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Article: Feedstock spikes could slow recovery. (Top of the Week).(natural gas, crude oil prices rise)(Brief Article)
- Article from:
- Chemical Week
- Article date:
- April 17, 2002
- Author:
CopyrightCOPYRIGHT 2002 Access Intelligence, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Rapid rises in natural gas and crude oil prices could prolong the industry's earnings slump and delay a recovery in demand, analysts say. Natural gas prices have shot up more than 70% since January, to about $3.10/million Btu, and crude oil prices are up by about 30%, to around $25/bbl. "The effect of these spikes will definitely be negative," says Kevin Swift, senior director/policy, economics and risk analysis at ACC. "It's just a question of the extent."
The higher feedstock costs hit just as producers are starting to achieve price increases as demand picks up. Consumers are also pre-buying in anticipation of the price hikes. "The raw materials price spike ...