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Market Chatter: Oil Industry Streamlining, Middle East Crisis Boosts Petrochemical Outlook, Indorama Says

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Thailand's Indorama Ventures says the Middle East conflict has shrunk global petrochemicals glut that had squeezed industry profits and prompted the closure of some refining capacity, its chief told Bloomberg in an interview published on Friday.

Chief Executive Officer Aloke Lohia expects strong market momentum for the rest of 2026 with no end in sight to the US-Iran conflict, a scenario that has kept crude oil and natural gas prices elevated since fighting began on Feb. 28.

There will also be upside for petrochemical producers from a wave of closures and consolidation in the industry that has culled what Lohia described as overcapacity.

Indorama is looking for the first time at production in the Middle East, as competition slackens and creations opportunities, though he did not specify a country, the Bloomberg article said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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