Europe will struggle to absorb a near doubling of naphtha imports by early winter.The European naphtha market has been tightly supplied this summer, amid refinery run cuts and relatively high petrochemical sector demand, which have boosted refining margins. Naphtha's premium to Brent crude has averaged 150/bl in northwest Europe in September, compared with an average discount of more than $5/bl in June (see graph). But increased shipments from Algeria and limited demand for exports in Asia-Pacific are likely to leave a supply overhang in Europe.
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