Asian naphtha spread widens to $8.25/t on supply

05 June 2008 05:19  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha inter-month spreads have widened further by another $4.25/tonne as supplies in Asia tighten, industry sources said on Thursday.

The backwardation between second half of July and second half of August widened by $4.25/tonne to $8.25/tonne from early last week while the spreads between first half of August and first half of September widened by $4/tonne to $6.50/tonne.

Supplies have been tightening on reduced exports from India and Europe and no fresh arbitrage cargoes were seen slated for northeast Asia despite the widening west-east window.

Supplies were expected to remain tight for the rest of the year.

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

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By: Desmond Chia
+65 6780 4359

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