About Naphtha
Naphtha plays an important role as one of the basic petrochemicals for downstream products. Large fluctuation of naphtha prices has been intensified along with recent political unrest of Middle East Asia and the growing naphtha demand in developing countries. The price of naphtha depends on that of crude oil as naphtha is produced by refining crude oil.
Thus forecasting naphtha prices is becoming more uncertain. The development of models for forecasting naphtha crack (price difference between naphtha and crude oil) will help minimize any loss from naphtha price variations.