Asia’s naphtha refining profit margin declined on Tuesday after the United States and China agreed on sharp reductions to tariffs for 90 days.

The crack traded at $97.73 per metric ton over Brent crude, compared to $102.98 on Friday. Singapore markets were closed on Monday on account of a public holiday.

Traders said strong demand for gasoline will boost the need for naphtha in the blending pool, supporting margins in the near term.

A South Korean buyer snapped up five cargoes of heavy naphtha for second-half June delivery last week, market participants said.

In gasoline markets, a Taiwanese seller offered the higher 95-octane grade of gasoline, while another seller was heard offering term supplies of benchmark-grade gasoline, they added.

The gasoline refining margin was steady above $11 per barrel over Brent crude oil on Tuesday.

NEWS

– The European Union does not intend to revive its imports of Russian energy after a potential peace deal between Ukraine and Russia, the bloc’s Energy Commissioner said on Tuesday.

– Oil prices edged higher on Tuesday, with gains capped by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal.

SINGAPORE CASH DEALS

One gasoline trade.
Source: Reuters