Crude benchmarks gained slightly, with Brent reaching $87.91/bbl and WTI at $83.02/bbl, supported by geopolitical risks and modest demand. U.S. refinery utilization stood at 86.3%, with Gulf Coast margins remaining strong, particularly for gasoline. Natural gas prices fell to $1.68/MMBtu due to weak heating demand and robust storage injections. USGC naphtha edged lower amid softer blending economics. Inventory builds were observed across crude, gasoline, and distillates.
Supply-side pressures intensified with the permanent closure of LyondellBasell’s Houston refinery and the upcoming Grangemouth shutdown in the U.K., both signaling a decline in refining and petrochemical output. Security concerns tied to Middle East instability raise the risk of further trade and shipping disruptions. The U.S. rig count fell again, suggesting cautious upstream investment amid pricing uncertainty. These developments suggest a potential shift in regional product balances and rising logistical complexity for petrochemical markets.
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