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17 Jun 2025
Middle East Tensions Drive Oil Surge, Xylene Breaks Through 6,000 Yuan
Keywords
Recent escalating tensions in the Middle East, particularly the outbreak of the Iran-Israel conflict, have sharply heightened regional security risks, casting uncertainty over oil production and crude transportation in the area. This has fueled market fears of a global oil supply shortage and the potential for a renewed international energy crisis.
The geopolitical crisis coincides with multiple converging factors:
- Breakthroughs in U.S.-China trade talks, with new agreements on energy trade.
- A larger-than-expected 12.5 million-barrel drop in U.S. commercial crude inventories (per EIA data).
- OPEC+ maintaining its production cuts.
These factors have collectively driven a sharp rally in international oil prices. On June 12, WTI crude futures closed at $85.67/barrel, up 7.54% for the week, while Brent crude surpassed $90/barrel to settle at $89.23, marking its strongest weekly gain since November 2023.
Amid the Middle East turmoil, energy and petrochemical commodities have surged. With rising feedstock costs, products like toluene and xylene have maintained a bullish trend.
Xylene Prices Soar Past 6,000 Yuan/ton
China's xylene market has rallied further on soaring crude, with mainstream prices breaking the 6,000 yuan/ton threshold. Key regional performances:
- Shandong: Refineries posted 3% daily gains, with prices reaching 6,000–6,100 yuan/ton.
- East China: 6,100–6,150 yuan/ton.
- South China: 6,200–6,300 yuan/ton, up 600–800 yuan/ton since early May.
Price Adjustments by Major Refiners
- Sinopec (Huazhong branch): June list prices raised 50 yuan/ton; Zhonghan Petrochemical and Changling Petrochemical at 6,100 yuan/ton; Henan refineries at 6,050 yuan/ton.
- CNPC (South China branch): Dongguan prices up 200 yuan/ton to 6,300 yuan/ton; Maoming up 200 yuan/ton to 6,200 yuan/ton.
- Hubei Jin'ao: +50 yuan/ton to 6,190 yuan/ton.
- Bora Petrochemical: Toluene up 270 yuan/ton to 6,250 yuan/ton.
- Hebei Xinhai Petroleum: Mixed xylene +250 yuan/ton to 6,130 yuan/ton.
- Oriental Hualong: Xylene +220 yuan/ton to 6,100 yuan/ton.
Market Outlook
With crude prices holding firm and xylene inventories in China at low levels, bullish sentiment dominates. Further upside is likely if oil strengthens. Short-term factors to watch: refinery run rates, port arrivals, and downstream demand. Xylene markets are expected to remain robust.
Disclaimer: Blooming reserves the right of final explanation and
revision for all the information.