Crude oil prices showed a modest recovery but remain under pressure due to U.S. tariffs and OPEC+ plans to increase output in May, feeding oversupply fears. Henry Hub natural gas remains elevated at $3.97/MMBtu, with the EIA projecting a 37% year-over-year increase driven by higher demand and LNG export expectations. The U.S. rig count reflects mixed dynamics, with oil rigs up and gas rigs falling to their lowest since September.
A growing number of petrochemical plant closures have been reported across North America, Europe, and Asia, driven by volatile energy costs, oversupplied markets, and sluggish demand in end-use sectors like construction and automotive. Geopolitical instability and ESG pressures continue to disrupt operations, particularly around Liberation Day events in Europe. These trends point to a potentially tighter petrochemical market in H2 2025, urging traders and buyers to prioritize risk management, supply chain diversification, and environmental compliance.
Unlock Full Access to This Article