Naphtha crack in Asia rises to a two-week high, low western naphtha cargoes seen

20-Jun-16

Asia's naphtha crack edged up held firm at a two-week high of US$53.83/ton on Friday, as Western cargoes arriving in Asia were seen at low levels, as per Reuters. About 1 mln tons of naphtha were placed on provisional bookings for July arrival in Asia, similar to volumes fixed for June. These were down from a monthly average of 1.62 mln tons for January to May arrivals, Reuters data showed. Refiners focusing on middle distillates at the expense of the lighter fuel could also gradually tighten supplies, although no immediate impact was seen, traders said. A day ago, Asia's naphtha crack touched a two-week high of US$53.6/ton in the middle of last week, supported by demand and expectations of an easing glut ahead as refiners in Europe and Asia are turning the taps down on light distillates to combat global excess. Europe's refineries are moving towards diesel, traders said, while Asian units are maximising jet fuel, as per Reuters.