Asia’s gasoline refining profit margin traded firm near $10 per barrel over Brent crude for the eighth straight session amid upbeat window trades for benchmark-grade of the fuel.
Traders still sought clarity on supplies to Indonesia via term tenders which were recently awarded to Chinese oil majors, market participants said. Two term tenders are open and valid until mid-June.
In naphtha market, the crack eased to $75.18 metric ton over Brent crude, the lowest since April 17, while the market closely watched U.S. ethane flows to China amid license issues.
China’s Wanhua Chemical has shut its 1 million tons-per-year first phase ethylene plant in Yantai Industrial Park on June 3 for a period of five months, the company said in an exchange filing.
After the shutdown, the raw material for the plant will be changed from propane to ethane, it said. Analysts said this shutdown will reduce demand for propane.
NEWS
– Oil prices climbed on Tuesday as investors awaited the outcome of U.S.-China trade talks and as Saudi Arabia’s crude supply to China is set to dip slightly.
– The Saudi crude oil supply to China is set to drop in July, trade sources said on Tuesday, but still strong for a third straight month as the OPEC kingpin regains its market share supplying the world’s top crude importer.
SINGAPORE CASH DEALS
Two gasoline trades, one naphtha deal.
Source: Reuters