The naphtha crack spread in Northwest Europe has fallen to the lowest since November, according to Bloomberg citing General Index data amid higher imports and lower petrochemical demand.

• The Naphtha spread to Dated Brent is the weakest seasonal level since at least 2007 widening from -$4.62/bbl at the start of last week to -$13.08/bbl on April 3.
• “Rising crude prices have pulled outright naphtha values higher this week, squeezing naphtha-based steam cracking margins,” said Ciaran Tyler at Kpler.
• “Even though naphtha demand for gasoline blending is healthy, it’s not enough to counter weaker petchem demand and rising imports this week.”
• Dangote naphtha exports of about 40kb/d in March are adding to the length in the global market, Tyler added.
• Naphtha independent storage inventories in the ARA region are the highest seasonal level since at least 2007 and nearly 60% above the previous five year average.