Why is methanol associated with crude oil?
Although coal is the main raw material of methanol in China, domestic technology can use methanol to produce olefins, which is the downstream with the largest consumption of methanol. Internationally, crude oil is also mainly used to produce olefins, so there is a certain correlation between crude oil and methanol downstream. When the price of crude oil is too high, the market will turn to methanol, thus increasing the price of methanol. When the price of crude oil falls, the market will use crude oil as raw material to produce olefins, which will reduce the use of methanol and reduce methanol.
At present, the consumption of methanol to olefins has exceeded 45%, and most of them are large-scale devices. One start and one stop can affect the overall supply and demand pattern of methanol and have a decisive impact on the methanol market.
The above is the correlation between methanol futures and crude oil futures, and I hope it will help everyone.