European physical strength and higher freight reshape global arbitrage
Naphtha rally extends as Asia and Europe hit new timespread highs
– Arbitrage opportunities are narrowing globally as European cash diffs raise.
– Asian demand for Western cargoes will keep during next months as new additions have tightened the East of Suez balance.
– Gas-naphtha spread keeps boosting LVN and C5 premiums, but the peak may be nearby.
– Upcoming refinery restarts in Europe, and strong refining margins could cap EBOB upside in Q1.
Jorge Molinero is Commodity Owner for Gasoline at Sparta. Starting his career as a financial analyst with BBVA, Jorge quickly transitioned to market intelligence within the energy sector, spending 4 years as a naphtha analyst with Repsol before joining Sparta in early 2023.
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