Crude oil and Polyethylene (LDPE, LLDPE)

Crude oil is a raw material for polyethylene (LDPE, LLDPE); their prices have moved together.

Crude oil (energy) and Polyethylene (LDPE, LLDPE) (chemical): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Crude oil → Polyethylene (LDPE, LLDPE)

Polyethylene (LDPE, LLDPE) 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-based crackers in Asia and Europe tie polyethylene costs to oil. Brent moves with the resin proxy at 0.24 monthly and 0.72 yearly, as resin margins swing with supply waves.

• 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.