Asian naphtha: crack remains under pressure

06 Jul, 2008

Asian naphtha's premium against Brent crude remained little changed from the previous session, pressured by more arbitrage volumes expected in the region. Benchmark open-spec naphtha contracts for second-half August gained to $1,253.00 a tonne, up from $1,249.00 in the previous session.
The crack against Brent for second-half August remained at $155-$156 a tonne, while the half-month backwardation was at $7.00 a tonne. Swiss-based oil trader Gunvor booked a vessel to ship 55,00 naphtha from Russia to Japan, a move usually seen when the West and East arbitrage spread is wide.
The arbitrage spread between East and West was in the $80.00 a tonne range as of Thursday morning. In tender news, Kuwait's KPC offered to sell 25,000 tonnes of naphtha for end-July to early-August loading from its Mina al-Ahmadi port.

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