LPG Substitution Reversal

With propane prices surging on heating demand, the discount of LPG to naphtha has narrowed. This encourages petrochemical producers to switch back to naphtha, tightening the prompt market.

Crude Correlation

As a direct product of crude refining, naphtha is benefiting from the $2/bbl rise in Brent prices. However, long-term demand remains clouded by weak plastic margins.