Asia’s naphtha markets gained about 22% this week due to weakness in crude oil benchmarks, although the upside was limited due to poor demand.
The crack rose by about $2 to $86.03 per metric ton over Brent crude on Friday, and the second-half January naphtha price jumped by $7.75 to $653.25 per ton.
Traders said the volatility in naphtha cracks was driven by price action in crude oil markets and the demand from petrochemical unit will likely remain subdued this month.
In gasoline markets, the crack rose to $9.87 per barrel over Brent crude on Friday, a gain of about 7% on week.
NEWS
– India is working to ensure supplies of ethanol for blending with gasoline are not disrupted, government officials said on Friday, a day after curbs were placed on ethanol production from cane juice to boost sugar supplies.
– The Dangote oil refinery in Nigeria is set to receive its first cargo of 1 million barrels of crude oil from Shell International Trading and Shipping Co (STASCO) later on Friday, bringing the start of operations closer after years of delays.
SINGAPORE CASH DEALS O/AS
One gasoline trade, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Krishna Chandra Eluri)