Lead: International crude oil continued its decline on May 27 as OPEC+ supply management uncertainty weighed on markets. WTI fell 1.64% to $92.35/bbl; Brent dropped 1.30% to $98.29/bbl. Plastic cost support remains weak, with LLDPE and PP sentiment cautious.
I. Crude Oil: Continued Correction
On May 27, WTI crude futures traded at $92.35/bbl, down $1.54 (-1.64%); Brent crude settled at $98.29/bbl, down $1.29 (-1.30%). The decline follows a sharp 7% drop on May 26 driven by US-Iran Rome talks. Today's further weakness reflects uncertainty over OPEC+ production policy and profit-taking.
Key Price Data
| Contract | May 27 Price | Change |
|---|---|---|
| WTI Crude | $92.35/bbl | -1.64% |
| Brent Crude | $98.29/bbl | -1.30% |
| Murban Crude | $95.05/bbl | +2.40% |
| OPEC Basket | $107.37/bbl | -4.46% |
| DME Oman | $95.56/bbl | -5.99% |
Market Drivers
- OPEC+ uncertainty: Volatility in OPEC+ supply signals creating price uncertainty.
- US-Iran talks: Rome negotiations continue; market watching for Hormuz Strait outcome.
- Profit-taking: Sharp May 26 decline triggered technical selling.
II. Plastics Market: Cost Pressure Persists
The continued oil decline extends plastic cost support weakness. LLDPE and PP sentiment remains cautious; downstream buyers adopt a wait-and-see attitude. PVC high inventory pattern has not eased.
III. Outlook
Crude: WTI expected $88-95/bbl range; Brent $94-102/bbl. Key risk: OPEC+ meeting outcome and Iran talks.
Plastics: LLDPE East China 7,800-8,100 yuan/t; PP T30S 7,200-7,500 yuan/t, bias lower.
