WTI crude fell over 7% to $61.99 per barrel, driven by U.S. tariffs, trade tensions, and OPEC+ plans to boost output, raising fears of oversupply. Meanwhile, natural gas prices are expected to rise, with Henry Hub averaging $4.20/MMBtu in 2025 due to increased demand and LNG export growth. The U.S. rig count reflects mixed signals—oil rigs increased, but gas rigs dropped sharply.
Petrochemical markets are experiencing a wave of closures in North America, Europe, and Asia. These are driven by high feedstock and energy costs, overcapacity in ethylene and propylene, weak downstream demand, and tightening environmental regulations. Security concerns around Liberation Day further complicate operations in Europe and the Eastern Mediterranean. The resulting supply adjustments could support pricing stability in the second half of 2025, making supply chain diversification and regulatory readiness key strategic priorities.
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