The previous week saw Asia's naphtha crack end at a one month high of US$110/ton, supported by expectations of fewer cargoes coming to Asia following a shutdown of the Houston Shipping Channel. The channel has reopened after a brief closure caused by wreckage, but traders are unclear of the time it would take to clear the backlog, as per Reuters. Issues related to weather and other unforeseen circumstances are adding to the uncertainty.
Asia is structurally short of naphtha. Delays in shipments from the west to Asia can result in a supply crunch as seen recently. But spot prices were moving in the opposite direction from the naphtha crack values, with traders saying that some sellers may want to release their H2-April cargoes given that most buyers have already locked in cargoes for that period.
16-Mar-15 
