Naphtha prompt timespreads hit YTD highs despite flat price weakness

Commentary summary:

• Naphtha timespreads have not only recovered from early April lows but now trade above pre-tariff levels, with May/June hitting year-to-date highs.

• East-West rebound revives physical naphtha arbitrage outlook.

• Pro/Nap remains below pre-sanction levels, but still near the 10-year average.

• Market awaits further clarity on sanctions, which could reshape LPG and naphtha flows and weigh on global petrochemicals demand.

The naphtha market continues to trade higher, especially in terms of timespreads, which are already surpassing the values seen in the months leading up to China’s tariff announcement on the US, which temporarily collapsed the crude and product markets.

Jorge Molinero is a Commodity Owner 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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