Firm naphtha demand and discount to LPG prices has boosted naphtha volumes. At the same time LR2 tankers are involved in trades of other products, letting LR1 to gobble up market share out of the Middle East.
Hurdles increase for LPG exports from the US while supplies from the Middle East have yet to reach fruition.
Despite a really strong, unseasonal LPG price hike, VLGC rates are following a different path. Vortexa attempts to shed a light on this divergent pattern.
Vortexa uses flows data to illustrates how strong gasoline demand combined with steep petrochemical demand feedstock is driving up the demand for naphtha, making refiners max light end yields at the expense of middle distillate.
North American LPG shipments to Asia may come at a higher price this summer due to multiple forces pressuring the economics of the trade.
Elevated naphtha exports from Europe supported long-haul voyages in favour of LR2 tankers. Yet, will this trend contribute to uplift LR2 freight rates?
As naphtha continues to find outlets towards the East, LR2 utilisation is on the rise in March, helping resurrect rates from multi-year lows. But widening LPG discounts to naphtha are expected to put a lid on Asia's naphtha imports in the coming months.
Which Texas clean product export terminals were impacted the most during the freeze? Our infographic details the terminals with the largest weekly export volatility and who is recovering the quickest.
The cold snap in North Asia ensured steady LPG export demand throughout January even as US propane prices reached their highest levels in over two years.
The share of US LPG exports heading to Asia rose in the first half of the year, offsetting a drop in transatlantic flows. Looking ahead, the momentum of US exports to China in particular will hinge upon the competitiveness against rival Middle East producers.