Butadiene and Crude oil

Crude oil is a raw material for butadiene; their prices have moved together.

Butadiene (chemical) and Crude oil (energy): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Butadiene

Butadiene is made from crude oil: it is one of the raw materials its production routes start from.

2. Price link: feedstock cost

Cost and price · Strong · Both ways

Butadiene comes mainly from naphtha cracking, and a shift to lighter ethane feed cuts supply. Oil therefore sets both its cost and its availability; the proxy index correlates with Brent at 0.52 monthly and 0.89 yearly.

• 0.52 monthly change correlation
• 0.89 12-month change correlation
• 0.71 fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.