This week, Brent and WTI oil prices rose 1.8% and 2.6% respectively. The sharp rise in WTI oil prices was mainly due to the closure of the Keystone crude oil pipelines in the United States and Canada due to oil spills, and the collapse of EIA crude oil inventories last week. In December, the traditional period of slightly declining US crude oil inventories, combined with OPEC's second limited production extension, was supported by most OPEC countries or continued to be limited to the end of 2018, and crude oil prices are still expected to remain at a high level in December. Resource tax law released this week to seek advice to reduce oil and gas resource tax in some cases, reducing the tax burden of three barrels of oil, and coal exploration in Shanxi required an average annual exploration within three years of investment not less than 50,000 yuan / square kilometer, substantially Exceed expectations favorable prospecting and drilling sub-sector, related to the subject of PetroChina, Sinopec, Daqing China Branch. This week ammonium chloride, butanone, styrene and butadiene prices rose 22.22%, 5.16%, 4.31%, 3.83%, PTA and xylene spreads up 12.6%, Hengyi Petrochemical and Rongsheng Petrochemical PTA production this year Will reach 6 million tons / year, the largest output in listed companies, will benefit from the impact of the spread increase.
Market Overview
This week the petrochemical sector rose, or 0.42%. Shanghai Composite fell 0.86%, small board index fell 0.90%. Shares in the petrochemical sector fell more this week, with the top five stocks rising respectively: Shenkal shares up 12.10%, Tongkun shares up 4.21%, PetroChina up 3.45%, Sinopec up 3.00% and both Metals up 2.33% %. The company is located in:
Industry News
Shanxi Province released the CBM Resource Exploration and Development Plan (2016-2020) and other documents, requiring an average investment of not less than 50,000 yuan / sq km (Shanxi Provincial Land Agency) per exploration year for a period of three years; last week, the U.S. EIA crude oil inventories Down 186 million barrels this week, the number of US oil rigs increased by 9 (WIND Information); "People's Republic of China Resources Tax Law (Draft)" was released, deep-water and low-abundance oil and gas exploration of 30% reduction of natural resources tax (Ministry of Finance); Rosneft will receive a production sharing contract of five oil blocks in the Kurdish region, at a ratio of up to 80%.
