In the first week of March, MTBE prices in Saudi Arabia were flat due to balanced supply and demand fundamentals, as refineries continued to operate at stable production levels, sufficient to supply gas blend requirements. Additionally, the prices of MTBE were also supported by Saudi Aramco's investment on the expansion of MTBE capacities, establishing it as a principal regional supplier of MTBE in both the Middle East and Asia. On the other hand, healthy demand from Asia also supported prices stability for the respective week.

In the second week of March, MTBE prices in Saudi Arabia declined due to steady production costs and an increased level of production. Domestic demand was muted, and international buyers were not showing much interest, which kept prices down. The higher supply of MTBE, along with the weaker demand levels for MTBE in the local and worldwide markets, caused the prices to decline during the week.

By the third week in March, MTBE prices in Saudi Arabia further decrease owing to sustained high inventory levels and lackluster demand from exporting countries. While production costs remained steady as methanol prices remained unchanged, and a lack of buyer enthusiasm persisted, prices stayed low. The market was again faced with limits on exports on low international demand; buyers maintained a relatively ample supply, leading to another weak pricing week. There was still a lack of pressure from cost constraints or demand recovery; the MTBE market in Saudi Arabia was generally soft.

Similarly, in the first week of March, MTBE prices in the United States had also remained stable, as firm demand for gasoline blending met stable supply levels. Refinery activity at productive rates ensured sufficient MTBE availability for blending mandates. Also, methanol feedstock prices remained stable, so there was no fluctuation in production costs, allowing prices to remain relatively stable during the week.

In the second week of March, MTBE prices experienced a drop in the US due to weakened gasoline blending and fuel sector demand. Production costs for MTBE remained stable, with methanol prices holding firm, while the high inventory levels of MTBE ensured sufficient supply. Lower activities in the automotive sector and a seasonal decline in fuel demand added downward pressure on MTBE prices. Overall, sluggish demand and excess supply drove a considerable price decrease in the market during this timeframe.

During the third week of March, MTBE prices in the US declined further, owing to weak sentiment in the market, as well as feedstock methanol prices, which reduced production costs. Whilst decreasing the resource supply, high inventory levels of MTBE due to less shipping kept the market soaked with excess product. Weak demand from gasoline terminals also added pressure on pricing. Sluggish demand, strong inventory levels, and lower production costs put a downward trend on the market.

As per ChemAnalyst, in the future, Saudi Arabia and USA MTBE prices are projected to remain under pressure due to high inventories and weak demand fundamentals. In Saudi Arabia, any price recovery will depend on a recovery in export demand from key Asian markets. In the USA, seasonal increases in gasoline blending activity ahead of summer may support prices. The overall market outlook is cautious as fuel demand fluctuates and economic uncertainty continues, and prices could remain volatile in the weeks ahead.