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Oil & Gas January 17, 2017 01:00:34 AM

Oil down on output cut doubts

Polymers
ScrapMonster Author
Oil prices rose more than 1 percent on Thursday on news that key crude exporters, including Saudi Arabia and Russia, were cutting production.

Oil down on output cut doubts

SEATTLE (polymers.in):  Oil futures fell last Monday as record-high exports from Iraq's southern crude terminals and rising US drilling activity sowed doubts over the effectiveness of OPEC's agreed supply cuts.

Oil prices rose more than 1 percent on Thursday on news that key crude exporters, including Saudi Arabia and Russia, were cutting production to reduce a global crude glut, and on forecasts of record demand in China.

Oil prices were down on Monday due to doubts that large crude producers will reduce production as promised and on expectations that U.S. production would increase again this year.

Iraq has reduced its oil production by 160,000 barrels a day and will comply with cuts it agreed to make under an OPEC output deal, Oil Minister Jabbar Al-Luaibi said, even as ship loading data suggested that exports are set to increase next month.

North American polyethylene and polypropylene resin prices dropped once again in December, while regional prices for PET bottle resin continued their surprising upward trend.

US December polyethylene contracts dropped 1 cent/lb, sources said on Thursday, marking the second straight monthly decline for the polymer, however slight.

Rising demand and a lack of new production capacity over the next three or four years portends stronger pricing and margin strength for US and Asia producers of polyvinyl chloride (PVC).

The price rise was attributed to higher import offers from overseas suppliers and improved buying trends in the region. In Sri Lanka and in Pakistan, Middle Eastern producers are heard to have concluded deals for PP raffia and PP injection grades at the USD 1060/mt CFR levels.

PVC prices were assessed up at the USD 970/mt levels, a sharp week on week increase of USD 30/mt. Prices firmed on the back of higher import offers from overseas producers coupled with a lift in buying trends in the region.

In China, the import HDPE market has been following a softening trend since mid-December contrary to the strong sentiments in Turkey and Southeast Asia. This has helped close the gap between those markets and China after the longest period of imbalance, according to ChemOrbis Price Wizard.

Turkish polypropylene market participants face an uncertain start to 2017 because of on-going economic issues caused by geopolitical unrest in the region and a weakening currency, leading to cautious buying activity and potential shortage of supply.

Mexico’s chronic polyethylene (PE) shortages for lack of ethane are now aggravated by a cracker outage at the Cangrejera facility, a company source said last Monday.

China’s Maoming Petrochemical shut down its 250,000 tonne/year No 2 low density polyethylene (LDPE) plant in Guangdong province on 8 January, a company source said last Monday.

Courtesy: www.polymers.io

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