Middle East petrostates moving beyond crude oil
– Dubai USD 1.5 billion Laffan Refinery 2 officially opened for business on Monday.
After OPEC cuts heavy oil, China teapot refiners pull US supply to Asia
– In April, at least 1 million bbl of the heavy crude Mars, pumped from the US Gulf of Mexico.
– The Ligurian Sea, loaded 600,000 bbl of US Gulf Coast Blend from Port Arthur in Texas.
Russneft 2017 sees oil output growth of at least 2.5% if OPEC cut deal not extended
– Russneft expects to at least match last year’s 7 million MT crude output and potentially exceed.
– Rusneft will achieve production growth through higher drilling rates, with plans for 128 new wells in 2017, up 21% year on year.
Brent Crude Oil Benchmark Undergoes Biggest Change in Decade
– Norway’s Troll crude, which pumped more than 200,000 bbl/day last year, will be included alongside existing grades that make up the Dated Brent.
– The Troll field is more than 50% owned by Norwegian government.
Oil Hovers in Tight Trading Range Amid Global Supply Tug of War
– Oil held above USD 53/bbl, after spending last week in the smallest trading range in 13 years.
– Futures rose 0.4% in New York.
– WTI for March delivery was up 22 cents at USD 53.62/bbl.
– Brent for April settlement gained 33 cents to USD 56.14/bbl.
Shell Shakes Up Oil Trading World With Brash Buying Sprees
– The giant tankers anchored along the Scottish coast in the Firth of Forth weren’t going anywhere. OPEC Wins Investors Back as Cuts Prompt Record Bets on Oil
– US benchmark has traded between USD 50.71 and USD 54.34 since January 10.
– WTI rose 2% to USD 53.20/bbl.
– US crude inventories climbed to 518.1 million bbl.
Feedstock (Ethane, Ethylene, Propane, Propylene, PX, PTA, MEG, EDC, VCM)
Propylene prices gallop higher in Asia on Thursday
– FOB Korea propylene prices were assessed up at USD 1005/MT levels, a surge of USD 75/MT from Wednesday’s assessed levels.
– CFR China prices were assessed higher at USD 1025/MT levels, a day on day spike of USD 50/MT.
PTTGC Plans FID in Second Half of ’17 For Proposed Ethane Cracker in Ohio
– PTTGC expects to conclude a final investment decision on its proposed ethane cracker and petrochemical complex in Belmont, Ohio.
– The multi-billion dollar world-scale complex will use shale gas from the Marcellus basin and will be designed to produce 1 million MT/year of ethylene, 700,000 MT/year of HDPE, 500,000 MT/year of ethylene glycol and 100,000 MT/year of ethylene oxide.
Lotte Chemical Titan plans to start construction of USD 4 billion naphtha cracker in Indonesia
– Lotte Chemical Titan plans to start construction of a USD 4 billion naphtha cracker plant Indonesia next year.
Japan’s Dec ethylene, derivatives exports rise 2% on month: METI
– Japan’s ethylene and ethylene derivatives exports in December rose 2.2% from a month earlier to 21,,200 ethylene equivalent tons.
Full start of India Reliance petchem plant will halt heavy naphtha exports
– IRL will halt heavy naphtha exports in 2017/18 after the full-scale start-up of its 2.2 million MT/year PX.
MEGlobal MEG prices
– MEGlobal announced the March price increase of MEG for North America by 3 cents per pound.
– MEG contract prices in January in the US were at the level of 37-43 cents/pound FOB.
European petrochemical end-users to crack more LPG, less naphtha in Marc
– Many European petrochemical end-users are expected to resume cracking propane in March and crack more butane as both gases’ prices are likely to weaken.
– CIF NWE naphtha swap widened to USD 65.50/MT Thursday from USD 65/MT Wednesday.
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