US and China MTBE Prices Rise on Tight Supply and Strong Blending Demand

MTBE prices moved higher across both the US Gulf Coast and Chinese markets during the week of late August ****, as peak summer blending demand, tight prompt spot availability, and pre-Golden September inventory building provided dual-sided upward price support — even as crude oil prices retreated on improving US-Iran diplomatic sentiment and Strait of Hormuz navigation expectations eased geopolitical supply risk premiums in the broader petroleum complex.

FOB USGC MTBE firmed +*.*** with feedstock showing no movement during the week, demonstrating the degree to which product-level supply and demand fundamentals — rather than methanol cost economics — dictated the week&#**;s pricing outcome in the US market. Gasoline blending demand remained the dominant price driver, with refiners and blenders pulling prompt MTBE to boost octane for summer driving formulations and seasonal gasoline specifications. US refineries operated within the elevated blending demand window...