Brent crude closed at $66.59/bbl and WTI at $63.88/bbl, both retreating on tariff concerns, U.S.–Russia tensions, and OPEC+’s confirmation of a 547 kb/d September output hike. Henry Hub September futures settled at $2.99/MMBtu as robust production and strong storage outweighed seasonal cooling demand. The U.S. rig count eased by one, with oil rigs up slightly and gas rigs down, signaling moderated upstream growth.
For petrochemicals, softer crude is lowering naphtha-linked costs, enhancing U.S. competitiveness in ethylene and polyethylene exports, while aromatics and styrene face price pressure from weaker crude. Short-term volatility could emerge from Gulf Coast weather and refinery outages, while over the longer term, U.S. ethane supply growth is expected to sustain cost leadership. Recommended strategies include maintaining ethane-linked passthroughs, using shorter pricing windows for aromatics, and opportunistic buying of naphtha-linked derivatives during price dips.
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