“So what about the 2nd question? Here, markets have already given their answer, pushing the price of crude oil above $87/bbl. Their concern is that QE2 will weaken the $US, and so they see commodities as a ‘store of value’. This cannot be good for the chemical industry. Rising oil prices will encourage inventory-build, just as we saw in 2007 - H1 2008, and 1979 - 1980. They will also reduce discretionary purchasing power, vital for chemical consumption, as consumers still have to purchase gasoline and heating fuel, even if prices rise.”
