Asia naphtha crack spread rallies to near $100/tonne

10 August 2012 11:31  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s naphtha crack spread has surged to nearly $100/tonne (€81/tonne) on Friday’s close, partly on increased prospects to use more naphtha for gasoline blending, traders said.

Scheduled maintenance at a couple of key Indian refineries, meanwhile, would lead to tighter naphtha supply going forward, they said.

The Asian naphtha crack spread for second-half September rallied to $99.65/tonne against September Brent crude futures, the strongest since 14 May, according to ICIS data.

“The reforming margin is still strong,” said a trader, referring to the price spread between motor gasoline and naphtha.

Asian gasoline supply is currently in a shortfall, because refinery upsets in the US prompted higher demand for arbitrage gasoline material from Asia, traders said.

Refinery shutdowns in Asia also tightened gasoline supply, they added.

($1 = €0.81)

By: Felicia Loo

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