US Nov benzene falls 37 cents/gal on lower demand, oil

HOUSTON (ICIS)–The November US benzene contract settled on Friday at $3.85/gal, sources said.

The settlement was down by 37 cents/gal from the October benzene contract price of $4.22/gal.  

The decline was in line with expectations from this week, attributed to weaker fundamentals.

Sources have said this week that they expected the November benzene contract to settle down somewhere in the $3.80s/gal, on the back of weaker demand, improving supply availability and lacklustre energy futures.

The monthly benzene contract typically follows direction from the spot market, and trade participants said they expected the October benzene contract to settle somewhere within the $3.80s/gal.

Current benzene spot prices are at $3.60-3.80/gal FOB (free on board), down from the October benzene contract price of $4.22/gal.

Major US benzene producers include ExxonMobil, Flint Hills Resources, LyondellBasell, Marathon, Shell, and Phillips 66.