During mid-January of 2026, the US Naphtha market remained steady due to tightening supplies from severe winter storms and continuing challenges related to geopolitical issues. A winter storm named Fern affected the upstream crude production and refinery operations impacting the availability of straight-run Naphtha, impacting inventories as well. Refiners were cautious in their selling due to uncertainty in their operations, and buyers worked to build up coverage to guarantee prompt supply. Geopolitical issues included decreased Russian export volumes, sanctions against energy entities, and Venezuela no longer purchasing from Russia which added to the US demand for barrels. As a result of high refinery operating costs and high utilization rates, market conditions remained strong regardless of lower international oil benchmarks due to stress on domestic supply and tightness in the crude market.
US Naphtha market maintained positive developments for January **** until end of month as tight supply caused by worsening weather challenges and strong demand). Supply shortages from refinery interruptions (primarily due to the coldest months historically on record and unprecedented levels of refinery gasoline disruptions) limited naphtha availability during January. During January, refiners had no option other than to follow a cautious sales strategy due to uncertainties surrounding refinery operations very little spot naphtha was sold. Naphtha buyers moved aggressively in an effort to obtain naphtha shipments as they anticipated on going refinery interruptions). A result of the previously stated events there continued to be negative pressure on inventory levels contributing to overall positive sentiment in the us naphtha markets. For additional reasons, logistical issues that existed and decreased as usage of straight-run (naphtha) further increased the strategic significance of naphtha keeping prices growing.
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