The FTSE 100 was mixed in morning trading amid investor fears over a second round of coronavirus lockdowns.
Oil giant BP has today agreed to sell its petrochemicals business to Sir Jim Ratcliffe’s Ineos for $5bn (£4.05bn).
Asia’s petrochemical markets are likely to monitor closely this week the development in upstream markets, specifically the rangebound international crude oil benchmarks that tango with rising naphtha values, and more importantly the looming likelihood of a second wave of COVID-19 infections.
The economic recovery, supported safe-haven flows into the U.S.
Strength in the European naphtha complex has crunched the East-West spread even as freight costs tumble to a near 10-month low, exacerbating the tight supply situation in Asia.
The Asian low sulfur marine fuel market is not expected to witness any significant upside from prevailing levels, traders said on the first trading day of the week June 29.
The Asian middle distillate market opened the week on a steady note with industry sources saying that both jet fuel and gasoil are are still supported amid tight supplies due to curtailed output in the region.
With the second half starting this week, investors are weighing up the outlook for commodities over the balance of the year and trying to sift winners and losers as the coronavirus pandemic rips through the global economy.
Yesterday, shortly following the reopen for electronic trading at 6pm, we wrote that futures slumped “in a repeat of last Sunday’s gloomy open” however previewing that this slump “had fully reversed overnight with futures nice and green by morning” and sure enough the magical overnight ramp emerged once again, with Eminis reversing all early losses and trading near session highs at 3,016 at last check, with the dollar turning red and 10Y yield higher on the day even as the yield on 5Y Treasurys hovered near a record low.
Oil steadied in New York as the boost from a weaker dollar offset concerns that the resurgence of coronavirus will crimp fuel demand.