# Crude oil and Pharma starting materials and intermediates

Crude oil is a raw material for pharma starting materials and intermediates; their prices have moved together.

Source page: https://www.materialinsights.org/links/crude-oil-and-pharma-starting-materials-and-intermediates/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [Pharma starting materials and intermediates](https://www.materialinsights.org/chemicals/ksm_intermediates/) (chemical): 2 relationships.

## How they are linked

### 1. Feedstock

*Physical flow · Direct · Crude oil → Pharma starting materials and intermediates*

Pharma starting materials and intermediates is made from crude oil: it is one of the raw materials its production routes start from.

### 2. Price link: distant feedstock

*Cost and price · Weak · Both ways*

Oil sets the cost of the base aromatics and olefins that intermediates start from. Monthly moves correlate at 0.07 and yearly at -0.11, little link because Chinese supply shocks, not oil, drive intermediate prices.

- **0.07** monthly change correlation
- **-0.11** 12-month change correlation
- **0.01** fitted elasticity

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