Asia’s naphtha markets gained on Tuesday due to weakness in crude oil prices and tight supplies, although tepid demand capped gains.

The crack jumped by $11 to $84.28 per metric ton over Brent crude. The second-half February naphtha price traded $22.50 per ton higher than the following month.

At the deals window, a series of trades for benchmark-grade of gasoline lifted demand sentiment ahead of Chinese Lunar New Year holidays and supported the margin.

The gasoline crack traded steadily above $8 per barrel on Tuesday.

NEWS
– China’s exports grew for the first time in seven months in November, suggesting factories in the world’s second-largest economy are attracting buyers through discount pricing to overcome a prolonged slump in demand.

– Oil and fuel tanker traffic in the Red Sea was stable in December, even though many container ships have rerouted due to attacks by Iran-aligned Houthi militants, a Reuters analysis of vessel tracking data showed.

SINGAPORE CASH DEALS
One naphtha trade, seven gasoline deals.
Source: Reuters (Reporting by Mohi Narayan; editing by Jason Neely)