Asia’s naphtha refining profit margin extended gains on Tuesday after a fire at Novatek’s complex in the Baltic port of Ust-Luga triggered fears of tight supplies.

The crack rose to $86.98 per metric ton over Brent crude, compared with $82.30 a day earlier and the backwadation between prompt and front months narrowed sharply to 50 cents.

In tenders, Indian Oil sold 35,000 tons of naphtha loading from Chennai at a premium of about $28 per ton, market sources said.

Debris from a destroyed Ukrainian drone caused a fire at Novatek’s Ust-Luga terminal early on Sunday.

Meanwhile, the U.S. and Russian government officials discussed several energy deals on the sidelines of negotiations this month that sought to achieve peace in Ukraine, according to five sources familiar with the talks.

NEWS
– Oil prices fell on Tuesday after surging nearly 2% in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.
– India’s state-run Oil and Natural Gas Corp (ONGC) is planning to set up a trading unit for the crude and refined fuels of its group companies, a top executive at ONGC Videsh said at an industry event.

SINGAPORE CASH DEALS
One naphtha trade.
Source: Reuters