09/07/2026
Oil jumped 5% this week. Chemical prices are falling. Both are telling you the same thing.
Since February, the conflict at the Strait of Hormuz — a waterway that normally carries ~25% of the world's seaborne oil — has taken Brent on a wild ride: $61 in January, a $117 peak in April, back to $85 in June, and up again to $78 this week as attacks on ships resumed.
Meanwhile, Chinese chemical producers are cutting prices. Lower oil costs plus a low-demand quarter — on paper, a buyer's market.
But here's what 2026 has taught all of us in this industry: the window can close overnight.
My advice to customers right now:
Don't try to time the bottom. The same headlines that gave you today's discount can take it away in a week.
Hold your own safety inventory — 4 to 8 weeks on critical materials. In a supply shock, availability disappears before price even reacts.
Buy regularly, not in one big bet. Steady, scheduled orders average your cost through volatility and keep your allocation secure when supply tightens.
Use this quiet quarter to top up. Soft prices are exactly when smart buyers build stock — not after Brent crosses $100 again.
In a world where war and oil prices can't be predicted, supply security beats price timing. Every time.
How is your team managing procurement through this volatility? I'd like to hear your approach.
