ChemAnalyst

The unrest in Europe does not seem to mellow down any time soon, judging from the current geopolitical scenario of Eastern Europe. Although ceasefire had been declared with effect from 10 A.M Moscow time, Monday, Ukrainian president Volodymyr Zelensky accuses Russian troops of night-time shelling of Ukrainian cities. Crude Oil spiralled to USD 130/b as of Monday the 7 th of March with Brent prices soaring as high as USD 139/b. As the US and EU allies contemplate a ban on Russian crude, ChemAnalyst predicts Oil price to continue its surge for the rest of the quarter and perhaps longer. India’s energy security could be gravely impacted if the current trend in the crude and natural gas markets continue for long. Natural gas prices too have breached the USD 5/MMBtu mark on Monday. CLSA predicts Indian LNG prices to be constantly above the USD 30/MMBtu mark throughout 2022 which could mean further pressure on India’s energy basket. The government will have to continue its policy of ratio...

On 24 th of February 2022, Russia invaded neighbouring Ukraine under the garb of existential crisis. Russian forces have opened three-front war on Ukraine, troops and tanks have been entering from Donbas, Belarus and Crimean Peninsula. Certain anticipated implications have manifested rather instantly where crude oil prices have breached USD 100 per barrel while stock markets have nosedive globally. These developments will not only lead to regional instability but also have global ramifications. Consequently, West has also started imposing economic sanctions and other reprisals on Russia for “illegally” invading Ukraine. Major western powers including USA, EU, UK, Canada and other nations have imposed heavy financial sanctions and export controls in order to isolate Russia from global financial system. Impact on Oil and Gas and their derivatives Repercussions of Russia-Ukraine war are likely to appear on global convertors’ margins, as crude value has already started hampering their...

On Tuesday, Natural gas prices in Europe climbed to new record levels where prices were assessed in excess of 40 MMBtu. Yamal Europe pipeline, a critical natural gas pipeline of Gazprom, reversed flow from westwards to eastwards limiting supply of natural gas to the European nations. Gazprom has clarified that the move to reverse the flow is only commercial in nature while political pundits and industry experts claimed of political undertones behind the switching of gas direction. Decline in flow rate of natural gas to Europe was first reported on Saturday (17 th December 2021) which culminated into complete stoppage on 21 st December 2021. Yamal pipeline occupies a vital cog in the European natural gas equation. Impact on Olefins and their Downstream Impact of natural gas price spike may not be only limited to energy security of Europe it is likely that prolonged periods of such robust prices of natural gas will have a bearing on downstream olefins. Ethylene and propylene which...