An Obscure Hydrocarbon Contains Bad News for Global Economy
- Demand for naphtha is closely tied to economic growth outlook
- Petrochemical companies refine the product for making plastics
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An obscure product made by oil refineries has a grim story to tell investors right now about the fortunes of the global economy.
That product is naphtha, something used to make a vast array of goods while also being integral to churning out gasoline. Oil refiners’ margins from making it are the weakest in years in Europe and Asia. Unusually, some petrochemical plants in Asia have even been losing money when processing it.