In our latest naphtha market commentary:
> Upcoming Golden Week holidays in China have led to a surge in Asian fixtures from the AG and the Med
> This has tightened front-month markets, boosted MOPJ cracks and widened the E/W spread
> Anticipation of lower liquidity next week should see a return to recent downward market trends
> The profitability of the Skikda-northeast Asia route via LR2 has fluctuated due to increased Asian activity and supported sales prices
> This arb is expected to close once Asian cash differentials resume weakening
> This arb is expected to close once Asian cash differentials resume weakening
> NWE markets looking more constructive as a surge in propane prices is increasingly making naphtha look like the most cost-advantaged steam cracker feedstock in the region
> Despite our slightly more constructive RBOB outlook, New York Harbor continues to signal no urgency for naphtha resupply
