Supply outpaces demand

摘要

Naphtha and gasoline bucked the trend of falling prices across the rest of the products complex, as concerns about oversupply continued to weigh on most markets.Naphtha refining margins surged, and the swaps curve flipped into backwardation - with prompt prices above forward markets. But the apparent strength belied still-high spot supply from the Mideast Gulf and India. The arbitrage to move cargoes from Europe to Asia-Pacific remains closed on paper. But the recent strength in Asia-Pacific markets and a persistent supply overhang in Europe have prompted trading firms to consider buying August-loading naphtha in Europe for shipment east of Suez.