Instability in Petroleum Pricing: Impact on Glycol
Market Developer - Dow Glycol Heat Transfer Fluids
Oil prices are on the move! It is difficult to predict or anticipate changes in crude oil supply and pricing, but large swings upstream can drastically affect the consumer experience. Recent geopolitical events have elevated this period of ambiguity and the price point of petroleum and oil derived products.
End users of petroleum based products have grown accustomed to consistent supply chains and pricing for Dowfrost and Dowtherm, the introduction of a risk premium on the price of oil poses both a threat and an opportunity for current stocking strategies for you and your team.
Dow® Chemical is backwards integrated in the production of propylene and ethylene feedstocks. This means that Dow® will be able to continue to offer the most consistent product at the most consistent price for the longest period of time. Now might be the right time to review your current budgets and ensure all 2020 needs for glycol transfer fluids are sourced.
Dowfrost™ and Dowtherm™ functionally do not expire so long as they are sealed in the drum. Supply for this product is typically tight when demand surges as macro events cause end users without an adequate stocking strategy to scramble for material. While a leak or top-off may not always be immediately imminent, known volume requirments might be prudently sourced before such events impact the pricing of petroleum derived products like Dowfrost™ and Dowtherm™ glycols. Existing quotes are still being honored, take action now and give me a call!