Oil higher as OPEC delivers on output cuts

SEATTLE (polymers.in):  Oil prices rose last Tuesday on a weak U.S. dollar and news that the world's top producers cut production this month more than forecasters had expected.

Oil fell more than 1 percent on Monday as a stronger dollar, ample U.S. supplies and excess speculative length outweighed OPEC output curbs and rising tensions between the United States and Iran.

OPEC cut output by 840,000 barrels a day last month, but has more work to do to fully comply with last year’s historic production deal.

The January US polypropylene settlement shows how the polymer has reverted back to the gold standard – or most accurately, the monomer standard – of that market.

According to The Plastics Exchange, the spot resin markets were very busy; completed volumes were amongst the most in recent years and prices continued to rise.

Polyethylene (PE) buyers are facing price hikes up to €95/tonne for February, sources said on Friday.

In Europe, two West European producers were reported to be in search of larger hikes than propylene contract hikes for February due to the expectations of a revival in demand, supply tightness and higher feedstock costs.

Initial PE offers from major Middle Eastern suppliers have emerged with sizeable increases in Turkey. Players were not caught by surprise by the recent wave of hike announcements considering the previous price targets voiced on the back of limited availability from certain producers.

The African polyethylene (PE) and polypropylene (PP) markets in regions across the continent are gaining increasing interest from major global players, and are being touted by some as the next major export destination after Asia.

Northeast Asia’s ethylene spot prices rose to their highest levels since April 2016, driven by demand for second-half February deliveries amid fewer offers in the market.

Supply concerns have resulted in higher spot prices while better demand from downstream markets ahead of the maintenance season has supported the stronger sentiment in Europe.

A series of planned cracker shutdowns in the first half of the year is expected to affect polyethylene (PE) and polypropylene (PP) output in Europe, according to market sources.

A Polymerupdate source in China informed that the company is likely to shut the plant in May 2017. The exact date and duration of the turnaround could be ascertained.

Iran plans to build its first methanol-to-olefin plant, at the Badr-e-Shargh Petrochemical facility which is part of the mega Mokran Petrochemical Complex at Chabahar, following the completion of a new 1.65 million mt/year methanol plant at the same site in September 2019.

Courtesy: www.polymers.io