Asia’s naphtha refining profit margin continued to decline on Tuesday amid volatility in crude oil prices and tepid demand due to lower operating rates at several South Korean crackers, market participants said.

The crack declined about $8 to $5.95 a metric ton over Brent crude, while the second-half November naphtha rose $2 to 667.75 per ton.

In physical markets, a cargo of naphtha changed hands after a gap of a fortnight. Energy trader Gunvor bought first-half December naphtha for $666.50 per ton, market sources said.

The gasoline crack fell below $4 a barrel on Tuesday, although the downside was limited on hopes of declines in global inventories.

NEWS

– Russian wholesale diesel prices continued to increase on Tuesday after Moscow mostly lifted an export ban on the fuel last week, while prices of gasoline, exports of which are still prohibited, fell for the second day in a row.

– Oil prices eased on Tuesday after rallying more than 4% in the previous session, with traders cautious as they watched for potential supply disruptions amid military clashes between Israel and the Palestinian Islamist group Hamas.
Source: Reuters (Reporting by Mohi Narayan; Editing by Varun H K)