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Braskem Mexico Unit Sidelined as Energy Rally Lifts Sector

Braskem SA's Mexican petrochemical operations are failing to capitalize on surging energy prices due to liquidity pressures. Major energy producers are benefiting from elevated oil and gas valuations driven by Middle East geopolitical tensions. Shell reported first-quarter profits of $6.92 billion, citing gains from volatile energy markets and trading operations. The pricing environment has also pushed long-term Treasury yields to 5 percent for the first time since 2007, reflecting elevated inflation expectations tied to energy costs. Braskem's Mexico subsidiary, however, remains constrained by balance sheet limitations while competitors capitalize on the energy market upswing.