Asia’s naphtha refining profit margin extended losses on Tuesday on persisting lower petrochemical demand and fears of rising supplies from the Middle East, analysts and traders said.
The crack fell by about $3 to $88.08 per metric ton over Brent crude oil in a steady backwardation of $18 per ton. The price for first-half May naphtha rose by about $2 to $738.25 per ton.
“The Asian market is still losing some demand for petchem-grade naphtha as flexi-feed crackers opt for cheaper propane,” analysts at FGE said in a note.
At the deals window, 150,000 barrels of gasoline changed hands, while there were no trades for naphtha.
Meanwhile, the gasoline crack slipped to $12.61 per barrel over Brent crude on Tuesday, compared with $13.07 a day earlier.
NEWS
– Top oil executives took to the stage of a major energy conference on Monday to vocally oppose calls for a quick move away from fossil fuels, saying society would pay a steep cost to replace oil and gas.
– Russia will increase oil exports through its western ports in March by almost 200,000 barrels per day (bpd) against the monthly plan to 2.15 million bpd, and market participants expect a further increase in exports amid ongoing drone attacks on Russian refineries.
Source: Reuters (Reporting by Mohi Narayan; Editing by Tasim Zahid)
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