MH Daily Bulletin: December 14

December 14, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

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Supply

  • Oil prices rose 3% Tuesday, their biggest daily gain in over a month, after U.S. economic data showed weaker-than-expected inflation in November.
  • In mid-morning trading today, WTI futures were up 2.0% at $76.89/bbl, Brent was up 1.7% at $82.08/bbl, and U.S. natural gas was down 5.5% at $6.55/MMBtu.
  • U.S. crude stocks unexpectedly rose by 7.82 million barrels last week, according to the American Petroleum Institute, marking the biggest weekly build in 1.5 years. Government data is due today:
United States API Crude Oil Stock Change
  • Cleanup of TC Energy’s oil spill in Kansas is expected to take weeks, while no official timeline has been given for a restart of the 622,000-bpd pipeline that caused it.
  • Freeport’s fire-damaged LNG terminal in Texas faces a long list of regulatory requirements that could further delay its restart beyond March.
  • OPEC crude output fell by 744,000 bpd in November, mainly from Saudi Arabia, official data shows.
  • OPEC decided to keep its 2022 and 2023 outlook for global supply and demand unchanged, suggesting a belief that the G7’s most recent price cap on Russian oil won’t have much impact.
  • British consumers could be on the hook to pay record energy bills this winter as power stations rack up costs to keep the lights on during extreme cold spells.
  • China’s exit from COVID-zero enforcement measures could eventually boost its oil consumption by more than 1 million bpd, experts say.
  • Energy demand in Northeast Asia could surge the next few weeks amid forecasts of frigid La Nina weather.
  • German producer Wintershall Dea plans to invest over $800 million to develop the Dvalin North gas field in the Norwegian sea.
  • More oil news related to the war in Europe:
  • Air New Zealand is working with four plane makers to build electric-hydrogen zero-emission aircraft capable of test flights by 2026.

Supply Chain

Where Real Wages Are Falling Most Sharply

Domestic Markets

United States Inflation Rate
  • …offering the strongest evidence yet that price pressures have peaked. Prices for food and shelter remain elevated.
  • Traders are increasingly betting that the Federal Reserve will stop just short of a 5% terminal interest rate by next March.
  • An index of U.S. small-business confidence rebounded to a reading of 91.9 in November, according to the National Federation of Independent Business. Inflation and worker shortages remained the top issues for owners, the group said.
United States Nfib Business Optimism Index

International Markets

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