MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI BRIEF: Canada Household Debt Tops $3 Trillion In 3Q

MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL PRODUCTS: European Naphtha Cracks at Monthly High

OIL PRODUCTS
BulletEnergy BulletsCommodities

NWE naphtha cracks have risen around 63% in September to a monthly high, according to General Index, cited by Bloomberg.

  • The naphtha crack discount to Dated Brent was down to $2.82/b, compared to $7.73/b at the end of August.
  • Naphtha fundamentals have been buoyed by a combination of the recent fall in crude prices, reduced naphtha supply, and strengthening petrochemical cracker demand.
  • Thus, naphtha flat prices have held up while crude has fallen back.
  • Naphtha supplies have been curtailed by the kick-start of gasoline production at Nigeria’s Dangote refinery, cutting exports from WAF.
  • Lower crude flat prices have also cut the need for naphtha to discount itself to remain the favoured feedstock in petrochemical cracking.
  • Global naphtha cracks may have reached a ceiling as gasoline blending demand remains weak and an underwhelming macroeconomic picture cuts downstream petrochemical demand.
Source: Bloomberg

 

133 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

NWE naphtha cracks have risen around 63% in September to a monthly high, according to General Index, cited by Bloomberg.

  • The naphtha crack discount to Dated Brent was down to $2.82/b, compared to $7.73/b at the end of August.
  • Naphtha fundamentals have been buoyed by a combination of the recent fall in crude prices, reduced naphtha supply, and strengthening petrochemical cracker demand.
  • Thus, naphtha flat prices have held up while crude has fallen back.
  • Naphtha supplies have been curtailed by the kick-start of gasoline production at Nigeria’s Dangote refinery, cutting exports from WAF.
  • Lower crude flat prices have also cut the need for naphtha to discount itself to remain the favoured feedstock in petrochemical cracking.
  • Global naphtha cracks may have reached a ceiling as gasoline blending demand remains weak and an underwhelming macroeconomic picture cuts downstream petrochemical demand.
Source: Bloomberg