Asia’s naphtha refining profit margin hovered near five-month highs on Thursday as supply tightness supported prices but traders and analysts expected demand to remain weak as regional crackers enter maintenance season from March onwards.

The crack was steady at about $120 per metric ton over Brent crude and the backwardation continued to widen for a third straight day by 50 cents to $12.50 per ton.

In purchases, Japan’s AMEC and South Korea’s KPIC were heard seeking 25,000 tons of naphtha each for April, market participants said.

Pakistan’s PSO sought benchmark grade of gasoline for delivery during April 5-13 on a cost and freight basis, the company said in a tender document. The tender closes on March 4.

INVENTORIES

Singapore inventories of light distillates rose by 149,00 barrels to over 21-month high of 16.524 million barrels in the week to February 26, Enterprise Singapore data showed.

NEWS

– Russian naphtha flows to Asia plummeted to a one-year low in February following fresh drone attacks on Russian refining infrastructure, boosting prices for the plastic raw material in the east, traders and analysts said.
Source: Reuters