In our latest naphtha market commentary:
> Strong freight rates in the East of Suez region have closed any opportunities to price into the Atlantic Basin, and are making blending components more expensive in Singapore
> The last week saw RBOB weaken more significantly than EBOB, with the TA Arb spread narrowing despite lower gas-nap spreads as the latest weekly EIA data saw the impact an open arb opportunity from Europe could have on PADD-1 imports
> PADD-1 inventories are sitting on almost exactly the same levels as 2022 and 2023, with focus seemingly on avoiding additional European barrels at current prices
> Narrow TA Arb levels continue to shut opportunities for European barrels to arb out, and with the E10 blend margins also closed and refinery supply returning, the picture remains decidedly bearish for EBOB in particular
