In our latest naphtha market commentary:
> The E/W naphtha spread has widened, making more incremental Med cargoes profitable into the northeast Asia through Q3
> Increased Asian appetite for naphtha coincides with the end of regional steam cracker maintenance, although the threat for a handful of turnaround extensions still loom
> This upside for margins will be capped by Asian propane-naphtha swaps widening to historical norms, meaning MOPJ pricing will continue to compete with AFEI propane in the steam cracker feedslate
> Inbound arbs into NWE remain challenged by slackening petrochemical demand, although a reviving gasoline T/A arb and a gas-nap floor could provide some upside
> Similarly, New York Harbor remains unconcerned about naphtha resupply as arbs stay shut; players await EIA stats on Memorial Day gasoline demand for price direction
