US benzene widens amid volatile upstream markets

HOUSTON (ICIS)–US benzene spot prices moved wider on Friday as the aromatic tracked steep declines and a late-week recovery in upstream markets.

Early in the week, benzene values fell slightly below a multi-year low of $1.815/gal set in mid-January but remained above the previous low of $1.765/gal set in early April 2009. Despite continued midweek declines in upstream crude oil futures, benzene values moved only slightly lower amid support from good downstream demand.

A Friday rally in upstream markets pushed benzene values near last week’s level, but the volatility left bids and offers in a wider range.

While volatility is keeping upstream markets uncertain, good downstream demand continues to support benzene prices. With that support, the spread between the aromatic and upstream NYMEX WTI crude oil futures has widened slightly in the last few weeks.

US spot benzene was assessed on Friday at $1.80-1.87/gal FOB (free on board), compared with $1.86/gal FOB a week ago.

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