Crude Oil Turmoil and the Global Impact on Petrochemicals:
Navigating an uncertain course back to “normal” Comprehensive Review of implications of "V", "U" and "L"-shaped Crude Oil recovery trajectories on the Petrochemical Industry
How will you respond to different crude oil recovery trajectories?
Do you need to know the turning points & sign posts to look for as the crude oil market recovers to make better business decisions?
Crude oil prices have been very volatile and will remain so. But as these prices recover to early-2014, the recovery could happen over the short ("V" shape), medium ("U" shape), or long term ("L" shape). Each case reaches a low crude oil price that significantly changes the behavior of the petrochemical industry. Each case examines a different combination of possible oil market supply/demand situations and economic growth trajectories associated with the low crude oil price forecast and its recovery profile. Which companies will be “winners” and “losers” in each recovery situation? This study helps petrochemical companies plan for three different oil price recovery cases, discussing the associated risks and opportunities and addressing these key questions:
- How will the "V", "U" and "L" shape oil price recoveries trigger changes in participant behavior?
- What are the implications for key value chains and major products?
- What regions, value chains, and producers are most affected? What will their reactions be?
- What are the turning points associated with an alternative case?
- What options do industry participants have to mitigate risks associated with low crude oil prices?