Global petrochemical markets continue to expand, driven by strong demand, particularly for polypropylene and synthetic materials. India's significant investments and strategic shifts by BPCL toward petrochemicals highlight industry's transition amid declining fuel demand. Rising use of renewable feedstocks is influencing production techniques and downstream availability of aromatic solvents. Benzene and methanol markets face price pressure due to oversupply and soft industrial demand, while anticipated U.S. tariffs in Q2 2025 could increase input costs, affecting industry pricing and supply dynamics.

Market Conditions

• Crude Oil Inventories: U.S. commercial crude oil inventories increased by 4.1 million barrels -for the week ending February 7, 2025.
• Refinery Utilization: U.S. refineries operated at 85.0% capacity, processing an average of 15.4 million barrels per day.
• Gasoline Production: Increased to 9.3 million barrels per day, while distillate fuel production declined slightly to 4.5 million barrels per day.

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