LyondellBasell Industries NV ( LYB ) shares are dipping on Friday. The escalating conflict in the Middle East is tightening the supply of naphtha, putting pressure on petrochemical companies.

LyondellBasell Industries ( LYB ) shares are under pressure. What’s pulling LYB shares down?

Naphtha Supply Tightens As Strait Of Hormuz Disruptions Intensify

Naphtha has become increasingly difficult to source after Iranian attacks severely restricted shipping through the Strait of Hormuz, a key route for global oil and refined products, according to Financial Times.

Prices have surged roughly 50% since last month to around $875 per tonne, according to S&P Global Energy data. Because naphtha is essential for producing ethylene, propylene and other core building blocks of plastics, the sudden squeeze is creating a challenging backdrop for petrochemical producers like LyondellBasell.

Production Cuts Spread Across Asia

Petrochemical plants in Asia have already begun cutting output in response to the shortage, a sign that the disruption is broad enough to force operational changes across the industry. Analysts note that naphtha storage is limited because refineries typically prioritize higher‑value fuels such as jet fuel, diesel and heating oil.

South Korea is a meaningful market for LyondellBasell. The company maintains a representative office in Seoul and also operates in the country through PolyMirae, its joint venture with Daelim, serving major sectors including packaging, consumer goods, textiles, electronics and automotive.

LyondellBasell Technical Analysis

LyondellBasell is trading 21.7% above its 20-day SMA and 48.4% above its 100-day SMA, showing strong trend separation even as the stock digests recent gains. Shares are up 1.34% over the past 12 months and are positioned much closer to their 52-week highs than lows.

RSI is at 81.62, which is firmly overbought and often signals elevated pullback risk even if the primary trend remains up. MACD is bullish with the MACD line at 4.2589 above the signal line at 3.1389, and the positive 1.1200 histogram suggests upside momentum is still present.

The combination of overbought RSI (above 70) and bullish MACD suggests mixed momentum.

Key Resistance: $75.50

Key Support: $61.50

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $62.43 (high: $82.00; low: $38.00; 50 analysts). Recent analyst moves include:

Wells Fargo: Equal-Weight (Raises Target to $70.00) (Mar. 13)

Citigroup: Upgraded to Buy (Raises Target to $76.00) (Mar. 12)

Jefferies: Hold (Raises Target to $70.00) (Mar. 10)

Benzinga Edge Rankings: Benzinga’s Edge scorecard for LyondellBasell Industries ( LYB ) highlights its strengths and weaknesses compared to the broader market:

Momentum: Neutral (Score: 51.36) — The trend is constructive, but today's pullback and overbought RSI suggest momentum may be entering a cooling phase.

Quality: Neutral (Score: 3.32) — This is an extremely low reading on the 1–100 scale, flagging weaker quality characteristics versus the broader market.

The Verdict: LyondellBasell’s Benzinga Edge signal reveals a "trend vs. durability" setup. Momentum is moderate, but the very weak Quality score argues for tighter risk controls if the stock starts losing key support.

LYB Price Action: LyondellBasell shares were down 0.42% at $74.02 at the time of publication on Friday. The stock is approaching its 52-week high of $75.62, according to Benzinga Pro.

Image: JHVEPhoto/Shutterstock