On December 2nd, international crude oil futures fell. The settlement price of the January WTI crude oil futures contract in the United States was $58.64 per barrel, a decrease of $0.68 or 1.1%. The settlement price of Brent crude oil futures for February was $62.45 per barrel, a decrease of $0.72 or 1.1%.

The settlement prices of WTI and Brent crude oil futures fell by 1.1% respectively, reflecting market concerns about oversupply. Directly affecting the pressure on crude oil spot prices, the recent decline in contracts (such as the WTI January contract) may drive the expansion of spot discounts.

As a direct downstream product of crude oil, the decrease in crude oil costs weakens the support for gasoline prices. Although gasoline futures data is not involved, refinery profits in the spot market may narrow, and prices are prone to decline but difficult to rise in the context of low demand season.

The decline in crude oil prices has lowered the production cost of diesel. Combined with the weakening of winter logistics demand, wholesale prices in the spot market are facing downward pressure. The crack spread between diesel and crude oil may further narrow.

Crude oil is the main raw material for asphalt, and its cost support has weakened. The settlement price of SHFE Asphalt 2601 contract is 2,940 yuan/ton (down 48 yuan per day), and the position has increased by 14,100 lots, reflecting the pressure of short positions to increase their holdings. The current market is under pressure, but the decrease in winter road construction partially offsets the negative impact.

Crude oil is transmitted to PVC through the ethylene chain, which has a negative impact on the cost end but lags behind. The current supply-demand contradiction of PVC dominates the price, and the decline in crude oil only marginally weakens the competitiveness of the calcium carbide process, with limited downward space for spot prices.

The decline in crude oil reduces the cost of pure benzene, indirectly affecting the profit of phenol production. However, phenol spot prices are more constrained by downstream demand for phenolic resins, and short-term fluctuations in crude oil have a neutral impact on prices.

Crude oil affects the cost of acetone through propylene, but the price difference between acetone and CPL is already at a low level. The tight supply in the spot market offsets some of the downward pressure on costs, and it is expected that prices will mainly fluctuate in a narrow range.

The main raw material for liquid ammonia is natural gas rather than crude oil, with weak correlation. The current price is more affected by the winter storage policy of fertilizers and the operating rate of gas head devices, and changes in crude oil have little direct impact on spot prices.

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