Brent crude remained steady at ~$66–67/bbl, with forecasts pointing to potential weakness heading into late 2025 and early 2026. Henry Hub natural gas spot prices ranged between $2.89–3.10/MMBtu, while the forward strip held near $3.70, reflecting expectations of firmer pricing later in the year. U.S. rig activity stood at ~537, with oil rigs slightly higher and gas rigs flat, though still about 8% below year-ago levels. Permian activity was steady at ~254 rigs.
In petrochemicals, Asian demand—particularly from China—continues to support ethylene and propylene consumption. However, oversupply in intermediates and global inventory imbalances are squeezing profitability. Polyethylene prices improved in early September, offering temporary relief, but tariffs and trade barriers remain a headwind for U.S. exports. Strategic priorities include leveraging low-cost U.S. ethane advantages, optimizing product mix toward stronger-performing polymers, and maintaining inventory discipline. Long-term, rationalization and growth in bio-based and circular petrochemicals, alongside packaging and construction demand, present opportunities.
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