Oil Prices Diverge from Feedstocks Amid Easing Middle East Concerns

Oil prices and feedstock costs have diverged in recent days, reflecting easing concerns about Middle East supply losses. Brent crude dropped by up to 5% week-over-week (w-o-w) to $102.42/bbl, while Asian naphtha declined 5.2% w-o-w.

However, propylene bucked the trend, increasing by 9.7% w-o-w due to supply and shipping uncertainties. The divergence between lower crude and higher feedstocks is putting pressure on polymer producers' margins in PP and PET.

The Indian polymer market showed a stronger response, with PET prices rising 4.9% w-o-w, PP raffia increasing 2.7%, and PVC gaining 3.4%. The weaker rupee has added to the landed-cost burden for import-dependent buyers.