Friday, December 6, 2019
Energy, Petrochemicals and Plastics 41
1 Is There Strength Behind Russia And China’s New Power Of Siberia Pipeline?
https://www.forbes.com/sites/arielcohen/2019/12/06/is-there-strength-behind-russia-and-chinas-new-power-of-siberia-pipeline/
December 2nd was a notable day in the strategic relationship between Beijing and Moscow, which saw the first shipments of Russian natural gas to China via the much-awaited Power of Siberia pipeline. The $55 billion project is Russia’s most significant energy undertaking since the collapse of the Soviet Union, part of a larger $400 billion deal to supply China with 38 billion cubic meters of natural gas (bcm) per year for 30 years.
2 Oil Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-traders-may-use-production-cut-disappointment-as-excuse-to-book-profits-617897
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging lower on Friday shortly after the regular session opening. Nonetheless, the markets are set to post a weekly gain as OPEC+ kicks off its meeting in Vienna.
3 Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-dangerous-weekend-ahead-due-to-potential-big-weather-shifts-617817
Natural gas futures are inching lower early Friday as confusing weather forecasts continue to limit the price action in either direction. Traders received no help from yesterday’s government weekly storage report which came in lower than expected, but inside a wide range of estimates. The technical chart pattern this week suggests investor indecision. However, it also indicates impending volatility, which could mean a breakout move is coming once traders get some clarity.
4 Weekly resin report: Get ready for end-of-year deals
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-get-ready-end-year-deals/88411374461971
Overall spot resin prices were steady during the short Thanksgiving week. Sharp discounts continued to fly for off-grade railcars, while resellers maintained their efforts to trim uncommitted warehoused resins, reports the PlasticsExchange (Chicago) in its Market Update. Buying was generally good: Some procured material for December usage, while others required rush deliveries to stay in production over the long Thanksgiving weekend.
5 Americas: The week ahead in petrochemicals
https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/120219-americas-the-week-ahead-in-petrochemicals
US November ethylene contract prices are expected to finalize this week, a trade source said. Spot ethylene prices rose 0.75 cent week on week. Lower spot polymer-grade propylene pricing is anticipated because of year-end selling by producers. However, spot PGP prices also inched 0.75 cent higher last week. Meanwhile, refinery-grade propylene prices fell to their lowest level since January 2017 at 17.25 cents/lb, according to S&P Global Platts data.
6 Global oil stocks will balloon if OPEC fails to agree on deeper production cuts
https://www.rystadenergy.com/newsevents/news/press-releases/global-oil-stocks-will-balloon-if-OPEC-fails-to-agree-on-deeper-production-cuts/
Barring additional oil production cuts by OPEC in 2020, Rystad Energy forecasts a substantial build of global crude stocks and a corresponding drop in oil prices.
A showdown is taking place in Vienna as OPEC countries plus Russia will gather in the Austrian capital on 5-6 December to discuss oil output levels in 2020.
7 U.S. Chemical Industry Soars | Chemical Processing
https://www.chemicalprocessing.com/articles/2019/strong-outlook-bolsters-u-s-chemical-industry/
Economic growth in the United States remained dynamic at the end of 2018 with gains in manufacturing double what they were a year ago. However, all the world’s other major economies have slowed, ending a rare period of synchronized expansion.
8 Shale Has Delinked US Oil and Gas Prices
https://www.rigzone.com/news/shale_has_delinked_us_oil_and_gas_prices-06-dec-2019-160504-article/
The relationship between crude oil (WTI) and natural gas (Henry Hub) prices has long been an essential one. These two sources of energy are intrinsically linked, and together supply over 60 percent of U.S. and global energy. Especially over the past decade, oil and gas are being produced by the same companies. Even the oil majors like Shell and ExxonMobil are increasingly positioning themselves as gas giants. They realize, of course, that gas is the centerpiece strategy around the world to cut greenhouse gas emissions, backup wind and solar, and provide reliable and affordable energy.
9 Big year ahead for oil and gas opportunities
https://www.energyvoice.com/oilandgas/north-sea/213263/big-year-ahead-for-oil-and-gas-opportunities/
As some of the North Sea’s private equity-backed players prepare themselves for public listings, 2020 is expected to be a “big year” for gauging the size of investors’ appetites.
10 OPEC+ Agrees to Redistribute Oil Cuts
https://www.rigzone.com/news/wire/opec_agrees_to_redistribute_oil_cuts-06-dec-2019-160513-article/
OPEC+ will adjust its output target and redistribute production cuts between its members under pressure from Saudi Arabia, which has long carried an outsized share of the burden.
11 GPCA ’19: GCC to make further investments in petrochemicals
https://www.icis.com/explore/resources/news/2019/12/02/10450000/gpca-19-gcc-to-make-further-investments-in-petrochemicals
The Gulf Cooperation Council’s (GCC) chemicals industry will continue attract new investments as the region explores more higher-value downstream opportunities amid continued volatility in oil prices and as benefits from cheap feedstocks ease.
12 Moody’s drops Exxon’s credit outlook to “negative” over cash-flow concerns
https://ieefa.org/moodys-drops-exxons-credit-outlook-to-negative-over-cash-flow-concerns/
Exxon Mobil is outspending its cash flow to fund its growth efforts, leading Moody’s to downgrade the company’s credit outlook this week.
Moody’s cut its outlook on Exxon Mobil’s (ticker: XOM) rating to ‘Negative’ from ‘Stable,’ while reaffirming the company’s Aaa rating. Moody’s still considers Exxon’s debt to be safer than many of its rivals because of the company’s larger oil and gas reserves. But the risks are rising.
