Article: The Role Of Naphtha

Naphtha will continue in its role as the balancing feedstock. Additional naphtha can be made available in the short term by processing additional crude oil. In the longer term, naphtha can be produced by building additional cracking capacity at oil refineries.

However, crackers producing naphtha at oil refineries are expensive; and market leaders predict that the world will be short of refinery cracking capacity in the near future. So stating that there will be an adequate physical supply of petrochemical feedstocks does not imply a steady price for naphtha. Judging by past experience, relatively high naphtha prices will be the incentive to increase supplies.

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