In this episode, Energy Aspects' oil analyst Christopher Haines discusses our outlook for NGLs and naphtha markets with Head of NGLs Samantha Hartke and oil products analyst Ciaran Tyler.The outlook for LPG and naphtha demand looks bullish. Feedstock demand is recovering from its April trough, and new petrochemical capacity and a lighter maintenance season y/y are set to feature in H2 20. Tighter naphtha supplies from low refinery runs and the inching upward of US and Middle East field production will put a floor of support under prices in Q3 20, while the onset of heating demand in Q4 20 will further constrict LPG balances.However, a tsunami of new downstream petrochemical capacity is likely to weaken downstream prices, compressing petrochemical margins and forcing firms in this sector—which were already struggling due to COVID-19—to make some hard decisions to secure revenue.

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