Asia Naphtha/Gasoline-Naphtha prices plunge after Brent sinks

NEW DELHI, June 24 (Reuters) - Asia's naphtha prices tanked on Tuesday in tandem with crude oil benchmarks, which slumped 5% after Israel agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran.

The price for first-half August naphtha fell by $56 to $592.75 per metric and its backwardation with first-half September cargo stood at $8.75 a ton.

Traders expect a rise in demand from China after the trade war made imports of cheaper alternatives propane and ethane unattractive.

China has issued a second batch of 2025 naphtha import quotas, nearly doubling last year's allocations, six trade sources said.

The quotas, issued in mid-June, were extended to 10 chemical companies that will be allowed to import about 12 million metric tons of refined oil, taking this year's total to about 24 million tons, one of the sources said.

In the gasoline market, the window remained quiet for a fourth straight session. The crack traded at $11.15 a barrel over Brent crude.

NEWS

- Shipping costs for liquefied natural gas cargoes have rallied to their highest in about eight months with vessel availability tightened by a shift in more ships heading to Asia at the same time as conflict has escalated in the Middle East.

- Russia's largest oil producer, Rosneft, will suspend output of its export-oriented Sokol crude grade at its far eastern Sakhalin-1 project in August because of maintenance, three industry sources told Reuters.

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