Oil prices jumped on Thursday, with Brent rising above $105 a barrel for the first time since 2014, after Russia’s attack on Ukraine exacerbated concerns about disruptions to global energy supply.
Brent rose $2.24, or 2.3%, to settle at $99.08 a barrel, after touching a high of $105.79. WTI increased by 71 cents, or 0.8%, to settle at $92.81 a barrel, after earlier rising to $100.54. Brent and WTI hit their highest since August and July 2014 respectively.
ICE Brent crude oil futures
Russia is the third-largest oil producer and second-largest oil exporter. Russia is also the largest provider of natural gas to Europe, providing about 35% of its supply.
Most energy commodities increased Thursday on the back of surging oil prices. Olefin and aromatics prices in major markets all posted uptrend.
Aromatics in China
East China benzene increased by 150yuan/mt to 8,030yuan/mt, around 3% from 7,775yuan/mt early this week. Toluene increased by 180yuan/mt to 7,150yuan/mt and iso-MX by 190yuan/mt to 7,880yuan/mt.
As of benzene downstream derivatives, styrene price increased by 180yuan/mt to 9,330yuan/mt, along with the rise in futures market. Styrene futures for March delivery (EB2203) rose 2.32% to close at 9,346yuan/mt and for April rose 2.31% to close at 9,372yuan/mt.
CFF China paraxylene surged by $49/mt to $1,126/mt.
Other downstream derivatives of benzene were quite Thursday as production margins weakened with rising benzene prices. And as of fundamentals, in Feb-Apr, considering the turnarounds and new startups in the industrial chain, overall supply of benzene would keep ample.
Styrene supply-demand situation is gradually improving. Styrene production margins further weakened since February. Due to firm ethylene prices, styrene production loss was quite high. As a result, many non-integrated producers shut down units or reduced operating rate. A few integrated producers also lowered operating rate. The actions of rate cut led to less styrene supply in the market. In addition, more producers will conduct maintenance in March. ZPC delayed the turnaround of one line to from February to March. Shanghai SECCO and ZRCC-Lyondell will also conduct maintenance in March. China domestic supply will decrease.
PX price is driven up by crude oil. Several PTA plants would undergo maintenance while PX spot supply currently remains tight. PXN spread is expected to consolidate.
Demand for toluene is thin, and the inventory increases, while demand for MX is good. Benzene market declines, and toluene market is expected to keep weak, and MX market is likely to consolidate in the short term. Eyes could still rest on crude oil price.
Post time: Mar-07-2022