Asia’s naphtha crack climbed to a more than nine-month high on Wednesday as traders fretted over January supplies amid persisting tensions in the Middle East.

The crack jumped to $105.18 per metric ton over Brent crude, the highest level since March 8. The second-half January naphtha price traded $15.75 higher than the following month in backwardation structure at $650.50 per metric ton.

“Physical premium is still strong, even stronger than yesterday,” a Singapore-based naphtha trader said.

Market players said cargoes from the West could be harder to ship to the far East because of geopolitical tensions, which is driving the rally.

In gasoline markets, the crack Gl92-SIN-CRK was steady above $9 per barrel over Brent crude on Wednesday.

NEWS

– Oil tanker Cururo is taking the long way from Houston to Chile: sailing the length of South America’s Atlantic coast, across the Strait of Magellan and heading up the Pacific coast before discharging.

– Representatives from nearly 200 countries agreed at the COP28 climate summit on Wednesday to begin reducing global consumption of fossil fuels to avert the worst of climate change, a first of its kind deal signaling the eventual end of the oil age.

SINGAPORE CASH DEALS O/AS

Two gasoline trades, no naphtha deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Eileen Soreng)