MH Daily Bulletin: June 8

June 8, 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. 

Supply

  • Oil prices rose about 1% Tuesday, with WTI settling at a 13-week high of $119.41/bbl. 
  • In mid-morning trading today, WTI futures were up 1.4% at $121.00/bbl, Brent was up 1.5% at $122.30/bbl, and U.S. natural gas was up 3.2% at $9.59/MMBtu. 
  • The American Petroleum Institute reported a surprise build of 1.845 million crude barrels last week, while government data will be released today. 
  • Goldman Sachs raised its short-term target for Brent crude from $125/bbl to $140/bbl, while trading giant Trafigura sees oil headed to $150/bbl this year. 
  • A major equipment failure risks shutting LyondellBassell’s 268,000-bpd Houston oil refinery quicker than its planned closure at the end of 2023, potentially eliminating a vital source of U.S. supply. 
  • The average U.S. gasoline price hit a record $4.92 a gallon Monday, up 30 cents over the past week. Prices in 13 states are above $5 a gallon
  • British gasoline and diesel prices are surging to record highs.
  • Over 10% of Norwegian offshore oil and gas workers plan to strike starting Sunday if state-brokered wage talks fail. 
  • Qatar will partner with Exxon Mobil, Total Energies, Shell and ConocoPhillips to expand the world’s largest LNG project and boost its annual output 64% by 2027. 
  • More oil news related to the war in Europe:
    • The U.S. sent nearly 75% of its LNG output to Europe in the first four months of the year, up from a third last year. 
U.S. liquefied natural gas exports to Europe increased during the first 4 months of 2022
  • The White House is reviewing the environmental impact of what would be Maryland’s first offshore wind energy project
  • Shell launched a new green power business in Texas offering perks including free charging for electric vehicles and credit for excess household solar generation. 
  • Spain’s Repsol is in talks to sell 25% of its exploration and production business to help fund clean energy efforts. 
  • India eased rules to allow commercial and industrial consumers to switch to green sources of electricity, a bid to quicken its energy transition. 

Supply Chain

Domestic Markets

  • The U.S. reported 121,658 new COVID-19 infections and 469 virus fatalities Tuesday. 
  • Two more highly contagious subvariants of Omicron — dubbed BA.4 and BA.5 – now make up 5% and 8% respectively of U.S. COVID-19 cases. 
  • The FDA endorsed Novavax’s COVID-19 vaccine Tuesday, setting the stage for full authorization of the nation’s fourth vaccine. 
  • Moderna announced that its redesigned COVID-19 booster delivered improved protection against Omicron in tests.  
  • The CDC raised its travel alert for Monkeypox to a level 2, recommending people practice “enhanced precautions” after thousands of cases appeared worldwide. 
  • The U.S. Treasury Secretary said last year’s prediction of “transitory” inflation was an error and that the government will likely revise upward its inflation forecast in the weeks ahead.  
  • The U.S. trade deficit dropped 19.1% in April to $87.1 billion, down from March’s all-time high on a sharp decline in imports. 
United States Balance of Trade
  • U.S. consumer borrowing surged 10.1% on an annualized basis to $38.1 billion in April following a record jump a month earlier, fueled by rising prices and the continued strength of the economy. 
United States Consumer Credit Change

International Markets

  • The World Health Organisation’s top official said a global pact to waive intellectual property rights for vaccines could be reached by next week. 
  • A European study found babies exposed to COVID-19 in the womb had a higher risk of neurodevelopmental changes
  • More news related to the war in Europe:
  • The World Bank cut its forecast for global economic growth this year to 2.9% from an earlier 4.1%, warning that several years of high inflation and below-average growth lie ahead. The Organisation for Economic Cooperation and Development made a similar revision to its forecast. 
  • Canadian exports rose just 0.6% in April after planned maintenance slowed production from its profitable oil sands. 
  • India’s central bank hiked its interest rate by 50 basis points to 4.9% yesterday, the second increase in two months. 
  • Chile’s central bank lifted its interest rate by 75 basis points yesterday to 9%, a two-decade high. 
  • Roughly 13% of British mortgage borrowers could go into financial distress if high inflation keeps pace next year, economists warn.  
  • Switzerland’s Credit Suisse Group warned its capital position is eroding as companies opt not to sell new stock or bonds amid volatile conditions, wiping out a main source of revenue. The declines could lead to a second-quarter loss and potential layoffs
  • Scandinavian Airlines is facing liquidity problems after the Swedish government rejected its request for almost $1 billion in needed restructuring dollars. 
  • Ryanair saw 15.4 million passengers in May, an all-time high. 
  • Cazoo, a British online used-car platform, will cut its workforce by 15% as economic headwinds lead the firm to abandon growth plans. 
  • A day after announcing it would hire over 4,000 new tech workers, Citigroup said it plans to add 3,000 workers for its Asia institutional business. 

Some sources linked are subscription services.

Stay informed with industry trends and insights.

Stay informed with industry trends and insights.
This field is for validation purposes and should be left unchanged.