Feedstock crude oil and naphtha weakened

Jul 27, 2023

Feedstock crude oil and naphtha weakened.

Both PX-crude oil and PX-naphtha spread widened, sharing a same trend. Crude oil hiked before paring gains, hit by lukewarm demand and weak economic sentiment, despite that Saudi Arabia announced to cut production by an additional 1 million barrels a day in Jul. Meanwhile, PX tracked the rebound in crude oil and then kept strong, leading to the widening of price spread.

Downstream demand is anticipated to face bigger downward pressure in medium run
The turnaround season for crackers in Northeast Asia is coming to an end

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