Naphtha Prices Show Mixed Regional Trends Amidst Crude Volatility

Feedstock Competition

Naphtha is facing continued competition from Liquefied Petroleum Gas (LPG) as a cracker feedstock. With propane prices relatively low, flexible crackers are opting for lighter feedstocks, reducing naphtha burn. However, steady refinery runs in the Gulf are keeping supply available for export.

Quarterly Trends

Data indicates that naphtha prices have been volatile but range-bound. In Saudi Arabia, the Naphtha Price Index rose slightly quarter-over-quarter, reflecting export strength. In contrast, North American markets have seen price pressure from lower crude costs earlier in the month.