Rising crude oil prices are creating uncertainty for the global chemical and textile industries, with manufacturers monitoring the potential impact on raw material costs, production expenses and supply chains.

Brent crude has reportedly climbed above $113 per barrel amid escalating geopolitical tensions involving the Houthis and Saudi Arabia. West Texas Intermediate (WTI) crude has also recorded an increase, adding to concerns about energy and petrochemical market volatility.

Higher crude oil prices can push up the cost of key petrochemical feedstocks, including naphtha and olefins, which are used in the production of synthetic fibres and textile chemicals. These increases could affect manufacturers of polyester, dyes, coatings and other chemical-based textile inputs.

However, the impact is not uniform across the supply chain. While naphtha and olefins prices are strengthening, monoethylene glycol (MEG), a key raw material used in polyester production, has reportedly declined by up to 2.5%. This could provide temporary relief to polyester and textile manufacturers.

The changing price trends highlight the complex relationship between crude oil markets and textile production costs. While higher oil prices can increase expenses for energy-intensive manufacturing and petrochemical inputs, movements in individual raw material prices may partly offset the pressure.

Textile and chemical buyers will continue to monitor crude oil prices, geopolitical developments and feedstock trends to assess their impact on procurement costs, pricing strategies and profit margins.