Asian naphtha opens $17/t lower on crude losses

05 June 2008 04:47  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha prices opened $17/tonne lower on Thursday due to softer crude markets in the west, industry sources said.

Second half July price indications were pegged at $1,082-1,085/tonne CFR (cost and freight) Japan, first half August at $1,077.50-1,080.50/tonne and second half August at $1,074-1,077/tonne. Cargill sold the first half August contract at $1,096/tonne to Trafigura.

Early last week, Asian naphtha broke another new historical record high, by trading at $1,125/tonne between Itochu and Mitsui Oil Asia Hong Kong for the second half of July contract.

Supplies had been tightening in Asia as exports from India and Europe fell and players expected the tight situation to continue into the second half of the year.

No fresh arbitrage cargoes were seen slated for northeast (NE) Asia despite the widening west-east window.

Asian naphtha markets had been firming due to healthy buying interest from NE Asian end-users last week with South Korean end-users seen snapping up cargoes for delivery in the month of July.

US crude oil futures fell slightly to $122/bbl on Thursday, after falling sharply for the second day in a row on Wednesday when US data showed a sudden rise in gasoline inventories and more Asian countries cut fuel subsidies, adding to global demand concerns.

Asian naphtha prices were up 17.01% versus gains of 12.01% in the Brent crude markets since early May.

By: Desmond Chia
+65 6780 4359

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