SINGAPORE: Asia’s naphtha and gasoline cracks eased on Tuesday but hovered near multi-month highs, supported by expectations of tighter fuel supplies and a potential demand boost from the upcoming US summer driving season.
Fuel supplies could stay tight with several Asian refineries scheduled to shut for maintenance in the second quarter, while the west-to-east arbitrage window for naphtha remained shut.
Also, prices of liquefied petroleum gas (LPG) stayed elevated, deterring cracker operators in Asia from switching to the alternative petrochemical feedstock.
In the spot market, Indian refiner BPCL has sold a 35,000-tonne naphtha cargo with a minimum paraffin content of 65% for loading on March 8-10 from Mumbai to Glencore at about $24 a tonne above its pricing formula, trade sources said.
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