Oil Prices Continue To Rise, Plastic Futures In The Red

I. Overnight Crude Oil Market Dynamics

April 28: Prospects for U.S.-Iran negotiations remain unclear, with shipping through the Strait of Hormuz continuing to face disruptions, driving international oil prices higher. NYMEX WTI crude futures for June delivery rose $3.56 to $99.93 per barrel, up 3.69% sequentially; ICE Brent crude futures for June delivery increased $3.03 to $111.26 per barrel, up 2.80% sequentially. China's INE crude futures for June 2026 delivery rose 12.2 yuan to 659.6 yuan per barrel, and rose a further 8.8 yuan to 668.4 yuan per barrel in the night session.

Market Outlook

Crude oil prices started to surge on Tuesday during the Asian and European sessions, with WTI crude easily climbing above the $100 per barrel mark, while Brent crude near-term contracts broke through $110. Overall bullish sentiment continued to rise. With the U.S.-Iran negotiations hitting a deadlock, the prolonged blockade of the Strait of Hormuz has fueled concerns over supply disruptions.

II. Macroeconomic Market Dynamics

1、The United States prohibits its individuals or entities from paying the Strait of Hormuz transit fee to Iran.Non-U.S. individuals or entities paying the Strait of Hormuz security toll to Iran also face significant sanction risks.

According to CNN:Sources say Iran is expected to soon submit a revised peace proposal.。

3、Trump: Iran hopes the US will open the Strait of Hormuz as soon as possible。

4. U.S. Energy Secretary: The Strait of Hormuz can be reopened without clearing all mines. The U.S. is not considering imposing an export ban on American energy products.

U.S. Secretary of State Rubio: There is no evidence to suggest that Iran's Supreme Leader Mojtaba Khamenei has died.

6. Iranian military: Does not believe the war has ended, military forces' objectives and equipment have been updated.

The commander of the Islamic Revolutionary Guard Corps Navy stated that Iran has achieved absolute control over the Strait of Hormuz and has demanded that passing ships pay a toll.

8、The UAE announced it will withdraw from OPEC and the OPEC+ mechanism effective May 1.。

9. The Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and economic work.

III. Plastic Market Dynamics

Oil prices continue to rise, cost support remains strong, overnight plastic futures main contract is all red.

Plastic quoted at 8408 yuan/ton, up 1.51% from the previous trading day.

PP quoted at RMB 8,738 per ton, up 1.25% from the previous trading day.

PVC is quoted at RMB 5,281 per ton, up 0.57% from the previous trading day.

Styrene price: 9,966 RMB/ton, up 1.49% from the previous trading day.

IV. Today's Market Forecast

PE: From a short-term fundamental perspective, inventory has continued to accumulate during the holiday period, leading to a rise in industry stock levels. Consequently, supply pressure in the market is gradually intensifying, exerting noticeable downward pressure on spot prices. Overall, the short-term PE market lacks sustained upward momentum, and the market is expected to remain stable with a slightly weakening trend.

PP: Short-term energy supply constraints are difficult to alleviate, with crude oil prices remaining high, supporting elevated costs. Some producers are under pressure on profitability, leading to a contraction in market supply and a reduction in spot market liquidity. However, downstream users are resistant to high raw material prices, causing market trading focus to shift from sentiment-driven to fundamentals-based negotiations. Today’s East China homopolymer polypropylene (PP) filament-grade price is expected to range from RMB 9,150 to 9,300 per ton.