Financial risk factors and risk optimization in nafta based petrochemical plants

BASED PETROCHEMICAL PLANTS The oil and petrochemical industry has a large share in the world energy and industrial market. The petrochemical industry, which holds the economy of many countries, is a must in human life as raw material in the products produced in its facilities and in transportation, fuel, automotive, textile and chemical processes. In this study, temperature analysis was performed from the most risk factors in naphtha based petrochemical plants. The relationship and impact of price fluctuations in Brent, ethylene, benzene products are described in detail. It is stated that the relationship between these products and the existence of a correlation with each other and whether they can make a forward-looking prediction at the same time. The data covers the period of January 2000 - May 2018. Data are taken from Reuters, ICIS and Bloomberg database. The natural logarithm of the data was taken before all statistical analyzes. These results mean that naphtha-based petrochemical producers can develop an appropriate hedge strategy to protect against risks in raw material and final product prices using petroleum-based derivatives. In the study, an exemplary hedge strategy against price risk was presented.