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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