De-escalation prospects pulls paper down but physical naphtha still tight
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More optimism on a reopening of the Strait of Hormuz has pulled down MOPJ cracks and spreads.
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Nap E/W remained relatively steady as East still needs the naphtha to feed the petrochemical units that are at min loading already due to poor margins. The next tranche would be outright shutdown which players are reluctant to move to.
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Gasoline cracks and spreads fell hard over the past 2 days, and naphtha was not spared either. However mogas fell harder and narrowed Gas-Nap and Sing92/MOPJ, reducing blend incentives for naphtha.
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On paper, Skikda arbs are open to the East vs West. However with Med refineries also facing crude concerns with CPC loadings curtailed in the past weeks, the availability of the barrels may become scarcer.
(Sikka naphtha arbs by origin)
(Sep Sing 92/MOPJ 9.0)
(Sep E/W Nap)
About the Author
June Goh | Senior Oil Analyst, Sparta Commodities
June is a senior oil market analyst at Sparta specialising in global crude trade flows and refining economics across Asia and Europe. Her analysis is regularly cited by Bloomberg, the Financial Times, and Reuters. With a significant following in the energy community on X (@JuneGoh_Sparta), June’s insights are a staple for institutional traders navigating regional market shifts.
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Founded in 2020, Sparta made waves in the commodity analytics space in March 2022 when it secured a $6m series A investment from Singular. This success then later snowballed into a further $17.5 million in a series A funding round led by the technology venture capital firm FirstMark, with participation from existing shareholder, Singular.
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