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Morning Briefing - 30 Mar. 2026Escalating Middle Eastern conflicts are driving energy markets higher, compounding a severe regional petrochemical supply squeeze triggered by South Korea's abrupt naphtha export ban. |
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CommoPlast
Morning Briefing
30 March 2026
Brent: $112.57 (+ $4.56)
WTI: $99.64 (+ $5.16)
Naphtha CFR Japan: á
Ethylene CFR NEA: Stable
Ethylene CFR SEA: á
Propylene FOB Korea: á
Propylene CFR China: á
*Data represent closing prices of the previous trading day
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South Korea naphtha export ban sparks Asia-wide PP, PE supply squeeze
Asia’s petrochemical balance is tightening abruptly as South Korea has decided to ban naphtha exports to prioritise domestic feedstock, shifting the market from demand-led weakness to supply risk. With the country a key supplier to the regional market, the redirection of volumes comes at a critical juncture, amplifying disruption across core Asian demand centres already exposed to Middle East-linked uncertainty.
The strain is set to deepen downstream as reduced cracker runs threaten PP and PE availability, while the prospect of export curbs raises the risk of a sharper regional squeeze, forcing buyers to scramble for alternatives. If supply stress persists, other governments may adopt similar defensive measures, accelerating market fragmentation and reinforcing a firmer, policy-driven price trajectory despite subdued demand.
Read the full story:
Update: South Korea bans naphtha exports, eyes wider petrochemical curbs
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Oil jumps to start the week as Houthi involvement deepens regional conflict fears
Energy markets entered the new week on a bullish footing, as escalating Middle East tensions tightened an already fragile supply outlook. The involvement of Iran-backed Houthis and a growing US military presence have raised the risk of a broader, protracted conflict, compounding disruptions through the Strait of Hormuz and reinforcing fears of sustained supply losses at a time when flows are already heavily restricted. The risk is now extending beyond a single chokepoint. Threats to Red Sea routes and Saudi export infrastructure are adding a second layer of strain, deepening prompt tightness and keeping the market steeply in backwardation.
For Asia, where reliance on Middle Eastern crude is structural, the shock is immediate, while a prolonged conflict is driving a repricing of geopolitical risk and keeping the near-term price bias decisively to the upside.
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