The surge in condensate and light crude production in the United States has had a significant impact on US naphtha trade balances. As refiners have run more light crude, naphtha output has risen sharply. At the same time, lower to flat demand for gasoline and a move by petrochemical manufacturers to move from naphtha to ethane and other natural gas liquids has softened domestic demand resulting in a sharp increase in exports.
These trends have combined to boost US naphtha exports to record levels, with as much as 8 million barrels per month being exported. Having swung from importer to exporter, the US now sends naphtha and other refined products around the world. US and European exports are now competing for market share in the South America and the Far East.
Poten & Partners brokers track these trends with an eye toward helping clients operate profitably in this fast-paced and complex market. Our brokerage services include both term contracts and spot market transactions in these markets.
“Poten brokers track trends in the naphtha sector in order to help our clients operate profitably in the fast-paced and complex market.”