MH Daily Bulletin: June 2

June 2, 2022 • Posted in Daily Bulletin

News relevant to the plastics industry:

At M. Holland

  • M. Holland is exhibiting during the WAI Operations Summit & Wire Expo on June 7-8 in Dallas, Texas. This event focused on wire and cable manufacturing offers industry forecasts, technical presentations, networking and more. Join us at Booth #621 to learn more about our supply solutions for wire and cable. 
  • Nick Chodorow has joined M. Holland as Chief Innovation Officer. In this role, Nick will lead efforts to enhance the company’s technology platforms and accelerate its digital journey. Click here to read the full press release.

Supply

  • Oil prices rose half a percent Wednesday after the EU failed to agree to a phased ban on Russian oil over renewed demands by Hungary. 
  • OPEC+ nations agreed to increase output in July and August by 50%, or 648,000 bpd, to offset a drop in Russian output.
  • The Energy Information Administration reported a higher-than-expected 5.1 million barrel draw in oil inventories last week, sending oil prices higher in mid-morning trading, with WTI up 1.2% at $116.70/bbl and Brent up 1.0% at $117.50/bbl. U.S. natural gas was down 2.6% at $8.47/MMBtu.
  • The average U.S. gasoline price set another record Wednesday, rising to $4.67 a gallon. Some analysts warn the average could reach $5 a gallon as soon as mid-June. 
U.S. Gas Prices Reach New Heights
  • Facing criticism for not boosting output more quickly, Gulf nations have said most members do not have the extra capacity
  • OPEC+ trimmed its forecast for growth in global oil demand this year by 200,000 bpd to 3.4 million bpd
  • Asian and European LNG buyers are securing contracts with American producers, in some cases for projects years away from completion. 
  • More oil news related to the war in Europe:
    • An OPEC+ panel that met Wednesday did not discuss suspending Russia from the group, although reports suggest the move is being considered. 
    • Fuels believed to be partially made from Russian crude landed in New York and New Jersey last month, as some shippers and refiners work to obscure its origins
    • High power demand and the war in Ukraine have sent global coal prices soaring, with futures this year up 137% for deliveries to Northwestern Europe, 143% in the Pacific region and prices 40% higher in Central Appalachia.  
  • Extreme drought in California could reduce the state’s hydroelectric generation to half of normal levels this year, the EIA warns:
California drought could reduce hydroelectric generation to half of normal levels

Supply Chain

Domestic Markets

  • The U.S. reported 239,132 new COVID-19 infections and 687 virus fatalities Wednesday. 
  • The CDC is recommending people in Southern Florida wear masks indoors due to a spike in COVID-19 cases. 
  • Pfizer asked U.S. health regulators to authorize a three-dose COVID-19 vaccine regimen for children under five years old, which could be approved as soon as this month.
  • The U.S. saw the highest inflation among major global economies during the pandemic: 
Inflation Woes Abound in Developed Nations

International Markets

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