A new year heralds higher oil prices and fresh calls for price increases, which are likely to be influenced by a recent fall in the value of the GBP following a strong rally at the end of 2016.
On the back of the December OPEC deal, the price of crude oil has continued to gain momentum. Rumours of curbing production in non-OPEC regions is helping prices to remain buoyant, and Naphtha prices have also reflected this increase.
With a subsequent uplift in C2 and C3 prices, there will be a strong desire to increase PP and PE pricing so that producers can maintain margins.
Following the rally in the value of GBP versus the Euro, which started at the beginning of December, recent uncertainty about the implications of BREXIT has reversed the trend and the Pound has fallen significantly in recent days.
This situation will inevitably create price inflation due to prices typically being Euro or USD denominated.
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