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Oil & Gas January 11, 2017 01:30:01 AM

Crude oil slides as Iraq's export touches record highs

Polymers
ScrapMonster Contributor
Oil prices were down 2.5% on Monday as signs that growing US production and record Iraqi exports raised concerns.
Crude oil slides as Iraq's export touches record highs

SEATTLE (polymers.in):  Oil prices were down 2.5% on Monday as signs that growing US production and record Iraqi exports raised concerns.
- US crude futures were trading USD 52.66 bbl, down USD 1.33.
- Brent futures were down USD 1.40/bbl at USD 55.70/bbl. 

Oil futures decline on record Iraqi exports, rising US rig count
- NYMEX February crude settled USD 2.03 lower at USD 51.96/bbl.
- ICE March Brent settled down USD 2.16 at USD 54.94/bbl.
- Iraqi crude exports from southern ports averaged a record 3.51 million bbl/day in December.

Oil Drillers Growing Again After Losing Half-Million Jobs
- More than three quarters of the 440,131 oil jobs eliminated around the world through the end of 2016.
- Oil companies are starting to hire back workers as they add rigs to the shale patch in North America to take advantage of oil prices above USD 50/bbl. 

Kuwait Says Saudi Arabia to UAE Complying With Oil Cuts
- Oil producers from Saudi Arabia to the UAE are complying with production cuts promised last year to stabilize the market.
- Qatar, Kuwait and Oman are also complying, having announced cuts to customers, according to Nawal Al-Fezaia. 
- OPEC and crude producers outside the group, including Russia, are implementing production cuts of about 1.8 million bbl/day. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Ethylene prices decline in some parts of Asia
- FOB Korea prices of ethylene were at USD 190/MT levels, a drop of USD 15/MT on the week.
- CFR North East Asia prices of ethylene were assessed lower at USD 1125/MT mark, a week on week drop of USD 10/MT.
- CFR South East Asia prices were assessed steady at USD 975/MT levels.

US spot MEG climbs to 17-month high behind firm Asia market
- US spot MEG increased to a 17-month high of 37.50 - 38.50 cents/lb. FOB USG on Friday.
- Chinese MEG opened this week at USD 895/MT CFR China.
- The January US MEG contract was assessed at 40.71 - 41.21 cents/lb., up 5 cents from December. 

Ethylene margins up in SE Asia, down in NE Asia
- Ethylene margins for the week ended 6 January rose in southeast Asia but fell in northeast Asia compared with the close of December.
- In SE Asia, naphtha-based ethylene margins rose by 15% to USD 698/MT from the end of December.

Polymers Demand
- Credit Suisse thinks the market consensus on eurozone growth in 2017 is too pessimistic.
- Consumer spending will continue to underpin the recovery.
- Construction investment has contributed positively to growth for the past six quarters.
- Exports will be supported by favorable global conditions.
- Financial fundamentals will continue to improve.
- Inflation will continue to rise, with core inflation coming into focus.

Recession the base case scenario for 2017
- The American Chemistry Council index of global capacity utilization is the best indicator that exists in terms of the outlook for the economy.
- Populists provide simple answers to complex questions.
- Protectionism is replacing globalization.
- Interest rates are rising around the world.

Gurit acquires PET operations of BASF
- Gurit has acquired BASF’s PET structural foam business for an undisclosed sum.
- The acquisition will strengthen Gurit’s structural core material product range and add a European-based PET production capacity to the Company’s existing operations in China.

Courtesy: www.polymers.io

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