XLE & Oil

China's Petrochemicals Glut Turns to Crunch

Rigzone·Oct 22, 2026 · 3:00 PM CT
Read the original at Rigzone
Readthrough summary

Rigzone reports that China's oversupply of petrochemicals is turning into a shortage.

Iranian crude, favored by some Chinese private producers, has dried up because of the U.S. blockade, Gulf naphtha exports remain constrained, and Beijing has prioritized gasoline and diesel. Refiners have drawn on petrochemical stockpiles built before the war.

The tightness is most acute in the aromatics chain and its downstream products, including rubber for tires and electrical insulation, resins, plastic bottles, paints and coatings. "Right now, inventory levels are basically near the bottom," said Parsley Ong, head of Asia energy and chemicals research at JPMorgan.

Summary written by Readthrough from the original article. The full story, with photos and any updates, is at Rigzone.

Read the original at Rigzone

More XLE & Oil

Rigzone·

Oil Surges 4% After Deadly Saudi Attacks

Brent crude jumped 4% to settle near $113 a barrel and WTI closed above $99 after deadly attacks in Saudi Arabia, Rigzone reports. A drone strike on Saudi Aramco's Shaybah field killed two people but left operations unaffected, there were casualties in an attack on Dammam's airport, and Yemen's Houthis claimed strikes on the port of Yanbu.

DOE News·

Energy Department Announces Over $125 Million for 63 Projects Across 16 States to Lower Energy Costs, Expand Electricity Access, and Advance Economic Development for America’s Tribal Communities

The U.S. Department of Energy announced more than $125 million for 63 tribe-led projects in 16 states, including Alaska, the largest single investment in the history of its Office of Indian Energy. The 61 tribal entities selected for award negotiations will use the money to cut electricity costs, expand access and support economic development.

Oil & Gas 360·

Citi sees continued oil price risk as tanker costs climb

Citi says oil prices remain vulnerable to further gains even though Gulf crude exports excluding Iran recovered to more than 81% of prewar levels in September, because shipping is so expensive. Very large crude carrier rates from the Gulf to China approached $250 a metric ton, about $35 a barrel and more than 20 times the past decade's average.

EIA Today in Energy·

U.S. refineries have been running at very high rates in 2026

U.S. refineries ran at more than 95% of capacity on average from May through September, the highest for those months since 1998, the EIA says. Tight global diesel supplies and strong margins drove the high runs and heavy exports, and utilization stayed above the five-year seasonal average in early October.