Asia’s naphtha refining profit margin plunged on Wednesday after prices for the second-half July cargo rose due to strength in crude benchmarks, while a deal surfaced at the window for a third straight day this week.
The crack (NAF-SIN-CRK) slipped to $76.03 per metric ton over Brent crude, the lowest level since April 22. At the window, energy trader Total snapped up 25,000 tons of second-half August cargo, market participants said.
In plant news, India’s Haldia Petrochemicals Ltd (HPL) on Wednesday started ramp up at its naphtha cracker in eastern India, which was shut for a planned maintenance on April 16, sources said.
Lotte Chemical Indonesia, on the other hand, had to shut its newly commissioned cracker due to “compressor issue” and plans to bring it online in 1-2 weeks.
In the gasoline market, traders watched out for the outcome of Pertamina’s term tenders which were under negotiations until last week. The tenders were valid till May 30.
The gasoline crack stayed firm at about $10 per barrel over Brent crude.
NEWS
– PetroChina is set to close the last remaining crude unit at its biggest north China refinery at the end of this month, broadly in line with an earlier plan that marks the country’s first full closure of a state-run plant, four industry sources said.
– Prices of high-sulphur marine fuel at Singapore have been depressed by plentiful supplies that met with lukewarm demand, trade sources said on Wednesday.
– Oil prices held steady on Wednesday as concern around the OPEC+ groups next output increase were offset by Canadian supply pressures due to wildfires there, while global trade tensions continue to linger.
SINGAPORE CASH DEALS
One naphtha trade.
Source: Reuters