IHS Chemical Week

People & Business :: Energy and Feedstocks

Escalating Oil Prices Continue to Pressure Downstream Pricing

8:22 AM MST | November 8, 2007 | Rebecca Coons

Crude oil prices reached a new high last week, soaring above $93/bbl on news of low inventories, tensions in the Mideast, and production problems in Mexico. Naphtha prices rose in line with oil last week to as high as 230 cts/gal, while ethane was up to 104 cts-105 cts/gal. Propane prices also rose as high as 147 cts-148 cts/gal early last week, but began to ease later in the week. The net effect of steadily rising feedstock pricing has been sizable price increases, as olefins producers try to pass along costs and protect margins. Ethylene contract prices have...

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