Wall Street experts say the crossroads do not seem to be hurting the world, and they are recently raising oil prices. One of the most important indicators of this claim is the price of oil, or oil, as GDP. According to Morgan Stanley, oil prices are expected to reach 2.8% of gross domestic product by 2021, a significant shortfall over the long-term average of 3.2%. Oil costs $ 75 a barrel this year.
But that does not mean that no one will be harmed on the street by the price of oil.
Some sectors of the economy are feeling the effects of high oil and natural gas prices, and businesses have been forced to delay or even close major projects.
You can highlight an American fertilizer manufacturer CF Industries Holdings Inc. To the last category. according to Wall Street JournalDue to rising natural gas prices, CF industries have been forced to shut down two British plants. FF industries that use hydrogen and nitrogen to produce fertilizers and other products have stopped working in their UK production complexes due to high natural gas prices. No deadline for production to resume.
Businesses across the UK are feeling the effects of high energy costs, with electricity prices rising by seven times over the same period last year. Meanwhile, energy markets in Germany, France and the Netherlands have risen sharply ahead of winter expectations.
Natural gas prices Since 2014, they have passed the highest standards, oil and many other commodities. On Friday, natural gas futures traded at 1.9% to $ 5.37 per million British BTUs, the highest settlement price since February 2014. Gas gauge, United States Natural Gas ETF, LP (NYSEARCA: UNG) The deadline has increased by 101%. The sticker shock is even greater in other key natural gas markets around the world, with the European regional gas standard, TTF contract a month ago, closing at a high of $ 24.2 per share on 5x years ago.
A recent survey by McKee UK found that two-thirds of British producers are being affected by energy prices.
Problems with petrochemicals
They are not alone.
After a short recovery Using an unexpected opportunity The VV-19 epidemic (as confirmed by the double-edged sword) and the ‘giving’ volunteer governmentOpen Permission to Contaminate, ‘ The storm seems to be approaching the petrochemical industry — again.
With so many filters converting from gasoline and diesel to plastics, plastic manufacturers are not only growing competition, but now thanks to high diesel and LPG costs — they are seeing a sharp decline in profit margins — the main plastic warehouses.
Related – The European energy crisis is driving natural gas prices around the world
Petrochemicals-Plastic Buildings: Made of diesel and LPG, or propane and butane. Companies with production units that are part of a larger refinery complex can tap into these local raw materials, such as oil extraction, but everyone must buy livestock from the market.
The result – they do not have a fully integrated screening system and affordable food warehouses are experiencing high production costs and may be forced to cut off races starting in the third quarter of 2021.
To make matters worse, according to FGE senior analyst Arman Ashraf, steam cracking capacity in Asia is set to increase by ~ 20% this year.
Steam Biscuits Plants Nafta and LGP The main building blocks for plastic are converted to ethylene and propolis. Meanwhile, there has been a sharp rise in natural gas prices and a sharp rise in petrochemical capacity in Asia. Led by China, He is not helping matters.
Shallum has led to an oversupply of cheap oil and natural gas for key commodities such as warehouses and fuel in plastic production. The fossil fuels industry has become the second largest cash cow in the petrochemical sector, even as the world’s role in environmental degradation grows and investors begin to gain traction.
In fact, the plastics industry was preparing for a major explosion: the Coronavirus crisis and subsequent fall in oil prices could lead to death.
last year, Time Magazine Reported South Africa’s integrated energy and chemical giant Sasol Limited has opened a new plastic factory in Louisiana, one of seven such projects, and is preparing to build a multi-billion dollar Ethane biscuit factory. Pittsburgh has the capacity to produce 1.8 million tons of plastic annually.
Basis American Council of Chemistry, Hundreds of new plastics factories and expansion were given green light last year. Global plastic production will triple in the next five years and triple over the next three decades.
But the energy and health crisis has paid off for those plans and pink predictions.
In July, PTT announced in Thailand that it would do the chemical The $ 10 billion delay in the construction of the Ethan-Biscuit Factory will be delayed indefinitely In Ohio, citing instability in the health crisis, Ll l He said in March On the shelf of the Pennsylvania project.
Meanwhile, China plans to invest $ 84 billion in plastics and energy in western Virginia They will still be real Three years after the promise.
Dr. Kevin Swift, economist and statistician at the American Chemistry Council Time Oil prices and economic crises are likely to significantly reduce costs.
With Big Oil now shifting its focus from capital investments to shareholders to stockholders and appraisals, the ESG explosion and the opposition to plastics in general, don’t expect those spectacular petrochemical predictions to happen anytime soon.
By Alex Kimani to Oilprice.com
More Top Readings from Oilprice.com