Benchmark naphtha prices in Asia have fallen to their lowest levels since early March, reaching approximately $788 per metric ton for second-half July delivery. This drop comes after the Abu Dhabi National Oil Company (ADNOC) resumed exports through the Omani port of Sohar, providing an alternative shipping route amidst supply issues related to the ongoing U.S.-Israeli conflict over Iran.
ADNOC had previously suspended exports of about 1 million metric tons per month from its Ruwais refinery in April, as the conflict restricted deliveries via the Strait of Hormuz. However, the company began shipping naphtha again last month by utilizing tankers to transfer cargoes from the refinery within the Gulf to other vessels at Sohar for export to Asia, a method known as ship-to-ship transfers.
This strategy offers buyers a safer route for securing supplies, helping to alleviate the pressure on naphtha availability in Asia. According to shipping data, two tankers, Minerva Pisces and Torm Gwyneth, loaded naphtha from ADNOC vessels at Sohar around May 30 and are currently on their way to Asia. While traders noted that additional tankers may have also loaded ADNOC naphtha through Sohar, not all vessel movements are captured in shipping data.
An ADNOC spokesperson stated, “We do not comment on the position, movements or routing of our vessels as a matter of policy.”
In March, naphtha prices in Asia surged to a record $1,300 per metric ton, with refining margins reaching $467 per ton over Brent crude, as the conflict disrupted Gulf supplies, which account for more than half of the region’s imports. However, as of Tuesday, the benchmark price for naphtha dropped to $788 per ton and the refining margin decreased to approximately $84 per ton.
The decline in naphtha prices is further exacerbated by weakened demand, resulting in widespread production cuts and force majeure declarations across petrochemical facilities in Asia due to insufficient feedstock supply. The International Energy Agency projects a decline of 80,000 barrels per day in global naphtha demand, bringing the total down to 7.136 million barrels per day this year.
An India-based trader indicated that naphtha prices are unlikely to rebound to their peak levels from March due to persistently weak demand and the market’s expectation for no additional supply cuts from the Gulf.
Published on June 3, 2026.
