After OPEC Surprise Cuts, Benzoic Acid Prices Likely to Increase Globally
- 05-May-2023 2:22 PM
- Journalist: Emilia Jackson
Market analysis for Benzoic Acid indicates that during the month of May 2023, the prices are likely to increase globally. The Benzoic Acid market will be in good condition for the entire month of May 2023. Prices for Benzoic Acid are supported by consistent supply and demand dynamics in the domestic market. Upstream Crude Oil prices, which are also projected to benefit the market situation for Benzoic Acid, are the primary forces behind price movement.
The member nations of OPEC+ unexpectedly declared a surprising reduction in oil production, which sharply increased global oil prices, which benefitted the Benzoic Acid market, with a slight increase in its prices.
OPEC+ members Saudi Arabia, Russia, and other major producers of Upstream Crude Oil had announced additional output curbs. Starting in May, OPEC+ will further cut output compared to April by about 1.15 million barrels per day. The pattern of upstream Crude Oil supply exceeding demand has caused the operational range of oil prices to shift upward once more, and the OPEC production reduction plan is expected to reverse this structure. This, in turn, affects the downstream Benzoic Acid market situation globally. Although oil prices may mainly fluctuate upward, downstream consumers may be less tolerant of high oil costs, which could have an effect on how well the demand side operates going forward. The cost of Benzoic Acid is generally rising favorably. Germany has been gradually replacing traditional fuels in the market with less dependable, less abundant renewable energy sources, which has led to higher costs, shortages, and a growing dependence on rival countries like Russia and China.
As per the ChemAnalyst database, it is anticipated that the Benzoic Acid prices will likely increase as the upstream Crude Oil prices are likely to showcase an optimistic trajectory. Also, the continuous increase in the demand from the end-user sector will potentially further influence the Benzoic Acid price trend.
