Asia Naphtha/Gasoline-Naphtha markets weaken on lower demand

Asia’s naphtha markets weakened on Monday, after dropping about 12% last week as demand was hit by steam crackers’ preference for cheaper alternative feedstock propane over naphtha, market players said.

The crack shrank by about $14 to $65.70 per metric ton over Brent crude, while the price of first-half April naphtha fell by about $13 to $687 per ton.

The gasoline crack traded strong at more than $16 per barrel over Brent crude on Monday, amid robust fuel demand and lower exports in China during the Lunar New Year holiday.

In tenders, India’s MRPL offered 35,000 tons of reformate for delivery during mid-March in a tender that closed on Monday with same-day validity.

NEWS
– Disruption to shipping in the Red Sea region will impact QatarEnergy’s deliveries of liquefied natural gas (LNG) but not its production, CEO Saad al-Kaabi said on Monday.

– Houthi militants in Yemen said on Monday they had attacked the Rubymar cargo ship in the Gulf of Aden and the vessel was now at risk of sinking – raising the stakes in their campaign to disrupt global shipping in solidarity with Palestinians in the Gaza war.

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Source: Reuters (Reporting by Mohi Narayan; Editing by Savio D’Souza)