Fade Into You – Energy Producer Chemical Ambitions Continue To Rise, Dampen Many Profit Cycle Outlooks

Daily Chemical Reaction

Fade Into You – Energy Producer Chemical Ambitions Continue To Rise, Dampen Many Profit Cycle Outlooks

Key Points:

• Global energy and chemical producer integration efforts reflect positive momentum as energy producers fear falling fossil fuel demand and look for growing downstream product chain outlets.
• Aramco FY 2022 results commentary and outlook highlights a view that capital investment in growing oil production will unlikely keep pace with demand in the near-to-medium term.
• We discuss Aramco initiatives to cut GHG emissions and extend its value chain into chemicals, reflecting some general strategic similarities to peers, such as ExxonMobil and CP Chemical.
• We highlight recent movements in critical mineral prices and discuss their primary demand drivers, supply needs, and related macro and micro-market challenges to reach net zero targets.
• Global container freight rates weakened further WoW, lessening many supply-chain concerns, though demand headwinds remain a concern amid deteriorating consumer affordability trends.

See PDF below for all charts, tables and diagrams