Brent crude prices stayed within a tight range of $68.7–69.3/bbl, offering stability for feedstock planning despite lingering geopolitical volatility. In contrast, Henry Hub gas surged to $3.43/MMBtu due to regional heat and pipeline issues, with futures pricing showing continued firmness. U.S. rig activity ticked up for the first time in 13 weeks, driven by a sharp rise in gas rigs, suggesting a potential increase in domestic natural gas feedstock supply, while oil rig counts remained subdued.
Petrochemical markets face sustained demand weakness in construction and coatings, with buyers showing limited appetite for inventory replenishment. Global plant closures and consolidation are tightening contractual supply chains. CJ Chemical is advised to hedge energy exposure, optimize product mix for resilient downstream sectors, and capitalize on sourcing opportunities linked to global capacity reductions. Inventory discipline and regional demand targeting remain critical in this environment.
Unlock Full Access to This Article