Overview
Naphtha Summary
The naphtha swaps market held firm over the past week, as cracks rallied while spreads remain elevated. Bullish sentiment remains pertinent, given the US sanctions on Russia, which would trigger a re-routing of flows and create a greater two-tiered market between sanctioned and non-sanctioned products. The Dec’25 NWE naphtha crack rallied from -$5 to over -$4/bbl, while MOPJ spreads in Dec/Jan and Jan/Feb remain supported above $6/mt. Refiners gradually added short positions in the NWE crack. The larger-than-expected CP settlement in the LPG market also provided a boon for naphtha, given that more expensive propane makes naphtha more attractive as a substitute feedstock.
