US oil producers lead investment revival after a two-year rout

Oil companies are reviving investment after a two-year rout as OPEC output cuts boost prices.

SEATTLE (polymers.in):  IEA Sees Oil Investment Revival After a Two-Year Rout

- Oil companies are reviving investment after a two-year rout as OPEC output cuts boost prices.

- The OPEC and Russia headed an agreement among 24 oil producers last year to clear a global glut, spurring a 20% rally in crude prices.

- US producers are leading the spending revival and will contribute most of the growth in supplies outside OPEC through to 2022.

- Non-OPEC supply as a whole will expand by 3.3 million bbl/day in the period from 2016 to 2022.

Investors Start Doubting Oil Rally After Failure to Top USD 55

- The oil market’s failure to break out of the tightest range in more than a decade is sapping investor interest.

- The OPEC deal with 11 other major producers to reduce output spurred a 17% rally in US oil prices during the last five weeks of 2016.

- WTI bounced between USD 51.22 and USD 54.94 in February.

- WTI slipped 5 cents to USD 54.01/bbl in the report week.

-OPEC crude output fell by 65,000 bbl/day to 32.17 million in February.
- US crude inventories climbed to 520.2 million bbl in the week ended Feb 24.

Libya Oil Output Falls as Fresh Clashes Force Ports to Shut
- North African country’s production fell to 650,000 bbl/day about 700,000 bbl a few days ago.
- The tanker Amalthea is due to start loading 630,000 bbl at the eastern port of Brega on Tuesday instead of at Es Sider. 

Oil whipsaws as production seen rising, more OPEC cuts discussed
- US shale oil production may grow by 1.4 million bbl/day by 2022, with prices at about USD 60/bbl.
- US WTI crude fell 26 cents/bbl USD 53.07. 

Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Propylene prices continue to journey south in Asia
- FOB Korea prices of propylene were assessed down at USD 945/MT levels, a sharp week on week decline of USD 35/MT. CFR China prices were lower at USD 955/MT levels, a plunge of USD 55/MT on the week.
- CFR Taiwan prices were assessed down at USD 910/MT levels, a week on week slide of USD 60/MT.
- CFR South East Asia prices were lower at USD 910/MT levels, a tumble of USD 45/MT from the previous week. 

Asia ethylene margins mixed on feedstock basis
- Ethylene margins in Asia were mixed for the week ended 3rd of March.
- Downward pressure was exerted on all margins as spot prices fell by USD 16/MT in northeast Asia and by USD 45/MT in Southeast Asia.
- LPG based ethylene margins rose by 15% in northeast Asia to USD 872/MT and rose by 9.4%  in southeast Asia to USD 724/MT.
- Naphtha based ethylene margins fell by 2.1% in northeast Asia to USD 1093/MT and fell by 7.0% in southeast Asia to USD 993/MT.

US spot ethylene margins down, contract margins up
- US spot ethylene margins fell 8.2% during the week ended 3 March.
- Spot ethylene prices fell 2.625 cents/lb., while ethane costs on an ethylene production basis shed less than 1 cent/lb.

Turkey's Petkim raises high density polyethylene injection, blowmolding, PVC prices
- HDPE injection and blow molding were listed USD 20/MT higher at USD 1420/MT and USD 1415/MT respectively.
- PVC K67 prices were listed USD 20/MT higher at USD 1220/MT.
- Turkish HDPE prices were assessed up USD 21/MT at USD 1244/MT amid a continued lack of availability.

European PVC sellers commence March with large price hikes
- Europe were expecting PVC sellers to start the month of March with further increases.
- Final ethylene contract settlements ended up with EUR 30/ton increases.
- Spot ethylene prices reached a high of more than one and a half years at EUR 1100/ton FD NWE.

Courtesy: www.polymers.io

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