Asia naphtha prices fell to a near two-week low, while cracks inched down by around 0.1% on persistent lackluster demand for February cargoes, as per Reuters. However, traders expect buyers from South Korea to start moving by end of week. Traders also expect market fundamentals to weaken, with an expected increase in European cargoes to Asia as USA stops drawing European naphtha. Additionally, India's BPCL has revealed three cargoes, giving the impression that there could be more supplies. If cargoes to be offered by Kuwait rise, it will weigh on sentiments.
Open spec naphtha for front-month H2 January slipped by six dollars to US$842/ton, the lowest since Dec. 3.