Naphtha price extends gains to reach a three-session high in Asia

12-May-11

Asia's naphtha price extended gains to reach a three-session high on Tuesday, while cracks hovered at a week high despite more spot supplies seen from the Gulf, as per Reuters. Kuwait has sold at least 190,000 tons for May loading after skipping April spot sales due to refinery maintenance, while ADNOC offered 150,000 tons of spot for June by tender for the first time this year. The current scenario of tight supplies caused by low supply from Europe (due to strong demand and lower refinery runs) to Asia should start to ease from or after July. Additionally, Brazil is not expected to continue drawing as much European naphtha away from Asia. Price for front-month H2-June rose by US$35 to US$1035/ton, it’s highest since May 5.