Brent crude traded near $65.50–66/bbl as OPEC+ confirmed an October output increase of ~130–140 kb/d, easing feedstock cost pressure but raising concerns of oversupply into 2026. Henry Hub natural gas rose modestly to ~$3/MMBtu, with futures averaging $3.725/MMBtu, signaling manageable but rising costs for gas-based operations. The U.S. rig count held at 537, with oil rigs climbing slightly to 414 and gas rigs slipping to 118, suggesting stable but cautious upstream activity.
For petrochemicals, weak downstream demand and soft manufacturing indicators continue to weigh on margins, even as the global market is projected to expand from $641 billion in 2024 to $685 billion in 2025 with a CAGR of 7.3% through 2030. Buyers remain cautious, keeping inventories lean amid uncertainty. While near-term conditions remain fragile, long-term structural growth in plastics for automotive, construction, and consumer sectors supports a gradual recovery outlook.
Unlock Full Access to This Article