Naphtha crack in Asia at 2 week high amid expectations of easing glut following recent purchases

08-Sep-15

Naphtha crack in Asia rose to a two-week high of US$75.7/ton, supported by expectations of an easing glut following recent spot and term purchases, as per Reuters. But spot purchases this week could be limited as an annual oil conference, the Asia Pacific Petroleum Conference (APPEC), which started this week in Singapore has drawn some participants away. Kuwait Petroleum Corp offered 24,000 tons of light naphtha for October 6-7 loading through a tender closing on September 8. 50,000 tons of full-range naphtha was sold last week to Siam Cement at a single-digit premium to Middle East quotes on a free-on-board (FOB) basis, down from the US$13/ton premium fetched for an August cargo. Traders were expecting the market to improve as alternative feedstock liquefied petroleum gas (LPG) usually becomes costlier towards the fourth quarter, when it is used for heating purposes.