Asia’s naphtha markets gained on Tuesday on hopes of a recovery in demand from crackers and tightening supplies.

The refining profit margin for naphtha rose by about $2 to $68.88 per metric ton over Brent crude in a steady backwardation of $8.75 a ton. The gasoline crack was steady above $5 per barrel over Brent crude amid healthy demand from South Asia.

In spot activity, a South Korean buyer was heard snapping up 25,000 tons of August-delivery naphtha, market sources said.

Meanwhile, Pakistan State Oil (PSO) issued a term tender for the supply of three gasoline cargoes of 55,000 tons each over the period of August to November, the company said in a tender document. PSO is seeking benchmark grade of gasoline for discharge at Karachi in the tender that closes on July 8.

India’s MRPL offered 35,000 tons of reformate for loading during July 17-19 in a tender that closes on Thursday.

NEWS

– Japan’s second-biggest oil refiner Idemitsu Kosan shut the 150,000-barrels-per-day (bpd) crude distillation unit (CDU) at its Hokkaido refinery, northern Japan, on June 22 for scheduled maintenance, a company spokesperson said on Tuesday.

– India and China were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in May, traders said and LSEG data showed.
Source: Reuters (Reporting by Mohi Narayan; Editing by Vijay Kishore)