| WTI Crude | $40.05/bbl | +8.3% |
| Brent Crude | $40.93/bbl | +7.5% |
| HH Nat Gas | $2.63/MMBtu | -1.5% |
| MB Propane | $0.56/gal | +0.4% |
| 3:2:1 Crack | $8.95/bbl | -3.8% |
The ACC makes its statement on the election
The industry trade organization for US-based chemical companies, the American Chemistry Council (ACC), has issued a statement in response to the results of the 2020 Presidential election results.
What did they say?
Sticking mainly to quotes here, with the aspiration of keeping this opinion free, the ACC congratulated the new President-elect and said that it's "ready to constructively engage with the White House" to help produce the solutions that "will better serve all Americans – one that is safer, healthier, stronger, and more sustainable.".
What that means:
The ACC emphasized the importance of natural gas in the fight against COVID-19 (referencing masks, face shields, disinfectants, and sanitizers). The organization made it clear that "the vitality of [the] industry and its ability to produce these life-saving materials means maintaining access to our country’s vast shale gas resources.".
Read the full statement here.
Mitsubishi chooses to shut down its site in Beaumont
Japanese-based chemical company, Mitsubishi Chemical Corporation (MCC), has announced that it will be permanently closing its methyl methacrylate (MMA) monomer and methacrylic acid (MAA) production site in Beaumont, TX.
Why did they do it?
The company reasoned that the decision would "boost competitiveness and optimize its supply chain in keeping with demand and supply trends for raw materials". The decision factored in an approximately $230 million impairment loss on the facility (if you want to understand what that means try checking this out).
What were they making?
The nearly 200 employees at the site helped to produce about 135,000 tons of MMA and MAA per year. MMA is a raw material "for acrylic resins used in vehicle lamp covers, signs, aquarium tanks, construction materials, [and] paints", and MAA is a raw material "for paints, adhesives, synthetic rubber" and much more.
Read the press release here.
Shell forced to shut down its Louisiana refinery
Dutch-based oil major, Shell, has announced that it will be shutting down its refinery in Convent, Louisiana.
Why shut it down?
Just last week we saw that Shell was planning on reducing its refining portfolio to just six sites globally. Shell, for the sake of its employees and balance sheet, hoped that it would be able to divest the site before being forced to shut it down. Unfortunately, the company was unable to find a buyer for the site after announcing plans to sell it back in July.
Bigger picture:
This is the 9th refinery in the US alone that will be shut down due to the impact of COVID-19. It's expensive to start up a mothballed plant which means that if/when the plant is sold it will be sold for a low price (think of it like buying a fixer-upper).
Read more here on Reuters.