Naphtha crack in Asia almost 8% higher than March levels

18-Apr-14

Asia's naphtha crack was mostly flat at US$135.8/ton, about 8% higher than what it was a month ago as current tighter supplies supported sellers' sentiment, as per Reuters. The strong fundamentals were reflected in the recent spot deals done, with the latest on Reliance Industries. The Indian refiner sold a long-range vessel size naphtha cargo for May 15-20 loading from Sikka at premiums in the high US$30s/ton level to Middle East quotes on a free-on-board (FOB) basis, as per traders. They added that the buyer could be an oil major, but this could not be directly confirmed. The last time Reliance received high US$30s a ton was for a January 2014 lifting cargo. "Although European cargoes being fixed for May arrival in Asia could be higher than what was initially expected, Asia's inventories are still comparatively low due to strong demand," said a Singapore-based trader. Traders said cargoes arriving in Asia from Europe and the Mediterranean may have increased to about 1.3 mln tons, from an earlier expectations of up to 1 mln tons.