OPEC may not be cutting crude oil production after all

SEATTLE (polymers.in):  The prospect of a crude oil production cut from OPEC may be scuppered before it’s even been inked if the latest headlines are anything to go by.
- Iraq claims it currently produces more than 4.7 million bbl/day.
- Iraq’s estimate of its oil output is 500,000 bbl/day more than OPEC’s estimate and remains a point of contention. 

Oil rig count rises for 8th straight week
- US oil rig count rose for an 8th straight period by 11 to 443 this week.
- The gas rig count increased by 3 to 108.
- Oil prices have stabilized in a range of USD 40 to 50/bbl. 

Force majeure on Bonny, Forcados crude oil terminals slashes Nigeria Sep revenues: ministry
- Declining oil production and export volumes due to militancy and large-scale crude theft cut the Nigerian government’s gross revenue in September by about 12% from August to Naira 279.75 billion.
- The ministry said that despite the rally in global oil prices averaging USD 48.43/bbl in June, Nigeria’s export volume declined by 1.15 million bbl in that month, resulting in a USD 46.52 million drop in oil export sales for the government. 

LHS crude market falls to multi-month lows as barrels come out of tanks
- The Light Houston Sweet crude market saw a late-week decline in value relative to cash WTI.
- The sweet crude grade ended the week at a 95 cents/bbl premium to November cash WTI, down 15 cents/bbl from Thursday and 25 cents/bbl than one week ago. 

Oil Market Glut Grows Bigger as Saudi Arabia Says Worst Is Over
- Brent is indeed holding above USD 50/bbl.
- The gloomy export outlook for Brent related crude to Asia is made all the more somber by the growth in crude production in the already well-supplied Atlantic Basin. 

Crude Rally May Clinch Canada Top Stock Market Status
- Crude at USD 50/bbl will give them an opportunity to stay there.
- Energy shares are poised to add to their 28% surge thought October 20.
- The group’s profits have started to rebound and are projected to post earnings of C$ 15.65/share. 

Oil Holds Above USD 50 in New York as Market Waits for Output Deal
- Crude settled above USD 50/bbl as investors assessed the likelihood of a deal to reduce supply after Russia’s energy minister.
- December futures rose 0.4% in New York after swinging between gains and losses during intraday trading.
- WTI crude for December delivery rose 22 cents to settle at USD 50.85/bbl.
- November gasoline futures rose 2.5% to settle at USD 1.5314/gallon.
- US crude stockpiles fell by 5.25 million bbl last week to 468.7 million. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
US October PTA price rises to 41.49 cents/lb. follows PX contract higher
- US October PTA price increased 0.50 cent to 41.49 cents/lb..
- Downstream US PET was assessed Wednesday at USD 1069 - 1091/MT DDP US West Coast. 

Asian PX prices inch higher
- FOB Korea prices of PX were assessed up at USD 785/MT levels, a gain of USD 5/MT from Wednesday’s assessed levels.
- CFR Taiwan prices were assessed higher at USD 805/MT levels. 

RIL plans startup of Jamnagar PX plant
- RIL eyes to start-up its new PX plant by end of October 2016. 

PTA prices stable amid thin trade
- China offers nearby month goods were flat from pre National Day holiday and potential discussions were between USD 600 - 605/ton.
- In Europe, September PTA contract price was stable, despite supplies tightening over the past weeks.
- In US, PTA September contract is likely to rise in line with PX contract price.  

Korean LG Chem to boost Daesan ethylene output by 22% in 3 years
- South Korea’s LG Chem plans to increase the ethylene production capacity of its naphtha-fed steam cracker at Daesan by 230,000 MT/year.
- The company will spend USD 251.9 million on the expansion by 2019 to achieve the output in 3 years. 

Polymers Price
WTI and Brent Crude stable. Asian polymers rise, European fall, US static
- WTI and Brent crude oil remained relatively unchanged over the week to 21st October at USD 50.39 and USD 51.84/bbl.
- Asian polymer prices continued to rise with increases of between USD 5 and USD 40/MT.
- US polymers remained unchanged apart from a 1 cent/pound.

Polypropylene (PP) prices continue to climb in Asia
- CFR Far East Asia prices of PP raffia and PP injection were assessed up at USD 995/MT levels, a surge of USD 35/MT from the previous week. PP film prices were assessed at USD 1015/MT levels with BOPP prices were also assessed at USD 1015/MT levels, both spike USD 35/MT on the week. PP block copolymer prices were assessed higher at USD 1070/MT levels, a sharp week on week rise of USD 30/MT.
- In South East Asia, PP raffia and PP injection prices were assessed up at USD 1020/MT CFR levels, a rise of USD 15/MT. PP film prices were assessed higher at USD 1040/MT levels, a week on week gain of USD 15/MT. PP block copolymer prices were assessed at USD 1095/MT CFR levels' rise of USD 25/MT from the previous week. BOPP prices were at USD 1040/MT levels, up USD 15/MT on the week.
- In India, PP raffia and PP injection prices were assessed higher at USD 1030/MT CFR levels, a week on week increase of USD 10/MT. PP film prices were assessed at USD 5/MT CFR levels while BOPP prices were also assessed at USD 1050/MT CFR levels, both up USD 10/MT from the previous week. PP block copolymer prices were higher at USD 1110/MT CFR levels, a week on week gain of USD 15/MT. 

Polymers Demand
Venezuela may export PVC due to weak domestic demand
- Venezuela’s PVC prices in bolivares remain unchanged on support from government controls.
- PVC prices are at Bs 600,000/MT to include shipment and other expenses to place the product at resin processors’ plants.

Courtesy: www.polymers.io