Crude oil dropped sharply to $57.10/bbl after OPEC+ announced output increases for June. U.S. refinery utilization fell to 86% amid seasonal and unplanned disruptions, especially on the coasts. Henry Hub gas stabilized at $1.79/MMBtu, while propane exports to China face tariffs and are being redirected to India and Europe. Ethane exports to China are increasing as cost-sensitive crackers seek cheaper feedstocks. Flat U.S. ethylene and propylene prices contrast with weakening Asian naphtha cracks and declining aromatics demand.
Escalating U.S.-China tariff battles are reshaping petrochemical trade routes, with China targeting U.S. LPG and petrochemical imports. Meanwhile, European refiners are increasing reliance on U.S. naphtha amid ongoing shifts from Russian supply. Financial markets show mixed sentiment, with margin compression concerns offset by new trade flow opportunities. Downstream demand remains under pressure, prompting recommendations for close monitoring of monomer availability and strategic feedstock positioning.
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