FREE SAMPLE REPORT - DATE: September 3rd 2017 

Trend Matrix

Harvey Impacts Ethylene, Naphtha and Polymers, Crude Oil and Gas Steady

Petrochemical facilities, ports  and railroads networks were more or less seriously affected by Hurricane Harvey.  Surveillance procedures are being conducted to determine when all of them will be able to be in operation again.

At the same time  Gulf Offshore platforms are still  under technical scrutiny to determine when they are able to resume regular operations.

Several important in-land   crackers are out of duty, and that situation is putting price pressure on intermediate chemicals and polymers. Ethylene production was cut by 40% because of Harvey.

As a result, ethylene future prices jumped over the powerful 450 EMA and the 200 EMA as well, as you can observe at  the corresponding MBEc1 future contract daily chart. Ethylene is now challenging the 30 cts/pound  resistance level, with a more or less  easy path until the 37-38 cts/pound area. 

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But something very important to be highlighted: the MBEc1 Ethylene daily chart is showing a first BUY alert on August 22, well in advance of Harvey, confirming the strength of the previously started reversal + later up move.

The UNc1 Naphtha is also showing a strong up-move right into the 480-485 US$  supply area.

Meanwhile, polymers are also showing some bullish reaction but not so much. HDPE future prices are more or less unchanged at 0.43875 US$/pound and  LLDPE jumped from 0.48 to 0.51 US$/pound.

Finally, crude oil and natural gas futures prices are still showing the previous weeks sideways behavior without any kind of strong up movements for now.

The US Dollar, tracked by the future DXc1 dollar index, is still into the 92.5 support area, at least until the real Hurricane Harvey economic impact will be assessed.

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