Light Ends
Market Overview
Naphtha
Naphtha cracks and spreads grind higher as impact of reduced supply into the region sets in.
This is mainly due to a closed arb for Western barrels into Asia since June trading, leading to less arb arrivals.
It will take some time to normalise the supply situation from the AG so petchem feedstock availability remains the key constraint after margins for higher runrates.
MOGAS
Mogas inventory in Europe and US is at very low levels whilst East is more balanced, leading to a weakening gas E/W spread.
Singapore to Rosarito arbs remain wide open.
Singapore blender margins are woefully negative for Sing 92 RON from July onwards.
