Price Wise: Higher resin prices here we come


As exhaustive evidence shows, crude oil prices drive resins prices. U.S. plastics processors have been lucky in the last year or so that WTI crude oil prices have been suppressed by a supply glut at Cushing, OK. But the party's over -

Oil Pipeline Reversal Pushes Up Prices
Wall St. Journal, 17 Nov 2011

The sale of an oil pipeline running from Oklahoma to Texas upended U.S. energy markets, sending the price of crude surging above $100 a barrel. Enbridge Inc.-which bought a 50% stake in the Seaway Pipeline-announced it would reverse the direction of the flow, allowing more crude to move south from oil storage in Cushing, Okla., into the world's largest refinery complex along the Gulf Coast.

Over the past two years, the U.S. has started producing so much oil that existing pipelines have been unable to move it to refineries. That has led to a glut of oil in the center of the country, keeping the price of American crude far below that of petroleum traded overseas....
Read more