According to the news from global energy and chemical industry market information service agency recently, American chemical manufacturers are facing shrinking profits caused by fluctuations in oil and gas prices, while also dealing with issues of tariffs and economic uncertainty.

The key driving factor behind the rise in US gas prices is the surge in demand for liquefied natural gas (LNG) in Europe and the Asia Pacific region. Boosted by robust growth in data center’s power generation demand, natural gas supply in the United States may further tighten. In contrast, due to accelerated supply growth from non-OPEC oil producing countries such as the United States, Brazil, and Guyana, rapid adoption of electric vehicles and slowing economic growth, oil demand is expected to decline and so do oil prices.

It is estimated that the average price of Brent crude oil will decrease by 6.7% in 2025 and another 7.4% in 2026. The average WTI price is expected to fall by 6.7% in 2025 and another 7.9% in 2026. The cost of chemical raw materials in the United States, especially ethane, fluctuates with the rise and fall of gas prices. It is estimated that the average natural gas price in the United States will rise by 66.8% in 2025 and another 3.9% in 2026. The trend of both products will inevitably squeeze the profit margins of American ethylene manufacturers.

However, the demand for ethylene is decreasing. Tariffs have increased the import costs of raw materials used to manufacture catalysts and plastic additives as the European Union and Canada may impose retaliatory tariffs on polyethylene exports from the United States. The CEO of Huntsman Group predicts that the rebound of the US real estate market may be delayed due to uncertainties in tariffs and mortgage rates, and the demand for ethylene in the construction industry will continue to be weak, further exacerbating the instability of the ethylene market.