POSTS-News- Plastic-Petrochemicals – POSTS 新闻 Plastic Petrochemicals

POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals

-China – Filament Grade Semi Dull PET Chip – PET bottle chip 瓶芯 – Pet chip resin 宠物芯片树脂

POSTS 新闻 Plastic Petrochemicals

-Asia PTA dips after recent spike; tight supply to buoy up prices – Asia PTA prices

-Indonesia’s textile exports grow by small percentage – Indonesia textile exports

-Vietnam can fully absorb polyolefins from Long Son project – Vietnam polyolefins

-Initial US August BD contract nominated at 8 cent/lb decline – US August Butadiene

-Oil dives 2 percent; consultant sees OPEC crude output rise in July – Crude  Oil OPEC output

-PET Exports to EU – Polyethylene terephthalate (PET) Eu Pakistan

-Campaign launched for flame retardant-free car seats – Flame Retardant car seats

-A Viet Tien garment production line – Vietnam Viet Tien garment

-Next generation performance cotton on show at OR – Next generation cotton

POSTS 新闻 Plastic Petrochemicals

-US starts antidumping probe on polyester staple fiber from S Korea, Taiwan – US polyester staple fiber

 

POSTS-News- Plastic-Petrochemicals – POSTS 新闻 Plastic Petrochemicals

POSTS 新闻 Plastic Petrochemicals  POSTS 新闻 Plastic Petrochemicals  POSTS 新闻 Plastic Petrochemicals 

-A circular approach to bioeconomy: an opportunity to decarbonise the economy and reconnect it with society – Circular bioeconomy

POSTS 新闻 Plastic Petrochemicals

-Polypropylene recycling venture launches $120 million project – Polypropylene recycling project

POSTS 新闻 Plastic Petrochemicals

-Analyst: Technology Gains In US Shale Ramp Up Production, Pressure – Technology US Shale

POSTS 新闻 Plastic Petrochemicals

-Global plastic waste totals 4.9 billion tonnes – Global plastic waste

POSTS 新闻 Plastic Petrochemicals

-LyondellBasell technologies to be used for Chinese petrochemical complex – LyondellBasell technologies Chinese petrochemical

POSTS 新闻 Plastic Petrochemicals

-ECKART Effect Pigments for Labels and Packaging –ECKART Effect Pigments Packaging

 POSTS 新闻 Plastic Petrochemicals

-Crude Oil : WTI BRENT 原油 – Crude oil WTI BRENT 原油

POSTS 新闻 Plastic Petrochemicals

-China – Filament Grade Semi Dull PET Chip – PET bottle chip 瓶芯 – Pet chip resin 宠物芯片树脂

POSTS 新闻 Plastic Petrochemicals

-Europe PE players seeing bottom of cycle approach – Europe PE players

-Japan’s Toray to make new top-grade carbon fiber in US – Japan Toray carbon fiber

POSTS 新闻 Plastic Petrochemicals

-August expectations surface in Europe’s PVC market – Europe PVC market

-Half of All Plastic That Has Ever Existed Was Made in the Past 13 Years – Plastic waste

-Mars colonies could benefit from bacteria that turn CO2 into 3D printable biopolymers – Mars colonies bacteria CO2 biopolymers

-Brazilian cotton prices dip to lowest levels since Nov ’16 – Brazilian cotton prices

-Plastic packaging: from waste to valuable resources – Plastic packaging waste resources

-Apparel Textile Sourcing Canada Show To Provide Glimpse Into Global Design And Fashion Trends For 2018 And Beyond – Apparel Textile Sourcing Canada Show

-There’s literally a ton of plastic garbage for every person in the world – Plastic garbage world

-Asahi Kasei profit seen hitting record on automotive plastics – Asahi Kasei automotive plastics

 

POSTS-News- Plastic-Petrochemicals – POSTS 新闻 Plastic Petrochemicals

POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals  POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals  POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals

-DuPont Tate & Lyle’s Latest Innovations Showcased at Outdoor Retailer Summer Market – DuPont Tate Lyle Outdoor Retailer Summer Market

-Could US sour crude oil be exported to Europe at the expense of other grades? – US  crude oil Europe

-Humanity has produced 8.3 billion tons of plastic for 65 years – Humanity plastic

POSTS 新闻 Plastic Petrochemicals

-Composites of Polyplastic were included in the international list of the automotive concern Peugeot Citroen – Polyplastic automotive Peugeot Citroen

POSTS 新闻 Plastic Petrochemicals

-UK plastics processing facility opened / Site expansion plans – UK plastics Vanden Recycling

POSTS 新闻 Plastic Petrochemicals

-Could this Indonesian invention solve the world’s plastic bag problem? – Indonesian invention plastic bag problem

-VDMA publishes online reports on textile machinery – VDMA  textile machinery

POSTS 新闻 Plastic Petrochemicals

-Algerian Textile Producers On The Upswing – Algerian Textile

-Tunisia to be the guest of honor at the World trade fair for textiles and fashion “Première Vision” in Paris – Tunisia textiles Première Vision Paris – France Language Only

POSTS 新闻 Plastic Petrochemicals

-German Economic Confidence At 4-Month Low – German Economic Confidence

POSTS 新闻 Plastic Petrochemicals

-Crude Oil : WTI BRENT 原油 – Crude oil WTI BRENT 原油

POSTS 新闻 Plastic Petrochemicals

-China – Filament Grade Semi Dull PET Chip – PET bottle chip 瓶芯 – Pet chip resin 宠物芯片树脂

-Asia ABS prices rise as supply tightens, buyers may resist – Asia ABS prices

-Americas Styrenics seeks US Aug PS price hikes – Styrenics US PS price

-Study Examines On-Purpose Propylene Technologies – Propylene Technologies

-100% recycled polyester yarn for fabric production from PET bottles –  Recycled polyester yarn fabric

-Plastic packaging: from waste to valuable resources – Plastic packaging waste resources

-Algerian Textile Producers On The Upswing – Algerian Textile Producers

-MSM Poly Converts Anobex Resin Into Film and Component Parts – MSM Anobex Resin Film

-European acrylonitrile price decline slows from June – European acrylonitrile price

POSTS 新闻 Plastic Petrochemicals

-Southeast Asia’s import PET market hits 4 month-high – Southeast Asia  PET

 

-BioEconomy Investor Discusses the Changing Government Landscape  – BioEconomy Investor

POSTS-News- Plastic-Petrochemicals – POSTS 新闻 Plastic Petrochemicals

POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals POSTS 新闻 Plastic Petrochemicals

-Saudi Arabia mulls cutting oil exports by 1 million bpd: Report – Saudi Arabia oil exports

-US shale pumping means oil is stuck at $50 for the next two years, wealth manager says – US shale pumping oil

-Hanwha Total’s paraxylene output up 200,000 tons – Hanwha Total paraxylene output

POSTS 新闻 Plastic Petrochemicals

-BOY to bring three injection moulding machines to Interplas – BOY injection moulding machines Interplas

POSTS 新闻 Plastic Petrochemicals

-Noble Biomaterials teams up with Lenzing – Noble Biomaterials Lenzing

POSTS 新闻 Plastic Petrochemicals

-U.S. Polyester Producers Applaud U.S. International Trade Commission – US Polyester Producers

-Shale may not cut it when the world needs more oil – Shale cut oil

POSTS 新闻 Plastic Petrochemicals

-A Sustainable Life: Plastics  – Sustainable Plastics

-Weekly resin report: Producers nominate $0.03 to 0.05/lb increase for polypropylene in August – Polypropylene Polyethylene Polymer

POSTS 新闻 Plastic Petrochemicals

SodaStream CEO: plastic bottles will be the cigarettes of our generation – SodaStream  plastic bottles

-U.S. Shale Output Just Reached A New Record – US Shale Output Record

 POSTS 新闻 Plastic Petrochemicals

-Experts predict bioplastics rise –  Bioplastics Italian National Research Council CNR

-LyondellBasell tries to launch a reactor in the production of olefins in Corpus Christi – LyondellBasell olefins Corpus Christi

POSTS 新闻 Plastic Petrochemicals

-Crude Oil : WTI BRENT 原油 – Crude oil WTI BRENT 原油

POSTS 新闻 Plastic Petrochemicals

-China – Filament Grade Semi Dull PET Chip – PET bottle chip 瓶芯 – Pet chip resin 宠物芯片树脂

POSTS 新闻 Plastic Petrochemicals

-Omsk Carbon to start production at Mogilev plant next year – Omsk Carbon Mogilev

-Bio-Based Textiles For Apparel End-Uses – Bio Based Textiles  Apparel

-Sarnia plant could help revolutionize bottled water industry – Sarnia plant  bottled water

-Oil edges up on talk of potential cuts to Saudi exports – Crude Oil Saudi exports

-Hyosung to strengthen presence in European market – Hyosung European market

-Nike and the NBA Introduce Jerseys for 2017-18 Season – Nike NBA Jerseys

-New, Emerging And Disruptive Technologies – Emerging Disruptive Technologies

-French and German associations form closer bond – French German association plastics

-Industrial Fabrics Industry To Gather In The Big Easy – Industrial Fabrics

-New petchem capacities continue to loom on horizon for 2020 and afterwards – Petchem capacities

 

China – Filament Grade Semi Dull PET Chip – PET bottle chip 瓶芯 – Pet chip resin 宠物芯片树脂

Pet chip resin 宠物芯片树脂 Pet chip resin 宠物芯片树脂 Pet chip resin 宠物芯片树脂

China – Price of Filament Grade Semi Dull PET Chips, today is steady, but always weak.

Pet chip resin 宠物芯片树脂Polyestertime: Polyester DTY

The prices of Semi-dull Chips in Jiangsu and Zhejiang are at 7,350- 7,500 yuan/ton(cash),nearby.

The Bright Chip’s price in Jiangsu and Zhejiang is  at 7,400 -7,550 yuan / ton.

Polyester POY is  at 8,400 – 8,550 yuan/mt cash ex-works, while Polyester  DTY is at 9,800- 9,950 yuan/mt cash ex-works.

 

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China –PET Bottle Chip (Polyethylene terephthalate) -The Market prices, today are steady, but always weak .

Pet chip resin 宠物芯片树脂Polyestertime : PET Preforms

The domestic Polyester Bottle Chip is at 7,750-7,900 yuan / ton cash,(ex-works).

The export PET is at 950 – 970 $ /ton FOB CMP.

Asia PTA dips after recent spike; tight supply to buoy up prices – Asia PTA prices

Asia PTA prices  Asia PTA prices  Asia PTA prices  Asia PTA prices  Asia PTA prices  Asia PTA prices  Asia PTA prices  Asia PTA prices  

Asia PTA dips after recent spike; tight supply to buoy up prices

Source:ICIS News

Asia PTA prices

SINGAPORE (ICIS)–Spot purified terephthalic acid (PTA) prices in Asia were stable to lower this week after a recent spike, but will remain supported by tight supply and low inventory in the key China market.

On 21 July, bids were at $630/tonne CFR (cost and freight) CMP (China Main Port), while offers were at $650/tonne for both import and domestic US dollar-denominated cargoes, largely stable from the previous day’s average of $642.50/tonne CFR CMP.

For five straight days from 10 July, PTA prices had gained $38/tonne or 6.3% before stabilizing on 18 July and dipping on 20 July.

Acute PTA shortages in the Chinese market saw the product’s spread over feedstock paraxylene (PX) widen to $100-130/tonne in recent weeks.

A major producer was on a buying spree, booking large quantities of both Chinese yuan-denominated and US dollar-denominated volumes. An estimated 100,000 tonnes of spot PTA volumes have been booked, according to market sources, and the purchases are expected to continue in the near term.

Sellers, on the other hand, were withholding cargoes as they were expecting a bullish price trend, and mulling offers on a formula basis to maximise profits.

Downstream polyester and non-polyester producers were out in the market, looking for end-July and August-loading cargoes.

But buyers were being forced to buy at high prices since only August-loading cargoes are available in the market. Chinese buyers have even sent enquiries to south Asia – a rarity in Asia’s PTA market.

Key market participants with short positions were covering their requirements with spot purchases, while they have an over-exposure in the futures market. They were also unable to roll over their futures contracts due to a backwardated market, in which the forward price is lower than prompt price of PTA cargoes.

Tight supply amid robust downstream demand should continue to support PTA prices in the near term despite recent slips. Inventory levels were at historically low level, exerting upward pressure on prices, industry sources said.

Operating rates at downstream polyester units are currently high, while availability of contractual PTA volumes from key producers are limited amid plant shutdowns.

Major Chinese producer Hengli Petrochemical is targeting to restart its 2.2m tonne/year No 1 purified terephthalic acid (PTA) line at Dalian in the first half of August, after about 40 days of maintenance. The shutdown was extended because of technical issues.

It estimated production loss of about 150,000 tonnes from the shutdown and will, consequently, reduce its August contractual volumes to end-users.

Another Chinese producer, Hanbang Petrochemical, is attempting to restart its 2.2m tonne/year PTA plant in Jiangyin as soon as possible given favourable spreads over feedstock PX. Half of the capacity is currently in operation.

In the third quarter, other major PTA plants are expected to undergo turnaround, including Jiangsu Sanfangxiang Group’s two 1.2m tonne/year plants and Shenghong Petrochemical’s 1.5m tonne/year plant.

Meanwhile, Jialong Petrochemical is looking at restarting its 600,000 tonne/year PTA line by the end of the month. It was shut on 10 July due to a mechanical issue.

In the PTA futures market, warehouse receipts on 19 July stood at 732,955 tonnes, down 3.4% from 14 July. Futures warehouse inventory levels are decreasing, based on positions held by key PTA producers including Yisheng Petrochemical, Hengli Petrochemical and Hanbang Petrochemical.

Focus article by Paul Lim

Asia PTA prices

Pictured above: A garment factory in Huaibei city in east China. The textile industry is the main downstream sector of purified terephthalic acid (PTA). (Source: ImagineChina/REX/Shutterstock)

By Paul Lim

Indonesia’s textile exports grow by small percentage – Indonesia textile exports

Indonesia textile exports Indonesia textile exports Indonesia textile exports Indonesia textile exports Indonesia textile exports 

Indonesia’s textile exports grow by small percentage

Indonesia textile exports

A small 0.62 per cent year-on-year (y/y) growth has been observed in Indonesia’s textile exports in the first half of 2017. This has been supported by a 20.4 per cent (y/y) rise in knitwear exports. This modest growth being seen as a positive matter amid bleak global economic conditions which have led many countries to reduce imports of textiles.

According to Indonesian media reports, Ade Sudrajat, chairman of the Indonesian Textile Association (API), said Indonesia’s downstream textile manufacturers were actually pleased with this result as it exceeded expectations amid bleak textile demand in various countries.

Data from API show that Indonesian textile exports to key markets have declined. Shipments to the USA fell 3.6 per cent (y/y), to the European Union by 4.0 per cent (y/y), and to Japan by nearly 5 per cent in the January-June 2017 period, the reports said.

Sudrajat said the apparel trade balance of Indonesia has improved markedly since the start of the year as the government had discouraged cheap imports into Indonesia to protect local industries. Meanwhile, more than 50 clothes factories have been relocated to Central Java where they are using more efficient technology. Therefore their output is also more competitively priced on the world market.

“Improved competitiveness (in terms of price and delivery) explains why demand is negative but Indonesian exports are positive,” Sudrajat explained. “Moreover, foreign importers may now be more confident in Indonesia’s economic and political stability.”

Based on data from Indonesia’s Industry Ministry, the textiles and textile product sector contributed $11.87 billion in foreign exchange earnings, or 8.2 per cent of Indonesia’s total export earnings in 2016. Meanwhile, investment in this sector reached approximately $567 million in 2016, according to reports. (SV)

Fibre2Fashion News Desk – India

Vietnam can fully absorb polyolefins from Long Son project – Vietnam polyolefins

Vietnam polyolefins  Vietnam polyolefins  Vietnam polyolefins  Vietnam polyolefins  Vietnam polyolefins  

INTERACTIVE: Vietnam can fully absorb polyolefins from Long Son project

Source:ICIS News

Vietnam polyolefins

SINGAPORE (ICIS)–Vietnam could fully absorb the huge polyolefin production expected from Siam Cement Group’s (SCG) Long Son Petrochemical Complex (LSPC), which is due to start up in 2022, according to analysts.

The country imported about 2.3m tonnes of combined polyethylene (PE) and polypropylene (PP) last year.

LSPC, which will be the country’s first petrochemical complex, is located around 100 kilometres away from Ho Chi Minh City – Vietnam’s main market and economic heartland.

“We see several positives in the project,” according to analysts at Japanese brokerage Nomura Securities. “This is the first petchem cracker in Vietnam, which we see as an attractive and currently under-supplied market.”

Thai conglomerage SCG said on 14 July that a decision has been made to proceed with the $5.4bn or baht (Bt) 188bn LSPC project, which will be financed by 60% debt and 40% equity.

Non-petrochemical supporting infrastructure, such as a deep sea port and other facilities, will account for about 30% of the total investment cost, according to SCG.

SCG indirectly owns 71% of the project via its wholly-owned subsidiary Vina SCG Chemicals Co (VSCG), while state-owned oil and gas firm PetroVietnam holds the remaining share in the project.

LSPC will house a 1m tonne/year cracker with flexible gas and naphtha feed, to yield up to 1.6m tonnes/year of olefins, depending on the feedstock mix, the company said.

The feedstock will consist of locally sourced ethane, as well as imported propane and naphtha, it said.

“The downstream polyolefin operations will be of similar scale to the cracker, consisting of high density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP) plants,” the company said.

The project is estimated to be completed in four-and-a-half years, with commercial operation expected by the first half of 2022, according to SCG.

Partnering with PetroVietnam is a key strategic advantage for SCG that should help navigate regulatory issues, according to Nomura.

SCG began its business operations in Vietnam in 1992 with a trading unit, and gradually expanded investments into diversified businesses in the cement-building materials, chemicals, and packaging industries.

The LSPC project had been stalled for years amid the downturn of the oil and petrochemical prices in 2014, and was hit by another setback when Qatar Petroleum International (QPI) withdrew from the project in December 2015.

QPI, which was supposed to be the feedstock supplier for the project, sold to SCG its 25% stake in Long Son Petrochemicals Co, which is the joint venture firm that will operate the new complex.

SCG is confident that it will be able to source feedstock on-long term contracts from other suppliers in the market, noted Singapore-based DBS Group Research.

“Our key concern is on the outlook during the early years after the plant commences as we expect the industry cycle for the petrochemical business to enter a tough period when new capacity (including the Long Son project) enters the market. This could be a drag on SCG’s earnings performance during those years,” it said.

According to Krungsri Securities, global ethylene supply growth will match the increase in demand at 4% per year over 2017-2021, and take global ethylene capacity to 197m tonnes by 2021.

Eight new crackers with a combined 11m-ton capacity will be using shale gas, representing a third of the 35m tons of total new ethylene capacity.

For propylene, supply is expected to grow 5% in 2017, 4% in 2018, and 3% per year over 2019-2021. Total supply will reach 143m tons by 2021, with the bulk of new capacity in north Asia, and produced through the propane dehydrogenation (PDH) process. This will account for 14% of global propylene capacity, the Thai brokerage said.

Another 9% will be from the coal-to-olefins (CTO) and methanol-to-olefins (MTO) process.

“It remains unclear if all announced CTO and MTO capacity will commence as planned because these operations require abundant water. Some areas in China may not have the required water supply,” Chantaraserekul said.

In the near term, SCG’s management believes that chemical spreads will remain strong through 2021 before the start-up of LSPC, led by stable demand growth and limited new supply, he said.

Chemicals will remain as the key earnings driver for SCG this year, Chantaraserekul said.

In 2016, chemicals had a 75% contribution to the conglomerate’s total earnings.

Please click on the full screen button on the bottom-right of the infographic below to view in full screen.

 

($1 = Bt33.60)

Picture (top): A SCG building (Source: SCG website)

Focus article by Nurluqman Suratman

By Nurluqman Suratman

Initial US August BD contract nominated at 8 cent/lb decline – US August Butadiene

US August Butadiene US August Butadiene US August Butadiene US August Butadiene US August Butadiene US August Butadiene 

Initial US August BD contract nominated at 8 cent/lb decline

Source:ICIS News

Focus article by Jessie Waldheim

HOUSTON (ICIS)–US butadiene contract prices for August have been nominated by a producer at an 8 cent/lb decline, sources said on Thursday.

US August Butadiene If accepted by buyers, the nomination would put the producer’s August contract price at 37 cents/lb ($816/tonne), about an 18% decline from 45 cents/lb in July.

Weak global prices and domestic length have kept pressure on the US BD market, leading to expectations of drop for August contract prices.

“That’s maybe down a little bit more than I expected, but not all that surprising,” one market source said.

Other sources had expressed surprise.

“I was expecting they would go for the 40-42 cents/lb range,” a buyer said.

Contract prices have dropped by 65 cents/lb since reaching a multi-year high of 110 cents/lb in March, as lengthening domestic supply and falling global prices have pressured the market.

Domestic supply began to lengthen in the second quarter as earlier production issues were resolved and as downstream outages began in late March. One derivative plant restarted in June after a turnaround. Another, which was shut down in late March and sold in June, remains closed.

Supply was further bolstered by increases to olefins capacity in the US Gulf, through both new and expanded crackers. The trend is expected to continue, with several new crackers expected to come online in the second half of 2017.

Meanwhile, a decline in global BD prices further pressured the US market. Since March, spot prices in Asia have fallen by about $2,000/tonne, and contract prices contract prices in Europe have fallen by about €925/tonne.

A late June rebound in Asia led to expectations that the global market could stabilise or strengthen. However, that rebound stalled in July, and the outlook in the region has weakened due to incoming shipments, some of which were sent from the US.

Market participants await for individual nominations from three other US producers.

US BD contracts typically settle at the end of the month for pricing in the upcoming month.

Major US BD producers include ExxonMobil, LyondellBasell, Shell Chemical and TPC Group.

In cents/lb Aug Nom Jul Settle
Producer 1 37 45
Producer 2 TBD 45
Producer 3 TBD 45
Producer 4 TBD 45

By Jessie Waldheim

Oil dives 2 percent; consultant sees OPEC crude output rise in July – Crude Oil OPEC output

Crude  Oil OPEC output Crude  Oil OPEC output Crude  Oil OPEC output Crude  Oil OPEC output Crude  Oil OPEC output Crude  Oil OPEC output 

Oil dives 2 percent; consultant sees OPEC crude output rise in July

Julia Simon

Crude Oil OPEC output

FILE PHOTO: A worker checks the valve of an oil pipe at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015.Essam Al-Sudani/File Photo

NEW YORK (Reuters) – Oil prices fell more than 2 percent on Friday after a consultant forecast a rise in OPEC production for July despite the group’s pledge to curb output, reigniting concerns the global market will stay awash with crude.

Both Brent and U.S. crude tumbled more than a dollar a barrel and were headed toward weekly losses of more than 1.3 percent after Petro-Logistics said OPEC crude production would rise 145,000 barrels per day (bpd) this month. Petro-Logistics, which tracks OPEC supply forecasts, said this would take the group’s combined output above 33 million bpd.

Higher supply from Saudi Arabia, the United Arab Emirates (UAE) and Nigeria would drive this month’s gains, it said.

Benchmark Brent crude futures LCOc1 were down $1.03 or around 2.1 percent at $48.27 a barrel at 1:17 p.m. (1717 GMT) while U.S. West Texas Intermediate (WTI) crude futures CLc1 traded at $45.89 a barrel, down $1.03 or 2.2 percent.

OPEC and some non-OPEC states, such as Russia, have been trying to cut production 1.8 million bpd through the end of March 2018.

The UAE energy minister, whose country’s oil output has been rising, said he was committed to the output cut and he hoped the deal would have a significant impact in the third and fourth quarters.

“We have the OPEC meeting in Russia on Monday and that’s going to be top of mind,” said Dan Katzenberg, Senior Exploration and Production analyst at Baird and Co in New York.

The meeting gathers several ministers from OPEC and non-OPEC member countries in St. Petersburg. Kuwaiti Oil Minister Essam al-Marzouq, whose country heads the joint ministerial committee, said attendees would discuss continuing the production cuts.

The committee, known as the JMMC, can make recommendations to adjust the deal if needed, but analysts expressed skepticism that the group will address rising production from Nigeria and Libya, two OPEC members exempted from the cuts.

“There’s no expectation. ..that there’s going to be anything of substance in that meeting,” said Katzenberg.

“Libya and Nigeria won’t be too enthusiastic to cap their production,” said Frank Schallenberger, head of commodity research at LBBW.

The discount of U.S. crude futures front-month versus the second-month CLc1-CLc2 briefly fell to just 12 cents per barrel during the trading session, the lowest since December 2014. This makes it less profitable for speculators to buy oil, sell it forward and store it in the meantime.

U.S. oil drillers cut rigs for a second week since January, with producers cutting one rig in the week to July 21, Baker Hughes said. Analysts said the decline was likely a pause in a drilling recovery expected to continue through at least 2019.

Additional reporting by Karolin Schaps in London, Fergus Jensen in Singapore; Editing by Mark Potter and David Gregorio

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