Regional divergence in the global naphtha market

Commentary summary:

• Asia continues to lead the global naphtha market, supported by strong fundamentals and a record E/W

• Europe shows clear weakness, with OSN premiums in NWE falling over $7/mt since late November.

• Ethylene and propylene prices are at multi-year lows in Europe, highlighting weak feedstock demand.

• The US market is strengthening, with NYH premiums rising sharply on tight gasoline inventories, especially in PADD 1.

The global naphtha market continues to be driven by Asia’s strength. New highs in the MOPJ timespread and a prompt crack in positive territory continue to reflect this.

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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