Benzene Markets Firm as Gasoline Blending Demand Starves the Chemical Sector

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The Refining Optimization Trap

With gasoline cracks at record highs, the opportunity cost of extracting benzene for the chemical sector is too high for many refiners. This has led to a virtual drought of chemical-grade benzene in the US Gulf Coast.

Downstream Impact

Styrene and phenol producers are reporting acute supply difficulties. Several plants have announced force majeure or reduced run rates because they simply cannot secure feedstock at any price.