Weak petchem demand and low pro-naps sends European naphtha to contango

Commentary summary:

• The European naphtha market has entered a deeper contango due to persistently weak local petrochemical demand.

• Pro-nap levels have collapsed to a 10-year low in Asia for the November contract, worsening global bearish sentiment.

• E/W remains at record highs but fails to stimulate fresh Asian demand for European cargoes.

• The overall market outlook stays bearish into Q4, with deepening contango risk in Europe and potential spillover to Asia.

Philip Jones-Lux is Senior Analyst for Sparta. Having worked with organisations such as JBC Energy and RP Global, Philip is a seasoned energy market analyst with expertise across the oil barrel and power markets

Sparta is a live, market intelligence and forecasting platform that enables oil traders, refiners, banks, hedge funds and wholesalers to have access to real-time and global actionable insights to capture market opportunities before others.

To find out how Sparta can allow you to make smarter trading decisions, faster, contact us for a demonstration at sales@spartacommodites.com