Crude oil and Paints and coatings

Crude oil is a raw material for paints and coatings; their prices have moved together.

Crude oil (energy) and Paints and coatings (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Paints and coatings

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

2. Price link: ultimate feedstock

Cost and price · Weak · Both ways

Solvents, resins and many additives come from oil, but paint prices are sticky and set by brand owners. Monthly moves correlate at -0.01 and yearly at 0.26, so oil swings show up only slowly and partially in the paint index.

• -0.01 monthly change correlation
• 0.26 12-month change correlation
• 0.06 fitted elasticity

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