U.S. naphtha exports surge to record high

U.S. exports of naphtha rose to a record high as Japan rushed to secure alternatives after the Iran crisis cut off Middle East supplies of the petrochemical feedstock, and as Venezuela stepped up purchases to dilute its heavy oil.

Exports of naphtha from the U.S. climbed to a record 493,000 bpd, with about 130,000 bpd headed to Asia, the highest in over four years. Shipments to Japan climbed to 71,000 bpd, the most since December 2021.

Exports to South Korea totaled about 50,000 bpd, the highest this year. The rush by Asian petrochemical firms to source naphtha has sent prices surging as Asian petrochemical companies look to secure supplies or risk production shutdowns.

Naphtha exports to Venezuela have surged after a trade deal was struck in January by Caracas and Washington. About 140,000 bpd of naphtha also headed to Venezuela, the highest on record, as naphtha is used to dilute the South American country's heavy crude output.