An oil showdown between the US and OPEC is just starting

SEATTLE (polymers.in):  The electric car boom could cause another oil crash
- Reducing global oil demand by 2 million bbl/day may not seem like much.
- BP says it’s possible that EVs kill off 1.2 million bbl/day of oil demand by 2035. 

An oil showdown between the US and OPEC is just starting
- US rig count has been rising, while OPEC seems unfazed by the resurgence in North American shale activity. 
- Middle East OPEC production growth would account for all OPEC output growth by 2035.
- US liquids production is expected to rise by 4 million bbl/day to 19 million bbl/day by 2035. 

Oil rig count jumps by 17
- US oil rig count climbed, rising by 17 to 583.
- The number of active gas rigs stayed flat at 145, while the combined count jumped to 729. 

Indian Oil Corp selects Scientific Design Company's MEG technology for complex in Paradip
- IOCL has selected SD’s MEG technology for their complex in Paradip, Odisha, India.
- SD has licensed over 100 ethylene oxide/MEG plants in 25 countries around the world. 

Oil Advances for Third Week as US Imposes New Iran Sanctions
- Futures climbed 0.5% in New York.
- WTI for March delivery increased 29 cents to USD 53.83/bbl.
- Brent for April settlement advanced 25 cents or 0.4% to USD 56.81/bbl.
- OPEC pumped 32.3 million bbl/day last month. 

Shell Signals Worst of Oil Slump Is Over as Debt Declines
- Royal Dutch Shell Plc appeared to put the worst of the oil slump behind it as rising cash flow allowed Europe’s largest energy company to trim debt for the first time.
- Oil’s recovery to around USD 55/bbl only lifted Shell’s exploration and production unit to just above break-even.
- Shell’s B shares rose 1.7% to 2,261 pence.
- Shell delivered a return on capital employed of just 2.9%.

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Asian ethylene-naphtha spread widens to near five-month high
- The spread between ethylene and naphtha prices in Asia widened USD 29/MT day on day to USD 717/MT last Friday.
- CFR Northeast Asia ethylene price market rose USD 30/MT day on day to be assessed at USD 1240/MT.
- CFR Japan naphtha price benchmark meanwhile, inched up USD 1/MT day on day to be assessed at USD 523/MT. 

NWE to receive propylene from South America on open arbitrage
- South American propylene is due to be imported into Europe because of an open arbitrage.
- The NWE propylene contract price for February was fully settled Tuesday at EUR 815/MT FD, up EUR 45 on the month.
- US spot PGP was assessed 0.50 cents higher Thursday at 47 cents/lb. FD USG for prompt-month deliveries. 

PTA price gains amid tight supply in Asia
- Asian PTA prices were up USD 8/ton CFR China and CFR Southeast Asia in the third week of January. 

SK Innovation buys Dow Chemical ethylene acrylic acid unit for USD 370 Million
- South Korea’s SK Innovation said on Thursday it would acquire Dow Chemical Co’s ethylene acrylic acid business for USD 370 million.
- SK Innovation said in January that it would invest up to USD 2.5 billion in chemicals, oil exploration and battery businesses to spur growth. 

INOVYN announces intention to invest in EDC import capability at its Martorell Site
- INOVYN announced its intention to invest in a project to deliver the capability to import EDC to its OVC and VCM manufacturing operations at Martorell, Spain. 

Iran in talks with Uhde over propylene technology
- Uhde GmbH are currently in talks over the licensing of a technology for propylene production at Salman Farsi petrochemical complex.
- The plant is expected to be completed by 2020 and will provide the feedstock for nearby petrochemical complexes including Rejal, Marun, and Navid-ar Chemie.

Polymers Price
Chevron Phillips says plans to raise US PE prices by 6 cents/lb. in March
- Chevron Phillips plans to raise US PE prices by 6 cents/lb. in March. 

Europe PE buyers face strong hikes as producers target additional margin
- PE buyers are facing price hikes up to EUR 95/MT for February.
- Many buyers are expecting to be paying increases that go beyond the plus EUR 35/MT of the new ethylene contract. 

WTI and Brent Crude rise. European, Asian and US polymers rise
- WTI and Brent Crude oil prices rose over the week to 3rd February to USD 53.85 and USD 56.81/bbl.
- European polymer prices rose sharply with increases of between 15 and 220 Euros/MT.
- Asian polymer prices rose with increases of between USD 10 and USD 50/MT.
- US polymers also rose with increases of between 1 and 8 cents per pound.

Courtesy: www.polymers.io