Supply Tightness

Signs of tightness in the supply of petrochemical feedstocks persist. Even if a peace deal is signed, it will take weeks for normal output from key Middle Eastern producers to reach Asian manufacturing hubs.

Margin Relief Hopes

Steam cracker operators, who have been facing extreme margin pressure, are viewing the crude oil selloff with cautious optimism. A sustained drop in energy costs is required to prevent widespread run-rate reductions.