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Asian Market Facing Naphtha Oversupply

OIL PRODUCTS

Asian naphtha imports have marginally outpaced the seasonal norm over 2016-2022 so far this year, somewhat questioning poor demand perceptions because of petchem weakness according to Vortexa.

  • Regional buyers could increasingly fulfil nearly all their naphtha needs by making use of just three sources - regional Asian supplies, growing imports from the Middle East, and the stranded barrels from Russia largely stunned in the Atlantic Basin.
  • Due to the Asian market facing enough supply, US, African and European exporters have largely lost access to the worlds biggest naphtha import market.

source: Vortexa

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