Market Insights – Week of August 24, 2015

August 24, 2015 • Posted in Market Insights

Market Insights – Week of August 24, 2015

Energy / Economy Overview

  • Oil prices fell again last week

Brent has fallen almost $7/bbl month-to-date

WTI has fallen by roughly the same amount and dropped below the psychologically significant $40/bbl mark

  • Lower oil prices appear to be driving increased consumption

Global usage is now expected to be 1.6m bbl/day higher in 2015 than in 2014 as consumers burn more economical oil

However, growth in OPEC production is more than offsetting increased demand and a drop in non-OPEC production

  • The current oil production surplus is expected to grow and persist well into 2016
  • The Mexican peso has fallen roughly 25% in value versus the ever-strengthening US dollar since the start of 2015, creating a challenges for Mexican resin distributors
  • IHS reports that spot polyolefin pricing trends continue to point lower in the face of turmoil in energy markets and softening upstream demand

 

WTI Crude Oil & Brent Crude Oil 08242015

 

 

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