- East-West Spread holds value- Cracks stronger each day





On July 3, the East-West naphtha
differential remained above $8/mt due to a stronger sentiment in Asia. Market participants in Asia said that, despite
the fact that demand fundamentals were unchanged, a shorter supply was expected
because of lower crude runs from Russia. The
downstream margins have not recovered as the CFR Northeast Asia ethylene to C+F
Japan Naphtha spread fell to $216.125/mt in June 30. This is below the usual
breakeven spread for integrated producers of $250-270/mt. Refinery
news: Kazakhstan's Atyrau refining plant halted its operations July 3 due to an
electrical failure. Flaring will increase. The
European crack for the front-month rose by 50 cents/b to minus $15.45/b. The CIF NWE
front-month naphtha swap increased $4.50/mt to $534.75/mt. The spread
between July/August and August/September fell by...