Asia’s naphtha markets gained on Monday after a disruption in supply from Russian Novatek’s Ust-Luga terminal added uncertainty about February and March supplies, market players said.

The refining profit margin for naphtha in Asia jumped by about $6 to $91.70 per metric ton over Brent crude on Monday after four straight sessions of losses.

Russian energy company Novatek said on Sunday it had been forced to suspend some operations at the huge Baltic Sea fuel export terminal and “technological process” at the complex due to a fire.

The market has reacted promptly to the fire incident and cracks will possibly go higher, a Singapore-based naphtha trader said.

Novatek’s Ust-Luga terminal exports close to 3 million tons of naphtha to Asia, according to ship-tracking data from LSEG and Kpler.

The company is likely to resume operations within weeks, analysts said on Monday.

NEWS

– Saudi Basic Industries Corp (SABIC) will go ahead with building a petrochemical complex in southeastern China’s Fujian province, the company said in an exchange filing on Sunday, shoring up Saudi ties with China, the world’s top oil importer.

– The Brent crude market structure and some physical markets in Europe and Africa are reflecting tighter supply resulting partly from concern about shipping delays due to vessels avoiding the Red Sea, according to traders, LSEG data and analysts.

SINGAPORE CASH DEALS

Two naphtha trades, three gasoline deals.
Source: Reuters (Reporting by Mohi Narayan; editing by Jason Neely)