Singapore oil product swaps prices tracked crude lower in post-holiday trade on Monday and naphtha lost nearly $2 on easing concerns over supplies from Algeria.
February naphtha swaps were pegged at $36.55/$36.75 a barrel, down from $38.35/$38.55 on Wednesday, the last day of active trading before Lunar New Year holidays, as shipping operations at Algeria's key port of Skikda resumed due to improved weather conditions.
Traders said a naphtha cargo was due to load from Skikda on Saturday, the first of four naphtha cargoes subjected last week to a force majeure notice by Algerian state-oil-company Sonatrach.
"There are no supply concerns in the short-term anymore," said a naphtha trader in Singapore, referring to Skikda.
Brokers said February gas oil was bid at $38.85 a barrel, down 55 cents from Wednesday, against no offers. The contract's offer price was notional valued at $39.15.
But February's crack spread to Dubai crude held firm at $10.30 a barrel, just 10 cents weaker than Wednesday, they said.
February fuel oil traded at $174.50 and $175 a tonne, down from Wednesday's $177.75. The backwardation with March narrowed to $1.00/$1.75 from $2.00.
But traders said shipping delays from the Black Sea following last week's closure of the Bosphorus and Dardanelles straits due to cold weather could help support prices.
Fuel oil's crack spread to Dubai widened by 15 cents in favour of crude to minus $2.05/minus $1.85 a barrel.
Front-month March NYMEX crude futures were off 36 cents at $34.58 a barrel at 0441 GMT in expectation a cold spell in the United States will ease later this week.
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