Raffinate Prices Rise in US Amidst Rising Feedstock Crude Oil Prices
Raffinate Prices Rise in US Amidst Rising Feedstock Crude Oil Prices

Raffinate Prices Rise in US Amidst Rising Feedstock Crude Oil Prices

  • 07-Feb-2024 3:04 PM
  • Journalist: Patricia Jose Perez

Texas (USA): Raffinate feedstock crude oil prices experienced a surge following the International Monetary Fund's upward adjustment of its global growth forecast for the year. This revision coincided with market speculation surrounding the U.S. response to a fatal drone attack on its forces in the Middle East. The IMF attributed the adjustment to more robust than expected expansion in the U.S. and economic stimulus initiatives in China. Consequently, the IMF now anticipates an increase in global growth for the year, signalling a positive shift from its previous October estimate.

However, at the onset of trading, both benchmark indices saw declines following Saudi Aramco's announcement of a delay in its plans to increase Raffinate feedstock crude production capacity to 13 million barrels per day, sparking concerns about future supply and demand dynamics in the Raffinate feedstock oil market. Nevertheless, there were indications of potential positive developments, as Hamas expressed openness to consider a ceasefire proposal in Gaza, hinting at a possible diplomatic de-escalation. Raffinate feedstock crude oil prices had dropped due to concerns about China's real estate crisis and its potential impact on demand in the world's second-largest economy.

The global implications of a collapse in China's property sector suggest it could undercut stimulus efforts and lead to significant negative consequences. Regarding domestic production of Raffinate, factories maintained consistent production levels, ensuring an ample supply of goods in the market. Furthermore, no significant supply chain disruptions were reported in the supply chain. Additionally, the prices of Raffinate feedstock crude oil remained relatively low, contributing to the continued suppression of Raffinate market growth.

Moreover, on the demand side, downstream industries such as MTBE and MEK maintained stable operations, resulting in consistent demand from downstream Raffinate industries. Additionally, natural gas prices remained low, contributing to weak production costs. However, the market was primarily influenced by high demand from downstream industries and low inventory levels to meet that demand. Furthermore, the PMI value was stated above 50 as of January 2024, indicating expansion in the manufacturing sector, further creating optimistic trends in the US market.

According to the ChemAnalyst Database, Raffinate prices in the US market are projected to rise due to increasing demand from downstream industries such as MTBE and MEK. Additionally, international market demand is forecasted to remain high, driving consistent procurement activities overseas. Moreover, the prices of Raffinate feedstock crude oil are expected to climb, resulting in higher production costs. On the energy front, natural gas prices are anticipated to increase, further adding to production expenses.

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