Oil Markets Naphtha's post-Hormuz reality: tight supply, wide arbs and a bullish gasoline pull
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Sep 3, 2026 Barbara Fernandez-Pita, a senior S&P Global Energy price reporter covering naphtha and LPG, explores how Hormuz disruptions reshaped global trade. She discusses soaring US gasoline blending demand, profitable Europe-to-Asia arbitrage, propane replacing naphtha at steam crackers, and Rhine River logistics snarling European petrochemical supplies. Winter may bring seasonal changes, but tightness could persist.
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Hormuz Disruptions Rewire Global Naphtha Flows
- Hormuz disruptions cut Middle East Gulf naphtha exports from roughly 50 million to 4 million metric tons monthly.
- Asian buyers now face tighter, costlier supply, widening the East-West spread above $100 per metric ton before easing to $56.
Europe Sends More Naphtha East Despite Tighter Stocks
- Europe’s traditional surplus is increasingly moving toward Asia as the disrupted Gulf supply opens arbitrage opportunities.
- Strong European summer demand has simultaneously consumed much of the Atlantic Basin’s spare naphtha.
Gasoline Demand Pulls Naphtha Away From Crackers
- A powerful US driving season tightened gasoline inventories and made naphtha highly valuable as a blendstock.
- The gasoline-naphtha spread exceeded $300 per metric ton, encouraging blenders to maximize naphtha intake.