Naphtha futures jumped past the $590 per tonne in May, a level not seen since mid-March, amid a tightening European market. On the supply side, Russia held back shipments outbound to Northwest Europe with the purpose of building up domestic gasoline stocks. Meantime, a robust demand from European petrochemicals and blending plants attracted more barrels from the Mediterranean and Black Sea, which narrowed the Europe-to-Asia arbitrage spread to a 2-month low, as more shipments were being sent to European ports. Elsewhere, the Asian market sentiment remained mixed, as traders weighed expectations of tighter supply cycles for June and the impending opening of the new cracker of LG Chem in South Korea, with the planned maintenance season and the increased use of liquified petroleum gas as a naphtha substitute. Still, gains were limited by a worsening epidemiological background in India and Southeast Asia.
Historically, Naphtha reached an all time high of 1180.47 in July of 2008. Naphtha - data, forecasts, historical chart - was last updated on May of 2021.
Naphtha is expected to trade at 554.96 USD/T by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 476.55 in 12 months time.