Naphtha crack in Asia at 4 session high, supported by limited supplies amid healthy demand

08-Apr-14

The Asian naphtha crack was at a four-session high of US$138.83/ton, supported by limited supplies against healthy demand, as per Reuters. Low European/Mediterranean naphtha exports to Asia for May arrival have combined with heavy refinery maintenance in the region. Indian cargoes for April shipment are expected to be low, with Reliance Industries having shut a 330,000 bpd crude unit around March 20 for 3-1/2 weekroutine maintenance. Healthy gasoline demand may also prevent Reliance from exporting more naphtha, because the latter can be reformed into motor fuel. The strong fundamentals continued to keep spot premiums firm, with India's MRPL having sold 35,000 tonnes of naphtha to Itochu for May 14-16 loading from New Mangalore at a premium of US$41-42/ton to Middle East quotes on a free-on-board (FOB) basis.