soaring oil price only drives sales of PFY for a short period

In general, soaring oil price only drives sales of PFY for a short period. High inventory burden remains. Players still hold weak mindset. Downstream business does not show signals to increase temporarily and may even weaken later. By convention, seasonal demand is likely to soften near end-Oct. The change of weather and spread of pandemic should be concerned. If the spread of pandemic is controlled and this year will be a cold winter too, demand may be stimulated to a certain extent. Based on current status, the ease of high inventory burden in PFY companies will depend on the production curtailment when downstream demand is hard to improve. Soaring oil price only slightly defer the progress of production cut for a short period