We continue to see strength across the naphtha complex, although we appear to now be approaching the dangerous realm of potential buy-side saturation with rising selling in naphtha cracks in Europe, alongside selling in the E/W.
Open interest in the M1 naphtha E/W fell by 4.2% to 9.6mb, 5.74% below the 5-year average for this time of the year. In freight, the M1 TC5 freight plummeted this week, declining from $51.95/mt on 17 June to $46.85/mt on 28 June. Finally, a correlation analysis highlighted that gasnaph correlations turned significantly negative, with the correlation between gasnap and the NWE naphtha crack and MOPJ crack flipping from positive to negative.
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