Crude oil market plummeted. This is due to the recession caused by interest rate hikes by the central banks of Europe and the United States, as well as concerns about a decline in demand due to restrictions on movement due to the resurgence of the coronavirus infection in China. On the other hand, the production volume of OPEC+ is far below the target due to the tightening of sanctions against Russia, the lack of investment in oil-producing countries, and the decline in surplus production capacity.
Looking at the LP gas market, propane demand is sluggish during periods of low demand, and petrochemical demand for butane is declining, projecting an economic slowdown. In the Middle East market, the supply of gas-producing countries was abundant due to increased crude oil production, but China was greatly affected by the spread of COVID-19, and demand for PDH was sluggish. Lost competitiveness and stagnated. Looking at the US market, exports remained firm and at a high level, but demand was sluggish and inventories were piling up. US propane inventories increased for the 28th consecutive week and exceeded the year-earlier period for the fifth consecutive week, returning to the middle of the five-year average range. (Source: Energy Intelligence Network, ENEOS GLOBE Weekly Report)
