Since July, the price of Brent crude oil futures has been strengthening. In just three weeks, it has rapidly climbed from around $70 per barrel to above $100 per barrel, with an increase of more than 30 US dollars/barrel. Market sentiment has also heated up rapidly as geopolitical risks have intensified. However, compared with the hot market in the crude oil market, the performance of domestic chemical futures appeared to be somewhat “half a beat”. Not only was the increase clearly lagging behind, but it also showed a trend of weakness in keeping up with the rise. Industry insiders said that the core driver of this round of rising international crude oil prices comes from supply tightening expectations brought about by changes in the situation in the Middle East, and as risk premiums in the crude oil market rise rapidly, there is still a possibility that oil prices will rise in the short term. However, as far as the domestic chemical market is concerned, the cost-driving logic is weakening, supply and demand fundamentals are once again becoming the dominant factor, and the market differentiation between different chemicals may further intensify in the future.

Since July, the price of Brent crude oil futures has been strengthening. In just three weeks, it has rapidly climbed from around $70 per barrel to above $100 per barrel, with an increase of more than 30 US dollars/barrel. Market sentiment has also heated up rapidly as geopolitical risks have intensified. However, compared with the hot market in the crude oil market, the performance of domestic chemical futures appeared to be somewhat “half a beat”. Not only was the increase clearly lagging behind, but it also showed a trend of weakness in keeping up with the rise. Industry insiders said that the core driver of this round of rising international crude oil prices comes from supply tightening expectations brought about by changes in the situation in the Middle East, and as risk premiums in the crude oil market rise rapidly, there is still a possibility that oil prices will rise in the short term. However, as far as the domestic chemical market is concerned, the cost-driving logic is weakening, supply and demand fundamentals are once again becoming the dominant factor, and the market differentiation between different chemicals may further intensify in the future.