Asia's naphtha price rebounds to a two-session high

27-Jul-11

Asia's naphtha price has rebounded to a two-session high, along with a recovery in cracks amid positive sentiment, as per Reuters. High stockpiles have temporarily eased due to a shut arbitrage window as well as loss of some Gulf cargoes to Northwest Europe. However, the market remains uncertain as to how much longer the strength will continue. Prospects for Northwest European demand does not seem to show signs of improvement next month as the gasoline season ends, unless these traders can continue selling naphtha to USA or Brazil. Price for front-month H1-September open spec naphtha for September recovered by US$3 to US$1008.50/ton.