The benzene prices in the Asian market continued to witness the southwards price momentum from the previous weeks. The decline in the prices was led by the decline in international crude oil prices in the last three weeks. However, the crude oil prices are now heating up amidst the political stress with the Middle East countries.

Oil prices remained close to peak, as heightened instability in the Middle East raised concerns over potential supply disruptions, while China's plans for additional economic stimulus could drive up fuel demand in the world's second-largest economy.

The demand for Benzene from the downstream industries remained weak and submissive impacting the overall prices of the commodity in the domestic market. The buyers are being cautious before placing higher orders from benzene consumers such as styrene, phenol, and other aromatics.

The aromatics market is struggling to revive and boost the overall demand amidst the sluggish market dynamics and slow demand.

Crude Oil plays a major role in governing the final prices of benzene as the benzene production requires crude oil as major feedstock. OPEC members and their allies have agreed to expand the oil output from April 2025. To complete the demand from intraa-Asia and internationa buyers, the output of crude oil will increase creadting a better maket space for benzene. This decision came out after the pressure built up by former US President Donald Trump to decrease the prices.

The supply chain of the commodity remained modest with dry cargoes. The intra-Asia container charges have decreased in the last fifteen days. Asia is one of the major producers and exporters of Benzene. Benzene inventories are sufficient in the domestic market to cater to the demand outlook from the Asian and international markets. This has consequently restricted the overall production of benzene. 

Although port inventory has declined, the persistent influence of overseas market supply on the domestic benzene market in the upcoming months has led spotholders to actively sell. As a result, prices have adjusted accordingly.

As per ChemAnalyst, benzene prices in the Asian market is expected to witness fluctuations, although they are expected to remain at relatively low levels. These price movements will be influenced by factors such as narrowed demand-supply gap and variations in the cude oil (feedstock) prices. Adding to this, the available stock and inventories may further ease the suppy of benzene. These facets combine to play a crucial role in determining the final pricing trends of benzene.