London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950

Our Clients

Order Informer

Home > News >

COVID-19 - News digest as of 29.10.2020

October 29/2020

1. Crude falls on bearish API data, concerns over coronavirus restrictions

MOSCOW (MRC) -- Crude oil futures took a dive during the mid-morning trade in Asia on Oct. 28, erasing most of their overnight gains, as the market grew anxious over a large build in the US crude inventories and over prospects of nationwide lockdowns in Europe, where countries are struggling to contain the second wave of the coronavirus pandemic, reported S&P Global. At 9:53 am Singapore time (0153 GMT), ICE Brent December crude futures were down 67 cents/b (1.63 %) from the Oct. 27 settle to USD40.53/b, while the NYMEX December light sweet crude contract was down 75 cents/b (1.90%) at USD38.82/b. Both markers had jumped 1.83% and 2.62% to settle at USD41.20/b and USD39.57/b, respectively, on Oct. 27, after Hurricane Zeta shuttered 55.35% of US Gulf crude output.

2. Petro Rabigh swings to net loss on lower margins, market conditions

MOSCOW (MRC) -- Rabigh Refining and Petrochemical Company (Petro Rabigh) swung to net losses of SAR 610 million in the third quarter (Q3) of 2020, versus net profits of SAR 394 million in the same quarter a year earlier, said Chemweek. The return to losses was driven by the challenging market conditions and the prevailing coronavirus pandemic, which led to lower refinery margins, according to a bourse statement on Tuesday.

3. Grace sales slide 11% as transportation fuel demand remains depressed

MOSCOW (MRC) -- W.R. Grace reports third-quarter net income of USD7.0 million, down 87.0% year-on-year (YOY), as weak transportation fuel demand due to the COVID-19 pandemic continues to negatively impact refining catalysts volumes, reported Chemweek. Adjusted earnings of USD0.56/share was 43.8% lower YOY and met the analysts’ consensus estimate compiled by Refinitiv (New York). Net sales were down 10.9% YOY and flat sequentially.

4. South Korean refiners to embrace Saudi crude amid market uncertainty

MOSCOW (MRC) --  South Korea would heavily favor Saudi crude oil over US or other arbitrage barrels for the rest of the year as local refiners find their staple medium sour Middle Eastern crude to be the most viable and economical feedstock option in times of volatile refining margins and tepid consumer fuel demand, according to S&P Global. South Korea made rigorous efforts to diversify its crude import sources over the past several years, with the share of Middle Eastern crude in its yearly procurement basket falling below 71% in 2019, compared with more than 85% in 2015. However, Asia's fourth biggest oil consumer made a U-turn on its refinery feedstock diversification strategy in 2020. South Korea's crude imports from Saudi Arabia in September climbed 8.3% from a year earlier at 23.1 million barrels, according to data from state-run Korea National Oil Corp. released Oct. 26.

5. BASF forges ahead with USD10-billion China project, battery material investments despite COVID-19

MOSCOW (MRC) -- BASF will “energetically pursue” it’s USD10.0-billion (USD11.7 billion) petrochemical project at Zhanjiang, Guangdong Province, China, as well as its investments in the production of battery materials, despite taking a more cautious approach to capital expenditure (capex) as a result of the COVID-19 pandemic, reported Chemweek with reference to chairman Martin Brudermuller's statement. Speaking Wednesday on a conference call with analysts following the release of BASF’s third-quarter results, Brudermuller said that the company had cut capex by EUR600 million in 2020 to EUR2.8 billion and that over the next five years it would “strictly review projects and focus our spending,” which would involve “some postponements” to capacity additions. However, the company is not slowing the China project - a phased investment due for completion in 2030 - or battery-material investments because of the bright outlook for the two strategies. “The pandemic does nothing to change these two large growth opportunities,” he said.
Author:Margaret Volkova
Tags:Asia, PP, PE, crude and gaz condensate, propylene, ethylene, petrochemistry, BASF, Petro Rabigh, W.R. Grace, COVID-19, Germany, China, Saudi Arabia, USA, South Korea.
Category:General News
| More

Leave a comment

MRC help


 All News   News subscribe