Asia’s naphtha refining profit margin was little changed on Tuesday amid “abundant caution” traders exercised due to tensions in the Strait of Hormuz.

The crack traded at $76.48 per metric ton over Brent crude in a steady backwardation of $8.50 a ton.

Two oil tankers collided and caught fire on Tuesday near the Strait of Hormuz, where electronic interference surged in the midst of the Iran-Israel conflict, but there were no injuries to crew or spillage reported.

In refinery news, Wanhua Chemical shut its 1.2 million ton-per-year cracker on June 14 in Yantai due to a technical glitch, a Singapore-based trader said.

Another cracker operator, Lotte Chemical Indonesia will restart operations at its plant likely on Friday after it was shut in the first week on June for a technical issue, an industry source said.

NEWS

– Oil prices rose on Tuesday, with analysts saying that uncertainty would keep prices elevated, even as there were no concrete signs of any production losses stemming from the Iran-Israel conflict.

– Marine fuel sales at the United Arab Emirates’ Fujairah port hit a three-month low in May, data showed, while market sources said they are monitoring the situation in June as conflict flares between Israel and Iran, heightening regional tensions.

SINGAPORE CASH DEALS

One gasoline and one naphtha trades.
Source: Reuters