SSESSMENTS.COM noted that naphtha prices have broken a new threshold level at the end of May as supported by several factors. Throughout May, naphtha prices were persistently at above $200/ton level. As of May 29, naphtha prices have finally broken the $300/ton-threshold, stood at $318/ton. Several reasons noted as the supporting factors behind the upward price adjustment.
Firstly, increases in crude oil prices. The Organization of Petroleum Exporting Countries and its allies, known as OPEC+ meeting agreement last April to cut the oil output has supported crude oil prices to gain back the strength after the plunge. Furthermore, OPEC+ meeting scheduled on June 4 to discuss an extension of output cuts caused further upward price adjustment, even broke the new threshold level. Secondly, reduced supply for naphtha stemming from refinery turnarounds across Asia. Thirdly, as economies are beginning to reopen and countries globally emerge from lockdown or limited movement orders, demand is set on a gradual recovery. According to SSESSMENTS.COM pricing database, on June 1 naphtha prices have risen by $118/ton compared to the level recorded in early May.
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