Asia’s naphtha refining profit margin was steady near two-month lows amid a quiet window activity on Thursday.
The crack traded at $70.98 per metric ton over Brent crude, while the first-half August naphtha price jumped by $8.50 to $649 a ton.
Referring to tensions in the Middle East, Asian traders said their June and July cargoes through the Strait of Hormuz are on track without any delays and broader margins are soft due to the volatility in crude benchmarks.
“We are not expecting closure of the Strait; it will be very difficult for Iran to shut it completely and it has never materialised in the past,” an India-based refining source said.
In plant news, Lotte Chemical Indonesia will restart its cracker on Friday, the company said in a letter to the governor of Banten, seen by Reuters. The cracker was shut on June 1 due to technical issues during startup.
INVENTORIES
Singapore light distillate stocks fell 720,000 barrels to a near eight-month low of 12.614 million barrels in the week to June 18, Enterprise Singapore data showed.
NEWS
– Oil prices surged on Thursday after Israel said it attacked Iranian nuclear sites in Natanz and Arak overnight and as investors grappled with fears of a broader conflict in the Middle East that could disrupt crude supplies.
– Japanese Prime Minister Shigeru Ishiba said on Thursday the government will act to mitigate any impact from a potential surge in gasoline prices due to the Middle East conflict, implementing a preventative measure starting June 26.
SINGAPORE CASH DEALS
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Source: Reuters