Asia naphtha drops $13.25/t on crude falls

25 April 2008 04:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha prices fell by $13.25/tonne over Thursday’s close on overnight losses in crude markets, market sources said on Friday.

First half of June indications were pegged at $967.75-970.75/tonne CFR (cost and freight) Japan, second half June at $966.50-969.50/tonne CFR Japan and first half July at $965.25-968.25/tonne CFR Japan.

The second half of June contract was last assessed late Thursday at $980.50-981.50/tonne CFR Japan amid a lack of deals. The contract had hit record highs throughout the week, reaching a high of $982/tonne CFR Japan late Wednesday as trader Vitol sold a parcel to oil major Shell.

Crude fell to $116/barrel levels in the US on the back of a strong dollar late Thursday while crude futures in the US surpassed the $117/barrel mark this week and tested the $120/barrel level.

The gains in the naphtha markets were catching up with crude oil gains due to strong buying support from northeast Asian end-users this week. Asian naphtha jumped 6.33% versus a 6.81% rise in the Brent crude prices since the middle of this month.

South Korean end-users snapped up cargoes for second half of May, first and second half of June delivery this week. Taiwan's Formosa Petrochemical (FPCC) on Tuesday purchased a large prompt parcel of 200,000 tonnes naphtha for delivery in the second half of June and may be seeking for more supplies.

By: Desmond Chia
+65 6780 4359

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