16OCT2019 - NEWS - Asia’s naphtha above $100 for 1st time in a year

Asia's naphtha crack surpassed the $100 a tonne mark for the first time in a year on Friday as the supply crunch deepened. Benchmark open-specification naphtha crack for second-half November hit $105.90 a tonne, the highest front-month value since October 2 2018. Four months ago, naphtha crack was at its lowest in over 10 years. But the tide has changed following the Sept. 14 attacks on Saudi Arabia's oil facilities.

According to FGE, refineries in Saudi Arabia cut their runs by 500,000 barrels per day (bpd) in September after the attacks. “Together, with the loss of around 120 kb/d (120,000 bpd) of non-refinery naphtha output from NGL (natural gas-to-liquid) plants, the Kingdom's naphtha exports are estimated have dropped by 130 kb/d in September," the consulting firm said in a note on October 10.

It added that planned maintenance at SASREF and Ras Laffan in October and November respectively would keep Middle Eastern naphtha exports limited. “Tightness in the regional naphtha supply is also attributed to the ongoing turnarounds at SK Energy's 100 kb/d Incheon and Dragon Aromatics' 110 kb/d Fujian condensate splitters," the note said.