The prices of Methyl Tert-Butyl Ether (MTBE) witnessed a significant upward trend in the USA market. The prices witnessed a surge of 4.1% during the week ending on 24^th January 2025. The increase in the prices was primarily attributed to increased refinery margins as the upstream crude oil prices declined significantly in the week. Increased profit margins led to improved economic for refiners leading to increased refining activities in the market. Th supply was also impacted due to frigid temperatures in the region which led to supply chain disruptions and production halts in some places leading to upward pressure on the prices.

In the coming weeks, the crude oil market may determine the market dynamics for MTBE. The demand from key downstream sectors like gasoline blending sector may witness some traction leading to bullish trend in the market. However, continuous decline in crude oil prices and upstream market may put downward pressure on the prices. Overall, the prices will be determined by the interplay of supply and demand dynamics and crude oil market.

In the current market, U.S. refineries operated at 83.5% of their operable capacity during the last week, contributing to a decline in gasoline production. This reduced output had a direct impact on the supply of MTBE, which remained constrained, exerting upward pressure on its prices. The continued low refinery capacity utilization resulted in decreased MTBE production, leading to supply disruptions and a tighter market. Meanwhile, demand for MTBE from key downstream sectors, such as automotive fuels and industrial applications, remained steady, further supporting the bullish market sentiment, and contributing to higher prices.

In the feedstock market, Methanol prices remained stable, signalling that the production costs for Methyl Tert-Butyl Ether (MTBE) were not subject to significant fluctuations. This stability in feedstock costs helped provide some balance in the overall cost structure, preventing any dramatic shifts in MTBE pricing due to raw material price volatility. On the other hand, gasoline inventories saw an increase, reflecting a decline in gasoline consumption, which in turn led to reduced refining activities. With less demand for gasoline, refineries were operating below their optimal capacity, which contributed to lower MTBE production. This supply disruption, combined with the steady demand for MTBE from key downstream sectors, intensified the tightness in the MTBE market. The resulting constrained supply and the steady demand created a bullish sentiment within the market, pushing prices higher. The overall market remained strong as a combination of declining refining capacities and a tighter supply-demand balance underscored the upward pressure on MTBE prices.