‘Very grim’: Singapore, regional petrochem sector could see more force majeure notices; EDB in contact with players

[SINGAPORE] The escalating conflict in the Middle East has cast a pall on Singapore’s petrochemical sector, with at least three players declaring force majeure in the past week and some analysts expecting that more could follow.

“It is looking very grim for Singapore’s petrochemical sector and the broader economy as the oil supply chain is fractured,” said June Goh, senior oil market analyst at Sparta Commodities.

Oil prices on Monday (Mar 9) surpassed US$100 a barrel – to a four-year high – with the shipping halt in the Strait of Hormuz and continued attacks on the Middle East’s energy infrastructure.