Asia’s naphtha price structure widened in backwardation by $11 per ton on Monday and margin remained steady in premiums amid lower supplies from Russia, traders and analysts said.

The crack traded at $48.83 per metric ton over Brent crude, and the first-half January naphtha fell by $11 to $648 per ton.

Traders said restrictions on cargoes of alternative feedstock liquefied petroleum gas crossing Panama canal have also propped up demand for naphtha, providing support for cracks.

In gasoline markets, margin was stable above $8 per barrel amid lower supplies from China.

Meanwhile, South Korea’s SK Energy, owned by SK Innovation, is likely to bring back online one of its crude distillation units (CDU) by mid-December after shutting it for repairs last week, three sources familiar with the matter said on Monday.

The private refiner shut its 240,000-barrel per day No. 4 CDU in the middle of last week because of a technical problem, they said. Exact details on the problem could not be confirmed.

NEWS

– The Panama Canal, one of the world’s main maritime trade routes, announced on Friday it is launching a special auction slot on Saturday, as it battles a severe drought that has forced it to reduce daily ship crossings.

– A meeting of more than 100 countries on Friday agreed to an interim goal for emissions reductions from global aviation by 2030 by using less-polluting fuels, but China, Russia and some others aired concerns about the impact on their economies.

SINGAPORE CASH DEALS

No trades.
Source: Reuters (Reporting by Mohi Narayan; Editing by Shilpi Majumdar)