Naphtha Prices Rebound Slightly on Strong Chinese Buying for February Cargoes

Asian Demand Support

Despite a bearish start to January, the naphtha market is seeing a temporary lift as Asian refiners and petrochemical complexes secure volumes for the post-holiday production cycle. This has created a marginal premium for prompt-delivery barrels in the Far East.

US Market Divergence

In contrast to Asia, the US naphtha market remains under pressure due to high refinery utilization and ample domestic crude supply. The spread between US Gulf and Asian naphtha is encouraging export flows, helping to rebalance global stocks.