The prompt naphtha December/January time spread firmed to a near one-month high on Monday, reflecting a more bullish stance taken by traders after light distillate cracks rose in Europe, as per Reuters. Naphtha cracks in Asia also touched a one-month high last week because demand started emerging for January cargoes from petrochemical makers. However, the uptrend is viewed by many market players as fragile because of building gasoline inventories in the United States coupled with weak demand in Asia.
Naphtha's East-West spread, the differential between Europe and Asia prices, was mostly weaker across the 12-month forward curve, reflecting an arbitrage window that is harder to work because of snug supplies in Europe. December EW contract stood at 75 cents/ton, the lowest in more than one month.
Naphtha CFR Japan's December/January time spread was US$1.75 higher at a backwardation of US$12.50/ton. January/February was also firmer by a dollar at a backwardation of US$12/ ton.
11-Dec-12 
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