As domestic naphtha consumption falls as fertiliser plants are increasingly switching to gas as feedstock, the surplus naphtha from India is finding its way into the export markets. August exports are estimated to increase to at least 800,000 tons, the highest this year. This increased supply has coupled with arrival of more Western barrels next month, with traders scrambling to charter vessels previously used as floating storages for diesel in Europe. In fact, H1-September parcels could be sold at a discount. Supplies in the region have eased as compared to H2-July and H1-August deliveries. Last month, supply constraints were caused by refinery run rate cuts and slower Western arrivals.