Obama’s offshore oil plan forces drillers to focus on Gulf

SEATTLE (polymers.in):  US oil rig count jumped by 19 to 471 this week.
- As crude prices stabilized in a price range between USD 40 and USD 50/bbl earlier this year, demand for oilfield services increased.
- WTI was down 0.7% to USD 45.09/bbl. 

Nigerian oil output to slump further as Forcados gets shut-in
- Nigeria’s hopes of ramping up its oil output this year have been diminished.
- October output, including condensate grade Akpo, rose to around 1.84 million bbl/day. 

Obama’s Offshore Oil Plan Forces Drillers to Focus on Gulf
- The Obama administration’s decision to forgo auctions of new oil and gas drilling rights in US Arctic waters deals a blow to energy companies seeking to lock up new territory beyond the long explored Gulf of Mexico. 

Oil Caps Weekly Gain After OPEC Holds Informal Talks With Russia
- Futures rose 0.6% in New York.
- Oil has retreated since reaching a 2016 high last month near USD 52/bbl amid skepticism about the ability of OPEC to implement the deal agreed on September 28 in Algiers.
- WTI for December delivery rose 27 cents to close at USD 45.69/bbl.
- Brent for January settlement increased 37 cents or 0.8% to USD 46.86/bbl. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
PTA prices in Asia fall
- On Friday, CFR China prices of PTA were assessed at USD 600/MT levels, a drop of USD 10/MT.
- In the domestic markets of China, prices of PTA were assessed lower at Yuan 4750/MT levels.
- CFR South East Asia prices of PTA were assessed down at USD 620/MT levels, a fall of USD 5/MT from the previous week.
- CFR India prices were up at USD 625/MT levels, a week on week decline of USD 5/MT. 

MEG prices witness a rise in Asia
- CFR China prices of MEG were assessed up at USD 725/MT levels, a rise of USD 15/MT from Wednesday’s assessed levels.
- In China, local prices of MEG were higher at Yuan 6290/MT levels. 

EDC and VCM prices climb in Asia
- CFR Far East prices of EDC were assessed at USD 275/MT levels.
- Feedstock ethylene prices on Thursday were lower at USD 970/MT CFR North East Asia, a drop of USD 20/MT from the previous week.
- VCM prices were assessed up at USD 795/MT CFR Far East Asia levels, a week on week increase of USD 10/MT. 
- CFR South East Asia prices of EDC were assessed at USD 280/MT levels, both up USD 10/MT from the previous week.
- CFR South East Asia prices of ethylene were down at USD 940/MT levels, a week on week plunge of USD 45/MT.
- CFR South East Asia prices of VCM were assessed higher at USD 835/MT levels, a gain of USD 45/MT from the previous week. 

Naphtha crack in Asia rises to 3 session highs on strong fundamentals led by seasonal factors
- Naphtha crack in Asia ended three consecutive days of losses, rising to a three-session high of USD 80.60/ton on Thursday.
- Expectations of a weep-supplied market ahead were the key reason behind 2017 deals being sealed at lower premiums compared with 2016 contracts between Middle Eastern heavy weight suppliers and Asian customers. 

PTA price falls amid weak upstream markets
- Asian PTA markers retreated USD 8/ton CFR China in the first week of November.
- CFR Southeast Asia PTA was down USD 5/ton.
- CFR India PTA was down USD 6/ton.
- October contract price for PTA in Europe was edged EUR 5/ton lower on the week.

WTI and Brent Crude oil rise. European and US polymers static, Asian mixed
- WTI and Brent Crude oil rose over the week to 18th November to USD 46.25 and USD 46.79/bbl.
- European polymer prices remained unchanged over the week though there was a 5 EUR/MT.
- Asian polymer prices were mixed with increases of between USD 15 and 70/MT.
- US polymer remained unchanged apart from a reduction of 1 cent/pound. 

Polymers Demand
China: Planning For What Once Seemed Almost Impossible
- China suffers a financial sector-led crisis as it deflates its real-estate bubble.
- Compounding China’s problems are a global trade war and investor flight from emerging markets as Donal Trump governs the way that he campaigned.
- China’s PP demand growth as a result collapses as local production is also maximized to protect jobs. 

Strong growth in auto and FMCG, emerging applications, industrialization to drive Indian propylene market
- The market of propylene in India is anticipated to grow at a CAGR of over 8% during 2016 - 2025. 

Global expanded Polypropylene foam market to grow at 12% up till 2022
- Expanded polypropylene foam market is growing with a CAGR of 12% owing to increasing adoption of expanded polypropylene foam in automotive industry across the globe.

Polymers Supply
PP unit taken off-stream by SCG
- SCG plastics has taken its PP unit off-stream for a maintenance turnaround and is expected to remain in force for around 15 days. 

EU Sept polyethylene terephthalate imports down 14% on month, Jan-Sept up 23% on year
- EU imports of PET in September fell 14% to 60,231 MT from 69,789 MT in August.
- South Korean exports to the EU fell 29% to 14,278 MT in September from 20,116 MT in August.
- Turkish exports to the EU also fell 10% to 14,391 MT in September from 15,928 MT in August.
- Imports from India also rose as exporters there took advantage of the lifting of EU import duties.

Courtesy: www.polymers.io