Asia’s naphtha refining profit margin rose on Monday after two straight sessions of losses amid weakness in crude oil prices.
The crack climbed by $3.08 to $61.13 a tonne over Brent crude and the backwardation stood at $7 per tonne.
At the Singapore window, energy trader Equinor bought 25,000 tonnes of first-half April naphtha and there were two offers for first-half March cargo.
Meanwhile, total naphtha arrivals into Asia were down by 4% to about 6.6 million tonnes in January, assessments by Refinitiv Oil Research showed.
On the demand side, sentiment has been week because at least two petrochemical operators in North Asia have extended shutdowns at their crackers “to cope with the losses”, Refinitiv Oil Research’s senior analyst Krystal Chung said in a note.
– Oil fell on Monday, giving up earlier gains, as looming interest rate hikes by major central banks and signs of strong Russian exports offset rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
– Saudi Arabia, the world’s largest oil exporter, may trim prices for crude grades sold to Asia for a fourth straight month in March, amid low physical oil premiums, as oversupply worries linger despite expectations of demand recovery in China.