Daily Chemical Reaction
Talk Dirty To Me – BP Shareholders Rewarded For Its Enhanced Dirty Outlook, LyondellBasell Take Notice
Key Points:
- There is a significant conflict in energy and chemical markets between what shareholders and activists want – the BP stock reaction after its upped oil and gas investments supports this case.
- We highlight constructive agriculture market views from Yara and FMC that mostly align with our outlook. We discuss indications that farmers postponed fertilizer purchases in late 2022.
- The EIA cut its natural gas price view for 2023 and 2024. We discuss recent US natural gas weakness relative to European naphtha and USGC ethane and flag other energy trends.
- Yara highlights positive US incentive developments spurring the build-out of its clean/blue ammonia capacity. We also discuss the Linde and OCI blue hydrogen/ammonia project in the US.
- Maersk highlights that a period of inventory destocking in 1H23 will lead to a more balanced global setting in 2H23, aligning with many chemical sector supply chain outlooks for 2023.
See PDF below for all charts, tables and diagrams