Asia’s naphtha prices rebounds on crude, Fed stimulus

14 September 2012 03:32  [Source: ICIS news]

SINGAPORE (ICIS)--Asia’s open-spec naphtha prices rebounded on Friday, crossing the $1,000/tonne (€770/tone), led by stronger crude futures after the US Federal Reserve introduced another stimulus package, traders said.

Naphtha prices for the second-half October contract rose by $5.50-6.50/tonne from Thursday to $1,000.50-1,003.50/tonne CFR Japan, according to ICIS data.

At 01:58 GMT Brent crude futures rose 41 cents at $116.29/bbl.

Under the stimulus package, the Fed will buy $40bn/month (€31bn/month) worth of mortgage-back securities.

In addition, the Fed plans to maintain low interest rates for even longer, to mid 2015. The federal funds interest rate has been at 0-0.25% since December 2008.

($1 = €0.77)

By: Felicia Loo

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