Asia’s naphtha refining profit margin rose and the backwardation lingered near one-year steep levels as prompt supply remained tight, traders said.
The crack rose by $2 to $120.83 per metric ton over Brent crude. The backwardation between second-half April and second-half May naphtha price widened to $18.50 per ton from $17.25 a day earlier.
A Singapore-based official at a large petrochemical trader said currently supplies have reduced due to lower refining runs in the region, and new cracker demand has emerged from China and Indonesia at the same time.
Another trader said there are jitters in the market due to uncertainty around U.S. tariffs.
In purchases, three South Korean buyers sought April naphtha this week, and a Singaporean buyer sought 25,000 tons of the product for the same month, market participants said.
Meanwhile, Lotte Chemical Indonesia, which bought two cargoes of naphtha for second-half April, is likely to start trial runs next month, they added.
Pakistan’s PSO sought three cargoes of 55,000 tons of 92-octane gasoline each under a term contract for a period of April-June, the company said in a document. The tender closes on March 24.
NEWS
– Oil prices edged up on Wednesday, supported by a weaker dollar, but gains were capped by mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth.
– European buyers are unlikely to return to Russia’s energy sector if sanctions are lifted, as the bloc has diversified its power mix with renewable energy and alternative gas suppliers, ministers and executives said at a conference in Houston.
– U.S. crude oil and natural gas production, along with demand for natural gas and electricity, will all rise to record highs in 2025, the U.S. Energy Information Administration said on Tuesday in its Short Term Energy Outlook report.
SINGAPORE CASH DEALS
One naphtha trade.
Source: Reuters