Asia’s naphtha margin gained on Tuesday on the back of supply disruption fears from Iran due to sanctions and lower imports from Russia, traders and analysts said.
The crack rose by $1.60 to $112.55 per metric tonne over Brent crude and the backwardation between first-half April and first-half May widened by 50 cents to $9.50 per tonne.
South Korean buyers surfaced in the market for April naphtha, market participants said.
Meanwhile, western arbitrage cargoes to Asia fell to a 33-month low of 958,000 tonnes for the week closing February 21, with Russian-origin shipments sinking to a one-year low of 484,000 tonnes, according to vessels tracked by LSEG Oil Research.
NEWS
– Oil prices rose for a second day as fresh U.S. sanctions imposed on Middle Eastern producer Iran increased concerns supply might tighten and as global refining margins remained strong.
– BP’s chief executive will scrap a target to increase renewable generation 20-fold by 2030, returning the focus to fossil fuels, as part of a strategy shift announced on Wednesday to tackle investor concerns over earnings, two sources told Reuters.
SINGAPORE CASH DEALS
One naphtha trade.
Source: Reuters