Ethylene oxide and Natural gas

Natural gas is a raw material for ethylene oxide; their prices have moved together.

Ethylene oxide (chemical) and Natural gas (energy): 2 relationships.

How they are linked

1. Feedstock

Physical flow · Direct · Natural gas → Ethylene oxide

Ethylene oxide is made from natural gas: it is one of the raw materials its production routes start from.

2. Price link: upstream feed

Cost and price · Strong · Both ways

Ethane from gas fields feeds the US and Middle East crackers that make much of the world's ethylene oxide. European gas moves with the proxy at 0.21 monthly and 0.80 yearly.

• 0.21 monthly change correlation
• 0.80 12-month change correlation
• 0.15 fitted elasticity

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