Brent crude climbed to $82.47/bbl on Libyan supply issues and strong buying from China and India, while Henry Hub gas eased to $2.75/MMBtu due to mild weather and elevated storage levels. U.S. rig counts declined again, reflecting cautious E&P activity. Refinery utilization rose to 93.2% as refiners capitalized on strong gasoline margins, though hurricane season poses a short-term risk. Ethylene pricing weakened on soft derivative demand, while propylene remained stable. Styrene saw slight gains, and benzene remained volatile.
Ammonia and sulfur markets tightened, with ammonia rising on European production cuts and sulfur supported by Chinese phosphate activity. Fertilizer markets showed signs of near-term rebound. Refinery catalysts held firm ahead of fall turnarounds. CJ Chemical should focus on early catalyst purchasing, monitor ethylene softness for contract leverage, and prepare for Q4 volatility in feedstocks and restocking demand. Trade shifts and polymer flows with China remain long-term variables.
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