Brent crude traded in the upper $60s, settling at $67.48/bbl on August 29, a 6–7% decline over the past month as global demand concerns weighed on prices. While this softening reduces immediate feedstock costs for petrochemical producers, it also underscores broader demand risks. Henry Hub natural gas prices hovered around $2.9–3.0/MMBtu, slightly higher than the prior week but still below projected 2025 averages, offering manageable near-term energy costs.
U.S. rig activity fell to 536, well below year-ago levels, highlighting capital discipline in upstream activity. This restraint could tighten future hydrocarbon supply, eventually supporting oil and gas prices. For petrochemicals, near-term benefits from lower feedstock costs are offset by concerns about weak demand, but longer-term forecasts point to 4.6–6% annual growth through 2034. Structural drivers such as packaging, automotive, construction, and electronics remain robust, while industry consolidation and sustainability initiatives will shape competitive positioning.
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