Asia Naphtha/Gasoline-Naphtha markets ease as high prices hit demand

Asia’s naphtha markets extended losses on Wednesday as high prices made trades unviable for a second straight session, market players said.

The crack shrank by about $7.35 to $91 per metric ton over Brent crude. The first-half March naphtha price fell by $4.50 to $710.50 per ton, LSEG data showed.

“Prices are too strong, no one wants to buy at those levels,” a Singapore-based naphtha trader said.

Naphtha prices spiked after tensions in the Red Sea escalated and Russian oil facilities came under attack, triggering fears of supply disruption.

In gasoline markets, the crack eased below $15 per barrel over Brent crude on Wednesday amid absence of deals at the window.

INVENTORIES

Light distillate stocks at the Fujairah commercial hub were steady at around 6.6 million barrels in the week to Jan. 29, S&P Global Commodity Insights data showed.

NEWS

– Energy producers and traders are weighing the higher prices of longer voyages around the Cape of Good Hope and using larger crude tankers to manage costs and risks, while buyers are demanding discounts to compensate for higher freight and war risk premiums.
– Vietnam’s Petrolimex PLC.HN is seeking to buy February-loading 500ppm sulphur gasoil and octane-95 gasoline via a spot tender, three sources close to the matter said on Wednesday.

SINGAPORE CASH DEALS

No trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shailesh Kuber)