Global Refined-Product Exports Down 25% as Naphtha Crunch Hits Japan

In August, global exports of refined products dropped by 25% compared to the previous year, with significant declines noted in Russia and the Persian Gulf, analysts report. This reduction has resulted in a naphtha supply shortage, impacting sectors including packaging and petrochemicals. Due to this scarcity, Calbee, a well-known snack manufacturer in Japan, has opted for monochrome packaging, leading Japanese media to introduce the phrase 'naphtha bankruptcies.' A survey conducted in June by Tokyo Shoko Research revealed that nearly 80% of over 7,000 companies faced challenges in obtaining oil-derived goods. Analysts from Goldman Sachs, led by Yulia Zhestkova Grigsby, indicated that refinery outages were 60% higher than typical seasonal levels by late August, attributing the tight market conditions to increasing geopolitical tensions and China's fuel export restrictions. This scenario underscores the fragility of global supply chains amid geopolitical and policy-related upheavals.