Oil rallied the last 3 times OPEC cut production

SEATTLE (polymers.in):  For the first time since 2008, the OPEC agreed to a crude oil production cut last week.
- JPMorgan Global Manufacturing rose slightly in November to a 27 month high of 52.1 extending sector expansion for the sixth straight month. 

Oil futures fall after builds in US products, Cushing stocks
- NYMEX January crude settled USD 1.16 lower at USD 49.77/bbl.
- ICE February Brent settled down 93 cents at USD 53/bbl.
- Crude stocks declined 2.389 million bbl to 485.756 million bbl in the week ended December 2. 

Trafigura sees continued oil over-supply ‘struggle'
- According to Trafigura, if OPEC adhered to its stated production curb, they will start to see a tightening market next year.
- Trafigura also highlighted worsening prospects for diesel amid a global trend toward low-sulfur fuel.
- According to a report, Trafigura had increased its total volume of crude oil products traded in the 12 months to September 30 by 41% to 205.4 million MT. 

India pushes Nigeria for more oil term contract volumes
- Indian state-run oil refiners have called for Nigeria to increase its total term contract volume next year by more than 20%.
- Three Indian companies mentioned that they are looking for a combined total of 11 million MT in 2017 from 9 million MT. 

The World's Top Oil Market Is Starting to Lose Its Sheen
- Growth in crude imports by China, will probably slow by more than 60% in 2017.
- According to Michal Meidan, China has definitely been a huge bright spot for crude demand this year, but it won’t be as  substantial next year.
- Inbound shipments into China in the first 10 months of 2016 rose 14% to 7.5 million bbl/day. 

OPEC Ministers See Oil Market Balanced If Non-OPEC Joins Cut
- A global cut of 1.8 million bbl/day would be enough to balance the market, according to UAE energy minister Suhail Al Mazrouei.
- With the OPEC planning to reduce output by 1.2 million bbl/day, non-OPEC nations must share the burden by cutting 600,000 of their own.
- Russia has pledged to trim output by 300,000 bbl/day.

Oil Falls as Supply Surges at US Hub, OPEC’s Position on Curbs
- WTI futures decreased 2.3%.
- Stockpiles at Cushing, which is the delivery point for WTI, rose by 3.78 million bbl last week.
- Oil surged to a 16-month high Monday after the OPEC agreed last week to trim the group’s output by 1.2 million bbl/day from January to stem a supply glut and buoy prices.
- WTI for January delivery fell USD 1.16 to close at USD 49.77/bbl.
- Brent for February settlement declined 93 cents or 1.7% to USD 53. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Emergency exercise planned for ExxonMobil Fife Ethylene Plant at Mossmorran
- ExxonMobil will be holding an emergency exercise at the plant that will involve all of the blue light emergency services. 

MEG prices rise to seven-month high in US
- Asian MEG prices rose USD 7/ton CFR China and CFR South East Asia marker in the fourth week of November.
- In Europe, MEG prices rose opening the week on short covering by traders while January MEG futures remained volatile.
- US spot MEG gained US cent 0.50/pound on the week.

Paraxylene price gains on rising crude
- Asian PX prices gained USD 7.50/ton CFR Taiwan/China and FOB Korea in the fourth week of November.
- US spot PX fell USD 10/ton while mixed xylene pricing for November rose USD cents 10/gallon.

Polymers Supply
Incentives offered to prompt new PP projects in Canada
- Alberta said December 5 that it will give up to C$ 500 million in royalty credits to two companies planning to upgrade propane to propylene.
- Pembina Pipeline Corp. proposes building a propane to propylene facility in Redwater, Alberta, with a PP production plant next door.
- Inter Pipeline Ltd. proposes a propane to propylene operation in Fort Saskatchewan, Alberta, which qualifies for up to C$ 200 million in royalty credits. 

Polychim restarts production of polypropylene from France
- Supply of PP from Polychim’s plant in Dunkirk, France has resumed a company source.
- Polychim, which operated a single 230,000 MT/year PP plant, declared force manure mid-November following technical difficulties that emerged restarting from maintenance.

Courtesy: www.polymers.io