Crude Oil Plummets This Week, Plastic Raw Materials Remain Weak
Market Review — May 23, 2026
International crude oil prices experienced significant volatility this week. WTI crude oil fell 8.4% cumulatively, while Brent crude dropped 5.2%. As of May 23 settlement, WTI July contract closed at $96.60/barrel, and Brent July contract at $103.54/barrel.
Crude Oil Market: US-Iran Negotiation Progress Pressures Prices
On May 22, US Secretary of State Rubio stated at the NATO foreign ministers' meeting in Sweden that US-Iran negotiations have made "some progress," though the fundamental US position remains unchanged — "Iran must never have nuclear weapons." This news, combined with expectations of geopolitical de-escalation, drove WTI crude down to touch $99/barrel intraday before falling further to around $95. China's SC crude futures main contract also dropped 3.16% to 635.3 CNY/barrel.
PVC Market: Weak Supply and Demand, Stable but Soft
Impacted by both falling crude costs and sluggish demand, the PVC market remains weak. Futures: PVC main contract at 4,931 CNY/ton, down over 1.3% for the week. Spot: Carbide-based SG-5 PVC ranges 4,800-4,910 CNY/ton, with prices in Changzhou and Ningbo continuing to decline.
On the supply side, more PVC producers are entering maintenance, easing supply pressure. Downstream operations have recovered to normal levels, but incremental demand remains limited. The market shows a dual-weak pattern, and PVC prices are expected to remain soft but stable in the near term.
Market Outlook
Crude oil faces further downside pressure from US-Iran negotiations and macro sentiment. Plastic raw materials see weakened cost support, but maintenance season supply cuts provide some floor. Short-term outlook: range-bound with a soft bias, monitoring crude oil movements and domestic demand recovery.
