Turmoil in Ukraine Hits European Chemicals Market; Asia Stands to Follow

摘要

Russia’s invasion of Ukraine has been going on for close to three weeks now, and the effects of this are gradually hitting Europe’s chemicals market. Europe has had no choice but to clamp down on its imports of Russian crude oil – which represents a global market share of nearly 10 percent, trailing only Saudi Arabia in export volume – as well those of Russian natural gas. And with considerations being made also for an embargo on Russian crude oil, Brent crude futures rose to $139 per barrel last week. Then there is the effect on European naphtha prices, which have hit $1,100 per ton, up approximately 30 percent from where they were in mid-February just prior to the invasion.