Naphtha Prices Plummet in Asia Amid Crude Oil Weakness

Naphtha prices in Asia have dropped for the third consecutive day due to weakness in crude oil benchmarks. The price of first-half November naphtha fell by $18 to $924.75 per metric ton, while the crack declined by about $8 to $151.95 per ton.

The steep backwardation in the market, which is a situation where the futures prices are higher than the spot prices, has continued to affect the naphtha market. The price difference between the two markets is currently at $28.75 a ton.

Thai petrochemical company Rayong Olefins restarted its naphtha-fed cracker on Thursday after declaring force majeure in March due to Middle East conflict. However, oil prices fell on Friday, extending losses for a third straight session as easing concerns over Saudi supply disruptions outweighed anxiety about a widening of conflict across the Middle East.