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Market Overview
Naphtha - Market Overview
Most naphtha arbs from West to East are now closed. This is largely down to the weakening in paper pricing. MOPJ spreads, cracks, and E/W have followed the risk-off pattern seen elsewhere in the oil market.
Pro/nap spreads have also spiked with general flat price coming off. That leaves more room for naphtha to fit into flex feed in the coming weeks, as long as petchem margins suit.
Gasoline - Market Overview
Still more arb opportunities from ARA to NYH with US gasoline stocks increasingly a problem. Chances for an RBOB spike are rising in the next month. Expect more pull from NYH on ARA gasoline and naphtha. TA Arb might need to rally a little more to make that happen.
Houston meanwhile has clawed back at least some prompt arb opportunities from ARA into its own backyard locations like Mexico. Slightly higher chances for the GC CBOB/RBOB spread to rally.
