Geopolitical Tensions and Oil Market Dynamics

As demand for transport falters, and with the Middle East fighting for market share, crude oil prices may continue their downward spiral, eventually boosting chemicals demand.  

-          Low oil prices put money into consumers’ pockets

-          Petrochemicals demand will eventually benefit from lower oil prices 

-          Destocking down value chains initially masks demand boost

-          But trade war will likely dampen global economy, chemicals demand

-          China’s move to electric vehicles will reduce crude oil demand

-          Oversupply means oil price decline likely to continue

-          Trade war, demand trends will drive changes in China petrochemicals