Mystic Of The East – Western Markets To Likely Face More Price Headwinds Than Asia Again In 2023

Daily Chemical Reaction

Mystic Of The East – Western Markets To Likely Face More Price Headwinds Than Asia Again In 2023

Key Points:

• Western market consumers faced much greater price inflation than those in Asia in 2022, and most expect it to occur again in 2023. A plus for Asia relative to Europe.
• We discuss EIA crude and natural gas forecasts for 2023/24 and ongoing trends supporting the case for oil and gas Capex to stay limited despite currently high returns.
• We highlight global MDI-to-benzene spreads in light of BASF moving forward with its US MDI expansion and flag global PDH margins as China seeks more LPG imports.
• We discuss the IEA energy technology perspectives report highlighting its outlook for a significant shift in oil demand from transport fuels to petrochemicals through 2050.
• We highlight the US CPI posting for December, show EIA forecasts for consumer headwinds from diesel and gasoline prices to lessen, and flag a few corporate updates.

See PDF below for all charts, tables and diagrams