This week on the US Gulf Coast, sources say an ongoing backlog of ships at the Panama Canal is impacting naphtha demand. The Canal is having to impose increased regulations due to low water levels, which may impact transits into 2024. This follows Gulf Coast reformer-grade heavy naphtha prices dropping to historic lows in mid-August.

On the West Coast, the gasoline market will be looking for impacts from Tropical Storm Hilary’s landfall, which sources expect will impact supply. Last week, reformulated gasoline prices spiked to yearly highs amid cuts at PBF Energy’s Torrance refinery and flaring at Marathon’s refinery.

Prices of polyethylene terephthalate (PET) deposit bottle bales in California have spiked unexpectedly this month, but market players say some sellers are sitting on supply until prices rise and some buyers are watching to see where prices will go. Supply-driven upticks can be short-lived if not supported by demand, though bale prices were slow to drop in the early summer despite demand being lackluster.

ERCOT market participants may learn about the Public Utility Commission of Texas’ emergency pricing program, which is designed to safeguard consumers if power prices hit the $5,000 per megawatt hour high systemwide offer cap for 12 hours in a 24-hour period. Several stakeholders have offered comments on the Commission’s August 24 agenda item.

I’m Laura Robb. Thanks for kicking off your Monday with S&P Global Commodity Insights.