# Crude oil and Polyethylene (LDPE, LLDPE)

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

Source page: https://www.materialinsights.org/links/crude-oil-and-polyethylene-ldpe-lldpe/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [Polyethylene (LDPE, LLDPE)](https://www.materialinsights.org/chemicals/polyethylene/) (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.