Petrochemical margins will improve in 2003 based on new forecast method

Paul BjacekSRI ConsultingHouston A new forecasting methodology differs from the conventional belief that operating rates are important indicators in petrochemical margin forecasts. This new method predicts that petrochemical margins will improve in 2003.SRI Consulting Inc. (SRIC) believes that product price movements are primarily related to a combination of changes in feedstock costs and market conditions. Price variability typically depends on cost swings, such as changes in the price of oil and gas.The price movement increment most important to producers—margin—depends more purely on market conditions; specifically supply and demand. Our latest analyses use this theory.An ...

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