Naphtha Prices Easing on Global Refined Product Oversupply

Feedstock Competition and Switching

Petrochemical crackers in Asia and Europe are increasingly switching to propane and butane as they offer better margins than naphtha. This feedstock substitution is weighing on naphtha demand, keeping prices near the lower end of their Q4 range despite steady industrial activity.

Refining Margin Pressure

With gasoline cracks hitting multi-year lows, refiners are seeing reduced incentive to maximize light-end production. This is leading to a buildup of naphtha in storage hubs, particularly in Northwest Europe and the US Gulf Coast, which is likely to keep prices subdued in early 2026.