Crude oil prices extend gains on tight global supply and stronger fuel demand as economies recover from pandemic

MOSCOW (MRC) -- Oil prices extended pre-weekend gains on Monday to hit multi-year highs, lifted by tight global supply and strengthening fuel demand in the United States and beyond as economies recover from pandemic-induced slumps, reported Reuters.

Brent crude futures rose by USD1.10, or 1.3%, to USD86.63 a barrel by 1406 GMT, the highest since October 2018.

US West Texas Intermediate (WTI) crude futures rose USD1.46, or 1.7%, to USD85.22 and reached their highest level since October 2014.

Both benchmarks closed last week with slight gains despite rising coronavirus cases in Britain and Eastern Europe, signaling a potentially difficult winter ahead.

"The global energy supply crunch continues to show its teeth, as oil prices extend their upward march this week, a result of traders pricing in the ongoing rise in fuel demand - which amid limited supply response is depleting global stockpiles," said Louise Dickson, senior oil markets analyst at Rystad Energy.

Goldman Sachs said a strong rebound in global oil demand could push Brent crude prices above its year-end forecast of USD90 a barrel. The bank estimated gas-to-oil switching could contribute at least 1 MM barrels per day (bpd) to oil demand.

After more than a year of depressed fuel demand, gasoline and distillate consumption is back in line with five-year averages in the United States, the world's largest fuel consumer. Meanwhile, US energy companies last week cut oil and natural gas rigs for the first time in seven weeks even as oil prices rose, energy services firm Baker Hughes Co said on Friday.

Oil prices have also been bolstered by worries over coal and gas shortages in China, India and Europe, which spurred fuel switching to diesel and fuel oil for power.

As MRC informed before, US commercial crude stocks fell 3.48 million barrels to 413.96 million barrels in the week ended Sept. 17, to more than 8% below the five-year average, Energy Information Administration data showed. Stocks were last lower Oct. 5, 2018.

We remind that in late August, 2021, US crude stocks dropped sharply while petroleum products supplied by refiners hit an all-time record despite the rise in coronavirus cases nationwide, the Energy Information Administration said. Crude inventories fell by 7.2 million barrels in the week to Aug. 27 to 425.4 million barrels, compared with analysts' expectations in a Reuters poll for a 3.1 million-barrel drop. Product supplied by refineries, a measure of demand, rose to 22.8 million barrels per day in the most recent week. That's a one-week record, and signals strength in consumption for diesel, gasoline and other fuels by consumers and exporters.

We also remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
MRC

MOSCOW (MRC) -- Plastics molder Ishikawajyushi has established a take-back program with Saizeriya, one of Japan's leading Italian restaurant chains, so its wine glasses, tumblers, beer cups, and decanters made with Eastman Tritan copolyester can be mechanically recycled and repurposed, said the company.

Saizeriya, which sells affordable Italian food, has more than 1,000 restaurants and uses Tritan as a lightweight, shatter-resistant, and dishwasher-durable alternative to glass. Saizeriya returns its tableware to Ishikawa after two or three years, depending on its condition. The Tritan is recovered and turned back into pellets to make check holders for the restaurants.

"The durability of Tritan makes it the perfect material for repeat use," said Tsutomu Ishikawa, COO of Ishikawa. "Using recovered Tritan further reduces the use of resources and plastic waste. Saizeriya is a leader in the Japanese restaurant industry and is certainly leading on sustainability."

Tritan is durable, lightweight, BPA free, and can withstand industrial dishwashers. "This is a unique program in the Asia Pacific region, and we're proud to be working with Ishikawa, a family-owned company that places a high value on quality," said Courtland Jenkins, commercial director of Specialty Plastics for Eastman. "They have a lot of faith in Tritan and currently use it in ARAS, their own brand of premium tableware."

Ishikawa is working on plans to recover Tritan plates and other products it makes for Saizeriya.

As per MRC, Amazon has eliminated all single-use plastic in its packaging across its fulfillment centers in India, delivering on a pledge it made last year to achieve this goal by June. The American e-commerce group said it had replaced packaging materials such as bubble wrap with paper cushions and was also using “100% plastic-free biodegradable” paper tapes.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability.

Ishikawajyushi is a manufacturer and brand owner of quality and innovative plastic housewares. Located in Ishikawa, Japan, the company began selling high-quality lacquerware in 1947 and has always strived to capture changing consumer trends and needs. In addition to its innovative plastic lacquerware, non-shattering chopsticks and flat trays, the company has successfully introduced first-of-its-kind commercial tableware made with Tritan from Eastman. Together with its value chain partners, Ishikawajyushi is helping to create a more sustainable society by recycling the plastic waste to make quality durable products.
MRC

MOSCOW (MRC) -- Huntsman announced that it has launched a new range of low-emission MDI-based foam systems for automotive interiors, said the company.

The ACOUSTIFLEX LE and RUBIFLEX® LE polyurethane product lines. These innovative technologies allow global automotive formulators and foam manufacturers to produce high-performance polyurethane foams, while significantly reducing interior emissions levels to meet OEMs’ requirements.

The automotive industry is continually progressing toward its sustainability targets, as it addresses consumer preferences and emerging regulations governing Vehicle Interior Air Quality emissions from interior components – including national laws in many countries, new international ISO standards or policies such as the Circular Cars Initiative EU policy action roadmap.

With low emission (LE) forward-looking technologies, Huntsman has responded to the industry’s challenge to lower emissions of interior components by building sustainability into its product lines. This brings manufacturers and drivers cleaner, lighter, more circular PU technologies that offer advanced comfort.

The portfolio of ACOUSTIFLEX LE and RUBIFLEX LE low-emission polyurethanes are the first fully commercialized technologies in the market. These products have been developed for automotive seating parts and sound insulation components. They are commonly used for making a wide range of standard automotive components, simplifying procurement and value chains for producers, who can reduce the different types of PU products they need to procure.

As per MRC, Huntsman is expanding its performance products facility in Petfurdo, Hungary, said the company.
The multimillion-dollar investment project will expand capacity for polyurethane (PU) catalysts and specialty amines, scheduled for completion in mid-2023.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2020 revenues of approximately USD6 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets.
MRC

MOSCOW (MRC) -- Saudi Basic Industries (SABIC), the world's fourth-biggest petrochemicals firm, announced plans on Saturday to meet carbon neutrality by 2050, reported Reuters with reference with the company's statement on the sidelines of the Saudi Green Initiative summit.

"SABIC is committed to the Paris Agreement goals and will continually pursue efforts and explore solutions to meet carbon neutrality from operations under our control by 2050, taking into account the different regional and national ambitions, commitments and initiatives", the world's fourth biggest petrochemical company by sales said.

"Focusing on our direct and indirect emissions generated by our own production, we aim to reduce our greenhouse gas emissions by 2030 worldwide by 20% compared to 2018", it added.

Speaking at the Saudi Green Initiative (SGI) in Riyadh on Saturday, Crown Prince Mohammed bin Salman said the world's top oil exporter aimed to reach 'net zero' emissions of greenhouse gases - mostly produced by burning fossil fuels - by 2060 - 10 years later than the United States. He also said it would double the emissions cuts it plans to achieve by 2030.

In May, the International Energy Agency (IEA), the world's top energy body, said in its "Net Zero by 2050" report that investors should not fund new oil, gas and coal supply projects beyond this year. And ahead of a U.N. climate summit that starts at the end of October, the IEA said investment in renewable energy needs to triple by the end of the decade if the world hopes to effectively fight climate change and keep volatile energy markets under control.

As MRC informed earlier, in late September 2021, SABIC said its joint venture project with ExxonMobil in the US Gulf Coast had started commissioning activities and preparing for an initial startup. The project includes the establishment of an ethylene production unit with annual capacity of about 1.8 MMtpy, which will feed two polyethylene (PE) units and a monoethylene glycol (MEG) unit, it said in a statement.

Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
MRC

MOSCOW (MRC) -- Linde has announced that it has started up a new RM 40 MM air separation plant at the Sama Jaya High Tech Park in Kuching, Sarawak, according to Hydrocarbonprocessing.

The plant will supply high purity gaseous nitrogen through an extensive pipeline network to multiple customers including Taiyo Yuden and LONGi. Ultra-high purity liquid oxygen will also be produced for customers in Kuching and throughout the ASEAN region.

“The increasing pace of digitalization and adoption of renewable energy has led to industry leaders in the electronics and solar technology markets expanding rapidly in the Sama Jaya High Tech Park. Linde has made multiple investments in recent years to support this growth, the latest project increasing Linde’s nitrogen capacity in the Sama Jaya High Tech Park to more than 18,000 Nm3/h,” said Linde Malaysia Managing Director, Anuj Sharma.

The new plant will feature Linde’s latest state-of-art technology with 30% better power efficiency, which is expected to reduce greenhouse gas (GHG) emissions by more than 6,000 tons per year. This is in line with Linde’s target of reducing its GHG emissions intensity by 35%, by 2028.

The new plant will be connected to Linde’s Remote Operating Centre (ROC) located in Hicom Shah Alam, Selangor and can be monitored, controlled, and operated remotely. Remote operations capabilities helped Linde to ensure a continuous and reliable supply of industrial and medical gases to customers throughout the pandemic.

Anuj said that Linde had made multiple investments in the Sama Jaya High Tech Park since 1995. Since 1960, Linde has invested in building numerous world-class facilities in Malaysia, including Air Separation Units in Pengerang, Shah Alam, Sama Jaya, Bintulu and Pasir Gudang, steam methane reformers (hydrogen plants) and nitrogen plants at strategic locations across Malaysia, pipeline networks for oxygen and nitrogen in various industry clusters in key industrial areas, and a state-of-art cylinder filling facility in Banting.

Linde also established its Remote Operating Centre (ROC) in Hicom, which allows for the remote monitoring, operation and control of more than 100 Linde plants across the ASEAN and South Pacific regions. Linde also manufactures medical oxygen and other medicinal gases at various locations spread across West and East Malaysia.

As MRC reported earlier, in JUne 2021, SIBUR -Neftekhim and Linde Gas Rus signed agreements on implementation in 2021-2022. a project for the utilization of carbon dioxide (CO2) generated in the technological process of the SIBUR enterprise in Dzerzhinsk. SIBUR -Neftekhim will build an infrastructure for the transportation to the Linde Gas Rus site of crude CO2 obtained as a by-product in the process of ethylene oxide synthesis. In turn, Linde Gas Rus will build a unit to bring the quality of this gas to the level of a commercial product, applicable, among other things, in the food industry, and will sell it to end consumers.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.

Linde is a leading global industrial gases and engineering company with 2020 sales of USD27 billion (EUR24 billion). The company serves a variety of end markets including chemicals & refining, food & beverage, electronics, healthcare, manufacturing and primary metals. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
MRC