On March 18, international oil prices plummeted, while domestic oil product prices and MTBE market prices fell steadily. According to the data of business news agency, the price of MTBE was 5,743 RMB/ ton on March 19, a one-day drop of only 0.46%.
According to SunSirs, oil prices have been falling for five consecutive trading days. At the macro level, due to the release of water from the Federal Reserve and central banks, inflation expectations continued to rise, US bond yields rose, and the prices of risky assets such as stock markets and commodities were suppressed. On Thursday, the market's expectation of inflation intensified and the tide of US debt selling hit. The yield of 10-year US debt rose to more than 1.7% for the first time in 14 months. The strengthening of the US dollar led to the decline of the stock index and the sharp drop of oil price. In addition, the pace of global economic recovery was once again dragged down by the epidemic. This time, it mainly came from the European region. The European vaccination process was blocked, which led to the expectation of slower economic recovery, Oil prices are under pressure. WTI and Brent crude oil fell to two-week lows one after another. WTI closed below US $60. WTI crude oil hit the biggest one-day decline in the second half of the year.
The international oil price plummeted. Under the bad news, the bearish sentiment of MTBE market rose, and the overall buying and selling atmosphere of MTBE weakened. However, gasoline production remained at a high level. By the week of March 17, the average operating load of primary atmospheric and vacuum distillation unit of Shandong Di Lian was about 73%. The market demand for MTBE remains high. In addition, domestic gasoline prices remained at a high level of 7,000 RMB/ ton, with a weekly decline of nearly 0.93%. Therefore, the domestic MTBE market price decline is far less than that of crude oil.
SunSirs MTBE product analysts think: the impact of the sharp drop in crude oil price has not yet affected the gasoline and MTBE markets, but the sharp drop in crude oil price is bound to lower the price center of MTBE market. In addition, the domestic MTBE price is at a high level, so it is expected that the price of MTBE market in China will soon recover.
