# Crude oil and High-density polyethylene

Crude oil is a raw material for high-density polyethylene; their prices have moved together.

Source page: https://www.materialinsights.org/links/crude-oil-and-high-density-polyethylene/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [High-density polyethylene](https://www.materialinsights.org/chemicals/hdpe/) (chemical): 2 relationships.

## How they are linked

### 1. Feedstock

*Physical flow · Direct · Crude oil → High-density polyethylene*

High-density polyethylene 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*

Naphtha crackers in Asia and Europe tie HDPE costs to crude, and oil-to-gas spreads decide who is the marginal producer. Brent moves with the resin proxy at 0.24 monthly and 0.72 yearly.

- **0.24** monthly change correlation
- **0.72** 12-month change correlation
- **0.18** fitted elasticity

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