Demand in Asia pushes naphtha up

European naphtha prices rose as demand from Asia increased. Gasoline (petrol) also advanced. Naphtha swaps for delivery next month in northwestern Europe gained $9.55, or 1.2 per cent, to $821.16 a tonne at 9:47 am UK time, according to London-based energy broker PVM.

That's the highest in nine trading days. Prices for naphtha in Asia climbed 2 per cent, according to data compiled by Bloomberg.

Naphtha, processed from crude oil, is used to make gasoline and petrochemicals such as supermarket carrier bags and plastic toys. The gain in Asian prices indicates an increase in demand before the Chinese New Year, when consumer spending on such products typically increases.

Gasoline swaps for January loading in Amsterdam-Rotterdam- Antwerp rose for the second day this week, adding $8.94, or 1.1 per cent, to trade at $795.39 a tonne, PVM data showed.

Brent crude oil for January settlement was little changed, gaining 1 cent to $90 a barrel on the London-based ICE Futures Europe Exchange.

Propane swaps for next month were unchanged at $853.50 a tonne, after rising $19 yesterday, according to PVM.

Swap contracts allow traders to bet on the future value of a security, currency or commodity during a specific period.