Asia’s naphtha margin declined on Wednesday after prices of the product increased in tandem with a rise in crude oil benchmarks but traders remained worried about supplies from Russia and Iran over sanction risks.

The crack fell by $6.67 to $103.33 per metric tonne over Brent crude. The refining profit for naphtha in Asia has traded above $100 for last six trading days.

In spot purchases, Indian oil offered 105,000 tonnes of naphtha for March and China’s CSPC sought 80,000 tonnes of the product for April, market participants said.

South Korean LG Chem and Japan Mitsui Chemicals were also heard seeking March and April supplies respectively, they said.

In gasoline markets, the margin was largely steady near $11 per barrel over Brent crude.

NEWS

– Oil prices edged up amid worries of oil supply disruptions in the U.S. and Russia, and as markets awaited clarity on the Ukraine peace talks.
– London-listed global commodity trader and miner Glencore traded more oil in 2024 than in the previous year, preliminary results showed, but its earnings from trading energy products fell.

– Chinese refiners have stepped up purchases of Brazilian and West African crude as they reorganise sourcing around sanctions and tariff disruptions, and after prices of Middle Eastern grades surged.

SINGAPORE CASH DEALS

One naphtha trade and one gasoline deal.
Source: Reuters