US economy grows nearly 5pc in 3Q

Market: Chemicals, Coal, Crude oil, Electricity, LPG, Metals, Natural gas, Oil products, Petrochemicals
26/10/23

The US economy grew at a stronger-than-expected 4.9pc annual rate in the third quarter, the fastest pace since late 2021, as consumers boosted spending into the summer.

Economic growth accelerated from a 2.1pc pace in the second quarter, according to the advance estimate from the Bureau of Economic Analysis. Consumer spending rose at a 4pc rate in the third quarter, up from 0.8pc growth in the second quarter. Spending on goods was up 4.8pc and spending on services rose by 3.6pc.

The stronger-than-expected growth came on the heels of ongoing robust employment and wage gains, in the face of slowing but still high inflation and rising borrowing costs that could still undermine growth and financial markets. Risks of a possible federal government shutdown in November and mounting global tensions, together with rising energy prices, could also stymie growth.

Private investment, which includes private inventories, rose at an 8.4pc rate, with residential investment up by 3.9pc. Government spending rose by 6.4pc. Exports rose by 6.2pc and imports rose by 5.7pc, essentially cancelling each other out since imports subtract from GDP calculations.

By Robert Willis

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08/05/25

Chemicals, polymers part of EU tariff consultation

London, 8 May (Argus) — Polymer and chemical products are included in a European Commission public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The consultation will remain open until 10 June, after which a final proposal will be made for the adoption of countermeasures and a legal act prepared for imposing them "in case negotiations with the US do not produce a satisfactory result". The list of additional products that could face import tariffs includes many polymers and some chemicals, although appears to target value more than volume. These additions include polypropylene homopolymer and copolymers (HS codes 39021000, 39023000), although these account for a relatively small volume of trade, at 114,000t in 2024, according to GTT data. Other polymer codes on the consultation list include some polystyrene, polyvinyl chloride, acrylonitrile butadiene styrene and polyethylene terephthalate products. Isocyanates and some polyurethanes are part of the consultation. Imports of acetic acid, a methanol derivative were included. EU 27 imports from the US in 2024 were 540,000t. Liquid caustic soda has been included. The EU 27 countries imported 540,000t in 2024. Benzene and xylenes have been included, but only under distinct "non-chemically defined" HS codes (27071000 and 27073000) and for which volumes are small. The European Union on 9 April announced a 90-day delay to a series of planned countermeasures specific to US tariffs on metals to allow space for negotiations. These are separate from the new consultation and remain poised to go ahead if negotiations fail. They included a 25pc tariff on imports from the US of polyethylene under codes representing nearly 1mnt of imports in 2024. By Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Permian output could plateau sooner: Occidental CEO

08/05/25

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08/05/25

Permian output could plateau sooner: Occidental CEO

New York, 8 May (Argus) — Oil production from the Permian basin could plateau sooner than expected if operators keep talking about reducing activity levels in the wake of lower oil prices, warned the chief executive of Occidental Petroleum. Vicki Hollub said she previously expected to see Permian output growing through 2027, with overall US production growth peaking by the end of the decade. "It's looking like with the current headwinds, or at least volatility and uncertainty around pricing and the economy, and recessions and all of that, it's looking like that peak could come sooner," Hollub told analysts today after posting first quarter results. "So I'm thinking right now the Permian, if it grows at all through the rest of the year, it's going to be very little." Occidental is reducing the midpoint of its annual capital spending guidance for 2025 by $200mn on the back of further efficiency gains. The US independent also plans to trim domestic operating costs by $150mn. "We continue to rapidly advance towards our debt reduction goals, and we believe our deep, diverse portfolio of high-quality assets positions us for success in any market environment," Hollub said. Occidental closed asset sales of $1.3bn in the first quarter and has repaid $2.3bn in debt so far in 2025. Occidental produced 1.4mn b/d of oil equivalent (boe/d) in the first quarter compared with nearly 1.2mn boe/d in the same period of last year. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US seeks flexibility from Europe to help LNG deals

08/05/25

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08/05/25

US seeks flexibility from Europe to help LNG deals

Washington, 8 May (Argus) — President Donald Trump's administration is pressing European countries to offer flexibility on standards for methane emissions as a way to ease the pathway for them to sign long-term purchase agreements for US LNG. Trump has pushed for countries to commit to buying more US LNG as a way to avoid steep tariffs he has threatened to impose on countries that have trade imbalances with the US. But a looming requirement for European importers to show "equivalence" to EU methane monitoring requirements for newly signed gas supply contracts could pose an obstacle for US LNG, based on differences in how methane emissions are tracked. The administration's "ask" is for the EU to ensure that its methane-related measurement, reporting and verification (MRV) methodologies do not pose a barrier to US LNG, US acting assistant secretary of state for energy resources Laura Lochman said today. US LNG terminals have struggled to show equivalency to the MRV rules because, unlike many global LNG projects, they source their gas from pipelines connected to multiple fields. "Give time for industry to work through some of those traceability issues as well, because it would take a few years to be able to get to that point and work out the equivalency methodology," Lochman said at an event with European officials organized by the industry group LNG Allies. European officials indicated they are receptive to finding a solution, as they work to end purchases of Russian gas by the end of 2027. But they say they want to continue to see reductions in emissions of methane, which is a potent greenhouse gas. Trump has already started rolling back restrictions on methane emissions. "We understand you've got a different supply chain, as opposed to us, and that it's important to have it worked out so that any difficulties are taken away from American companies with those regulations," Netherlands ambassador to the US Birgitta Tazelaar said at the event. "Of course it's very important for the Netherlands and Europe that methane be reduced." US LNG developers are likewise pushing Europe to consider pushing back a goal to largely phase out natural gas consumption by 2040. That deadline could complicate the traditional financing model for new LNG terminals typically premised on signing 20-year supply deals, said Kimmeridge managing partner Ben Dell, whose company is building the proposed 9.5mn metric tonne/yr Commonwealth LNG project in Louisiana. "The one thing I would ask is for European members in this room to think beyond 2040," Dell said. "Ultimately extending that runway allows a lower-cost project financing and ultimately a lower cost delivery into the European market." A potential trade deal between the US and the EU could create an opportunity to grant equivalency to US LNG exports to avoid barriers from the EU methane regulation, LNG Allies president Fred Hutchison said today. The US in turn could reclassify the EU as having a free trade agreement for gas, which would expedite US LNG export licensing, Hutchison said. The Trump administration sees the potential for European contracts to lead proposed US LNG export terminals to reach final investment decisions (FIDs). The administration has already been "very clear" about its goal to increase LNG exports and cut regulations facing the natural gas sector, the State Department's Lochman said. "When you put together the push from the US side to support, and then the demand signals on the European side, you can get more projects making it to FID," Lochman said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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HSFO defies the green tide

08/05/25

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08/05/25

HSFO defies the green tide

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Shell to buy Freepoint pyrolysis oil in US: Update

08/05/25

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08/05/25

Shell to buy Freepoint pyrolysis oil in US: Update

Adds Freepoint comment in second paragraph Houston, 8 May (Argus) — Freepoint Eco-Systems has agreed to provide Shell's polymer plant in Pennsylvania with "a steady supply" of pyrolysis oil produced in Hebron, Ohio, from chemically recycled plastic waste. Under the "landmark agreement", oil will be shipped to Shell's polymer plant in Monaca, Pennsylvania, where it will be used to make plastic, the company said. Shell under the deal is entitled to the Hebron plant's production capacity of 130mn lb/yr, Freepoint said Thursday. Freepoint's Hebron plant is still in its commissioning phase, but the company expects to produce up to its full capacity of pyrolysis oil upon completion later this year. Pyrolysis uses high heat to break down waste plastic into feedstocks that can be used to make virgin-like plastic material. Shell said the agreement reflected its commitment to increasing the circularity of plastics in its portfolio. On 22 April, Freepoint sent its first railcar of pyrolysis oil to Shell's plant in Norco, Louisiana. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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