# Butadiene and Crude oil

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

Source page: https://www.materialinsights.org/links/butadiene-and-crude-oil/

[Butadiene](https://www.materialinsights.org/chemicals/butadiene/) (chemical) and [Crude oil](https://www.materialinsights.org/energy/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.