In our latest naphtha market commentary:
> Global naphtha cracks emerge as among the most resilient in the refined products complex during the week’s sharp downturn
> Asian buying appetite during peak summer manufacturing season, tighter Asian propane-naphtha swaps will maintain wide E/W spread around current levels, keep incremental cargoes from the Med profitable
> Med supply will be further incentivised to keep barrels flowing eastward given ongoing malaise in ARA naphtha markets
> Sharp increases in the clean product freight complex, along with ever-softening gasoline blending and petrochemical consumption to keep all but a handful of inbound NWE arbs shutç
> A similar lack of outlets for USGC material should be further compounded by slackening Brazilian demand as slow-going recovery from recent flooding continues to stall petrochemical and industrial output, meaning further meaning weakness for US C5
