Daily Chemical Reactions

In Spite Of Ourselves – Energy and Chemical Market Long-Term Risks To Lessen With Consolidated Solutions
October 10, 2023
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
OMV, Shell, ExxonMobil, LyondellBasell, Dow, Eneos, Petronas Chemicals, Aramco, Chevron Phillips Chemical, QatarEnergy, Croda, Borouge, LG Chem, BASF, TotalEnergies, Umicore, Aberdeen Minerals, Indorama, Invista, Arkema, Axens, Hunana Changyuan, Euroapi, American Vanguard, Tellurian, Chevron, Vale, Repsol, Covestro, ZincFive, ABB, Advent, North American Helium, Chemtrade, Direct Energy, ADNOC, Honeywell, Revalyu, Svante

Daily Chemical Reaction

In Spite Of Ourselves – Energy and Chemical Market Long-Term Risks To Lessen With Consolidated Solutions

Key Points:

  • Value-chain integration benefits will rise among global energy and chemical producers this decade, with integrated producers poised to post higher risk-adjusted returns consistently.
  • Shell and ExxonMobil posted 3Q business updates last week. We add our OMV 3Q trading update findings to those from these reports to discuss upstream, refining, and chemical trends.
  • We discuss the recent uptick in the average global ethylene production margin due to oil-led cost relief in Europe and Asia, lifting our confidence in oversupplied markets into year-end.
  • Despite some announced chemical production cutbacks, such as in Japan and Europe, we do not think it is enough. We also discuss recent European CO2 price trends and EV market news.
  • IMF cuts its price inflation target for China to trend below the US and Europe for another year in 2024 – this is a plus for the buyer of Chinese goods but a negative for Western manufacturers.

See PDF below for all charts, tables and diagrams


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