Asian naphtha is supported by a tight arbitrage
supply from the West Ethylene-naphtha spread widens on the week,
within breakeven range



India's Naphtha consumption hit a 14-month high in
January. TheAsianannaphtha Market was boosted by thin Western arbitrage
supplies on Feb. 15, while demand fundamentals were mixed due to improving
olefin margins, and relatively lower LPG prices. The market's strength was reflected by the CFR Japan naphtha
physical cracked against front-month ICE Brent crude oil futures increasing
$7.75/mt-$7.80/mt week-on-week to $156.05/mt- $175.20/mt Asian close February
14. As olefin margins gained momentum over
the week, Asian end-users closely monitored them. This could have contributed
to naphtha demand. At the Asian market
close on February 14, the key CFR Northeast Asia ethylene-C+F Japan naphtha
spread increased $87.25/mt-$90.30/mt over a week to $344.75/mt-$410.95/mt. Market sources indicated that the...