Asian naphtha opens higher on firmer crude

12 June 2008 03:39  [Source: ICIS news]

SINGAPORE (ICIS news)--Asian naphtha prices opened higher on gains in the crude markets in the west, according to industry sources on Thursday.

 

Asian naphtha prices opened $22.50/tonne higher on Thursday. Second half July prices indications were pegged at $1,161.00-1,164.00/tonne CFR (cost and freight) Japan, first half August at $1,157.00-1,160.00/tonne CFR Japan and second half August at $1,154.50-1,157.50/tonne CFR Japan.

 

Asian naphtha prices closed firmer on Wednesday. Second half July prices indications were pegged at $1,139.50-1,140.50/tonne CFR Japan, first half August at $1,135.50-1,136.50/tonne CFR Japan and second half August at $1,133.00-1,134.00/tonne CFR Japan.

 

Supplies have been tightening in Asia with less supplies coming from India and Europe. Players expect supplies to be tight in the second half of this year.

 

Western traders reportedly moving arbitrage cargoes from the west to northeast Asia aided the wide open west-east window.

 

Although naphtha supplies from India are still forthcoming and exports are expected to increase, it is still a far cry from last year’s monthly volume of 1 million tonnes at the end of 2007, sources said. 

 

Asian naphtha prices were up 5.07% versus gains of 4.21% in the Brent crude markets since early June.

 

U.S. crude oil futures jumped by more than $5/barrel on Wednesday, when the U.S. government reported a larger-than-expected drawdown in domestic crude oil stocks, increasing fears of a worsening global crunch.

    

Front-month U.S. crude for July delivery was up 5 cents, or 0.04 percent, at $136.43/barrel on the Globex electronic trading platform. It soared on $5.07/barrel Wednesday, or 3.86 percent, to settle at $136.38/barrel.

By: Desmond Chia
+65 6780 4359

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