Asia’s naphtha markets fell by about 30% this week as high prices due to supply disruption worries from drone attacks on Russian energy infrastructure and shipping attacks in the Red Sea caused a lull in the trading window, market players said.

The crack fell to $71.28 per metric ton over Brent crude on Friday, compared with 72.90 a day earlier and the backwardation narrowed to $13 per ton.

Meanwhile, naphtha stocks at the European trading hub of Amsterdam-Rotterdam-Antwerp (ARA) were little changed at 304,000 ton in the week to Feb. 1, significantly higher than 243,000 tons at this time of last year, data from Insights Global showed.

In gasoline markets, the crack hovered near $15 per barrel over Brent crude on Friday, down about 2% on week.

NEWS

– Russia raised exports of liquefied petroleum gas (LPG) to China via railways by 35% to 202,000 tons last year, according to Reuters calculations based on industry data, diverting flows from Europe after sanctions over its actions in Ukraine.

– Oil prices rose following a decision by OPEC+ to keep its oil output policy unchanged, although benchmarks were headed for weekly losses amid unsubstantiated reports of a ceasefire between Israel and Hamas.

SINGAPORE CASH DEALS O/AS

Two gasoline trades.
Source: Reuters (Reporting by Mohi Narayan; editing by David Evans)