Asia’s naphtha refining profit margin was steady on Tuesday amid scant trades for a third straight session, as traders remained on the sidelines due to trade tensions.
The crack traded at $78.85 per metric ton over Brent crude. The backwardation between first-half June and first-half July cargo widened to $8.50 per ton.
In tenders, a major Taiwanese producer sought liquefied petroleum gas for May delivery, while China’s Wanhua Chemical sought 50,000 tons of naphtha for the same month, market participants said.
A South Korean buyer was heard seeking June cargo for naphtha, they added.
French oil major TotalEnergies will shut its oldest steam cracker in Antwerp by end-2027, the company said, citing a “significant surplus of ethylene expected in Europe”.
In the gasoline market, the refining profit margin traded above $8 per barrel over Brent crude, compared to an average of $13 a barrel in April 2024.
NEWS
– Oil prices rose on Tuesday as investors took advantage of the previous day’s losses to cover short positions, though concerns persist over economic headwinds from tariffs and U.S. monetary policy that could dampen fuel demand.
– China National Offshore Oil Corporation has agreed a term deal to buy liquefied natural gas from Abu Dhabi National Oil Corp, the third supply contract the Middle Eastern energy exporter signed with Chinese buyers over the weekend, according to two Chinese trading sources and a state media report.
SINGAPORE CASH DEALS
One gasoline deal.
Source: Reuters
