Naphtha Prices Fell in November 2025 Amid Weakening Demand

Global naphtha prices generally decreased in November 2025, driven by weakened petrochemical demand and improved refinery output. Key regions including Northeast Asia, Europe, and North America saw significant price drops. The Middle East was an exception, with prices rising due to strong Asian export demand and increased shipping costs.

Northeast Asia, Europe, and North America were impacted by subdued petrochemical demand, with oversupply conditions in China contributing to the downturn. Higher refinery utilization rates improved supply. While crude oil prices stabilized, elevated shipping costs influenced final prices.

In the Middle East, naphtha prices increased, supported by robust export demand from Asian markets, particularly China and India. Production levels remained steady from Saudi Arabia and the UAE, but higher freight and insurance costs through the Suez Canal raised transaction expenses.

Naphtha, a hydrocarbon mixture derived from crude oil refining, is a key feedstock for the petrochemical industry, used in producing ethylene and propylene for plastics. Its pricing is sensitive to crude oil costs, refinery capacity, and petrochemical demand cycles. The naphtha industry was valued at USD 180.38 billion in 2025 and is projected to reach USD 230.27 billion by 2034.