Tag Archives | Saudi Arabia

Petrochemicals Destocking Phase Likely As Crude Volatility Increases

By John Richardson

WE COULD now be in a destocking phase in petrochemicals markets as oil prices are falling on a surge in US production.

This would obviously mean lower petrochemicals pricing, leaving companies that have overbuilt raw material inventories …

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2018 Oil and Petchems: Risk Of Mistaking Apparent For Real Demand

By John Richardson

PERHAPS the most important recent single paragraph of analysis, in the huge volume of analysis out there about oil markets, was this from Nick Cunningham in a 24 December article on oilprice.com:

The [global crude] inventory surplus …

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Cheap Oil Raises Naphtha Cracker Over Investment Risk

By John Richardson

THE ABOVE chart shows that from January 2015 up until November of this year, the Asian naphtha cracker industry has been making a great deal of money.

The orange bars are the premiums in percentage terms between …

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Crude Drives Asian Polyethylene Spreads To Three-Year Low As 2018 Risks Build

By John Richardson

IN MARCH 2016 we gave three scenarios for crude-oil prices:

Collapsing Demand where we saw crude falling to $25/bbl on weak global demand that would make it impossible to repay much of the huge debts that had…

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Peak Oil And The Aramco/SABIC Petchems Project

By John Richardson

THERE is an important connection between this week’s announcement by Saudi Aramco and SABIC of an MoU for a direct oil-to-chemicals complex and the Tesla Semi electric truck, which is being trialled by DHL and other logistics …

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Measuring Crude Prices And Asian Petchems Profitability

By John Richardson

YESTERDAY I posted this slide on LinkedIn, in response to a lot of concern amongst the more than 150 or so delegates at the 5th ICIS Asian Polyolefins Conference in Bangkok about the impact of rising crude …

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Global Economy Is Less Able To Withstand A New Oil Price Shock

By John Richardson

HISTORY has a tendency to move very slowly, inching forward incrementally, and then all of a sudden a flurry of events over an incredibly short space of time can change everything. This is where we are today.…

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Asian Polyethylene Producers: What You Must Do Now $70 Crude Is More Likely

By John Richardson

THE facts on the ground in global crude markets have shifted even further in just two days. Now it seems more likely that oil prices will rise to $70 a barrel or above in Q1 of next …

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Benefits, Risks Of Petronas/Aramco Deals Serving As Template

By John Richardson

THE PETRONAS and Saudi Aramco joint ventures in the RAPID refining-to-petrochemicals project in Malaysia may serve as a template for further “win/win deals”. Whilst these deals will substantially benefit the companies and countries involved, there are broader …

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Beware Of Oil-Price Rally: Nothing To Do With Fundamentals

By John Richardson

PEOPLE are once again at risk of dangerously over-exposing themselves to a further collapse in oil prices following yesterday’s increase to the highest levels since November 2015. The obvious risk  is that there will be stock building …

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