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Saudi petrochemical producers face a perfect storm of low demand, falling prices and higher feedstock cost
Saudi Arabia's petrochemical producers are staring at a few more quarters of squeezed margins as higher feedstock prices, lower product prices, and a supply glut have combined to brew a perfect storm for the industry. With the global economy expected to slow in 2024, the demand for petrochemicals could remain depressed, putting pressure on companies. "Demand for commodity chemicals is very closely related to GDP and with global growth expected at less than 2%, so that's not a great starting point for demand recovery," Oliver Connor, Vice President, Natural Resources & Climate Energy Technology at Citigroup ... (full story)