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NGLs Week

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Petchems stocks take another battering on crude’s collapse: PCW index

HOUSTON, December 11, 2015 (PCW) -– Petchems companies’ stocks took another tumble as crude’s collapse held sway even as other major economic indicators held relatively steady over the week.

WTI and Brent crude both settled below the critical $40/bbl mark Thursday as OPEC refused to curtail production. Other commodities, such as natural gas liquids fell in crude’s wake.

The vinyls sector saw the biggest hit with its average stock price down $3.74, or 9.44%, to $35.91/share during the week. This was led by Axiall’s 16.41% stock price drop as the company received a ‘sell’ rating from several analysts.

The midstream sector was next as its average stock price fell $1.86, or 7.95%, to $21.54/share. Oneok led the pack as the company’s stock saw an uptick in short interest early in the week. Further gains were stemmed by some insider buying, some media outlets reported.

The aromatics/refinery sector was next with its average stock price down $4.49, or 6.48%, to $64.70/share. This was led by Shell’s 2.97% stock price drop-off, which brought the oil supermajor’s shares down to a 52-week low this week. Analysts attributed the collapse to the impending acquisition of BG Group, which would greatly increase Shell’s debt amid continued weakness in crude.

Meanwhile, the olefins/polyolefins sector saw the slightest losses with the average stock price down $2.62, or 4.07%, to $61.65/share. Losses were stemmed by gains in Dupont and Dow Chemical’s stock prices as the two companies were reportedly in advanced talks to merge. This has led to extremely heavy buying of the two firms’ stock. – Samantha Hartke

*Index components:

Weekly Stock Price Index
  This Week Last Week Difference % Difference
Midstream Average 21.54 23.40 -1.86 -7.95
Olefins/Polyolefins Average 61.65 64.27 -2.62 -4.07
Aros/Refinery Average 64.70 69.19 -4.49 -6.48
Vinyls Average 35.91 39.65 -3.74 -9.44
Major Economic Indicators
  This Week Last Week Difference % Difference
EUR/USD 1.09 1.09 0.00 0.07
Dow Jones Indices 17574.75 17477.67 97.08 0.56
S&P 500 2052.25 2049.62 2.63 0.13
WTI crude 36.76 41.08 -4.32 -10.52