This past fortnight has seen a generally weaker naphtha complex in both regions, yet, more exacerbated in the East, as Apr E/W fell to single digit figures.
The May NWE crack softened throughout the fortnight, falling from -$7.00/bbl on open of Mar 14 to reach the -$8.75/bbl mark come Mar 26. In a similar vein, the soon-to-be-prompt MOPJ crack also saw notable weakness, plunging from -$5.15/bbl to -$7.20/bbl in the same timeframe.
Spreads have witnessed more of a fortnight of two halves, with elevated volatility, particularly in Asia. Initial weakness, saw the May/Jun MOPJ contract fall almost $3/mt from Mar 18 – Mar 20 as it closed at $9.25/mt. Support was then seen as the contract retraced to highs of $10.75/mt on Mar 25, before greater selling interest today has dragged the contract back down to $9/mt levels. The corresponding NWE spread fell $2 to $9/mt before recovering to $11/mt and then softening once more to $9.25/mt.
As a consequence, May naphtha E/W has seen a gradual decline over the fortnight, falling to $13.25/mt upon close of Mar 21. However, it has seemingly found some support at this level, with prices oscillating around the $14/mt mark.
