Lead: US-Iran nuclear negotiations remain deadlocked, pushing international oil prices to four consecutive sessions of gains. WTI breaks above $102/barrel, strengthening cost support for plastic raw materials.
I. Crude Oil Market: Geopolitical Risks Drive Sustained Gains
As of May 12 closing: WTI June 2026 settled at $102.05/barrel (+4.06%); Brent July 2026 settled at $107.60/barrel (+3.38%). US-Iran nuclear talks remain in a deadlock, with Iran oil sanctions risks keeping global supply disruption concerns elevated. WTI has risen for four consecutive trading sessions. Monthly gain stands at 3.00%, with year-on-year surge of 60.28%.
EIA weekly report shows US commercial crude oil inventories unexpectedly fell by 1.5 million barrels last week, below market expectations of a 1 million barrel build, tightening inventories further supporting prices. Meanwhile, OPEC+ maintains its existing production cuts, with Saudi Arabia reiterating voluntary cuts through June, providing floor support for oil prices.
II. Impact on Downstream Plastic Raw Materials
Sustained high crude oil prices have strengthened cost-side support for plastic raw materials markets. Market focus now centers on whether cost increases can be successfully passed through to downstream sectors and whether end-demand can absorb the price pressure.
PVC Paste Resin: Ethylene-based feedstock costs running high support paste resin producers' pricing sentiment. East China large plate mainstream assessment in 6,700-6,800 yuan/ton range. Downstream glove factory orders acceptable, but large plate demand recovery slow. Market game atmosphere relatively concentrated.
TDI Market: Toluene diisocyanate supply stable, but downstream polyurethane demand shows no significant improvement. East China Shanghai-origin TDI quoted at 15,800-16,200 yuan/ton. Market transactions dominated by small rigid orders, merchant sentiment cautious.
Rigid Foam Polyether: Propylene oxide cost support generally flat. Downstream refrigerator and cold chain logistics demand stable. North China 4110 quoted at 9,900-10,500 yuan/ton. Overall market sentiment light.
III. Outlook
Short-term, geopolitical risk premiums remain elevated. Crude oil prices face upward rather than downward pressure, continuing to support plastic raw material costs. However, downstream demand recovery still requires time. Some sub-sectors may continue in a range-bound pattern. Sci99.com will continue tracking market developments.
Source: Sci99.com, TradingEconomics, Bing Finance | Date: May 14, 2026
