The naphtha complex has seen a stronger fortnight, likely aided by weakness in crude. This trend was evidenced in price network analyses, which highlighted weakness in MOPJ and NWE naphtha despite both contracts being stronger on a crack basis.
The prompt naphtha crack rallied to -$7.70/bbl on Jun 04. However, this rally has emerged despite consistent selling by multiple players.
The naphtha E/W also strengthened over the fortnight although the contract’s correlation to freight softened in this time period – highlighting other drivers behind this incredible price action.
Open interest has risen above the 5-year average in the M1 contracts across the naphtha complex except for in MOPJ crack, where it remains 17% short of this average.
M1 refinery margins declined by nearly 75c in Europe over the past week whilst rising by 10c in Asia amid weaker gasoline and crude, respectively.
