Oil prices, US stock markets get break from volatility
Al Greenwood
31-Mar-2020
HOUSTON (ICIS)–Oil prices and US stock markets got a break from volatility on Tuesday following weeks of wide price swings.
The table below shows the major stock indices followed by ICIS.
31-Mar | Change | % | |
Dow Jones Industrial Average | 21,917.16 | -410.32 | -1.84 |
S&P 500 | 2,584.59 | -42.06 | -1.60 |
Dow Jones US Chemicals Index | 461.47 | -8.16 | -1.74 |
S&P 500 Chemicals Industry Index | 466.60 | -9.60 | -2.02 |
It was one of the few days during the past month in which the Dow Jones Industrial Average did not change by more than 2%.
In oil markets, Brent futures for May delivery settled at $22.74/bbl, down slightly from Monday’s settlement of $22.76/bbl. Prices were bolstered by news that Presidents Donald Trump and Vladimir Putin agreed to talk about stabilising oil prices.
Oil prices have fallen by about $40/bbl since the start of the year, causing prices for many petrochemicals to plummet.
Crude prices fell because of a collapse in a production-cut agreement between Russia and OPEC and lower demand that was caused by the coronavirus (Covid-19).
The following shows the number of cases in the US.
US | 30-Mar | 31-Mar |
Cases | 140,904 | 163,539 |
Death | 2,405 | 2,860 |
States | 50 | 50 |
Source: US Centers for Disease Control and Prevention
The following shows the number of global cases.
World | 30-Mar | 31-Mar |
Cases | 693,224 | 754,948 |
Death | 33,106 | 36,571 |
Nations | 202 | 202 |
Source: World Health Organization (WHO)
To control the spread of the virus, companies have curtailed or even shut down operations.
Ford Motor announced further delays in its plan to restart North American auto production.
US chemical activity fell in March from the prior month, measured on a three-month-moving-average (3MMA) basis, the American Chemistry Council (ACC) said.
In Europe, chemical stock prices rose following a sharp rebound in Chinese economic indicators.
Prices for the chemicals themselves fell sharply.
In Asia, shares of petrochemical firms were trading higher on Tuesday after China’s surprise upbeat manufacturing data for March.
China’s official PMI in March rose to 52.0, indicating expansion, after February’s record low of 35.7 due to city lockdowns and production stoppages as the government attempted to contain the spread of the coronavirus.
The PMI is a barometer of an economy’s manufacturing health, with reading above 50 signaling expansion, while a lower number indicates contraction.
The following shows the US-listed chemical stocks followed by ICIS.
$ Current
Price | $ Change | % Change | |
AdvanSix | 9.54 | 1.00 | 11.71 |
Axalta Coating Systems | 17.27 | -0.80 | -4.43 |
Braskem | 6.64 | -0.27 | -3.91 |
Celanese | 73.39 | -0.71 | -0.96 |
Dow | 29.24 | 0.59 | 2.06 |
DuPont | 34.10 | 0.48 | 1.43 |
Eastman | 46.58 | -1.03 | -2.16 |
HB Fuller | 27.93 | 0.28 | 1.01 |
Huntsman | 14.43 | 0.35 | 2.49 |
Ingevity | 35.20 | 1.42 | 4.20 |
Kraton | 8.10 | -0.55 | -6.36 |
Kronos Worldwide | 8.44 | -0.15 | -1.75 |
LyondellBasell | 49.63 | 0.05 | 0.10 |
Methanex | 12.17 | 0.02 | 0.16 |
NewMarket | 382.87 | -13.50 | -3.41 |
Olin | 11.67 | 0.01 | 0.09 |
PolyOne | 18.97 | 0.27 | 1.44 |
PPG | 83.60 | -2.32 | -2.70 |
RPM International | 59.50 | -1.60 | -2.62 |
Sherwin-Williams | 459.52 | -22.31 | -4.63 |
Stepan | 88.46 | 1.38 | 1.58 |
Chemours | 8.87 | -0.82 | -8.46 |
Trinseo | 18.11 | -0.66 | -3.52 |
Tronox | 4.98 | -0.66 | -11.70 |
Univar | 10.72 | -0.26 | -2.37 |
Venator Materials | 1.72 | 0.00 | 0.00 |
Westlake Chemical | 38.17 | 0.30 | 0.79 |
Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.
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