Asia’s naphtha markets were thinly discussed in comparison with the previous trading against a backdrop of slightly mixed trading sentiment and supply-demand drivers, though margins rebounded.

Cracking margins for the petrochemical feedstock (NAF-SIN-CRK) clawed back some losses from the previous session, closing at $99 per metric ton given the plunge in crude prices, though spot discussions levels for June were at status quo.

Spot discussion levels for physical cargoes were still hovering around premiums of $10 per ton or below for June cargoes, multiple trade sources said, with yesterday’s deal levels done at around $8 per ton.

Levels are still being supported given limited supplies from the west and swing suppliers amid a closed west-east arbitrage, though demand remains lukewarm, one regional trader said.

However, expectations on China’s import demand were mixed, given some maintenance expected at a major Dalian cracker soon, a second source said.

For gasoline, trading activity on the window was scant, but refining margins (GL92-SIN-CRK) recovered slightly to around $10 a barrel.

Uncertainties on regional supply-demand balances were still evident, one trade source said, though near-term support from the West could be a positive drive.

Some delivery deferments regionally from one key southeast Asian buyer also weighed on demand fundamentals in the near term, a second source said.

Meanwhile, in markets farther away, a key African refinery continued to sell feedstock cargoes, sparking concerns about their gasoline unit run rates at the moment.

NEWS

– OPEC on Wednesday trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year and said it expected lower capital spending following a decline in oil prices.

– South Korean petrochemical feedstocks company YNCC is considering investments to retool existing facilities to increase its ethane cracking capabilities, the company’s chief executive officer told Reuters.

– Japanese oil companies are scaling back decarbonisation initiatives, including hydrogen and ammonia projects, amid a global shift towards more stable and cost-effective fossil fuels.

SINGAPORE CASH DEALS

– No deals for both fuels
Source: Reuters