The bottom frame of crude oil chemical change mind “”

since the middle of 2014 began to slump in international oil prices in recent years, the organization of Petroleum Exporting Countries (OPEC) finally resorted to cut price measures, wait to escape the $40 / barrel following the history of the bottom of the range, the blink of an eye has completed more than 10% of the increase.

As the downstream product of crude oil in oil prices, even Yang boost, domestic futures on the cash chemicals “cost support” good varieties, yesterday received a four with Yang, methanol is the “Star” revealed yesterday, tiaokonggaokai rose 4.77%. but with rising prices, the domestic chemical futures positions decline plate outflow of funds seems to be once again long sounded the death knell, chemicals and oil city in the spring of how far?
The bottom frame of crude oil chemical change mind “”
Crude oil has been “big brother” to go and play with the chemical “little brother” nearly two years frequently “against the tube, obvious independent trend, but OPEC a booster – production agreement, seems to make them begin to change mind”, follow the old oil.

Since the production agreement reached after the news, as of yesterday, the international oil two benchmark NYMEX crude oil, the main Brent is still in the rally since November 30th, just a few days, or more than 10%. Monday Intercontinental Exchange (ICE) weekly published data show that investors hold the Brent crude oil rose to around the highest net long positions.

Once the indifferent market ushered in the outbreak of the domestic chemicals in this week
As of yesterday’s close, the domestic chemical futures, futures fell slightly in addition to PVC, PTA, PP, methanol, plastics, asphalt, chemical and other varieties have received red. From the start on Friday, methanol or expanding, yesterday led to a 4.77% increase in domestic commodity futures market. Plastic, PP, asphalt, chemical yesterday rose 1.12%, 1.92%, 1.18%, 1.42%.
“The OPEC property agreement reached freezing, far beyond market expectations, to reach 1 million 200 thousand barrels / day, and non OPEC countries will cut 600 thousand barrels a day, Russia said cuts contribute half share, or 300 thousand barrels / day. The OPEC forecasts that the crude oil market itself will be in the 3 quarter of 2017 to return to the equilibrium of supply and demand, a frozen production agreement, further promote the balance ahead of the arrival of. As a chemical raw material upstream end, crude oil rose to directly stimulate the downstream chemicals short-term price sharply upward.” XinDa of futures manager Wu Yifeng said.

However, in Wu Yifeng’s view, this is only one reason to boost the price of chemicals. He believes that with the continuous improvement of domestic industrial profits, the supply side reforms, chemicals follow the black varieties, prices continued to move up the focus is also reasonable. With similar PE/PP renewable materials imports divided by environmental restrictions, methanol regional markets lead to increased imports, chemical fundamentals bullish sentiment continues and so on, are pushing up prices continue upward downstream chemicals. At the same time, the continuous depreciation of the RMB, raise the input probability of inflation, but also further enhance the commodity prices expected.
As the source of crude oil chemicals, the volatility often traction industry chain related variety trend, but this is not the only one relationship between crude oil and chemicals prices, due to the specific varieties and different.
Related analysts explained that the crude oil as the chemical source, its fluctuations tend to traction industry chain related variety trend. Specific to the variety, plastics, PTA, PVC, methanol and other chemicals and energy of crude oil was most closely related, and most of the time these varieties of crude oil prices are highly relevant. Of these varieties, once the crude oil will be more than doubled, from the cost of these varieties boost the formation; but because of the price conduction down a certain lag, so the energy chemicals prices may lag behind the rebound in crude oil prices.