Asia’s naphtha margins tanked 25% on Monday as concerns about China’s 34% import tariff on U.S. goods weighed on prices.

The crack plunged by $19 to about $56 per metric ton over Brent crude and the second-half May naphtha price tumbled by $55.50 to $531.50 per ton. The margin for naphtha was down 29% last week.

Analysts and traders said there are fears of consumer demand getting hit due to recession and therefore feedstock demand is at risk.

Meanwhile, Saudi Arabia, the world’s top oil exporter, on Sunday slashed crude oil prices for Asian buyers in May to their lowest in four months, following a recent shock decision by the OPEC+ oil group to speed up oil output hikes.

In gasoline market, the crack was steady at about $8 per barrel over Brent crude, although price for benchmark-grade of gasoline fell by $5 to $71.40.

NEWS

– The often overlooked yet rapidly expanding petrochemical feedstock trade between the United States and China could become one of the biggest casualties in the two giants’ escalating economic clash.
– Run rates for China’s struggling independent oil refiners have nudged up recently, but still face near-term pressure over tepid domestic fuel demand and supply risks from U.S. sanctions and tariffs, industry participants and analysts said.

SINGAPORE CASH DEALS

Three gasoline trades.
Source: Reuters