Friday, December 13, 2019
Energy, Petrochemicals and Plastics 42
1 Five commodity themes for 2020
https://blogs.platts.com/2019/12/12/five-commodity-themes-2020/
What will be the biggest drivers and concerns for global commodity and energy markets in 2020? S&P Global Platts president Martin Fraenkel shares his outlook. This year has been marked by a tug of war between geopolitical tensions and macroeconomic concerns, rangebound commodity prices and – perhaps most importantly – rising consumer awareness of climate change. As we look ahead to 2020, we think the year will bring some of these themes into even sharper focus.
2 Oil Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/oil-price-fundamental-daily-forecast-gaining-support-from-weaker-u-s-dollar-619717
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading at their highest levels in three months on Friday in response to the news that the United States and China had reached a “phase one” trade agreement. Furthermore, Britain’s general election result appears to have raised the spirits of oil traders.
3 Natural Gas Price Fundamental Daily Forecast
https://www.fxempire.com/forecasts/article/natural-gas-price-fundamental-daily-forecast-prices-flip-back-to-bearish-on-suspected-change-in-forecast-to-warmer-619702
The bulls that drove natural gas prices sharply higher on Thursday, turned into bears overnight as prices are plunging early Friday, setting up for a weaker regular session in New York. Yesterday, prices soared as demand re-emerged in the latest European weather models, however, today’s early price action suggests this demand may have been erased in the overnight American and/or European weather forecasts.
4 Volume Resin Prices Down-to-Flat Going into First Quarter of 2020: Plastics Technology
https://www.ptonline.com/blog/post/volume-resin-prices-down-to-flat-going-into-first-quarter-of-2020
The price trajectory for nearly all volume resins is down-to-flat as we move from December to first quarter of the new decade. Prices of PE, PP, PS and PVC are likely to bottom out this month, while prices of PET and nylon 6 could drop further, and flat or modestly down prices are projected for ABS, PC, and nylon 66.
5 Weekly resin report: Flurry of trading activity starts the month
https://www.plasticstoday.com/resin-pricing/weekly-resin-report-flurry-trading-activity-starts-month/181810543462018
The spot resin markets ushered in December with a bang—order flow from both buyers and sellers was moderate to heavy, reports the PlasticsExchange (Chicago) in its Market Update. Spot prices for select commodity grades continued to slide, and most realistic transactions came to completion with relative ease.
6 Mexico’s Pemex announces discovery of ‘giant’ crude oil deposit
https://www.reuters.com/article/us-mexico-pemex-idUSKBN1YB046
Mexican state oil company Pemex said on Friday it has discovered a deposit in southeastern Mexico that could yield 500 million barrels of crude, calling it the largest such finding in more than 30 years.
7 E&P 2020 Forecast: Deepwater bucking the trend
https://www.rystadenergy.com/newsevents/news/press-releases/ep-2020-forecast-deepwater-bucking-the-trend/
Rystad Energy is forecasting that overall global upstream investments in 2020 will decrease by around 4%. Investments in shale/tight oil are expected to contract the most next year by almost 12%. Rystad Energy believes that the lower oil price and weaker cash flows will force shale companies to reduce activity. Deepwater is the only segment expected to grow above 5% next year, spelling a boom for the industry.
8 IEA: An Oil Glut Is Inevitable In 2020
https://oilprice.com/Energy/Crude-Oil/IEA-An-Oil-Glut-Is-Inevitable-In-2020.html
Despite the OPEC+ cuts, the oil market is still facing a supply surplus in 2020, according to a new report from the International Energy Agency (IEA).
9 The Boom in Plastics
https://www.maritime-executive.com/magazine/the-boom-in-plastics
The increase in the production of petrochemicals, spurred by the abundance of shale gas as feedstock and the demand for ethane – a key component in plastics – has prompted energy companies to continue investing billions of dollars in the petrochemical sector.
10 Major US Jan-Oct chem exports rise 22%, imports fall 3%
https://www.icis.com/explore/resources/news/2019/12/12/10452597/major-us-jan-oct-chem-exports-rise-22-imports-fall-3
Eight US petrochemicals continued to push US exports higher with solid double-digit gains during the first 10 months of this year, according to statistics tracked by ICIS.
Five polymers, methanol, styrene and ethylene glycol (EG) accounted for 83% of all chemical exports, with the three major grades of polyethylene (PE) generating year on year gains of 44-45% each and EG more than doubling.
11 Energy stock pain to continue in 2020, but an uptick seems near
https://www.worldoil.com/news/2019/12/13/energy-stock-pain-to-continue-in-2020-but-an-uptick-seems-near
“We are in an environment where the playbook to kick off the year reads like a rinse and repeat from past years,” CIBC Capital Markets’ energy team said in a note to clients. The team added that “it’s also one that doesn’t require anyone to be a hero or to take on more heartburn than is necessary.”
12 IEA Pours Cold Water Over OPEC+ Optimism
https://oilprice.com/Energy/Crude-Oil/IEA-Pours-Cold-Water-Over-OPEC-Optimism.html
Despite deeper OPEC+ production cuts, global oil supply will be about 700,000 bpd in excess of consumption in early 2020, the International Energy Agency said in its latest monthly Oil Market Report.
13 Shipping industry sails into unknown with new pollution rules
https://www.reuters.com/article/us-shipping-imo-insurance-insight-idUSKBN1YG0HM
Faced with imminent new global marine pollution rules, shipping companies and insurers are puzzling over the risks.
14 Big E&P spending still needed, but fields with break-even above $60 are priced out
https://www.rystadenergy.com/newsevents/news/press-releases/big-ep-spending-still-needed-but-fields-with-break-even-above-$60-are-priced-out/
Energy projects that need oil prices above $60 per barrel in order to break even risk being uncommercial going forward, according to Rystad Energy. However, massive investments in exploration and sanctioning are still needed to meet growing global demand.
15 Chevron’s charge points to billions more in U.S. gas writedowns: analysts
https://www.reuters.com/article/us-chevron-outlook-natgas-idUSKBN1YF1WW
Oil and gas producers could wipe billions of dollars off the value of U.S. natural gas assets in the months ahead, analysts said on Wednesday, after Chevron Corp became the fourth oil major to slash its estimates for sector values.
16 Trafigura’s 2019 ‘knock-out’ trading profits undermined by write-offs
https://www.reuters.com/article/us-trafigura-results-idUSKBN1YF1FO
Global commodity trader Trafigura Group reported its lowest annual net profit in nearly a decade after a string of losses in its physical asset portfolio undermined a record year in oil trading.
17 These Secretive Oil Companies Control $3 Trillion In Wealth
https://oilprice.com/Energy/Energy-General/These-Secretive-Oil-Companies-Control-3-Trillion-In-Wealth.html
They control the vast majority of the world’s oil and gas assets, yet the average person has never even heard of them, outside of those that are famous for things like getting attacked by missiles or becoming embroiled in a high-profile corruption scandal.
