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Market Overview
Naphtha
With the uncertainty of flows from the Middle East, naphtha cracks and spreads firmed up.
MOPJ spreads are expected to remain supported as supply options into naphtha-hungry Asia are getting limited, with lower flows also from Russia due to refinery attacks and the Med from lower crude availability from CPC loading.
MOGAS
Gas E/W declined on the continued strength of EBOB and from reports of increased August Chinese exports, which we do not think is sustainable heading into September.
Singapore-origin cargoes are competitive into South Africa, competing against AG-origin barrels and threatening Houston’s standing as the cheapest landed barrels into Rosarito across September delivery windows.
