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Petchems stocks dive as crude plummets: PCW index
HOUSTON, July 8, 2016 (PCW) –- Petchems companies’ stocks declined this week as crude fell a whopping 6.6% during the same time frame.
The US dollar and other economic indexes, meanwhile, were nearly flat week on week.
The aromatics/refinery sector was the hardest hit with its average stock price down $2.47/share, or 4.22%, to $56.11/share. PBF Energy saw the steepest decline with its stock price losing 8.83% of its value during the week as it took over ExxonMobil’s troubled Torrance refinery in California after the supermajor saw prolonged repairs and fierce local opposition to the southern California refinery’s reopening after a deadly explosion a few years ago.
Overall, however, most refiners looked at weaker gasoline crack spreads, particularly over the past week as the main culprit behind their overall poor stock performance. Several refineries, especially on the East Coast, have reduced production rates as a result of the softer gasoline economics.
The olefins/polyolefins group was next with its average stock price falling $1.16/share, or 1.98%, to $57.63/share. Williams was in the lead with its stock down 5.92% during the week as news broke of several board directors resigning the company after a failed attempt to oust current CEO Alan Armstrong over the termination of the company’s buyout by Energy Transfer. Several institutional investors promptly sold off their Williams stock this week on reports of a possible proxy fight to replace Armstrong as investor confidence in the company’s strategy going forward came into question.
The midstream sector’s average stock price softened by 54 cents/share, or 1.69%, to $31.15/share. Sunoco Logistics led the pack with its stock declining 3.06% during the week after several analysts downgraded their ratings of the company’s stock, resulting in a large outflow of institutional investors’ money.
The vinyls group’s average stock price softened 35 cents/share, or 0.91%, to $37.50/share. Westlake led the pack with its stock price down 2.21% amid light trading activity. -– Samantha Hartke
Midstream: Enterprise Products Partners, Energy Transfer Partners. Targa Resources, Markwest Energy Partners, Sunoco Logistics, Kinder Morgan, Boardwalk Pipeline Partners and Oneok.
Olefins/Polyolefins: Dow Chemical, Dupont, Eastman Chemical, Westlake Chemical, Williams, ExxonMobil, Shell, LyondellBasell, Axiall, Occidental Petroleum.
Aromatics/Refinery: ExxonMobil, Shell, Phillips 66, Tesoro, Valero, Alon USA Energy, Chevron, Marathon Petroleum and PBF Energy.
Vinyls: Westlake, Axiall, Occidental Petroleum, Olin, Ply Gem, Armstrong World Industries, PolyOne.