OPEC waits for for evidence that oil cuts are doing their job

SEATTLE (polymers.in):  Oil slides on word non-OPEC members aren't cutting production as much as promised
- US supplies probably rose by 3.5 million bbl last week.
- WTI oil is down 1.40%, while Brent oil is down 1.55%. 

OPEC Still Waiting for Evidence Oil Cuts Are Doing Their Job
- OPEC officials this week hailed the excellent and unprecedented implementation of their agreement to cut oil production.
- Brent crude has risen more than 20% since OPEC agreed last year to cut production.
- Brent fell 1.6% to USD 55.73/bbl.
- US crude inventories have expanded by more than 39 million bbl this year to 518 million. 

Oil Pares Fall After API Said to Report US Crude Supply Drop
- Stockpiles fell 884,000 bbl last week.
- WTI for April delivery dropped 74 cents to close at USD 53.59/bbl.
- Brent for April settlement fell 82 cents or 1.5% to USD 55.84/bbl. 

Russia, Iran discuss oil cooperation, market conditions
- Russia energy minister Alexander Novak discussed Russian companies’ participation in Iranian oil projects and the situation on international oil markets.
- It is expected that a contract for a daily sales of 100,000 bbl/day of crude oil to Russia will be inked in early March. 

Singapore-based IEG to start trading crude oil, tap China demand
- Singapore-based trading start-up IEG this year plans to expand its portfolio to crude oil from productions such as gasoline and gas oil.
- World No. 2 oil consumer China posted record crude import growth in 2016 on demand. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Naphtha consumption to hit 960 million ton
- 11.5 million bbl/day of oil are used in petrochemicals productions, of which around 90%. 

Japan's Mitsubishi buys naphtha cargo from Iran
- Japan’s Mitsubishi Corp bought a naphtha cargo from Iran last month, the Asian country’s first such purchase from Iran since October 2016. 

Ethylene spot trades in Europe at premium to contract price ahead of cracker turnaround season starting March
- European ethylene spot traded Monday at a premium of EUR 80/MT to the monthly contract price of EUR 1020/MT FD NWE for February. 

Naphtha crack in Asia rises to a 1-1/2 month low amid easing of tight supplies
- Asia’s naphtha crack hit a 1 1/2 month low of USD 91.3/ton as tight supplied were seen easing.
- South Korea’s YNCC having bought naphtha for H1-April delivery to Yeosu at premiums of about USD 7/ton to Japan quotes. 

Braskem exports first US ethane cargo to Brazil
- Braskem’s first cargo of US ethane was expected to arrive in Rio de Janeiro, Brazil.
- The 9,133 MT Gaschem Arctic departed from the Morgan’s Point terminal on February 4. 

Japan's JX, South Korea's SKGC nominate Mar PX ACPs higher than Feb's settle
- Japan’s JX Nippon Oil and Energy has nominated its March PX Asia contract price at USD 980/MT CFR.
- South Korea’s SK Global Chemical nominated its March PX ACP at USD 970/MT CFR. 

MEG price falls in Asia, US
- Asian MEG prices declined USD 27/ton CFR China and CFR South East Asia in the second week of February.
- In China, MEG markets were under fluctuation.
- US spot MEG were down US cent 1/pound FOB USG on the week. 

PX price declines across all regions
- Asian PX priced edged down USD 5.33/ton CFR Taiwan/China and FOB Korea in the second week of February.
- US spot PX fell USD 5/ton FOB USG on the week.
- European PX spot fell USD 10.50/ton while mixed xylene rose USD 24/ton on the week. 

Lotte Chemical Titan plans to start construction of naphtha cracker in Indonesia next year
- Lotte Chemical Titan plans to start construction of a USD 4 billion naphtha cracker plant in Indonesia next year.

China Polyethylene Operating Rates To Rise On Govt. Policies
- China’s overall PE production fell short of expectations in 2016, which was the price of coal.
- China’s total virgin PE production was a result only 15 million MT in 2016.

Polymers Demand
Global Polyethylene Terephthalate compounding market to reach USD 7.82 billion by 2024
- The global PET compounding market is expected to reach USD 7.82 billion by 2024.
- The global demand was over 2,000 kilo tons in 2014 and is expected to exceed 3,500 kilo tons in 2014 and is expected to expected to exceed 3,500 kilo tons by 2024.

Polymers Supply
PVC imports into Ukraine grew in January
- Imports of SPVC into Ukraine increased by 65% in January 2017.
- January imports of European PVC into the country were 4,000 MT, compared with 1,600 MT in January 2016.

Courtesy: www.polymers.io