Asia’s naphtha margins eased from four-month highs on Monday but stayed firm amid uncertainty around supplies from Russia, Iran and the United States, traders and analysts said.
The crack declined by about $7 to $110.28 per metric ton over Brent crude.
The current strength is driven by “supply-side risks,” an India-based petrochemical trader said.
“A couple of petrochemical units have been out for planned maintenance in India, so going forward, we could see some weakness,” the trader added.
Energy consultancy cut its naphtha demand forecast for Asia by about 600,000 tonnes for the first quarter of 2025 as cracker maintenance in the region commences.
“Supply from Iran, the U.S. and Russia is at risk due to trade wars and sanctions, posing an upside risk to naphtha cracks throughout 2025,” the consultancy said in its February 2025 outlook.
The gasoline crack gained about $1 to $11.07 per barrel over Brent crude after a flurry of trades at the Singapore window lifted market sentiment.
NEWS
– Oil prices were little changed on Monday, as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows.
– QatarEnergy has lowered the term price for al-Shaheen crude oil loading in April, trade sources said on Monday, from what was the highest premium in more than two years.
SINGAPORE CASH DEALS
Five gasoline deals, no naphtha trades.
Source: Reuters