Asia’s naphtha refining profit margin was steady on Wednesday after window activity remained thin for a fourth straight session, but backwardation was on a widening trend, signaling supplies could be tight again.
The crack traded at about $83 per ton over Brent crude. The price for first-half June cargo rose to $595.75 per ton and traded $9 higher than the first-half July naphtha.
South Korean buyers were active in the market this week, trade sources said, while Indian sellers have been offering May supplies for naphtha.
In the gasoline market, the crack was buoyed by demand from Mexico. Three Asian cargoes are discharging in Mexico next month, according to LSEG ship-tracking data.
NEWS
– Oil prices climbed more than 1% on Wednesday, as investors weighed a fresh round of U.S. sanctions on Iran, a drop in U.S. crude stocks, and a softer tone from President Donald Trump towards the Federal Reserve and his tariff war with China.
– Taiwan supplied for the first time a blend of sustainable aviation fuel (SAF) to refuel planes owned by three domestic carriers at several airports across the country, the Civil Aviation Administration said on Wednesday.
SINGAPORE CASH DEALS
No trades.
Source: Reuters