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NGLs Week

NGLs Week Newsletter  

PetroChem Wire and Genscape have partnered to create NGLs Week, a comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.

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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

*Index components:

Weekly Stock Price Index
  This Week Last Week Difference % Difference
Midstream Average 31.15 31.69 -0.54 -1.69
Olefins/Polyolefins Average 57.63 58.79 -1.16 -1.98
Aros/Refinery Average 56.11 58.59 -2.47 -4.22
Vinyls Average 37.50 37.84 -0.35 -0.91
Major Economic Indicators
  This Week Last Week Difference % Difference
EUR/USD 1.11 1.11 0.00 -0.31
Dow Jones Indices 17895.88 17929.99 -34.11 -0.19
S&P 500 2097.90 2098.86 -0.96 -0.05
WTI crude 45.14 48.33 -3.19 -6.60