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In One Simple Chart: The Risk For Petchems From Crude

Business, China, Company Strategy, Economics, Naphtha & other feedstocks, Oil & Gas, Olefins, Polyolefins
By John Richardson on 26-Jan-2018
By John Richardson on 26-Jan-2018

By John Richardson

Sometimes a simple chart is worth hundreds of words. A lot less than hundreds of words today, therefore, as you consider the above chart and these two key questions:

  1. If the global economy was that strong, and/or petrochemicals industry fundamentals as sound as the consensus view holds, why has there been such a poor pass-through in higher oil prices, and so more expensive naphtha, since July?
  2. If oil prices continue their bull run, why should the rest of this year be any different?

I look forward to your answers during next Monday’s free ICIS Asian Polyolefins Price Forecasting Seminar. Click here to register.

Or email me at john.richardson@icis.com

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