# Crude oil and Toluene

Crude oil is a raw material for toluene; their prices have moved together.

Source page: https://www.materialinsights.org/links/crude-oil-and-toluene/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [Toluene](https://www.materialinsights.org/chemicals/toluene/) (chemical): 2 relationships.

## How they are linked

### 1. Feedstock

*Physical flow · Direct · Crude oil → Toluene*

Toluene is made from crude oil: it is one of the raw materials its production routes start from.

### 2. Price link: feedstock cost

*Cost and price · Strong · Both ways*

Toluene is made from naphtha in reformers and crackers, so crude sets its base cost. The proxy index, which covers the whole petrochemical basket, correlates with Brent at 0.52 monthly and 0.89 yearly.

- **0.52** monthly change correlation
- **0.89** 12-month change correlation
- **0.71** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.