An upsurge of crude oil prices by 50% previous year was appreciated by oil corporations, but generated anxiety among the large industry giants in various sectors. The concerns that US President Donald Trump will terminate the agreement on the Iranian nuclear program have led to a rise in crude oil prices above 70 USD per barrel last week for the first time since the end of 2014. Wall Street has already anticipated higher profits for companies like ExxonMobil, Chevron and Continental Resources.
But the high oil prices and the price of 3 USD per gallon of gasoline (3.8 litres) in the US will be taken with concern not only by American drivers but also by managers of large companies such as Hershey and Sherwin-Williams. The same applies to some companies in the chemical industry, food packaging, retail and transport.
The manufacturers of chemicals are particularly vulnerable because they use crude oil as the main ingredient. At least half of the costs of companies such as PolyOne, Univar and KMG Chemicals are related to oil and derivatives.
Eastman Chemical, Huntsman and the giant in the paint industry Sherwin-Williams also spend much on oil. Costs of raw materials “are heading in the wrong direction”, says company chief financial officer Allen Mistysyn.
Oil is a big expense for Goodyear Tire & Rubber as well as for automotive parts such as AutoZone, Advance Auto Parts and Adient.
The consumer goods companies also watch with concern the rising prices of raw materials, especially crude oil. The oil and petroleum products account for at least 18% of the costs of Hershey, Estee Lauder, Clorox, Mondelez and Church & Dwight. Among the other consumer goods, companies that spend considerable money on oil are 3M, Haagen-Dazs, General Mills and JM Smucker. Some of the executives of these companies have warned recently that they are already struggling because of the higher cost of raw materials, especially steel and aluminium, which have become more expensive after President Trump’s duties.
An upsurge of crude oil prices by 50% previous year was appreciated by oil corporations, but generated anxiety among the large industry giants in various sectors. The concerns that US President Donald Trump will terminate the agreement on the Iranian nuclear program have led to a rise in crude oil prices above 70 USD per barrel last week for the first time since the end of 2014. Wall Street has already anticipated higher profits for companies like ExxonMobil, Chevron and Continental Resources.
But the high oil prices and the price of 3 USD per gallon of gasoline (3.8 litres) in the US will be taken with concern not only by American drivers but also by managers of large companies such as Hershey and Sherwin-Williams. The same applies to some companies in the chemical industry, food packaging, retail and transport.
The manufacturers of chemicals are particularly vulnerable because they use crude oil as the main ingredient. At least half of the costs of companies such as PolyOne, Univar and KMG Chemicals are related to oil and derivatives.
Eastman Chemical, Huntsman and the giant in the paint industry Sherwin-Williams also spend much on oil. Costs of raw materials “are heading in the wrong direction”, says company chief financial officer Allen Mistysyn.
Oil is a big expense for Goodyear Tire & Rubber as well as for automotive parts such as AutoZone, Advance Auto Parts and Adient.
The consumer goods companies also watch with concern the rising prices of raw materials, especially crude oil. The oil and petroleum products account for at least 18% of the costs of Hershey, Estee Lauder, Clorox, Mondelez and Church & Dwight. Among the other consumer goods, companies that spend considerable money on oil are 3M, Haagen-Dazs, General Mills and JM Smucker. Some of the executives of these companies have warned recently that they are already struggling because of the higher cost of raw materials, especially steel and aluminium, which have become more expensive after President Trump’s duties.
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