Petrochemical Prices Poised for Short-Term Upswing in 2026 Amid Structural Oversupply

Petrochemical prices may see short-term upside in 2026 due to potential plant capacity turnarounds and tightness in supply. However, the market remains structurally oversupplied in the long term. China remains a key market to watch, while the local upstream subsector has bottomed out in valuation terms. Kenanga Investment Bank maintains a neutral stance on the sector with a Brent crude target of US$67 per barrel.