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High Maintenance Set to Pressure European Naphtha Q3: FGE

OIL PRODUCTS

High maintenance levels on European steam crackers in Europe will curb European naphtha demand in Q3 according to FGE.

  • The East-West naphtha spread will stay positive as demand in Europe remains weak the note said citing maintenance at TotalEnergies’ 570k ton/year Antwerp cracker, Borealis’ 400k ton/year Porvoo cracker and the 530k ton/year Dormagen cracker operated by Ineos.
  • On diesel – FGE noted a strong diesel/gasoil pull from the US into NW Europe due to cheap freight – a route more economical than drawing the supplies from the west coast of India at present.
  • NW Europe has turned to regions like the US Gulf and west coast of India this year to replace sanctioned Russian diesel supplies.

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