EPCA ’08: Oil fluctuations leave petchems in limbo

29 September 2008 15:00  [Source: ICIS news]

MONTE CARLO (ICIS news)--The petrochemicals industry will start 2009 in a state of limbo due to volatility in the upstream energy complex with one analyst saying oil could be anywhere from $70-200/bbl next year, a European buyer said on Monday.

 

“Sentiment in the industry is that anything that can happen will probably happen next year,” the source said on the sidelines of the European Petrochemical Association (EPCA) meeting.

 

Crude oil remained a major concern for the industry going forward due more to confusion about price trends rather than the trend itself, the source said.

 

“One analyst at an EPCA meeting projected that oil prices would be in a range of $70-200/bbl in 2009,” the buyer said. “And that person wasn’t even joking.”

 

A small sense of stability did exist in the industry before Hurricane Ike but now that seemed to be gone due to supply disruptions and infrastructure problems, he added.

 

“There are plants in Texas that did not sustain any damage but they cannot run because a pipeline or another site they are connected to is still down,” the source said.

 

Ike made landfall on the Texas Gulf Coast on 13 September, disrupting nearly all petrochemical production in the area.

 

At 11:00 GMT, NYMEX crude was trading at $103.45/bbl, up from $91/bbl on 16 September but way down from a peak of about $147/bbl in mid-July, indicating the commodity’s volatile path over the past three months.  

 

The four-day EPCA conference ends on Tuesday.

 

To discuss issues facing the chemicals industry visit ICIS connect

By: William Lemos
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly