Asian naphtha at 18 week high as ample supplies weigh on sentiments

04-Oct-10

Asian naphtha price hovered at a 4-1/2 month high for the third-straight session on Friday, and cracks extended losses to reach a four-session low as ample supplies continued to weigh on sentiment, as per Reuters. Middle Eastern producers sold around 650,000 tons of naphtha for October loading, the highest spot volumes in at least a year, while India is expected to keep this month's exports at high levels of 850,000 tons. Some expect spot barrels from the Gulf to fall from November, but the market continues to react to the prompt supply levels. Saudi Aramco is expected to have less volumes next month as they have less of A180 grade to offer in the winter months. Also, Kuwait is shutting an 80,000 bpd crude distillation unit at its 270,000 bpd Mina Abdulla refinery in November for planned maintenance.