Refine Your Response to Fluctuating Crude Oil Costs

By Mitch Lee
August 25, 2015

With the volatility of oil and petroleum-based feedstocks, chemical companies are having to put much more thought into pricing, especially when you compare today’s oil price to levels from a year ago. This is fairly obvious for products that are more on the commodity end of the spectrum, but even specialty chemical producers are facing pressure to lower prices. To claim a seat at the table as a partner in creating value, chemical manufacturers need to better understand their customers’ processes, and their next best alternatives.

As I discussed in a recently-published article in IHS Chemical Week, margin volatility is the new normal. To survive and protect margins and profits, chemical manufacturers must take a tiered, data-driven approach that effectively manages profit despite fluctuating raw material costs. In the battle to retain customers and profitable margins in an ever-changing market, data-based decisions are your best bet.  

Source: Bloomberg WTI

CrudeOil Blog

  • chemicals , costs , crude oil , IHS ChemWeek , oil , petroleum , raw materials , volatility

    Mitch Lee

    Mitch is a Profit Evangelist at Vendavo with 25+ years of experience in the technical, operational, marketing, and commercial arenas of the process industry. Prior to Vendavo, Mitch was with BASF and Orica in product marketing and business management, driving operational optimization, pricing excellence, and margin improvement, as well as personal engagement in high value sales negotiations. Mitch also has deep experience with raw materials supplier portfolio management having negotiated large scale and long-term agreements with global suppliers.