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. 


  • 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. 

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