- The pH of Naphtha's physical crack drops to 6.83% and
$96.58-101.76/mt- Olefins margins increase but
remain in negative territory





February 27 saw a further improvement in
Asian naphtha markets due to increased supply. However, demand continues to be
squeezed by thin olefin margins. As more
Russian barrels travel to Asia, market participants remain bearish on the
near-term outlook for naphtha. At the February 24 Asian close, the
CFR Japan naphtha physical cracked spread against front-month ICE Brent crude
oil futures. It stood at $96.575-101.580/mt. This was a weakening of $2.25-3.50/mt. Physical
crack fell 6.83%, or $7.08/mt, from $103.65/mt February 22. A
China-based source stated that more Russian barrels have been heading to Asia
since the EU ban. Singapore is experiencing higher Russian naphtha
imports, while Indian cargoes are heading towards India. The same
source said...