OPEC output cuts end oil’s trading bonanza

SEATTLE (polymers.in):  A border tax could cause gas prices to soar
- The border adjustment tax proposal in House Republican’s tax reform blueprint is widely seen as benefiting US oil producers.
- Goldman Sachs concurs that gasoline prices would go up, even if the proposed legislation would be beneficial to domestic drillers.
- WTI to move to a USD 10/bbl premium to Brent from a USD 3 discount. 

Singapore Air Extends Fuel Hedging as OPEC Cuts Sway Crude Oil
- Singapore Airlines Ltd., Southeast Asia’s biggest carrier, extended some of its fuel-hedging contracts to as long as five years.
- Brent crude, trading at USD 54.76/bbl, has gained about 8.5%.
- Losses from fuel hedging for Singapore Air were at USD 365.9 million 

OPEC Output Cuts End Big Oil’s Trading Bonanza
- Oil traders predict the market could flip this year into the opposite condition.
- BP simply had a weak fourth quarter in oil trading. 

Chinese Stocks Fall as Oil Decline Weighs on Energy Companies
- The Shanghai Composite Index fell 0.1% to 3,153.09 at the close.
- Hong Kong’s Hang Seng index declined 0.1% to 23,331.57.
- US crude stockpiles forecast to have grown by 2.5 million bbl last week. 

US Stocks Drop as Slumping Oil Prices Weigh on Energy Shares
- US stocks fell in tandem with world equity markets Monday as nine of 11 industry groups in the S&P 500 Index declined.
- The benchmark gauge for American equity fell 0.2% to 2,292.56.

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Europe naphtha contract cracker margins soar on Feb ethylene settlement, co-products
- In the week to 3 February, euro-denominated naphtha costs rose by 1% but this was more than outweighed by the 4% rise in the ethylene February contract price.

Polymers Price
European PE increased in February by EUR 70/MT for CIS markets
- February contract price of ethylene in Europe was agreed up by EUR 35/MT from January.
- February deals for HDPE were discussed in the range EUR 1150 - 12010/MT.

Intl. Prices
- Brent cruse oil USD 55.95
- Propylene USD 940 CFR China
- Ethylene USD 1235 CFR NEA
- Naphtha USD 525 CFR Japan 
- Styrene USD 1570 CFR China.

Polymers Supply
Mailiao LDPE plant to be shut by FPC
- Formosa Petrochemical Corp is likely to take its LDPE plant off-stream on February 9, 2017 and will remain offline for around 30 days.

Courtesy: www.polymers.io