About 55,000 tons of naphtha is sailing to the West this week from Saudi Arabia. Last week saw 350,000 tons shipped to Europe in July to ease a glut caused by negligible demand from Asia, as per Reuters. The parcel was lifted on Oct. 13 from Saudi Arabia onboard tanker ‘Analypsi Lady’ by Vitol. The two cargoes are likely from Rabigh and Yanbu, and the moves could be due to high supplies in the region.
Demand has picked up in Europe as it is affected by a port strike in France which has paralysed the country’s oil refining industry. The strength in Europe as a region seems artificial because not all traders were able to find buyers for Eastern barrels. The French strike is definitely boosting sentiment, but that is driven by a panic reaction rather than short supplies. However, a cheap vessel may make it possible to move cargoes to the West, especially if it is from Rabigh.