Energy – US Natural Gas & Ethane Strength Helps Support Chemical Prices, Cuts US Producer Profit

Daily Chemical Reaction

Energy – US Natural Gas & Ethane Strength Helps Support Chemical Prices, Cuts US Producer Profit

Key Points:

• US natural gas and ethane prices reflect strength relative to Brent Crude and Ex-US naphtha in 2Q22, a negative domestic feedstock development for commodity chemical producers that suggests lower profitability near term.
• We highlight pertinent energy, chemical, and other corporate updates (e.g., Covestro, Westlake, Nutrien, Enterprise Products, Williams, DSM, others).
• We discuss relevant ESG items that range from Vestas highlighting sizable supply chain snags hurting wind development profitability to producer target updates. See our ESG weekly and other related research coverage in LINK.
• We discuss numerous other pertinent chemical sector items in this report.

See PDF below for all charts, tables and diagrams