Benzene spot prices in the U.S. Gulf Coast surged on September 15, supported by strong gasoline fundamentals, limited physical trading volumes, and sustained octane demand, amid market concerns over refined product supply. This date also marked the first pricing day for the October contract trading window.
"Octane pull is significant, and there is little surrounding volume," said a benzene trader. The trader further noted that if gasoline prices remain firm, expected import arrivals are unlikely to drive prices lower.
Regarding octane, ethylbenzene (EB) is expected to continue rising sharply. "Strong gasoline fundamentals, insufficient import penetration, refiners prioritizing distillate production, Middle East tensions, and the Russia-Ukraine conflict will all play crucial roles in the structural tightness we are seeing in refined products," stated a styrene source, emphasizing the persistence of robust octane demand.
The September benzene DDP assessment rose 34 cents/gallon day-over-day to 551 cents/gallon. The October cargo DDP assessment increased 31 cents to 537 cents/gallon, while the November cargo DDP assessment gained 23 cents to 518 cents/gallon.
The September benzene FOB assessment climbed 34 cents/gallon day-over-day to 553 cents/gallon. The October cargo FOB assessment rose 31 cents to 539 cents/gallon, and the November cargo FOB assessment increased 23 cents to 520 cents/gallon.
The benzene-to-crude oil ratio stood at 2.19, unchanged from the previous day. The September EB spot DDP assessment advanced 15 cents to 505 cents/gallon, while the October EB DDP assessment rose 11 cents to 483 cents/gallon.
Crude oil futures hit a four-month high due to uncertainties regarding Saudi Arabian crude supply and attacks by Russia and Ukraine on energy infrastructure targets.
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