Asia’s naphtha markets gained about 40% this week on the back of supply-side jitters stemming from geopolitical tensions and tight flows of January cargoes from the Middle East, traders and analysts said.

The crack jumped to its highest level since Feb. 28 to $120.52 per metric ton over Brent crude on Friday. Volatility in crude oil markets also contributed to the gains.

The second-half January naphtha price jumped about $22 to $696.75 per ton in a backwardation structure as market players actively sought supplies for next month, while the trading cycle has already moved into February.

Delays due to bad weather in the Black sea in late November have also kept the market tight, market participants said.

NEWS

– China’s oil refinery throughput in November fell versus the previous month as independent refiners cut run rates amid weak margins and crude oil imports slowed.

– India will buy Venezuelan oil as some refiners in the country have the capability to process heavy crude oil, Oil Minister Hardeep Singh Puri said on Friday.

SINGAPORE CASH DEALS O/AS

One naphtha trade, two gasoline deals.
Source: Reuters (Reporting by Mohi Narayan; Editing by Sonia Cheema)