The Middle East Supply Gap

Even with peace talks ongoing, the interruption in naphtha flows from the Persian Gulf has created a physical shortage in Asia. Buyers are scrambling for Mediterranean and West African cargoes, keeping spot prices elevated.

Cracker Run Rate Risks

Extremely high naphtha prices are forcing some cracker operators to consider production cuts. The inability to pass on costs to plastic and polymer buyers is creating a major profitability crisis for the Asian chemical sector.