Asia’s naphtha market gains strength

27-Jun-12

Asia's naphtha market strengthened on Tuesday, with the prompt July/August intermonth swaps value climbing to its highest in more than three weeks on expectations of lower Indian and European exports, as per Reuters. The July/August spread gained US$1.50 to a discount of US$2.50 in early trade, the narrowest since May 31. Volume of naphtha currently being produced in India is falling, while domestic demand in Europe is likely to be strong during the summer, thus limiting its exports to Asia.