudi-recovery-timelines
The extent of the disruption from last weekend’s attacks on Saudi oil infrastructure suggests the government’s end-September timeline to restore production could be optimistic, petrochemical distributors and consumers in Asia said.
12 Challenges In A Growing LNG Market
https://www.woodmac.com/news/the-edge/challenges-in-a-growing-lng-market/
Investors are scrambling to grab a piece of the action. We are witnessing a supply boom the scale of which the industry has never experienced before. Around US$240 billion will be spent between 2019 and 2025 on greenfield and brownfield LNG supply projects, backfill and finishing construction for those already underway.
13 Next wave of U.S. LNG export projects to be ‘tougher’: Blackstone Energy CEO
https://www.reuters.com/article/us-usa-energy-gastech-idUSKBN1W32AT
The next wave of U.S. liquefied natural gas (LNG) export projects will be “tougher” to bring online, as companies with existing facilities take advantage of lower costs to expand capacity in coming years, the chief executive of Blackstone Energy Partners said on Wednesday.
14 US To Supply More Than Half Of Global Gas By 2035
https://oilprice.com/Energy/Natural-Gas/US-To-Supply-More-Than-Half-Of-Global-Gas-By-2035.html
The United States is expected to account for more than half of the global natural gas supply growth through 2035, McKinsey & Company said in a new report.
15 Oilfield Services More Bullish Following Oil Price Jump
https://oilprice.com/Energy/Energy-General/Oilfield-Services-More-Bullish-Following-Oil-Price-Jump.html
The recent oil price jump could create further momentum for service sector margins, according to Rystad Energy. Sixty percent of the top 50 oilfield service (OFS) contractors already improved margins and increased operational efficiency in the first half of 2019. On average, the peer group recorded an EBITDA margin of 15.2% in the first six months of the year, compared to 14.6% in the same period last year.
16 Major Mexico gas pipeline at center of dispute begins operations
https://www.reuters.com/article/us-mexico-pipelines-idUSKBN1W21QL
A major natural gas pipeline between Texas and the Mexican Gulf Coast port of Tuxpan that was at the heart of a dispute between Mexico’s government and infrastructure firms begins operations on Tuesday, the companies behind it said.
17 Commodity Tracker: 6 charts to watch this week
https://blogs.platts.com/2019/09/16/commodity-tracker-6-charts-to-watch-160919/
Geopolitical risk and oil markets top this week’s pick of energy and commodities themes from S&P Global Platts editors. Plus, Ukraine’s role in European gas supply, steel scrap prices as a bellwether for economies, and a milestone approaches for US LNG exports.
