Asian naphtha margin eased to a four-session low of US$134/ton on Wednesday, dragged down by falling alternative liquefied petroleum gas (LPG) prices, as per Reuters. Prices of LPG, which can replaced 5 to 15% of naphtha feedstock in some of Asia's crackers, have been unstable due to the unexpected cold snaps in the US, where LPG is also used for heating purposes. LPG prices are likely to bottom out, necessitating naphtha prices to be down adjusted accordingly for sellers to protect the light fuels market. But overall demand for prompt naphtha cargoes was strong as reflected in the steep premiums traders were willing to pay.
Vitol bought from India's Essar Oil a 35,000 ton naphtha cargo for February 25-28 loading from Vadinar at a premium of US$35/ton to Middle East quotes on a free-on-board (FOB) basis. Socar paid Indian Oil Corp (IOC) US$34-35/ton premium to the refiner's formula on a FOB basis for 35,000 tons of naphtha lifting from Chennai on February 16-18. This was IOC's first cargo sold out of Chennai in five months.
07-Feb-14 
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