MMSA Methanol Notes – 2020-04-21
Negative Crude Benchmarks – Methanol Cost Floors Rise in USGC, Fall in China
The latest challenge for methanol markets comes in the form of record-low and negative US benchmark oil-futures, which settled at USD minus 13.1 per bbl on Monday. The sensational nature of this development will likely not have a big short-term impact on methanol prices. In fact, while spot methanol in the US did not trade physically on Monday, certainly there was no immediate panic (although bids lowered as the day progressed). So far, the balance in the USGC appears to be able to weather this most recent storm. Although longer term consequences will keep methanol demand and affordability even less predictable.