In our latest naphtha market commentary:
> Rotterdam-New York naphtha arb remains open on softer FOB premia, strong NYH sales price
> But recent Med, NWE refinery supply issues have boosted said premia with rangebound freight, stronger sales prices keeping these arbs open
> With European summer driving demand not fully kicked in, Med-Rotterdam route falling deeper into the red, we expect this near-term Med FOB price upside to reverse soon
> Resurgent LR1, LR2 freight has made AG-Far East arbs unprofitable with further risk to the downside likely given crimped Mideast supply from heat, regional cracker diversions, ongoing OPEC+ production quotas
> AFEI propane has priced itself back into the Asian steam cracking pool through end Q3; our view of only incrementally higher spot naphtha volumes moving into the region, resulting in narrow arbs still holds
