US-listed shares of chemical companies rose sharply on Tuesday, outperforming the market, as the Dow Jones Industrial Average settled above 30,000 for the first time.
Nearly every US-listed share followed by ICIS rose, with some clocking gains of more than 6%.
The rise in oil prices followed progress in at least three coronavirus vaccines. The vaccines could control the pandemic, ending the travel restrictions that have caused oil demand to fall by such large amounts.
The dollar weakened against other currencies. When the dollar weakens, oil prices tend to rise.
US chemical producers benefit from higher crude prices because they rely predominantly on gas-based feedstock, giving them a cost advantage against much of the world, which relies on oil-based naphtha.
Demand for chemicals should also rise once the pandemic gets under control.
