IHS Chemical Week

Markets :: Basic Chemicals :: Petrochemicals :: Ethylene

Feedstocks

11:55 AM MST | January 14, 2008 | RC

Crude oil prices are expected to ease this year after surpassing $90/bbl in fourth-quarter 2007, but they will not fall below $80/bbl, says David Begleiter, analyst at Deutsche Bank (New York). Naphtha, ethane, and propane are also expected to fall, but they will not reach the much lower levels hit in the first half of 2007. Production costs are so high that ethane is the only feedstock with a positive margin, sources say. The trend in the U.S. for light feeds to offer better ethylene economics than heavier feeds is expected to continue into 2008, analysts say...

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