Jefferies analyst Laurence Alexander says methanol prices have "firmly decoupled" from oil prices after contract prices in Asia for January settled at $430/ton, versus $350/ton in December. He believes the price increase indicates stronger than expected demand. A higher price range suggests the market would receive favorably an announcement of a low-cost capacity addition by Methanex, Alexander tells investors in a research note. He more than doubled his 2017 earnings per share estimate fort the company to $3.20 from $1.50. The current consensus estimate for the year stands at $1.74. Alexander keeps a Buy rating on Methanex with a $55 price target.